Unless you control your money, making more won’t help, you will just have bigger payments – David Ramsay
If you ask an entrepreneur what their 3 biggest needs are more often than not they will say money, new business, and advice/mentoring. After working for 7 years with entrepreneurs from ground roots level up to established well operating small businesses we have found that the need for funding is often premature. There are 2 primary stages of premature readiness for funding.
The first can be that a company simply does not have the compliance to submit an application for funding.
The second is that companies often do not have the financial experience or skills to manage the funding once they receive it.
For example, there is a company LEAP has worked closely with over the last 3 years. Their core product is in coal mining and although they started off small they have started playing ball with the big boys in mining. When chatting to the MD he says that before the business assist programme he didn’t know how to balance a budget, how to put together a financial plan, when to submit VAT returns or PAYE. 3 years later, a little bit of guidance and his willingness to take the assistance we offered his company is thriving. He managed to secure funding on R1.5mil.
As an entrepreneur you want to focus on your product, on getting to market, and to create revenue like the example given. Often entrepreneurs tend to have an eccentric flare and passion which, don’t get me wrong, is paramount to success. The problem comes in when the passion and drive preclude managing basic finance and tax.
We want businesses to thrive, to grow and to be well prepared to manage the finances that come in and out of their companies.
If you find yourself in a position where you need some guidance about how to control your finances and tax more contact us at LEAP and we can find a programme that suits you best.
Click here for a breakdown of the 2016 Budget Speech by SA Finance Minister Pravin Gordhan.
Author: Cara Shepherd, LEAP Marketing Officer, March 16