Why you need financial support when starting your own business - The Finance Team

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Why you need financial support when starting your own business

The decision to start your own business is probably one of the most challenging decisions an individual, or group of individuals can make. Sometimes it comes out of necessity and other times it comes from wanting to live outside the box and be the master of one’s own destiny.

 

The challenge experienced by most entrepreneurs, is that they start with a very limited budget, sometimes not having sufficient financial resources to draw a salary in the first few months and because of this cash flow constraint, entrepreneurs attempt to be the jack-of-all-trades in the early stages of the company’s growth and take on all the critical areas within the business – from Sales to Marketing to Logistics and Finance.

 

The reality is that without appropriate financial information and support, you may struggle to get your business to really take off. Having the right business structure and the necessary controls and processes in place to provide you with critical information is core to the growth of any business.

 

No matter the industry, a solid understanding of cash flow and the business profit model can be the make or break element for a business. As an SME, the practicalities of obtaining this financial information and support is that the limited cash flows prevent the engagement of a full time financial resource that has the necessary skills and experience to address these issues.

 

All is not lost however as companies do exist within the South African market that have been created for this exact quandary. They engage the services of highly qualified and experienced financial executives who are able to provide professional financial executive services on a flexible basis. This follows the international trend that has exploded over the last decade in both Europe and the USA.

 

What does this mean to the entrepreneur? The simple answer is EVERYTHING!

 

These consultancies provide SMEs with affordable access to these executives on a part-time or interim basis. So, if the company is still at a size where the affordability or need for a full time solution is yet to be justified, these consultancies will provide the company with an experienced financial executive at either Financial Manager or Financial Director level that can work anything from one day a week upwards, which makes this a viable option.

 

The opportunities abound within the SME market as a tailor-made solution can be created. Just make sure the company you choose has the right mix for your business. We base our model on key elements: Trust, Experience, Flexibility, Director-Level Involvement, and a Team Approach.

(Source: mweb.co.za)

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