MZANSI relies on small business to support the economy, but a major problem is that many small business owners haven’t learnt everything they need to thrive.
SunMoney spoke to Mags Ponnan, head of business incubator and customer value propositions at FNB business, who said: “Small businesses have to be smart about how they manage the flow of their income and expenses.”
He said businesses can achieve this by reducing on their spend and finding new and innovative ways to execute tasks without breaking the bank.
He shared some tips on what more small business owners can do.
Audit the waste
Many businesses do not know their total expenses. Common areas where a business is bound to save money is with the likes of stationary, cost of water and lights, travelling to meetings and telephone costs.
Check the business insurance
Every year, make sure that you and the business is covered affordably.
Go online
An online presence helps businesses run smoother.
Employ professionals
If you cannot afford to pay the salary of highly skilled professionals, then offer them shares in the business to make up for the lower salaries.
Talk to your bank
Banks know that businesses are feeling the strain so ask them for advice or help.
Find your tax benefits
Educate yourself on Mzansi’s tax laws because government is focusing on small business. There are many tax benefits for entrepreneurs at various levels.
Lindy Theledi (72), from Bushbuckridge in Limpopo, had to run her husband’s businesses when he died.
“I focused on management because he taught me how to do it. I told my son to run the shops and driving school businesses.”