Small Business Money Management

Definition of a small scale business

A small scale business is that which is established by a sole proprietor, partners or a trader and which has a relatively small number of workers and usually does not have high volume of revenue. They are usually privately owned and are defined by the nature of their size, revenue/income.

As defined by the national council of industries, small scale businesses are businesses whose total assets are not more than Ten thousand Dollars ($10,000)

Small scale enterprises may have little impacts which are usually within a small community. Examples of small enterprises are ; small family supermarkets, small manufacturing ventures,/ restaurants, law firms, bakeries, dry cleaners, fumigation outfit, house cleaning services and so on.

It’s important to now these things as it is basic knowledge for anyone hoping to start their own business. Money needs to be be properly managed as to both improve your business and your life. To be put to the side as to save up for something fun, such as a date with an escort at,, and

Managing a small scale businesses

Management can be defined as the planning, organizing, directing, staffing, budgeting, coordinating and controlling of activities in order to achieve the organization’s goals.

Planning : an entrepreneur has to first of all plan its resources and or finances such that they will match its set activities. A successful business can only be successful when all activities are well planned for proper allocation of resources.

Organising :  organizing has to do with the systematic arrangement of activities, tasks, jobs to be carried out in order to achieve the set goals of the business. A business has to be well organised in order to break down tasks and jobs so as to achieve the set goals.

Directing : directing involves putting into work or action the set activities of a business by influencing, supervising, guiding workers in order to achieve organizational goals.

Controlling: This simply means setting standards and comparing the standards with the actual results and finding out the variances and finally finding ways to control or correct such variances in order to avoid waste.

Staffing: This involves employing the right hands by way of recruiting, appraising and developing the staff and putting them in the right jobs/tasks in order to carry out tasks which will enable the achievement of organizational goals.

Applying all these principles of management will no doubt give an entrepreneur some edge over others.

Also, not just mere having principles put in place, an entrepreneur must try to keep adequate records of transactions at all times. Records of debits and credits, records of all purchases and sales and all other expenses whether minor or major.

Again, once a business has chosen a name, a bank account needs to be opened in the name of the business which will enable safe-keeping of funds coming into the business and going out. With the bank account, a business can even have access to the bank’s loan facilities, if need be.

Also worthy of note is an adequate book-keeping structure which makes it possible to record all forms of transactions internally, be it bank, cash and all other transactions. Especially when it comes to credit giving, an entrepreneur needs to set a line as to the limits to which they can grant credit facilities and also they should also make sure to keep in touch with customers in order to get paid without force but persuasion and making them realize why they need to pay up.

On a final note at the end of everyday’s transactions, entrepreneurs should make sure to cross check entries and transactions in order to ascertain whatever amount that came in and also know the amount of stock remaining at the close of business.

If all these steps are put into use, I believe a small scale business will not only survive but grow well into a larger scale enterprise.