Cash flow Tips for Small Businesses in Nigeria

Cash flow is the lifeblood of any business on the surface of the earth, let’s open with a quote from Robert Herjavee “Cash flow is the lifeblood of your business. There are very few things in business that will kill you, but running out of business is one of those things. You can recover from almost any other mistake, but if you run out of cash you are dead.”

Many people may ask what cash flow is in simple words, let’s look at it this way Cash flow is simply the measure of the cash that comes in and goes out of your business. I like to refer to it as “garbage in, garbage out.”

We held a webinar with Christine Vihishima, the Money Mechanic on the 26th of May on this topic and it was really insightful, she shared relatable tips that you can apply in your business and improve your cash flow lifecycle. You can watch the replay video on our YouTube page here.

Managing cash flow is all about figuring out:

• When you will have cash
• How to get more cash into your hands faster
• How to control your spending to avoid cash flow problems

Study shows that 82% of businesses have failed due to cash flow problems, let’s highlight some major tips to being on top of your cash flow game:

• Make good use of Accounting tools like Dillali.
• Your money should be working for you
• Train your customers to pay you on time
• Reduce your cash outflow as much as possible
• Stay on top of your bookkeeping game
• Generate and analyze your cash flow statements
• Always have a backup e.g Emergency Funds, Insurance.

There are more insights for you on our YouTube page, sit back watch and jot down ideas to improve your business cash flow. 

Do you want to join a growing community of food business owners in Nigeria? Click here to join and do not forget they all have one secret to growth and that’s Dillali.