Avoid these common financial planning mistakes that hold back Nigerian SMEs. Learn how to plan smarter and grow faster.
Many small and medium enterprises (SMEs) struggle with financial planning — not because they lack effort, but because they lack strategy. Here are common financial missteps and how to avoid them:
1. No Clear Budget
Operating without a defined budget makes it hard to track profits or manage cash flow effectively.
2. Ignoring Tax Obligations
Delays or non-compliance with tax laws can lead to hefty fines and disrupt business operations. Work with tax experts to stay compliant.
3. Mixing Personal and Business Finances
This is a recipe for confusion. Separate your accounts and maintain clear records for better accountability.
4. Overestimating Revenue
Be realistic. Project conservatively and plan for slow months.
5. No Emergency Fund
Unexpected expenses can hit hard. Create a reserve to keep operations running during rough patches.
