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Hope and opportunity! How in the midst of all the chaos you can locate opportunity and be on the road to making some good money

Hope and opportunity! How in the midst of all the chaos you can locate opportunity and be on the road to making some good money

July 16, 2020
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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. Our commitment is to walk with our clients and customers at each stage of their journey, providing guidance, tools, and solutions that help SMEs grow sustainably and with purpose.

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Hope and opportunity! How in the midst of all the chaos you can locate opportunity and be on the road to making some good money

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Hope and opportunity! How in the midst of all the chaos you can locate opportunity and be on the road to making some good money
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The rules of writing would usually suggest that I write in a certain genre but we are not in normal times so would like to be a little all over the place with this one.

It has been a tough year; I thought I had at least the next two years of my life all planned. I got my masters, got an internship opportunity into a great company and thought my life was about to take a smooth turn. Like many of us, I was so excited to enter the New Year.

January was not bad at all, February too but then we entered March and for a while, we thought the chaos was not close so we relaxed.

We locked down due to the Corona Virus, people started working from home, some had their pay cut, and others lost their jobs. For me, the dream of working in an amiable and stable working environment was lost.

As sharp as I was, I put all my eggs in one basket knowing it was reckless of me to do so.

Fast forward, it has been weeks and all my plans seem to have fallen through. I have taken up jogging to help me keep sane. I have thought of several ways to make money but it all feels like the usual Ghanaian “do what’s trending” line of thinking. The truth is I was disappointed that things were not happening the way I had planned.

I have no savings, very little income and refuse to ask my parents for money. I almost gave in to my vices.

However, in the early hours of last Saturday, my mother called and she had these words of wisdom for me:

“No matter how much you feel you’ve failed, just start again, No matter how much you feel all is lost just find a problem and work at a solution for it”

I realized then that I had lost sight of the things that I ought to have focused on, that the first step to finding hope and opportunity was my MINDSET. The key to finding hope and opportunity is deciding not to dwell and focus on your situation but finding the next avenue to enable you chase your goals amid loss and misfortune. .

As far as there is breath, problems would arise and people would be looking out for people to help

solve those problems. Be that problem solver.

The truth is, we are all paid and promoted at our various jobs based on how well we can solve a problem. In the midst of this pandemic think of how you can solve a problem. Find hope in the thought that there is always going to be a problem and you can be or help provide the solution for it. That is not just to say that think in the pattern of “there is an answer” but “what the answer is”. Finding the right solution takes patience and experimenting, you need to decide that you are going to find the best answer. In finding the right solution, I would advice you take up some free online programs. This is not just to sharpen your already acquired knowledge on some particular subjects but it could also help you identify an interest in other disciplines.

I recently had a conversation with an event planner and coordinator that illustrated how important it was for one to cultivate this mindset. She mentioned that due to the pandemic, business has been slow. However, she had realized that most people have been indoors for so long that they wanted a change in scenery so she decided to offer interior décor services to her clients.

The advice is not just to think outside the box, to standout you must think both inside and outside the box.

By thinking both inside and outside the box, you are able to not only find a way but also strategize to make what is already being done better. It also involves being one-step ahead of what’s trending. Most of us have ventured into either delivery services, food or the sales of Covid-19 PPEs during this pandemic. My question here is what next? Yes, this is going to be the new normal for a while but just as every other trendy thing, there is going to be a permanent solution to this pandemic. Be it a vaccine or immunization of some sort. Question is, what happens to your business then?

I am sure the plan is to move on to the next trendy thing, which could work. However, imagine how much more you would make if you were always ahead of the trend. Think of what people would need or want to do after this settles. Vacation Travel for instance could be one of the next big things.

No matter how big the picture is, makes sure you have it together in a realistic well-organized set of steps.

I do not have it all figured out yet, I am still penning down how to achieve my big picture. How I can take daily realistic steps to achieving my goal? By having a plan of action to execute these daily steps, it is easier to see things in a holistic manner, evaluate the necessary directions to take and invariably make the necessary adjustments as the need arises.

Always remember, the goal is not to wait to see the light at the end of the tunnel, but to find the

spark within and light up that tunnel.

By: Joshua Robert.

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