5 handy financial tips for today’s mompreneur

Balancing motherhood with running your own business can take a toll on your pocket if finances are not managed effectively. How do you clearly set the difference between domestic finances and finances for your business and stay on top of your financial game? Here are a few tips that could come in handy…

  • Set goals and have priorities

The first step in any financial journey is to sit down and reflect on your financial activities or spending habits and the progress you would like to make financially. Having this in mind will help you to set goals that are realistic, time-bound and measurable, such as saving x amount of money by within the next two years. This helps you to stay focused and organized in working towards your financial goals and keeps you from making the same financial mistakes.

 

  • Have a budget

Keeping track of your finances will seem less cluttered if you have a financial plan or budget. This will help you identify which areas take up most of your finances and to clearly determine what amount goes into which activity. Having a budget also sets a limit which guides you in knowing when to spend and when to let it go. As a result, your costs are minimized, and expenses are better managed.

 

  • Invest

Little drops of water really do make a mighty ocean. Putting aside some money to save after expenses can be quite difficult but proves to be worth it in the long run. Although saving some money in the bank is one of the best financial ways to go, it also helps to have your money “working for you” by having an investment account or investing in shares and treasury bills. It’s advisable to pay attention to the interest rates as well as the reputation of these shares or investment banks before investing in order to reduce risk as much as possible. Every little bit helps in investing as it yields some financial returns in the long run. Who knows, that could even be the capital you need to start your next business. Start as early as you can, as it’s never too early!

 

  • Have an emergency fund

Now this is different from investing and is more focused on having something to fall back on in case your business for example runs into some unforeseen circumstances. This is especially handy for small businesses as sometimes profit may be far less than expenses in the beginning. The emergency fund could be a percentage, no matter how small, of the money you make from each business transaction, to help ensure that your money does not run out before you know it; and to prevent you from being in a tight spot should any emergency arise.

 

  • Make use of financial tools

The good news is you never have to face all the figures alone. Thankfully there are several financial tools and apps like QuickBooks, that make financial activities such as bookkeeping easier and more effective. If you need to issue an invoice or receipt for a transaction, there are also simple templates in Microsoft Word that makes the task simpler. We are also in the age of online banking, where you can easily check your account balances and make transfers without making the trip to the bank.

 

Keeping track of all these financial numbers can be quite overwhelming, but remember, there is a whole community of mompreneurs out there making a difference, just like you! Here are a some more practical financial tips from some mompreneurs who share a bit of their financial journey…

https://heymama.co/planning-your-2019-budget-4-mompreneurs-share-their-financial-advice-for-the-year-ahead/

 

 

 

Tips for SME Owners During COVID-19

First and foremost, relax and do not make any rash decisions if you are in panic mode. It is time to think clearly and not be reactive, which can be easy to do with the influx of information being thrown at us. Our (mental) health and well being and that of our staff are of the utmost importance at the moment. Luckily, many SMEs today thrive using digital channels, whether it is the ways they communicate with clients or achieve productivity from their staff.

It does not matter who you are or your industry of specialization; the reality of the matter is that we will all most likely lose out one way or another, whether it is relating to our finances or in human capital. Nobody is exempt from the toll of the virus, which is still extending throughout the world, creating a ripple effect that will impact us for quite some time.

As reported in SmallBizTrends, “27% of businesses expect the coronavirus to have a moderate to high impact on their revenue. Another 30% expect the virus to have a moderate to high impact on their supply chain.”
The goal here is deploying all efforts to help minimize the impact of our losses. At KUSI Consulting, we are no experts in saving SMEs, however, there are some means and methods we are personally experimenting with that we wish to share with you.

Here are some key points and advice based on our experiences thus far since the pandemic to help you minimize your losses.

1. Leverage technology and focus on selected services.

If there is any part of your work that can be performed digitally then strongly consider it. Also, leverage on those services you offer which require a digital means. Earlier this week, one of our clients suggested postponing a negotiations meeting scheduled for three potential candidates they are considering for available roles. Rather than postpone, we proposed a video conference, which they found it to be a great idea. We have to find ways to not interrupt our normal business flow and keep things as normal as possible. If there are alternatives, consider those alternatives instead.

2. Consider outsourcing and freelancers.

With a limited or no team the work still has to get done. For some of us, we are fortunate to be able to work from home. A luxury that is not afforded to everyone. It is time to consider outsourcing and leveraging the talents of freelancers who work independently. Last week, another client began to weigh their options and consider hiring an emergency staff in case their current staff goes on strike and does not report to work. If you can afford this then consider this option.

3. Think about survival and not about your get-rich-or-die-trying agenda.

Figure out your monthly expenditure and highlight the necessities ex: food and electricity. Worry about making enough to cover those expenses and not about your next vacation destination. It is time to cut back in all the ways we possibly can until life picks up again and normalcy is restored.

4. Actively check on your team who are working remotely or not working at all.

Employee engagement is not only in the workplace. It extends outside of the workplace. Ask about their (mental) health, how they are feeling and engage them as often as you can. You will be amazed at the solutions they help you to derive. Keep in mind that your employees are feeling the same way you do regarding the business. They too are concerned if they will have jobs and stability when it is all over. That is if they have not already lost their jobs. Seek their advice and the advice of your internal stakeholders before making business decisions.

5. Limit spending wherever you can.

We have no idea how long the Coronavirus and its impact will last. Try and cut expenses. For example, Instead of the AC use a fan.

6. Pay your staff if you can afford it even if it’s not their full salaries.

It is not time to be neglecting those who need you the most during this crisis. The men and women who have been working to help achieve the objectives of your business. Find solutions to provide for them just as you would for yourself. We are all in this together. If you can afford to provide hazard pay for employees risking their lives to still come to work then do so.

7. We can all use a bit of faith. Continue to pray and have faith.

It is certainly time to start thinking outside of the box and letting our creative juices flow. Share positive news and information with your community and team to uplift their spirits. The truth is, when this ordeal is over, we may not all be left standing on our two feet, business-wise. But, we can and should remain positive, hopeful and faithful.

If you have more to add on this topic, kindly leave a message in our comments section.

Give us a call (+233 55 408 1727) (+233 30 254 7136) or e-mail us at info@kusiconsulting.com for more advice and also about our Recruitment, Training, HR Audit and Digital Marketing services.

Written by:

Rita Kusi

Human Resource and Marketing Expert.

CEO & Sr. Consultant @ KUSI Consulting.