So your business is up and running. You have invested money , spent much personal time, executed your business plan . All seems to be going fairly well . Now your focus is more on what to do to guarantee success and to make your business profitable and sustainable .
Here are 2 words that might jump at you - fiscal discipline. Fiscal discipline or money management is crucial for survival in a competitive business environment.
Her are four simple tips to good fiscal discipline.
1. Differentiate between personal expenses and business expenses.- assess your revenues clearly and try not to overspend.
2.Manage your accounts with care . There are good and easy to use accounting software solutions available that will allow you to manage invoice and track income and expenses in real time.
3.Stay abreast of supplier information - review for competitive prices and “best value”.
4.Manage debt- Availing credit can be helpful in a tight situation, but do have a methodical plan to reduce debt sooner rather than later . Opt for loans that have flexible repayment terms and lower interest rates.
Building and adapting a culture of fiscal discipline is critical to building a strong SME culture and to your ultimate survival as a small business and especially in a more restrictive post-Covid environment.
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