A prominent UK-based financial and management expert, Ms. Patricia Balogun, has shared strategic advice for Small and Medium Scale Enterprises (SMEs) to manage the current economic uncertainties in Nigeria.
In a recent virtual interview, the Nigerian accountant, who resides in the UK, highlighted several key management practices essential for the survival of SMEs.
Ms. Balogun recommended that SME owners start by cutting costs as a fundamental measure. This includes renegotiating contracts with suppliers, eliminating unnecessary expenses, and finding ways to operate more efficiently.
She also advised businesses to diversify their revenue streams, exploring new markets, products, or services to boost income and lessen dependence on a single revenue source.
Improving cash flow management was another critical point she raised. SMEs should closely monitor their cash flow, enhance liquidity by speeding up receivables, delaying payments to suppliers, and considering additional financing if necessary.
Finally, Ms. Balogun emphasized the importance of customer retention. She suggested that focusing on keeping existing customers satisfied is vital for maintaining a consistent revenue flow during economic downturns.
By implementing these strategies, SMEs can better navigate the financial challenges posed by Nigeria’s current economic climate.
