Hi Enchanted Tribe, so this week l am releasing a gem of a podcast! You should get your pen and journal or get typing. I sat down with Lungelo Gumede, a finance expert and business owner. If you are an SME or just starting out in your business and you want to know what to look for in terms of finances then this episode is for you. We covered so much from :
- operational efficiency
- how to calculate how long you can say alive for
- how to measure impact
- how to motivate your staff and inspire them to work
- how to manage The King (CASH) and
- downsizing your living when you are starting out
Formulas covered in the podcast
Try to stay alive for as long as possible.
This is calculated by current assets/average daily expenses. Another version is to just look at the Bank or Cash/average daily expenses and this one is more strict and gives a better sign as cash is more liquid. Basically it shows how long can your business survive without generating any more additional sales?
Another ratio is Total sales/number of employees (or cost of employees) and this measures productivity however, just an average and does not indicate which employee is contributing more or less to the company’s total sales revenue in a given time period.
Lungelo Gumede serves as Headboy Industries co-founding COO. He holds a Master’s degree in Development Finance from the UCT Graduate School of Business. He is a Lecturer at the UCT Graduate School of Business. His passions include the development of innovative and sustainable solutions to emerging market problems. He also has a deep interest in commercial solutions that can aid in the development of youth from disadvantaged backgrounds.
We also covered personal finances but that will be next week’s podcast….Until then, live an enchanted life!