Ade yinka - July 27, 2019, 8:11 pm
Funding options for Small and medium scale enterprises
Aside from developing your legal structure, keeping your accounting records in order, preparing a business plan for yourself and potential investors, you ought to be sure that you have enough funding capital to run the business to prevent loss of profit.
Not having enough capital to cover everyday running cost is the number one cause of failures of Small and medium enterprises in Nigeria. The key to working capital is budgeting. Make sure you have a firm plan in place showing how the business will maintain sufficient cash-flow. Performing a cash flow forecast on a regular basis is a useful way to identify your capital needs. Once you understand the financial cycles of your business, you can set aside the right amounts of working capital to meet your current goals and prepare for the future ones.
Don’t forget that cash flow is about cash that goes out of your business as much as about cash that comes in. Identifying areas where you can reduce outgoings will help you keep more cash in your business. Negotiating the right credit terms with your customers is vital to ensuring a regular cash flow. Credit terms should be set for customers based on their financial strength and their history. Keep these terms under constant review as one large bad debt could sink the business
Protecting intangible assets and intellectual property
As your business develops, you will create intangible assets such as your brand or the process you follow to provide a service or sell products. Protecting these assets from use by copy cats or other businesses can be a challenge.
Intellectual property rights give you the legal rights you need to stop others from stealing your intangible assets. And because IP rights are at the core of most business, potential investors will expect to see that you are serious about managing and protecting these rights.
There are several different types of IP rights and depending on what type of asset you want to protect; you will need to use a particular one. So you might find yourself doing something as simple as registering your domain name, or something as complex as applying for a patent to protect an invention.
Different types of IP rights used to protect different types of assets.
Copyright - Protecting content, software and other intangible assets.
Trademarks – Protecting your business, product and service names.
Domain name registration - Protecting your business internet address.
Protecting confidential information, trade secrets and know-how.
Patents - Protecting your inventions.
Registered design rights - Protecting your designs
Database right - Protecting your data.
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