Financial Strategies to Help Grow Your Business as an Entrepreneur

Wednesday, October 07, 2020 / 09:00AM / By FCMB / Header Image Credit: Pixabay

Access tofinance has been one of the major challenges continuously mentioned by micro,small and medium scale entrepreneurs. However, building a successful businessdoesnâ€™t necessarily mean pumping in fresh capital every time, rather it isabout being intentional about how the financial and human resources availableto you are properly managed.

Beyondsourcing for loan, credits and other financing options, here is are threestrategies you should consider in order to help your business grow and alsoattract funders like FCMB. To read seven more strategies discussed on theBusiness Zone Click HERE

1. Separateyour Business Accounts from your Personal Accounts

Many smallbusiness owners often make the mistake of mixing their personal funds withtheir business funds. This is often because most businesses started as a sidehustle and the document required to set up a corporate account such as acertificate of incorporation is unavailable.

As anentrepreneur seeking business growth, it is important to separate your businessaccount from your personal accounts. With this, you can better ascertain howmuch you earn within a period and the expenses incurred. In addition, it wouldbe helpful at the point of seeking funds from lenders who often request forbank statements to project your cash flow and determine your capability to payback.

2. Have a Budget

Budgets areessential tools that enable individuals, businesses and governments plan aheadin order to avoid financial problems. With a budget, you can project yourearnings and expenses accordingly and make more informed decisions about how tomove your business forward, while avoiding frivolous spending

Forinstance, if you know the limit you should spend on marketing is a certainamount, you will be able to strategically determine the best marketing channelsor tools needed to drive sales. Similarly, variations between your budget andactuals gives you insight into what you did or can do differently to boost yourfinancial position.

3.Explore Barter Opportunities

Bartering isone of the oldest forms of doing business and it can still be explored today.It is simply the exchange of goods and services between businesses withoutmonetary consideration. For instance, you can offer your professional expertiseas an accountant in return for advertising opportunities on a media platform.Similarly, if you are a fashion designer, you can make wears for a brandinfluencer in return for a mention or promotion of your brand.

Mostimportantly, ensure that what you are offering is equal or of great value towhat you are requesting, while your proposed business partner is also willingto explore such opportunity. You should also ensure you properly account forthe services rendered and received, as they would also form part of yourfinancial records.

Kindly clickHEREto read more.