Posted on: 24th Jan 2019
Nobody takes on risks like the entrepreneur and this is no easy feat. They bear the whole burden of the business and their responsibilities are usually through the roof. They are typically owners of Small Medium Enterprises (SMEs) and this puts them in a precarious position where they have to provide, secure and grow their business and most likely on their own. To do this, they need to imbibe the constant habit of saving otherwise they are in for a very short time in business.
There are different ways entrepreneurs or small business owners can save up cash that will eventually aid the growth and sustenance of their businesses. No one expects SMEs to churn out multi-millions in profit like huge companies and other long-standing corporate entities (at least not immediately). Therefore, whatever little an entrepreneur is able to save counts as something and will go a long way in storing up for the future of the business.
Some of the saving tactics entrepreneurs and SMEs can employ in their places of business are as follow;
There are avoidable and completely unnecessary debts that your business shouldn’t have to deal with in the first place. Make sure to spot these debts beforehand so as to avoid wasteful spending.
Debts owing to bills from the use of certain facilities or services that your business can do without, should be either capped, minimized or completely scrapped. You need to evaluate your expenses and purge your business of whatever excesses that exist.
In a bid to save money as an SME, the last thing you want to happen is for you to lose money. In line with this school of thought, it would make a lot of sense to avoid losing money (thereby saving money) by taking on some legal cover.
Yes! You need an attorney and it will serve you well to hire one. He or she will help you make informed decisions in your business. This is an effective way not to lose the money you’re trying so desperately to save. Having legal cover ensures your business is not left wide open to lawsuits or business moves that will jeopardize the finances of your business and the business in general.
As mentioned earlier, we are not expecting SMEs and their owners to cough out millions upon millions as profit. However, we also did mention that whatever little you’re able to save will go a long way and we meant it.
The African Alliance Esusu Plan was created for such instances. It is a plan that allows entrepreneurs and small business owners to make monthly deposits for a period of 1 year before cashing out their total money deposited along with the accrued interest. It is an incredible way to save, as with a minimum of 5,000 naira an entrepreneur can begin monthly contributions. And at the end of the year, you get to retrieve all your contributions with the generated interest. You also get a life cover under this plan.
For entrepreneurs and SMEs to thrive, they must seek out and employ these saving tactics. For such a delicate thing in business such as saving money, you want to be intentional when making use of these steps to save. Make sure it matches the pace at which your business makes a profit and any other specifics peculiar to your business.