By Livingstone Mukasa
1. Do not get your business finances confused with your personal finances. Once you decide to start a business the capital you invest is no longer yours, it belongs to the biz. Don’t be a “Seed Eater”.
2. Your business needs cash to operate – if as the owner, you decide to take some of the wealth out of the business, only take money out of profits, never out of the business’s operating funds. This helps you to manage cashflow better.
3. Your customers are the only reason your business survives – treat them with respect and care. Its only the customer that can fire everybody, including the business owner by simply taking their business elsewhere.
4. Treat your employees with respect. They do not deserve to be in poverty; pay them as you would wish to be paid. Empathy is an important attribute in business. I have seen biz that can only work/survive by paying their workers peanuts. That’s not a biz I want to be in.
5. Keep your ‘process flows’ and your plans updated to reflect all that you are currently doing and intending to do. This how you future proof your business and deliver consistent quality. Its also how you compete.
6. Keep your financial record up to date at all times – if you do not know whether you are making a profit, then it is likely that you soon won’t be in business.
7. Always use some of yr profits to find ways to improve your biz & to find new ways to attract more customers. However you need to keep a tab on how well you are utilizing your capital. At some point you may need to diversify if more capital won’t increase productivity.
The writer is a business and financial advisor with over 20 years of experience and can be reached via email: livinbusiness@gmail.com
