Africa has for many years been hailed as the economic powerhouse of the future, with untapped resources both natural and human.
Case in point being Tanzania’s burgeoning population which according to the National Bureau of Statistics stands at 54 million people.
The business environment has, in the space of a decade, transformed rapidly and created an ecosystem for small businesses to not only grow but thrive, yet in the age of tech and open-source information, a large number of small businesses still fail within the first few years of operation.
In order for a business to succeed, it needs to constantly adapt alongside the evolving market dynamics, doubling down on the aspects that work and eliminating the ones that don’t.
According to financial advisors, the following basics will help prepare a successful business.
1.Be SMART
Goals are the starting point of any success story, having a clear view of where you want your business to head in the next 6 months, 1-year and even 10 years.
Having a long-term vision allows you to track the performance of your business.
Entry-level business studies teach us to create SMART goals. All future plans must be Specific, Measurable, Achievable, Relevant, and Time bound.
One practice that will ensure that your business operation remains smart is regular financial audits.
Annual audits are an excellent way for your business to gain more control over its financial situation and they also ensure that your statements are accurate with no discrepancies.
Also, solid financial statements always come in handy when you need to get a loan to grow your business and can make a difference
2.Finance
SME owners have a wide range of responsibilities as they play multiple roles in their enterprises and many find the notion of securing funding as a daunting task.
Business owners are also often discouraged due to the misconception of having to undergo complex application procedures and submitting numerous documentations.
One can navigate the maze of financing by finding a bank with advisory services for small businesses and banking products that specifically cater for SMEs.
In addition, creating a banking history is a key component of loan eligibility.
The statement of cash flow is a key financial statement when securing a loan.
As a business owner, you need to be proactive in depositing sales into your bank account ensuring that all your business financial transactions reflect in your bank account and they all tally in the financial statements.
Mobile bank applications make this all easy and convenient for daily use.
