We’re not interested in just surviving 2021, it’s time for Mzansi-preneurs to thrive. Here are the money moves that will help to get you there.
The past 12 months have been rough. Lockdowns, remote working and limited budgets have put more pressure on business owners than ever before. But as a Mzansi-prenuer, you’ve survived a global pandemic and lived to tell the tale. Are you ready to embrace 2021 and kick-start a year that will change the game?
Here are four smart money moves that will support your 2021 business goals from the inside out. Get ready to level up.
How to achieve your business goals:
1. Make money management a top priority
Growing your business, attracting investors or securing financing all rely on solid money management. If you aren’t completely sure of every cent that comes into your business or leaves it, you aren’t on top of your numbers. The great news is that this is relatively simple to fix:
- Spend a few minutes each day reviewing your numbers and ensuring that your accounts are in order. This includes who has been invoiced, who has paid you and what bills will soon be due.
- Hire a pro to help you. This doesn’t mean you shouldn’t pay careful attention to your numbers yourself – you’re the boss and the buck stops with you – but expert assistance can ensure that everything is captured and tracked. You don’t need a full-time bookkeeper or accountant either. Today, top professionals are freelancing and can handle your accounting needs in a few short hours per week.
2. Double down on making a profit
Businesses that don’t make a profit ultimately don’t survive. Some months you might make a profit and others you won’t – but on balance more money needs to be coming in than is going out. The challenge is that without strong money management, business owners don’t always realise that their expenses might be more than what they’re bringing in.
- First, make sure you are making a decent profit. What do you need to make each month to break even and what takes you into the profit zone? To find your magic number, add up all of your fixed expenses (rent, salaries, insurance), plus any variable expenses (utilities bills, marketing costs) and subtract your projected sales. Are you on track to make a profit or do you need to trim back on expenses or increase sales?
- Is your price point right? If you’re discounting to win business, you might end up in a position where it’s costing you more than you make to service a customer, which is the last place you want to be.
- Get paid. One of the biggest reasons behind businesses not making enough money is that they aren’t getting paid. Invoices are sent out late or they’re incorrect and there is no one following up on outstanding bills. Stay on top of your invoices and make sure you get the moola owed to you!
3. Invest your profits back into your business
Do you know what separates growing businesses from companies that don’t reach their full potential? Growth entrepreneurs reinvest their profits back into their businesses.
- Betting on yourself is better when you’ve got some spare cash to play with. Once you have a healthy profit stream, extra cash can be used to develop new solutions for your customers or to open additional revenue streams
- Profits can also be saved as an emergency or ‘rainy day’ fund. If the pandemic has taught us anything, it’s that you never know what’s around the corner, and extra cash on hand can save businesses.
- Save as much as you can. With a TymeBank Everyday Business account you can open 10 GoalSaves for your business goals or personal goals, automate your saving and earn up to 8% interest per year.
4. Access growth funding
All that work you’ve been putting into balancing your books, knowing your numbers and making a healthy profit is about to pay off, because what you’ve created is a track record, which is exactly what funders use when they invest in businesses.
Whether you’re applying for a bank loan or seeking money from a government fund, your numbers will prove you know what you’re doing.
- Impress any financial institution with your financial savvy when you present balanced books.
- Make sure they can’t walk away without investing in you and your business by proving that their cash is in safe hands.
- Show you can be trusted with money thanks to great financial habits, such as regularly saving and reinvesting cash into your business.
Open an Everyday Business Banking Account today
Great financial habits begin by separating your business and personal accounts. With an Everyday Business account you can:
- Save on cash handling fees. Withdraw money mahala from a Boxer or Pick n Pay till point and your first cash deposit every month (at a Boxer and Pick n Pay) is also FREE.
- Pay multiple vendors and employees straight to their bank account or Mzansi cellphone number. Visit TymeBank’s business banking page to sign up.