FINANCIAL PEACE FOR BUSINESSES

Most of us have ventured into businesses though  we fail to follow common financial principles leaving our businesses vulnerable to the whims of their competitors, every little ripple in the market and certainly too big shifts in the economy as explained by Dave Ramsey in his book Entreleadership.

However, when the following principles are put into consideration, we will eventually have financial peace for our businesses.

As we launch into businesses, the first step we need to take is do proper accounting that is; match the incomes with expenditures regularly. Proper financial recording needs to be done and documents like statements, receipts, invoices and cheques must be thoroughly kept.

Under micro businesses, we need to open a separate checking account that is; we should not use personal money to pay business expenses and vice versa. We should also prepare businesses budgets so that we are able to tell our money where to go.

In addition to the above, we need to act our wage if our businesses are to gain stability. This can be through avoiding the need for toys or the emotional need to impress visitors. Dave Ramsey supports this by saying, “If you and your business are attractive, you do not have to impress anyone with your furniture or toys.”

Finally, we need to avoid debt as this increases chances of failure. This is possible by growing slowly and gradually. We should avoid borrowing for larger purchases and instead resort to options like; paying cash by saving towards a purchase goal or hiring until you can pay cash.

At Kyusa, the youth are empowered with financial skills through the Financial Literacy Module. Therefore, let’s join our hands so that we can raise generations of change agents who will live successful lives and operate businesses with a soul thereby transforming communities.