Financial Strategies In Running An SME. Part 2

in hive-175254 •  4 months ago 

A few days ago, we took a look at some financial strategies an SME owner should get handy with to make it easier for them to run effectively their SME. As a way of reminder, SME in plain term is "Small and Medium-sized Enterprise". We looked at how to cut unnecessary costs in order to boost financial strength in our last episode. We also looked at asking help from family and friends. Here, we will yet touch a few more financial tips.

Image from Pixabay

1. Investing With Discretion

At a point in your business, an investment opportunity may spring up but no matter how good and viable it appears, you still need to do an in-depth research before investing. The truth is, one wrong investment an SME business owner takes can wreck his business and may put him out of business. You must always carry your discretion at all times.

A friend of mine once shared his experience during the starting phase of his business which set him back a bit before picking up. He had choices of locations but he chose a particular shop because it was close to his residence and was also cheaper. Barely one month after he paid for the shop and packed in, the shop was marked for demolition.

Unknown to him, the structure was done without due approval from the Capital Territory Development Authority. Well, that was how the shop was brought down and he had to take the financial stress of looking for a new shop. You see, you either take the stress of research or stand the risk of bearing the stress of regrets if the investment goes down the drain.

2. Keeping Accurate Records

For a business owner, especially those in the infant phase of their business, you will not know if you are making profits or if you are running at a loss if you do not keep accurate account of the transactions, sales, inventory, and other records. Keeping accurate records will help you consolidate more on your business: know your strengths and where you need upgrading.

Image from Pixabay

For people selling consumer goods, for example, there will be particular sets of goods that will be demanded more than others. Without keeping records, you may find it hard to pinpoint those goods. When you draw out your income against your expenditures, you will know if you are making profit.

You will agree with me that there are mistakes that can be avoided if proper records are kept. Financial integrity also includes recordkeeping. By observing all these, you will be ready to welcome growth in your business.

Thanks for reading

Peace on y'all

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

good article, is one of the things that business owners should keep in mind that if they lose money the company will be ruined

That's the simple truth buddy. If business owners bear this in mind, they will know how to use and invest their funds righteously.
Thanks for the comment buddy

Hello friend, a good publication, I believe that they are good strategies those that you raise, the truth always when having a business we must implement the tools that but they agree to us and they generate benefits to us.

Yeah, the strategies are not only to manage the financial aspect of an SME but to also maximize profit.
Thanks for coming buddy

I think it is very important to have as a financial strategy to invest with discretion, because a small business is starting and should not have very large investment costs because it is in a test phase where if the investment goes wrong is not much capital that is lost in the investment. Greetings and thanks for sharing.

Congratulations @samminator! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You have been a buzzy bee and published a post every day of the week

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Do not miss the last post from @hivebuzz:

Feedback from the October 1st Hive Power Up Day