Toyin Aralepo’s Finance Hub To Train SMEs On Cash Flow Management

The Founder of Africa Finance Strategy Hub (AFSH), Toyin Aralepo, is bringing a series of courses to help entrepreneurs structure their businesses and experience financial stability.

One of such programmes from the stable of the hub, she disclosed is Cashflow Management – a critical element of a healthy growing business.

Aralepo, a first-class accounting graduate and a fellow of the Institute of Chartered Accountant of Nigeria (ICAN), is bringing her over a decade of corporate experience in financial management to support the growth of entrepreneurs through the series of courses run in the AFSH platform.

Explaining how she came about the idea of the finance hub, she noted that SMEs are the bedrock of growth in any economy, and many of them are struggling to manage their businesses and are unable to take it to the next level.

“The platform will give business owners access to professional financial management skills and tools that will help them to understand, manage, and scale their businesses.”

Speaking on cash flow, Aralepo said cash flow management is a critical area to focus on for any business to run the operations without any interruption.

She said even if the company was not making a profit in the short term, cash will keep the business running daily.

The finance expert explained that just as blood represents life in humans, so is cash the lifeblood of any business.

She went further quoting Richard Brandson: “Never take your eyes off the cash flow because it is the lifeblood of the business.”

She added: “If you have cash and you do not manage it very well, the business will not run efficiently and profitably. So, you need to have a system and the requisite skill of managing your cash. This is extremely important for small businesses that do not have the required expertise.

Making more money will not solve your problems if cash flow management is your problem.”

The AFSH Founder stated further that most times, business owners focus on the income statement without adequate attention to cash flow.

She stated the situation is similar to a driver who is only watching the speedometer when he is running out of fuel.

She argued that cash is king and requires the most care. So, for any business to thrive, cash flow must be a priority.

Aralepo listed some of the activities that may cause cash flow movements. They include the collection of sales, payment of expenses to run your business, payment of tax liabilities, repayments of debt, acquisition or sale of assets, and the inflow or outflow of borrowed funds.

Going further, the London School of Business (LSB) Alumni observed that one big reason many entrepreneurs keep losing money is that they lack cash plan.

According to her, just increasing sales without being able to track payments and fund gaps in the future will not help anyone grow his or her business.

She went further to narrate cash flow problems as caused by several reasons. These include insufficient customers, underpricing of goods and services, too many business expenses, delayed collection of debts from customers, tax exposures, and weak cash flow management process.

On ways to mitigate the effect of lack of cash flow plan, she highlights that an entrepreneur needs to plan cash appropriately by projecting where they may likely be, track performance, and quickly take corrective actions when the desired result is at risk.

On how subscribers can access this learning space, Aralepo said the hub’s operations include face-to-face business consultation as well as virtual learning.

The finance expert added that building revenue without positive cash flow is just vanity, adding that profit may bring some sanity, but positive cash flow is the reality to fuel business growth to the next level.

“Proper cash flow management is a critical element of a healthy, growing business,” she added.

Source : independent

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