You may start and want a successful business to create an income as an SME and entrepreneur. What you land up doing is providing opportunities and cash flow for a broader spectrum of people. They all benefit from your business.

If you choose to grow your business to include employees, it expands that benefit to having families and dependents of those employees. Also, it helps contribute to the economy in various ways.

Unfortunately, a poorly run business can cause detrimental damage and heartache for employees who potentially get laid off if the company needs to close down.

As a business owner, ensuring you run the business successfully means stepping out of business every so often to assess the company’s health.

Compliance can break a business

When the pandemic started and companies needed to close for business, TERS was an option for some financial relief. Unfortunately, many small businesses and informal traders were not UIF and PAYE payers. It meant that the company could not claim financial aid for their staff. The additional financial strain on the team and company caused many businesses to close.

Insurance is also a big deal when you start a business. If you deal with stock, you must get insurance as much as possible, including warehousing, transport, etc. If you are in a service-run business, you need to have liability insurance in the event of a client suing the company.

Financial assessment

You need to know the financial standing of your business at all times. Getting financial aid or applying for loans for cash flow is crucial before you are in trouble.

When you take loans for your business, term loan insurance is, again, a godsend for a business in the event of non-payment.

Your financial well-being needs to be in place from a tax return perspective. Many small businesses do not register for VAT or tax and work under the radar. Unfortunately, it can come back to bite you if you ever want to sell the business down the line. A tax compliance certificate is a requirement for many companies that work with tenders or BEE, and it should be easily accessible.

Evergreen contracts

Evaluate what you are spending your company money on and re-negotiate any evergreen contracts and accounts you have every year. It includes insurance, rentals, equipment leases, etc.

When you need financial advice, you can contact the business finance specialists at Bizcash, so they can help you assess what you need to have in place to succeed.

Bizcash is the company that has funded over R1 billion in SME investments in South African businesses.
Please speak to the team about how they can help you make your business dreams a reality.

Get in touch with us on 0861 93 93 93 or email us on info@bizcashscf.co.za or contact us here.
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