Dear Jamborees,
I remember a community member asked about cash flow a while back. I touched on it briefly, but it's such a deep and important topic for SMEs that I decided to dedicate today's newsletter to it. We're going to need all our imaginations today, so get ready to unleash your imagination in 3D mode!
Now, imagine your business is a body, hustling and bustling every day. Just like our own bodies need healthy blood flow to pump life into every cell, your business needs smooth cash flow to keep things moving and grooving.
Without good cash flow, it's like your business has low blood pressure. Payments come in slow, bills pile up, and you're left feeling weak and dizzy. Not a good look, right?
That's why this week's newsletter is all about mastering your cash flow. We're ditching the financial jargon and breaking things down in plain, Naija language, as I like to do.
It's time to unleash the imagination, let's think of your cash flow like:
Blood: It carries the oxygen (money) needed for your business to function.
Heart: It pumps that oxygen (money) throughout your entire system.
Lungs: It takes in new oxygen (income) and releases carbon dioxide (expenses).
See? Now it makes sense, abi? So, let's dive into some essential tips to keep your business blood flowing strong:
1. Track Your Money Flow: Just like checking your pulse, you need to regularly monitor your income and expenses. Tracking helps you identify any "blockages" and keep things flowing smoothly.
2. Speed Up Payments: Imagine getting paid instantly! Offer discounts for early payments and encourage customers to use digital wallets. The faster the money flows in, the better.
3. Manage Your Expenses: Think of this like controlling your cholesterol. Let me channel my inner Dr. Aproko here, that plate of egusi with plenty oil most definitely looks amazing, smells divine, but before you know it, your cholesterol's skyrocketing, reduce it a bit my friend! Back to what I was saying; Cut back on unnecessary costs and negotiate better deals with suppliers. Every penny saved is one more you can invest in your business's health.
4. Plan for the Future: Just like preparing for dry season, forecast your future income and expenses. This helps you avoid any nasty surprises and be ready for anything.
5. Get Expert Advice: Sometimes, you need a doctor's opinion. Consult a financial advisor who can help you create a personalized cash flow plan for your business.
Remember, a healthy cash flow is the key to a healthy business. So, grab a plate of egusi with any swallow of your choice not later than 8 PM, settle in, and learn how to keep your business pumping strong!
Don't dull! Share your cash flow struggles and successes with me here or in the community.
Warm regards,
Ayo Bankole Akintujoye
Convener & Co-Founder.