Life as a small business owner and entrepreneur is difficult, and one of the toughest challenges to face is cash flow. As Forbes Africa note, finances are one of the main reasons businesses fail. Making the most of your opportunity and creating success for yourself can be helped along by looking to save an extra penny at every opportunity.
Saving the change
How much money might you waste on a day to day basis? Kenyans may waste a little every time they forget their bag when they go shopping, and the same goes in South Africa. Others might waste money on coffee when they could take it at home or at the office. Instead of wasting money on sundry items, make a commitment to save a little bit of change every week. Various apps are now built on this basis, turning spare change into savings or investments and are finding decent success for this very reason. Try and turn your loose change into something tangible.
Learn about tax
Knowing how tax law works in your country and what you are entitled to is important to helping business cash flow. Countries across the world have businesses losing out on tax rebates; for instance, UK website Tax Journal estimate UK based small businesses are losing up to 84 billion pounds in unclaimed taxes every year. Make sure you know what the rules are in your country and what you can claim for – you may be pleasantly surprised by the results. On the flip side, this also prevents you from making errors that could prove costly in the long run.
Re-assess all of your costs
Look at where your business is up to right now. How much of your equipment, assets or property is needed? As Africa.com note, many businesses don’t actually need premises. Why not run it from the ever-expanding cloud? If you use paper and printing, why? See if you can reduce your costs, there, too. Apply this type of diligence across your business and constantly assess where you can make savings.
A small business can prosper or fail according to its finances. As an entrepreneur, work hard every day and scrimp and save where you can. Putting this attitude into your day-to-day activities will help you to find the extra bit of currency where you need, and make your business more resilient.
