Business opportunities in South Africa are plentiful. With a population of over 56-million diverse and interesting people, SA creates a platform from which many unique products and services can surface. However, according to Bloomberg, a staggering 8 out of every 10 small businesses fail within the first 18 months. A statistic like this is enough to scare off potential business owners from ever even taking a chance.
Ultimately, there are many reasons why a new small business could fail. Perhaps there wasn’t a need for the product or service in the market. Perhaps the marketing efforts weren’t powerful enough. But more often than not these businesses fail because they weren’t profitable enough.
Small businesses need to survive financially, and here’s how:
Work from home
Run your small business from home for as long as possible. Use the garage if you must. Even a small home office can fit at least three desks, which could make all the difference at the end of the day. Instead, make use of a website and a virtual office to present your company in a professional manner.
Be resourceful when it comes to staff
Many business owners often mistakenly employ help too soon or try to manage everything by themselves for too long. There are some key areas you might need to look at delegating from some point in time i.e. marketing and admin, but make use of freelancers or part-time help until it becomes necessary to employ someone full-time.
Office stationery such as paper and ink can rack up quite the bill. Save costs by encouraging a paperless office. Various software programmes and cloud storage can help you save everything online. Going paperless simplifies and streamlines a company’s processes and makes it possible for employees to work from literally anywhere in the world.
Use Cloud Accounting
Keeping costs down is only one aspect of your business’ financial health. You need to be able to see the bigger financial picture in order to make informed decisions. Cloud Accounting software (and complementary integration software programmes) is the answer to do this, and more. Not only can these programmes help you gain real-time insights into your company’s financials (from anywhere) but they also allow you to automate recurring accounting functions, making it easy to perform accounting tasks yourself.
MWare offers expert Automated Business Solutions that can complement your business at any stage of its development. Our partnerships with the world’s best and most scalable software technology makes it easy for your business to find the solutions you need in one convenient place.
Our latest addition, Syncedbeans, is an example of how smart accounting software can help your business function even more smartly. Syncedbeans extracts invoices directly from suppliers and delivers these to customers’ systems electronically. SyncedBeans can help your company save time and resources, eliminate errors, streamline processes, scale-up and grow its profits.
Let MWare help you take your business to the next level. Click here: firstname.lastname@example.org