Absa Bank’s Audrey Abakah shares practical finance tips for SMEs

Head of SME and Partnership at ABSA, Audrey Abakah spoke about ‘Practical Finance Tips for SMEs’ on the Citi Business Festival on-air series on Tuesday, June 7, 2022.

In her presentation, Audrey highlighted some practical finance tips for Small and Medium Enterprises.

Pay attention to revenue

She posited that money is the blood of every business, “and if you mess up with your finances you are heading for failure.”

“That is why it is very critical for every SME to be interested in their finance. Every penny counts,” she added.

Pay attention to expenses and cash flow

Paying attention to expenses and cash flow is “very critical because sometimes how money is spent is very concerning. Most SMEs are full of ideas and without discipline may throw money around on any business idea that comes up without the needed expertise.”

She explained that before any investor is interested in an SME, it will consider the business’ financial activities.

“Proper records of your ins and outs will help the investor better understand how the business has been managed over time. It also helps them appreciate the level of decision of the leadership of the business,” she added.

Take insurance seriously

“When you want to sustain your business after it has gone through hard times, you should take your business seriously by way of insuring it. Not only should you insure your business but your life also.”

She explained that when this is done, the insurance company can come to the aid of the entrepreneur in case of any eventuality.

Consider supplier financing credit

She explained this is largely based on a customer-supplier relationship.

“This involves having a supplier who provides goods, they usually give you a time frame, mostly 30 days. It is a very good financing option. Only that it only works when there is trust between the customer and the supplier.”

Plan for your retirement

She said most SMEs fail to plan ahead for their retirement

“Those in the formal sector, are fortunate enough to have other retirement plans done for them. But for the informal sector, you need to be deliberate about it, otherwise, they will find themselves wanting.

She urged SMEs to have investments on the side and also have a good succession plan

The entire month of June is dedicated to business on Citi TV and 97.3 Citi FM.

The Citi Business Festival is an extensive program of business events and on-air activities providing inspiration, business ideas, and information to persons who are starting, building, or growing their businesses.

The on-air series will air on the Citi Breakfast Show on 97.3 Citi FM every weekday.

ABSA Bank is the main sponsor of the Citi Business Festival 2022 and supported by MTN Momo and MTN Business Support, IT Consortium and the Ghana Investment Promotion Centre (GIPC), and GIRSAL.

source:Edna Agnes Boakye