If you are a Female nigerian entrepreneur you definitely spend a lot of time perfecting your craft, finding new clients, and doing all you can to grow your business.
In the end, it’s not all about building a wildly successful brand but having sustainable income so you can cater for yourself and family as well. your family with the income needed to live a comfortable life.
It can be quite challenging to run a business and make ends meet. You can also get carried away and spend all the money you are making.
That is why we are sharing 5 Money Management Tips every Nigerian entrepreneur should know about.
1. Create a Budget
The first rule of business is to have a budget. A budget serves as a guide and helps you track every single naira you are spending. If you don’t have a budget, you should totally change that immediately.
In your budget, every amount should be accounted for in terms of spending, saving, or investing. There are a number of tools that can help you get started, so find one that you’re comfortable with and use it to bring some organization to your finances.
2. Learn How to Read a Financial Statement
A financial statement shows where a company’s money came from, where it went, and where it is now. There are four parts to a financial statement; Balance Sheets, Income Statements, Cash Flow Statements and Statements of Shareholder’s Equity.
If you get familiar with each of these it would make things a whole lot easier.
3. Keep Records of Finances
Keeping a record of your finances is as important as having a budget. Record all of your financial information in one place so you can refer to it and keep track of your progress. You can also group them into categories for easy organization.
4. Create a Cash Reserve
One of the cons of being an entrepreneur is that you don’t have a consistent income. On top of this, there’s a very good possibility that you won’t make any money for an extended period of time. This is why you need to have some money aside for emergencies as well as 100 percent out of debt.
Set aside 5 percent of your paycheck so that it will help pay for expenses for one year. Remember, you want to keep these funds somewhere accessible, such as a savings account or money market account
It’s true that no entrepreneur wants their business to fail, yet one cannot deny that there is a fair chance of that happening.
You can greatly reduce the effect of a failure by diversifying and placing your funds into another side business, alternative investments, or simply setting aside some contingency money. This money can act as a cushion, should you need to bow out or pivot another business.