Building Financial Discipline at an SME
Dev Raman, Managing Partner at Lastaki shares how to make the many moving parts to an SMEs financial area come together smoothly. Financial stability is key for SMEs, five tips on how to address financial indiscipline are below:
- Ensure strong fundamentals.
- Manage the predictability/margins trade-off optimally.
- Don’t buy turnover by using your balance sheet especially if you are much smaller than your company.
- Watch the big costs, not the small ones.
- Measure performance constantly and objectively.
Implementing some of these key tips are steps in the right direction towards great financial management of your SME.