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Money-wise tips for managers and SME owners from online financial courses

BY: SGI|15 August 2019
BLOG| Business leadership and strategy

In just 10 short years, Bos Brands has gone from a small local business to a R100-million company. According to Entrepreneur, other South African startups that have made the leap from zero to millions include Hello Group, Sorbet, Young Designers Emporium (YDE), and Big Blue. Besides great business ideas and a drive to achieve, the common denominator of all these businesses is their in-depth understanding of money. Without a sound financial base and a knowledge of how to manage your finances, your great idea isn’t going anywhere.

 

Keen on increasing your billables and seeing the cash come in? Here’s what you need to keep in mind.

 

START WITH THE FOUNDATION

Whether you’re starting a new business or have been around for a while, it’s important to know the state of your finances in order to make the right decisions for your organisation’s growth. All managers and business owners need to have a strong finance and business acumen. Online courses – like our Be wise with money (managing finances) 2-week course – offer an excellent foundation in money-management must-haves, like how to draft a budget and generate financial forecasts and statements.

 

CREATE OR UPDATE YOUR BUDGET

Once you have the basics down, such as analysing the state of your organisation’s finances, you can update or create a budget that is in line with your operational plan. Your budget should include revenues, costs and profits, and cash flow, which, according to Inc., will help you figure out how much money you have left for capital expenses.

 

CHOOSE YOUR MARKETING WISELY

A lot of organisations spend huge amounts of money on marketing – without seeing any results. Instead of traditional advertising, try more low-cost options, such as social media marketing or Google Ads. You can also up your public relations or use Search Engine Optimisation (SEO) techniques to drive more traffic to your website. Forbes also suggests sharing content on your site that is valuable to your client base, as well as driving new customer acquisition by giving benefits (such as a discount) for referrals.

 

IF IT MAKES SENSE, OUTSOURCE

Employees are an essential component of getting work done – but they do cost money. In addition to paying them salaries, you must usually provide a space for them to work, as well as other costs, such as insurance. Bit Rebels argues that although in-house personnel are easier to manage, using freelance or contract workers is less expensive as the majority of them work with flat rates and, if you hire strategically, you can find qualified candidates more easily and even globally – giving your organisation a 24/7 presence.

 

USE TECHNOLOGY TO SAVE

The Fourth Industrial Revolution (4IR) has made it easier for organisations to manage both their personnel and workflow. Avoid the cost of expensive hardware by using cloud-based services, such as Google Drive (which is free or at a low-cost if you want a business account for all your employees), Workplace, and Monday.com. Additionally, these services will help you track production, which is especially useful if many of your employees work out of the office, and documents, which will decrease the need for hard copies and reduce print costs, as well as save trees.

 

FORECAST FOR THE FUTURE

Always look ahead, so you can cement a plan that’ll ensure your future success. To do this, you’ll need to build a financial forecast (which you’ll be prepared for after completing your online Be wise with money course).  The Corporate Finance Institute (CFI) defines financial forecasting as “the processing or estimating or predicting how a business will perform in the future”. A financial forecast will help you to meet your business goals by identifying future revenue and expenses. It’ll also help you spot future business risks and proactively mitigate these.

 

For an even more thorough grounding, consider studying our 7-week online Managing Finances course, which will empower you to understand how every business actions affects your organisation’s finances – and vice versa.

 

Are you keen to put these steps into action? Register for one of our online financial courses and download our Financial Management e-book here for an comprehensive look at financial risk management.

 

Be wise with money (Managing finances)

 

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