The Big Baraza 2022 was a great opportunity for entrepreneurs to learn and adapt resilience strategies. Managing business finance was one of the subjects discussed and this article will share ideas on how you can manage finances to thrive.

Maintaining separate accounts

Keeping separate accounts as a business owner is key for cashflow management. When you have a personal account separate from the business account it becomes easier to manage cash flows. As a business owner you need to pay yourself a salary rather than pulling money out of the business for personal use. This is one of the reasons some businesses run bankrupt and collapse. Monitoring finances in business is important and this can be done on a weekly basis. How much the company is receiving and how much it is spending should be picture perfect. Having a clear picture of how long customers take to make payments is also key for a business owner.

Managing profits

What do you do with your company profits? This is one of the questions that triggered conversations during the Baraza. Feedback from the business owners was that they use it to train employees for up skilling, reinvest and improve lifestyle. The key speaker emphasized on the importance diversifying profits by building a reserve for tough times, building a personal line of credit and buying assets. Just like Mesongo Sibuti said, profits realized from the business is not your money, but a responsibility to deliver on the promise of your business. Therefore, as a business owner, be very intentional about the timing and purpose of profits pursued.

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Lucy Moragwa is a Business Process Analyst with dynamic experience spanning several industries including construction, technology, retail, media, advertising, and branding. She is specialised in helping organisations develop operational efficiency and increase revenue, business process improvement and using root cause analysis to identify issues and develop process improvements. The heart of her work is to help organisations achieve cost savings through exceptional planning and implementation of business processes.