For many businesses, specifically in the manufacturing and distribution industry, companies such as manufacturing and distribution, inventory represents a large, if not the largest, portion of their assets. Therefore, it is important that management understands how to effectively manage their inventory. In this article,we will learn the importance of a good inventory management system. Inventory refers to goods that are…
Most small business owners are fully aware of the standard business costs like office rent, marketing, payroll, etc but it is the hidden or unexpected costs that hit hardest. It’s about time you stopped playing hide and seek with these costs and got your cost- control game on. Here’s what you need to be on the guard for: Time Your…
There are two ways that a business can account for its transactions: manually through the use of notebooks/exercise books or electronically through the use of accounting software. Each of these has its merits and demerits. However, the benefits the use of accounting software comes with is invaluable and far surpasses the manual approach. In this piece, I take you through…
Obtaining funding for your small business The survival of every business depends on the availability of funds and the efficient management of the funds. Proper management of capital propels a business to grow and that might in turn require additional funding for the continued growth of the business. Financing business is securing capital for business operation, and finding sources of…
Effective financial record-keeping is essential for business survival and growth. It entails planning, organizing, controlling and monitoring your financial data to achieve the ultimate business objective. Most small and medium business owners often neglect to follow through religiously, this sometimes may be due to either not having full knowledge of keeping appropriate records or having a hard time doing so.…
Continuous availability of financial resources, especially cash is key to the survival of every business, including yours. George S. Clason, in his book, “The Richest Man In Babylon” notes that money is plentiful for those who understand the simple laws that govern its acquisition. One such law is what I call the law of safe investment. As a business, you…
You will be surprised how much startups lose annually simply for not being well organized.Startups are great and ‘startuppers’ are awesome. We’ve got solid plans and have super ambitious business goals. However, if you are somewhat disorderly, then your start-up could be something of a nightmare, to begin with. Staying organized should not be a herculean task and it certainly…
Arguably, two of the most important financial responsibilities of a business owner/lead are budgeting and tax planning. Budgeting, particularly monitoring cash flow, keeps your business from overspending and getting into trouble with making payments. For a young business, you certainly do not want to get off on the wrong foot with your vendors and the tax authorities. Although different types of…
Doing business is never without decision making. Sometimes it becomes necessary to take one decision or another to improve results. Such decisions may bother on laying off of staff or retaining them, buying an asset or leasing, outsourcing a service or setting up an in-house unit to provide such service, to mention but a few. It is crucial to mention…