“Cash flow is the lifeblood of your business. If you manage it poorly, your business will haemorrhage, and suffer massive internal bleeding. And if you don’t stop the bleeding, your business will die”- Timelio
We all know that entrepreneurs have enormous potential to enter the market, especially with the unemployment rate currently sitting between 34.5% and 33.9%. One of the most significant challenges that entrepreneurs and business owners face are working capital shortages and cash flow constraints. This places a considerable burden on entrepreneurs, who employ somewhat 50% of the South African workforce. It is, therefore, more important than ever to equip entrepreneurs and business owners with the correct tools from the get-go, so that they can assist them in managing these challenges proactively.
Banks are always hesitant to provide finance to small businesses, due to the inherent risk involved and the dependency on the business to reach long-term outcomes. Therefore, business owners are forced to rely on internal liquidity or use expensive micro-lenders (who charge expensive interest rates) to pay their bills.
The utilisation of technology is vital to ensure that your business doesn’t bleed out and improve its liquidity to honour its commitments and grow the business.
Here are some of the must-haves for business owners:
There is excellent functionality in cloud accounting software that enables business owners to quote and invoice customers on the fly from their mobile phones.
Starting off and utilising these technologies’ power in your business will be a game changer to improving cash flow in your business!
Reach out to your advisor to help you get on board with these technologies to ensure that your business doesn’t bleed out and enable your business to help grow South Africa’s economy.