It is critical for everyone to learn the fundamentals of business finance to comprehend how their actions influence the financial success of their organization as a whole. As a business owner, you steer the ship of your company and take them from one million rand in sales, to two million, five million, and even ten million. However, to do this you will need to understand the numbers.
Here are five key financial terms that you will need to know before applying for business finance or taking it to the next level:
Learn How To Read Financial Statements
Understanding the implications of your organisation’s financial accounts can provide insight into where things are going well and where they may be improved. Financial statements provide some of the best data for you to analyse in terms of where the business is and where your potential room for growth is. While you may have focused on growing your business and your team, now it is time to grow your financial knowledge too.
Understand Business & Budget Plan
Planning and budgeting are closely linked. Taking the time to plan for your expansion, and having a budget in place are crucial steps to taking your business to the next level. The first step is to stay informed about the economic environment around you which affects your business. Staying up to date will allow you to shift, pivot, and thrive even when conditions are not perfect. Budgets may be implemented more swiftly when they are agreed upon and understood early on.
Learn About Business Loans
Business loans in South Africa are used to fund a wide range of corporate demands, ranging from capital for inventory acquisition, to business expansion. Businesses that have been in operation for more than a year and have an annual revenue of more than one million rand can get access to much needed cash flow in the form of business finance.
Unsecured business loans are the most common option and are available on Business-loan.co.za. The application process is simple:
- Ensure you meet the criteria (more than R1 mil in sales, been operating for more than 12 months)
- Choose your loan amount and term
- Your application will be assessed and you could have your loan within 1 day
When you have a chance to expand your business into new areas, markets, and to new heights, why wouldn’t you!