Not every startup or SME walks right into fame and fortune, as most of them fail in the first year while others struggle to stay afloat or break even. According to a report by BusinessDay, Failure rates for startups in Nigeria, Africa's biggest economy, has averaged 61 percent from 2010 – 2018, and this accounts for more than half of the new businesses launched.
Here’s a strategy for achieving financial freedom in your business
We currently live in a founder’s era - where more people are leaving paid employment to start businesses in the hopes of creating new solutions for everyday customers. The end goal though, is to make a profit – but the reality is that for many businesses, it is often not the case.
With the increased internet penetration and marketplace digitization making various products and services readily accessible to customers, competition is as steep as ever. Only businesses that go the extra mile to serve their customers effectively and seamlessly stand a chance to stay in business long enough to achieve desirable profitability. However, there are a few key tactics to be considered to stand out in the midst of competition and ultimately achieve profitability.
What’s the Tea?
- Have clear business goals: Beyond just wanting to start a business, it is crucial to understand the why of the business and what you hope to achieve. What problem do you want to solve? Who is your target audience and how can you serve them better than the competition? What is your value proposition or unique selling point? Answering these questions will guide you to achieving your goals and objectives and will help you know how to stand out in the marketplace.
- Build cost-effective systems: You must put-up cost-effective measures in place to reduce unnecessary expenses and work to increase profitability. Systems like a well-structured financial plan - which may include cutting down on operational expenses (like rent and running costs) and re-investing the dividends from the profits could help to effectively maximize your finances.
- Separate your business account from your personal accounts: Business income is not a flex! It is important to keep a separate account for your business to enable you to keep track of the inflow and outflow of cash. To properly manage cost and expenses, ensure the account covers monthly running costs and discretionary expenses including a personal salary to avoid dipping into the business purse.
- Choose the right payment solutions: Choosing the right payment solutions is the final key to help position your business to serve your customers better. For e-commerce businesses for example, the type of payment gateway provider you choose should be able to help you offer convenience and security to your customers to ensure they can seamlessly complete their purchases irrespective of their choice of payment methods. A payments solution provider like Unlimint is able to have your business play on a global scale and provide details financial reporting and KPI for all your online transactions, allowing you to make the best business decisions And these are key contributors to achieving financial freedom.
With Unlimint, your business can accept over 1000 alternative payment methods, providing you with the opportunity to serve clients from all over the world. Unlimint offers fast-growing innovative businesses with a constantly evolving financial interface, designed to help businesses enter new markets, thus promoting growth opportunities for such enterprises, starting with the freedom from payment constraints.
Now that you have learned the strategy to help your business stand out from the crowd, you are well on your way to achieving profitability in your business. Visit www.unlimint.com to get started on the journey to choosing the right payments solution to give your business the leading edge.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: