Small African Business Network

At the beginning of #2020, many had set for their . Sadly, struck and a lot of were forced into the corner. If you are one of such businesses or you were able to pivot and keep your business afloat, today’s post is on how to manage your especially during the .
To help your business increase its cash flow, we’ll be sharing three important principles you should follow:
i. Reduce costs as much as possible. If you’re a small business owner, we are sure that rethinking your business finances was probably one of the first things you did even the pandemic struck. For example, can you find an alternative, less expensive ways to deliver your products to your customers? Or do you have to cut off air conditioning and make do with fans? It’s important that you audit your and downsize where necessary to prevent negative cash flow.
ii. Prioritize generating cash over making a profit. Profit is total sales minus the total cost of producing those goods (your variable costs). Profit doesn’t equal positive cash flow and, remember, what you need right now is cash.
iii. Empower your team. As a business owner, now is not the time to hide in your office—or behind your laptop screen at home. It’s time to step up and lead—by empowering your employees to step up as well. How can you achieve this? Be transparent about your real business metrics and what you need to achieve. If you are open about what needs to happen to keep the business afloat—and about your cash flow goals, in particular—you communicate how much you respect and trust your employees, and you empower them to work together to address those goals.
To give yourself the best chance of surviving COVID-19, stay optimistic and focused, be clear about your business goals, have a financial plan in place and don’t take your eyes off that all-important cash flow. You’ve got this!
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Business is Value. Money Follows Value.

How do you define value? Can you measure it? How do you value a business? These are some of the questions we ask who come to us for consultation either before setting up their businesses or for expansion reasons.
For starters, are your products and services actually worth to customers? Does your business solve their pain points? And while solving the pain points of its customers, is your business making money? Is it generating employment?
While you don’t have to hire tons of people like the big boys do; but from the you hire, the DM closer, the assistant or receptionist, the delivery man, the office staff or employee (s), the cleaner, the gateman, the mechanic who repairs your delivery truck or bikes – what you’ve done is to create employment – and that also is value!
Listen! As earlier said, is your making money? While it’s okay to follow your passion and turn what you love doing into a business, that business must be making money also. Your business must have value. And apart from the other good things that setting a small business does for you and the economy, the major rule you should follow and always remember is the of your business.
So, does your business have value? The truth is money only follows financial value. If you are currently stuck with making progress with your business and want to see a positive transformation, send us a DM today.