Lack of finance is one of the leading challenges faced by SMEs. In Nigeria, this number is even higher due to a number of factors inherent in our operating environment, such as poor infrastructure. Poor access to finance arises when a business is unable to attract the capital that it needs to maintain its daily operations or expand into new markets. Below are 4 funding options to maintain your small scale business this year:
1. Document your operations
It should be a no-brainer that you must document all the transactions of your company, yet many entrepreneurs, especially those managing SMEs, fail to do so. As an entrepreneur, you must have a digital or manual journal for all company’s transactions, where both revenues and expenditures will be recorded.
2. Separate Personal Income From Business Finances
As you know, personal and business interests do not get along well. A sign of financial and business management competence that all investors appreciate in any business is a clear difference between the owner/manager of the business and the business itself. One of the best ways to achieve this distinction is to open a corporate bank account for your company where all the transactions related to it will be performed. This will help you to resist the temptation of indiscriminately dipping into your company’s finances to meet your personal needs.
3. Enhance Your Accounting Knowledge And Skills
You don’t need to be a chartered accountant to run a successful business, but acquiring useful accounting skills definitely helps. You can place your company on a path of sustainable growth by taking out time to improve your understanding of accounting and financial management. Business is all about money, so there’s no escaping this. This advice especially is applicable when you cannot afford the services of a qualified accountant or a financial advisor.
4. Digitalize Your Business
With the havoc caused by the COVID-19 Pandemic, every business owner now appreciates the importance of going online. It is no longer a secret that digitally compliant companies were able to navigate the worst of the crisis better than their physical office oriented counterparts. Digital technologies have made running a business easier and more profitable than ever before. It has taken many businesses to the doorsteps of their customers. Digitalizing your company can be as simple as creating a website or social media pages for it, to make it easier for your target audience to reach you.
