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How every SMME can achieve Financial Success!. Introduction
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Introduction According to recent research, which included over 5,000 SMEs across 18 countries and 10 industries. Small and midsize companies often try and make do with financial systems they have outgrown, or which operate in isolation from other core business systems.
Even as far back as the 18th century we have a prime example of inadequate financial management. Thomas Chippendale, the English cabinet and chair maker, bore many of the hallmarks of the modern entrepreneur. His marketing expertise and reputation as a master craftsman brought a constant stream of rich, aristocratic clients to the door of his London studio, and his furniture designs were so advanced and so stylish that they are still in widespread use today.
But Chippendale's apparent success conceals a cautionary tale. Consumed by his quest for quality workmanship and client satisfaction, he overlooked the need for solid financial management. Despite years of sustained market demand, he never managed to make the business profitable.
Modern businesses can learn a lot from Chippendale's mistakes. It is just as true today that the best products and the best marketing in the world are of no avail if the financial side of the business is not adequately managed. Most of today's small and midsize businesses face the same age-old difficulties of controlling cashflow, justifying capital expenditure, negotiating favourable deals with suppliers, balancing quality and costs, and predicting market demand
We’ve all heard stories of people who have made loads of money through their business ventures, only to see it all wilt away with poor financial management. In the recent past, and closer to home. A man I’m sure a lot of us have heard of, Lebo Gunguluza, Chairman of Gunguluza Enterprises and Media. He is also the president of SABEF (The South African Black Entrepreneurship Forum)
QuickBooks Ambassador, Lebo Gunguluza Millionaire in his twenties. Broke in his thirties. Multi-millionaire in his forties. His story reads like something you would have imagined coming out of a novel or a Hollywood movie. But even by his own admission, his past failures were a result of poor financial management.
Traits of QuickBooks Successful Business Owners 1.Cater to customers – putting yourself in the customer’s shoes.The products and services of a successful business improves people’s lives. No amount of venture capital can help a business if it doesn’t at least provide good products or services. Successful business owners make every effort to find out why customer either do or do not come back. The ability to emphasise with the customer helps them to understand the real value in what they do for them.
Traits of QuickBooks Successful Business Owners 2.Learn from mistakes – everybody makes them.We all make mistakes, but winners take them in their stride and look at them as valuable lessons. 3.Do you what you love.Starting your own business is risky and running it is even more challenging. Only the thing you really love is worth it. Using QuickBooks takes the hassle out of doing your books, so that you can focus on what you love – managing and growing your business.
Traits of QuickBooks Successful Business Owners 4.Focus on your strengths and hire out the rest.Don’t try to do it all yourself. Be honest about what you are good at and what not, as this will free up your time to do the things you excel at and love doing. We have seen how adding technology can improve the operations of any business as this eliminates the need for redundant data entry and really frees up a entrepreneur to do what they do best.
Traits of QuickBooks Successful Business Owners 5.Hire an Accountant.Almost all the customers we speak to stress the importance of having solid financial information to guide business decision making. Accounting is not the strong point of most entrepreneurs, but they still need to know where their money is coming from and where it is going to – That’s where QuickBooks comes in.
Traits of QuickBooks Successful Business Owners 6.Measure and monitor every aspect of your business.If you are using QuickBooks you have the means to measure and regularly monitor your business from best customers to worst selling items to who is overdue in paying invoices. Make sure you know what’s going on.
Traits of QuickBooks Successful Business Owners 7.Know when to hold em; know when to fold em.Successful small businesses choose wisely, whether its customers, location, product lines, employees, vendors or jobs. You need to be willing to walk away from the ones that harm your business or take you in a different direction than the one you want to go on.
Traits of QuickBooks Successful Business Owners 8.Build a strong team.Entrepreneurs can’t do it all themselves, even though they want to at times. A better option is to build a team of smart professionals who know more than you do about their area of expertise.
Traits of QuickBooks Successful Business Owners 9.Attract, build and maintain capital.Even if you don’t need money to get your business off the ground, building and maintaining capital, give businesses security to weather a storm or invest in growth. Cash in the bank is a powerful tool for success, as this can fund long-term projects, it also means you can say no to less profitable clients and survive the ups and downs of the natural business cycle.
Traits of QuickBooks Successful Business Owners 10.Committed.Owning your own business isn’t a hobby, it’s a lifestyle. But sticking with it takes strong commitment, and its more than just hard work. When there’s a commitment, there’s success. 11.Charisma.Your potential customers want to do business with someone they like. Charisma and people skills are thus essential as people want to do business with those that excite and invoke confidence.
Traits of QuickBooks Successful Business Owners 12.Know they will succeed.Decide that your business will succeed instead of just hoping it will. Time and time again entrepreneurs scrape by, nearly going broke to make it all happen. Some power from within drives them to push forward, no matter the consequences, because they believe they will succeed. Without this drive, no-one would choose or be able to stomach the roller coaster ride of starting a business
Traits of QuickBooks Successful Business Owners 13.Know Where They Want to Go As the leader to whom others look for vision and inspiration, you must move away from the day-to-day business operations and gain perspective. Examine your company with the eyes of an outsider. Work on your business instead of in it. Begin with a written plan that will become a road map to help you move forward and grow your business.
Conclusion Whilst hard work, passion and perseverance can help you to attain many of your business goals. The biggest factor influencing the success of modern business, is sound financial management. Having this knowledge offers the business owner insight into the state of their business, which in turn gives them the power to make informed management decisions. Let QuickBooks help you to take control NOW!
