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Running a small business is demanding. Each day presents challenges that can affect your cash flow, your customers, and your ability to grow. Amid these demands, it is easy to lose sight of long-term financial priorities. However, businesses that last are not only those with good products or strong customer service. They are often the ones with better financial habits. This article outlines seven essential points that will help SMEs manage their finances more effectively, reduce risk, and plan for growth. 1. Start with a Clear Financial Plan A good financial plan gives direction to your business. It helps you set targets, allocate resources, and make informed decisions. Start by defining your financial goals. These should be SMART - specific, measurable, actionable, realistic, and tied to timelines. For example, you should determine how much revenue you need each month, what level of production or service delivery is required to meet that target, and how you intend to achieve it. Once your targets are clear, you will need a working budget. A good budget helps you monitor income and expenses, manage cash flow, and ensure that your business remains on track. It also provides a basis for deciding what to prioritise and what to postpone. At its best, your financial plan should help you answer key operational questions such as what resources are required to operate or grow, where those resources will come from, what they will cost, and whether your business is in a position to take them on. Planning in this way reduces uncertainty and allows you to run your business with greater clarity and confidence. 2. Maintain Accurate Financial Records Accurate financial records are essential for any business. Whether you are managing day-to-day operations, planning for future growth, or applying for funding, clear and reliable financial information allows you to make sound decisions. Many small businesses struggle in this area due to time constraints, limited expertise, or a lack of systems. However, proper record-keeping should never be overlooked. It supports internal decision-making, strengthens external credibility, and improves your ability to respond to opportunities or risks. Business owners can start by gaining basic knowledge of accounting principles and tools. Training employees in simple record-keeping practices also helps to build internal capacity. In some cases, it may be worthwhile to engage professionals who can help you put the right systems in place and prepare essential reports at a cost that makes sense for your business. 3. Choose a Banking Partner Aligned with Your Goals The right banking relationship can make a real difference to your business. A bank like Absa Bank is more than a place to keep your funds. It is a partner that can support your operations, guide your financial planning, and help you take advantage of growth opportunities. Begin by understanding your business needs. These might include working capital support, payments and collections services, or trade finance. Once your needs are clear, assess whether your bank offers the right mix of services, accessibility, and expertise. Your banking partner should make it easier to run your business, not harder. They should share your ambition to grow, be responsive to your concerns, and provide solutions that are tailored to the stage your business is in. A strong banking relationship will give you confidence and peace of mind as you build your enterprise. 4. Deploy Effective Payment Solutions Revenue is the foundation of every business and the way you go about collecting it is key. In today’s economy, customers expect fast, simple, and secure payment options. If your business only accepts cash, you may be turning away potential sales without realising it. Providing customers with flexible payment options is no longer a luxury. It is a necessity for growth and long-term relevance in a digital economy. Offer customers alternatives such as instant bank transfers, mobile money, card payments through point-of-sale devices, or more innovative solutions like Absa Mobi Tap to improve your customer experience and increase your reach. These methods reduce delays, enhance transaction security, and demonstrate professionalism. 5. Meet Statutory Obligations Promptly Every business has legal and regulatory responsibilities. These include filing and paying taxes, submitting Social Security and National Insurance Trust contributions, and meeting other sector-specific requirements. Complying with these obligations on time helps you avoid penalties and disruptions. It also builds your business’s reputation and improves your standing with financial institutions and regulators. To stay compliant, you should adopt a legal structure that suits your business model and goals. You may also wish to seek legal or tax advice at key points in your journey. Planning ahead for obligations such as annual tax payments or quarterly filings ensures that you are not caught off guard. Meeting your statutory responsibilities consistently is a mark of a well-run business. 6. Manage Your Risks Running any business involves risk. These risks may include delayed payments from customers, unexpected costs, economic downturns, or even natural disasters. For small businesses operating with limited resources, such events can be difficult to absorb. This is why risk management must be part of your financial routine. Start by identifying the main risks that could affect your business. Put in place basic measures to protect your operations. This could mean setting aside emergency reserves, purchasing insurance, or diversifying your income streams. Being proactive about risk does not eliminate uncertainty, but it helps you stay in control when challenges arise. 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Agenda 111: Gov’t awarded contracts without our knowledge – Local contractors

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Agenda 111: Gov't awarded contracts without our knowledge – Local contractors

Agenda 111: Gov't awarded contracts without our knowledge – Local contractors

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National President of the Association of Building and Civil Engineering Contractors of Ghana, Prosper Yao Ledi has charged the government to end the unwritten policy of “political parties coming to power with their own contractors.”

To him, such behavior affects the construction industry which is key in nation-building. “It looks like in this country all the political parties come to power with their own contractors which should not be the case. Aside from training and education, the capacity of local contractors can be built from the contracts they execute.”

READ MORE: Holy Kiss: One of three females is a married woman – Africa Education Watch reveals

On his accord, the various political parties in the country are using the job of contractors and engineers as political tools and “this affects the work of the actual professionals in the industry,” he told Samuel Eshun on the Happy Morning Show.

He revealed, “Anytime a political party comes to power, its members register to become contractors and that is wrong. We are building a nation and we cannot sit down and watch each political party come to power with its own staff. Can we have teachers, nurses and soldiers being changed every 4 years?”

READ MORE: Mahama lists projects abandoned by government

Prosper Yao Ledi indicated that professional contractors are a constant in the country’s architecture compared to political ones.

Reacting to the Agenda111 project which the President cut sod for, he mentioned that there has not been any tendering or bidding advertisement in the dailies, “but we hear these contracts have already been given out and this is something the association is questioning. As indigenous contractors we have not seen any qualification or tendering process but because the government assured us of these contracts, we will patiently wait.”

The government has cut sod for the construction of hospitals under the “Agenda 111 project” on Tuesday, August 17, 2021.

The entire project includes 111 district hospitals, seven new regional hospitals, two additional mental health hospitals to be located in the middle and southern belts, and the redevelopment of the Accra Psychiatric Hospital.

READ MORE: Agenda 111: Project cannot be completed in 18 months – Benjamin Nsiah

President Nana Addo Dankwa Akufo-Addo first announced the project in April 2020 during his eighth update on COVID-19.

Presenting the 2021 mid-year budget review in Parliament on Thursday, July 29, 2021, the Minister of Finance, Mr Ken Ofori-Atta, also disclosed that the government had decided to execute the initiative in two phases, with the first phase being the processes completed.

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The second phase, he said, was the actual construction of 88 district hospitals.

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