‘Don’t mix business with pleasure, especially when it comes to finances!’
This was the underlying message from respected financial advisor, Lorato Akpata to her fellow women in the working world.
Speaking at a breakfast organised by First National Bank to celebrate women in business last Thursday, Akpata told the sisterhood that financial discipline was a must if they hope to succeed in business.
The Suero Consulting founder explained that separating personal and business finances makes it easier to account and have a better idea of how the business is doing.
“I advise you to have a salary and stick to it. You are an employee of your business so be disciplined. Start off with your expenses and see how much you spend per month and that is how you measure your salary,” advised Akpata, adding the principle applies to big and small purchases alike.
GIVING ADVICE: Akpata
“If you want to buy a personal car but you cannot afford one, use your personal account to acquire a loan not business. This has killed us and our businesses are bankrupt. You drain the business by swiping groceries with your business card!” she warned.
“Business finances are the heart of your business because that is what funds the operation, the marketing and stock. The money should go back into your business for it to grow,” added Akpata.
Meanwhile, FNB Head of Small and Medium Enterprises (SMEs) Banking, Jenamiso Ratsebe revealed the bank recently introduced Forex on their App, which enables small businesses to make cross border payments to international suppliers online.
Another addition to FNB’s arsenal of services is Mogwebi Insurance Offering, which provides cover under: fire, theft, business interruption, electronic equipment, business all risk, glass, goods in transit, money, public liability, workers compensation and vehicle.
“You can pay your premium either on an annual basis or monthly. The cover ranges from P120, 000 to P1 million. No underwriting is needed and previous claims history is not required. Pricing per coupon is predetermined and policy documents are issued immediately. You are not expected to pay any excess under this policy,” said Ratsebe, explaining that businesses with an annual turnover exceeding P10m are illegible.
“This policy helps entrepreneurs looking to ensure business continuity,” Ratsebe concluded.