The CEO of AfriSwiss Capital Assets Management Limited, Kalu Aja, recently took to his Twitter page to share some important tips on how to run a successful business.
According to Aja, it is important to keep a record of every transaction made when running or setting up a business. This should be done, regardless of how minimal the expenses are. In other words, document all receipts.
About to start your business?
1. Get a box, any and all expenses you make regarding the proposed business ie receipts stuff them into that box.
I mean everything, if you have a beer (or coke) with a friend while discussing "branding", that's a business meeting
Do it today
— Financial Planning (@FinPlanKaluAja) March 31, 2019
Accountants are important
For Kalu, the first professional person to consult before setting up any business should be an accountant. This is because he or she would keep all daily record of all proposed plans and also help in monitoring the business tax liability.
2. First professional you should speak with is an Accountant.
Make sure your collections & reporting structure (yes even for a small Business) is properly set up.
Give your accountant that box of receipts, it's called preoperational expenses .It helps with your tax liability
— Financial Planning (@FinPlanKaluAja) March 31, 2019
Separate your personal and business accounts
Secondly, the financial planner advises business owners to separate their personal bank accounts from their business accounts. Doing this will give them a vivid record of their business transactions.
Be very brand conscious
Thirdly, he added that above getting everything else right, business owners should always be brand conscious. This is because perception is everything. Therefore, you must get good letterhead, stamps, and other office essentials. Doing this rightly speaks volume of the business.
Learn to delegate
Fourthly, Mr Aja emphasised the need for work delegation. According to him, the main function of the CEO should be the articulation of vision, implementation and business development.
However, he advised startup founders to keep their budgets and focus on doing all the work themselves till they can be able to hire people they could delegate to.
In all that you do, get the cash
Most importantly, Mr Aja noted that one of the things that can kill a business is lack of cash. He, therefore, advised business owners to get it, and emphasised the need to never render services on credit to customers.
What is common trend on all infographs?
Lack of cash killing businesses, as a small business DO NOT offer credit to customers … pic.twitter.com/tnQAjU3RJ8
— Financial Planning (@FinPlanKaluAja) March 31, 2019
Once again, he listed out things small business owners should always bear in mind, in order not to endanger their business.
If you own a (small) business…..
1. Sales is not profit
2. Operational Profit is NOT Net Profit
3. Net Profit is NOT Cash
4. Cash is king
5. Credit is the enemy to Cash
6. Avoid giving credit..
7. Look for Suppliers that will give you Credit
— Financial Planning (@FinPlanKaluAja) March 30, 2019
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