Facebook Feed

  • Khamas form People’s Patriotic PartyJune 1, 2023
    BAKANG TIRO editors@thepatriot.co.bw A faction within Botswana Patriotic Front (BPF) aligned to the Khama family is hitting the ground running finalizing formation of a splinter party likely to be led by former MP for Palapye Moiseraele Goya. The Patriot […]
  • Battle for Mhlauli’s multi-millionsJune 1, 2023
    STAFF WRITERS editors@thepatriot.co.bw Three years after the passing of former permanent secretary in the ministry of local government, lands and housing  Elvidge Gaedupe Makhunga Mhlauli, his estate remains unsettled due to dispute between  creditors, beneficiaries and lawyers appointed for […]
  • ‘Women poised to dominate mining in future’- Experts June 1, 2023
    ‘Companies ought to break the barriers for women for them to rise to the top in the sector. Companies need objective quotas in place to give them power. They are the future of mining’- Dr Somolekae BAKANG TIRO editors@thepatriot.co.bw […]
  • PUBLIC TENDER NOTICE: Botswana Unified Revenue Service (BURS)May 31, 2023
    1. THE PROVISION OF BIG DATA IMPLEMENTATION AND DATA ANALYTICS FOR 18 MONTHSTender Closing: 16th June 2023 2. SUPPLIES PROCUREMENT OF CISCO COMMUNICATION AND COLLABORATION EQUIPMENTTender Closing: 16th June 2023 3. PHYSICAL BURS ASSET VERIFICATION, TAGGING AND RECONCILIATION OF […]
  • Vacancy: Choppies Distribution Centre.Pty.LtdMay 31, 2023
    FINANCIAL SERVICES­ – OPERATIONS MANAGER Closing Date: 15th June 2023
  • About Us
  • Advertise
  • Disclaimer
  • Contact Us
  • Login
  • Register
Sunday, June 4, 2023
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

FirstCred: Investing in Growth of Small Enterprises

patriot by patriot
August 5, 2021
in Business
235 17
0
FirstCred: Investing in Growth of Small Enterprises

BATSALELWANG

491
SHARES
1.4k
VIEWS
ShareShareShare

Prudent financial management key to growth

Small businesses increasing at rapid pace

AMBROSE BATSALELWANG*

According to the World Bank, In the year 2016, the number of new businesses registered in Botswana was reported to be at 26,613. This number has been steadily rising ever since. Batswana are becoming more entrepreneurial and more business inclined. This is against the backdrop of inflation, low minimum wage, the COVID-19 pandemic and a desire to attain a better standard of living. This makes it more critical to know the fundamentals of forming and running a business. The financial experts at FirstCred emphasize the importance of financial management in every stage of a business’s development.

Financial decisions that are taken in the early days of your business are critical. The conception stage is the most crucial because it sets the pace and trajectory for where your business will go and how successful it will become. Mostly, the success of the business can be mirrored on the principles applied by the individual; the thirstier and more principled an individual is, the better their chances of attaining business success.

There are four stages in the development of a start-up – these are pre-start-ups, start-ups, small businesses and small to medium sized businesses. Each stage is distinct and requires the business owners to consider distinct questions and ways to manage their finances and the way you manage your personal finances gives you more ammunition to manage business finances well.

The pre-start-up phase which is also known as the idea stage needs the owner to consider the following questions: Are your motivations in the right place? Have you formulated a business plan and financial projections? Have you consulted the relevant experts (lawyers, accountants etc.)? Is the business plan coupled with a marketing plan? Sufficient research should be conducted on the field that any business owners desire to venture into and this research should produce a business plan that is created under the guidance of an expert. No business plan is complete without financial forecast. This determines the viability and profitability of the business.

Managing the first stage successfully leads to stage two, the start-up phase otherwise referred to as the seed stage. This stage is the implementation stage of the business plan. The questions entrepreneurs ought to ask themselves are how they will manage their daily cash flow. Have you defined their organizational structure? What financial aids are available to your business? How are you keeping the costs of the business at a minimum? Managing cash in-flow and cash outflow is critical in helping the business stay afloat and maximizing on profit by keeping expenses low. Furthermore, a reliable workforce can either build a business or tear it down to smithereens. Cash management is vital. Doing this well will make a company look attractive to potential investors and this will make acquiring financial relief much easier.

Successively, the small business stage or the early stage follows. At this point, the business has surpassed the “start-up” phase and the entrepreneur has to ask themselves the subsequent key questions:  Do their financial projections and business plan include this phase of the business development? Is cashflow being captured? Is there an accountant in the business who makes follow-ups with payments and is there a plan in case of late payments? Is your reported performance in alignment with the budget outlined for expenditures? At this stage of growth, it is critical to have a professional accountant managing the company’s books. Consistent management accounts should be conducted and given to credit rating agencies.

When the business grows beyond small business, it becomes a small to medium sized business (growth stage). Here entrepreneurs have to consider whether their resident accountants are overseen by a suitably qualified finance manager. Are they holding consistent meetings with the finance manager and stakeholders to review the business plan? Do they need to explore alternate revenue streams? Are the risks the business may face being considered and addressed? Stakeholders will need regular audits for assurance of their investments and business’ performance.

The benefits of acquiring expert advice when starting your business is that they offer tailormade support that is based off of years of expertise, qualifications and experience. These advisory firms can aid at every stage of your business’s development therefore enhancing your chances for maximum advancement.

Starting a business requires the right mindset. It is not a get-rich-quick scheme, or a bases to square-off on a high net salary in comparison to friends or enemies but it should rather be formulated to create a long-lasting legacy.

*FirstCred Chief Operations Officer

Related

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
  • Khamas form People’s Patriotic PartyJune 1, 2023
    BAKANG TIRO editors@thepatriot.co.bw A faction within Botswana Patriotic Front (BPF) aligned to the Khama family is hitting the ground running finalizing formation of a splinter party likely to be led by former MP for Palapye Moiseraele Goya. The Patriot […]
  • Battle for Mhlauli’s multi-millionsJune 1, 2023
    STAFF WRITERS editors@thepatriot.co.bw Three years after the passing of former permanent secretary in the ministry of local government, lands and housing  Elvidge Gaedupe Makhunga Mhlauli, his estate remains unsettled due to dispute between  creditors, beneficiaries and lawyers appointed for […]
  • ‘Women poised to dominate mining in future’- Experts June 1, 2023
    ‘Companies ought to break the barriers for women for them to rise to the top in the sector. Companies need objective quotas in place to give them power. They are the future of mining’- Dr Somolekae BAKANG TIRO editors@thepatriot.co.bw […]
  • PUBLIC TENDER NOTICE: Botswana Unified Revenue Service (BURS)May 31, 2023
    1. THE PROVISION OF BIG DATA IMPLEMENTATION AND DATA ANALYTICS FOR 18 MONTHSTender Closing: 16th June 2023 2. SUPPLIES PROCUREMENT OF CISCO COMMUNICATION AND COLLABORATION EQUIPMENTTender Closing: 16th June 2023 3. PHYSICAL BURS ASSET VERIFICATION, TAGGING AND RECONCILIATION OF […]
  • Vacancy: Choppies Distribution Centre.Pty.LtdMay 31, 2023
    FINANCIAL SERVICES­ – OPERATIONS MANAGER Closing Date: 15th June 2023
The Patriot On Sunday

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?