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Many people are capable of making money. Very few are able to manage it, save it, invest it and make it grow. To excel in business one of the core skills an entrepreneur must develop is prudent financial management.

Unless you are able to manage finances, your business is doomed. Wisely managing money is one of the most important factors yet most violated. It does not matter how much money you make, if you never create a surplus (savings) to invest, you will struggle financially. You must be so disciplined that you separate business money from personal money. Give yourself a fixed amount that you can draw from the business for personal use. Call this a salary, an allowance or a drawing. Stick to it and give yourself no exceptions.


Making money can be easy once society knows and appreciates your polished talent that have been beautifully packaged as a product or service. But keeping the money, let alone making it grow is an entirely different skill and discipline. Lasting financial success is based on the following key principles:

  1. Spend less than you make: Always create a surplus
  2. Manage your expenses: don’t get excited with increased revenue.
  3. Develop financial self-controls: Don’t move with the business cheque book in your handbag. Have at least two people to sign for your business account transactions. Raise a payment voucher for EVERY withdraw, detailing what the money will be used for. Never spend money unless it has been budgeted for. Issue receipts for EVERY income / sale you make. Keep records of ALL your purchases and expenditure. These are some of the controls you need to have in your business.
  4. Wisely invest your surplus to further develop your skill, products and services. Invest in marketing efforts that lead to more sales for your products and services.
  5. Invest in your financial education: Don’t underrate the gravity of financial ignorance. It could be the thing that will destroy your business. Learn bookkeeping, learn financial management skills, learn how to read financial statements.
  6.  NEVER lose money carelessly: Whatever you do, never lose your money carelessly. Do whatever it takes to protect your money from legal and illegal money predators. Don’t open 5 bank accounts just for the sake of it. Each bank account will cost you money. The fewer the better. Don’t lose money to the banks by paying unnecessary interests on loans and overdrafts. DON’T borrow because the bank has offered you a loan. Borrow because the business dictates that you do. Collect money from your creditors, don’t let people get away with not paying for your services. DON’T offer credit to untrustworthy people. Keeping your money safe is not an easy thing but it is absolutely necessary. There is no point working very hard in your business only to lose your hard-earned money because you were careless, ignorant or lacked financial controls. Money is the life-blood for your business. Ensure you have enough of it to make your business grow.



No matter how successful you become, you should never stop the process of learning to improve yourself and polish your talents and skills. Have a personal skills development program. Always remember that you will only become as successful in your business as you continually develop your core skills namely:

a) Leadership skills

b) People / interpersonal skills

c) Intrapersonal (personal management) skills

d) Business management skills

e) Money management skills. The more you develop these five core skills, the better you will become at managing your business. Investing in your personal development is a discipline that you must take seriously because it will help you become a wise and prudent entrepreneur.

See the advice from the wise below:

“If you want your talent to lift you to great heights of achievement, you must be ready to invest the necessary time, money and energy required to develop it into a skill. When you combine your well-developed skills with sound business acumen, you will attract more money in the business world.” – Praise George

“Get wisdom, get understanding… wisdom is supreme, therefore get wisdom. Though it costs you ALL that you have, get understanding… Buy the truth and do not sell it, get wisdom, discipline and understanding.” – King Solomon (Proverbs 4:5 & 7; Proverbs 23:23)

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