| In today’s volatile markets, optimal resource allocation is key to business survival. Learn 9 actionable business hacks to manage cash flow, reduce costs, and ensure MSME sustainability in Africa and beyond. |
From Scarcity to Strategy
In today’s global economy, particularly across high-potential yet volatile markets like Nigeria and the wider African continent, business resilience isn’t a luxury—it’s a requirement. The biting reality for MSMEs (Micro, Small, and Medium Enterprises) is that every operational decision must be a strategic step toward sustainability.
For business owners, managers, and decision-makers, the urgent need is to pay laser focus on optimal resource allocation and better resource management. This means prioritizing core business needs over wants that can be shelved, maintaining optimal process flow, and ensuring efficiency in delivery.
At VicFaus Integrated Solutions Ltd and our affiliated ventures (Fresh Fare HQ & FlexiPay Technologies Limited), we’ve witnessed firsthand that turning scarcity into a strategy is the key to unlocking growth.
Here are 9 non-negotiable business hacks you can implement today to reduce cash burn, manage costs, and keep your business sustainable until the market stabilizes.
1. Localize Your Supply Chain
The global supply chain remains a costly and unpredictable bottleneck. Combat this by internal sourcing of raw materials as a priority over importing. This vital step helps sustain production, significantly reduce lead times, and maintain competitiveness in the price of goods distributed to the market.
2. Opt for Indigenous Service Providers
To keep operational costs within reach and ensure long-term operational sustainability, make a conscious effort to opt for indigenous/domestic service providers. They often offer competitive rates, understand the local economic landscape better, and reduce exposure to foreign exchange volatility.
3. Conduct a Monthly Cost Audit
When did you last scrutinize your operational budget? Now is the time for a rigorous monthly business operations spend review. The goal is simple: delist every cost element that does not directly contribute to productivity. If it’s not generating revenue or increasing efficiency, cut it. This is a foundational business hack for survival.
4. Leverage Split/Batch Vendor Payments
Managing cash flow is paramount. Open a discussion with your vendors and suppliers about implementing split or batch payment terms, perhaps extending up to 30–45 days. This strategy sustains your cash holding capacity, allowing for the crucial reallocation of funds to other urgent operational cash need areas.
5. Explore BNPL for Operational Needs
Where available, consider Buy Now, Pay Later (BNPL) options for your daily cash operations and payments needs. Applied judiciously, BNPL can be a strategic tool to temporarily sustain business liquidity without immediately draining your working capital.
6. Optimize Supplier Credit Terms
Don’t accept default payment terms. Proactively review and negotiate credit payment terms with suppliers. Aim to adopt payment due dates that closely align with your business inflow cycles, helping you better manage your day-to-day running costs and mitigate the negative impact of high account payables.
7. Question All Transit Costs
Every Naira or Shilling saved on logistics adds to your bottom line. Be open-minded and ask questions about available options or better methods to adopt for daily business transit needs (transportation, dispatch, courier, last-mile delivery). Seek out service providers whose fees or rates are demonstrably cheaper and more efficient.
8. Embrace Comparative Cost Checking
Never accept the first quote. For any new business service requirement, check costs from multiple suppliers, vendors, or sources. This provides a balanced average cost variation, giving you leverage to negotiate lower fees for each requirement. This meticulous approach to cost management is vital to staying alive in business.
9. Maintain a Cash Burn Out Shield
Every Naira or Shilling saved on logistics adds to your bottom line. Be open-minded and ask questions about available options or better methods to adopt for daily business transit needs (transportation, dispatch, courier, last-mile delivery). Seek out service providers whose fees or rates are demonstrably cheaper and more efficient.
Conclusion: The Mindset Shift
Ultimately, every daily decision, action, activity, or input should be judged by one metric: Does it keep the business alive and moving forward?
MSME scaling in challenging environments requires an unwavering focus on efficiency, control, and a significant mindset shift—from expansion at any cost to resilience at all costs.
Connect & Learn More
To help your business unlock growth, resilience, and profitability, explore Victor Uche Obioma’s services: