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Ghanaians must adapt to new building technologies – Real Estate Association

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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. It also signals to lenders, partners, and customers that your business is prepared and resilient. 7. Separate Business and Personal Finances It may be tempting to treat your business account as your personal wallet, especially in the early stages. However, failing to separate your business and personal finances can lead to confusion, tax problems, and credibility issues. As a business owner, you should pay yourself a fixed salary. Avoid withdrawing funds at random or covering personal expenses with business income. If you invest personal funds in the business, document it properly as a loan or equity contribution. Keeping your finances separate helps you maintain clear records, assess business performance accurately, and present your enterprise in a more professional light to partners, banks, and regulators. At Absa Bank, we believe that strong financial habits form the backbone of every successful enterprise. 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Ghanaians must adapt to new building technologies – Real Estate Association

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Ghanaians must adapt to new building technologies – Real Estate Association
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Although there are lots of innovative building technologies out there, the Ghanaian populace have been described as being slow in adapting and skeptical of these revolutionary building technologies.

The Real Estate Developers Association of Ghana believes the refusal of Ghanaians to adapt to new building technologies have become a problem for their members.

Speaking on the increase in prices of construction materials in the country, the Executive Secretary of the Association, Sammy Amegayibor stated, “There are lots of technologies used for building. We have the prefabricated and steel buildings and a host of others. But one problem we face is that our citizens are slow in adapting to new technologies and this has become a problem for estate developers.”

According to him, various samples of these affordable buildings have been constructed but patronage is low. “The potential house owner sees and touches them only to tell you the buildings are hollow and weak.”

In an interview with Samuel Eshun on the Happy Morning Show aired on e.TV Ghana and HappyFM, Sammy Amegayibor charged Ghanaians to understand that buildings made from alternate technology are safe. He believes in the importance of public education on tried and tested building technologies used elsewhere and their adaptability in Ghana “and this can help reduce our problem of high cost in construction materials.”

With environmental protection at heart, he motioned that the adaptation of these new building technologies will reduce the incidence of deforestation. “It is high time for a high level of education in the area of technology for constructing buildings.”

The concerned businessman also encouraged the local construction manufacturing industry to try and be self-sufficient. “Averagely we import 70 percent of the components we use in manufacturing these construction materials. It is high time we start developing most of the building materials and components needed for their production locally. That is what we need to start looking at for the long term.”

The construction industry in Ghana has seen an exponential rise in the cost of building materials over the past few months and this has raised concerns in the country.

Ghana’s Vice President, Dr. Mahamudu Bawumia however has blamed the 650% hike in shipping cost from Asia for rising cost of building materials.

Background

Addressing members of the construction industry on Friday, September 10, at the maiden edition of Ghana Construction Industry Excellence Awards, Dr. Bawumia, while commending the immense contribution of Ghanaian contractors to the development of the country, also highlighted the devastating impact global factors arising out of the covid-19 pandemic has had on their operations, especially cost of construction materials .

The Vice President, however, added that despite the remarkable economic management ike the general economy, the growth of the construction industry has been severely impacted by the globally-hit Covid-19 pandemic, with global factors affecting prices of materials such as iron rods and cement locally.

“The growth and vibrancy of the construction industry depends on the growth and vibrancy of the economy as a whole. This is why economic management is key, the economic indicators of our first term in office tells a story of competent economic management. However, the world has suffered a global recession; in fact it is the worst global recession since 1945, as a result of Covid-19, which hit us high in 2020.”

“Throughout the world, prices of goods have shot up. Shipping cost of container, from China to Europe have increased from around $2000 Dollars in August last year, to $13,000 Dollars now per container – 650% increase. You also have major good that have gone up as a result of Covid and all of you in the construction industry know that the world prices for cement and for iron rods have really shot up. So when we see same things happening in Ghana, we know why it is happening. It is a global phenomenon as a result of the pandemic.”

Dr. Bawumia assured the contractors that just as government prudently managed the economy prior to Covid-19 devastating it, government is on course to manage the impact of Covid on the economy and local industries, including the construction sector.

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