Experiencing stress? Try this quick breathing exercise!
Experiencing stress? Try this quick breathing exercise!
The COVID-19 pandemic has brought challenges in all aspects of our lives. As a small business owner, you may be used to the stress and uncertainty that come from running an enterprise. The pandemic has added new challenges to this, and many of us are feeling the effects.
At the SME Response Clinic, we are offering a few tools for dealing with stress and uncertainty. The first is a short exercise that may help – less than five minutes, it is free, can be done anywhere, and does not require any special tools or know-how.
The short exercise involves focusing on your breath, which is a proven way to lower stress in the body. Below is a simple guide:
- Find a comfortable place to lie or sit down. Gently close your eyes and take two or three deep breaths. Breathe in through the nose and out through the mouth.
- Allow the breath to return to its natural rhythm and feel the body’s weight press down where you are sitting or laying down.
- Notice how the body feels. Starting at the top of the head, think about how your body feels from head to toe. Do you feel peaceful? Are you moving around a lot? Are you comfortable? Are you uncomfortable?
- As you breathe in and out, allow thoughts to come and go. If you become distracted by a thought, return the attention to how your body feels.
- After a few minutes, slowly open the eyes again.
It may seem simple, but breathing exercises like these are known to help in challenging times. They can give you a short break from your sense of stress or feelings of uncertainty, which can in turn help you to think more clearly and make better decisions for yourself, your family, and your business.
Let us know if this works for you by emailing us at smeresponseclinic@gmail.com!
Ese wumva uremerewe n’ibibazo? Gerageza ukore uyu mwitozo muto wo guhumeka!
Icyorezo cya COVID-19 cyazanye ingorane zinyuranye mu buzima bwacu. Nk’umucuruzi muto, ushobora kumva uremerewe n’ibibazo cyangwa ukaba utabona neza icyo ugomba gukora mu micungire y’ikigo cy’ubucuruzi. Icyorezo cyazanye n’izindi ngorane nshya kandi abantu benshi muri twe biri kubagiraho ingaruka.
Muri SME Response Clinic turi gutanga inama nke zifasha umuntu guhangana n’ikibazo cyo kumva aremerewe n’ibibazo no kutabona neza icyo agomba gukora. Icya mbere ni umwitozo muto ushobora gufasha umuntu – iminota itageze kuri itanu, ntabwo usaba amafaranga, ushobora gukorerwa aho umuntu yaba ari hose, kandi nta bikoresho bidasanzwe umuntu akenera cyangwa ngo abe azi cyangwa atazi uko ukorwa.
Uyu mwitozo muto ukorwa umuntu yibanda ku buryo ahumeka; ibi bikaba ari uburyo bwagaragaye bufasha umuntu kubaganya ikibazo cyo kumva aremerewe n’ibibazo mu mubiri we. Dore mu buryo bworoshye uko bikorwa :
- Shaka ahantu heza ushobora kuryama cyangwa kwicara wisanzuye. Funga amaso buhoro buhoro noneho witse umwuka incuro imwe cyangwa ebyiri. Humeka cyane winjiza umwuka mu mazuru kandi uwusohorera mu kanwa.
- Humeka ku buryo busanzwe noneho wumve uburemere bw’umubiri wawe butsikamiye aho wicaye cyangwa uryamye.
- Umva uko umubiri wawe umeze. Uhereye ku mutwe ukageza ku mano, tekereza uko wumva umubiri wawe umerewe. Ese urumva ufite amahoro? Ese urumva ugenda uzenguruka hirya no hino cyane? Ese urumva umerewe neza ? Ese urumva utamerewe neza?
- Uko ugenda winjiza umwuka unawusohora, reka ibitekerezo bize kandi bisohoke. Niba hari igitekerezo kikurangaje, ongera nanone utekereze ku buryo wumva umubiri wawe umeze.
- Nyuma y’iminota micyeya, ongera nanone ufungure amaso buhoro buhoro.
Bishobora kugaragara nk’ibintu byoroshye, ariko imyitozo yo guhumeka nk’iyingiyi izwiho gufasha abantu mu bihe bikomeye. Ishobora gutuma umuntu agira igihe gito cyo kumva aruhutse ibibazo bimuremereye cyangwa akabasha kuruhuka ikibazo cyo kutabona neza ibigomba gukorwa, ibyo bikamufasha kurushaho gutekereza neza no gufata ibyemezo byiza byaba ibimwerekeyeho we ku giti cye , ibyerekeye ku muryango we, cyangwa ibyerekeye ku bucuruzi bwe.
Tumenyeshe niba ibi bikora neza kuri wowe utwandikira kuri imeyili ikurikira: musa.kacheche@consumercentrix.ch!
Updated Government COVID-19 Preventive Measures & Considerations for your Business
The Latest Government COVID-19 Preventive Measures
Wednesday 1st September 2021 Update
On 1st September 2021, the government reviewed and issued new COVID-19 preventive measures. The new measures issued took effect from 2nd September and will last till 22nd September 2021, where the cabinet will review them upon a health assessment.
Below are the updated government measures.
- Movements are prohibited between 10:00 pm and 04:00 am in the city of Kigali. For the rest of the country, movements are prohibited between 9 pm, and 4 am with businesses closing by 8 pm. However, for districts including Burera, Gicumbi, Kirehe, Ngoma, Nyagatare, Nyamasheke, Nyaruguru and Rwamagana where movements are prohibited between 8 pm and 4 am, and businesses close by 7 pm.
- Public and private offices will continue with essential staff but not exceeding 50% capacity while other employees continue to work from home. Private business also resumed with essential staff not exceeding 50%
- Physical conferences are allowed but should not exceed 30% of venue capacity, and event organizers must comply with all COVID-19 preventive measures, including a PCR negative COVID-19 test results required for all participants taken within 72 hours before the meeting.
- Arriving passengers
Wednesday 11th August 2021 Update
On 11th August 2021, the government reviewed and issued new COVID-19 preventive measures. The new measures issued took effect from 12th August and will last till 1st September 2021, where the cabinet will review them upon a health assessment.
Below are the updated government measures.
- Movements are prohibited between 8:00 pm, and 04:00 am, and businesses will close by 7:00 pm.
- Public and private offices will continue with essential staff but not exceeding 50% capacity while other employees continue to work from home. Private business also resumed with essential staff not exceeding 50%
- Meeting and conferences are allowed but should not exceed 30% of venue capacity, and event organizers must comply with all COVID-19 preventive measures (negative COVID-19 test results required for all participants)
- Arriving passengers at the airport must present a negative COVID-19 PCR test taken within 72 hours before departure.
- Public transport will continue to operate at 75% capacity with strict adherence to the health guidelines (social distancing and mask-wearing). Motos and bicycles will continue to work with strict compliance with the health guidelines (disinfecting passenger’s helmets).
- Schools and higher institutions of learning are closed.
- Malls and markets will continue to operate with only essential vendors not exceeding 50% capacity of registered traders.
- Tourism will continue with strict adherence to COVID-19 health guidelines. This includes hotels, tour operators, and transport services assisting guests.
- Individual and non-contact sports activities will continue with strict adherence to health guidelines. Gyms and fitness centers will resume progressively.
These measures will be reviewed after two weeks upon a health assessment. For more detailed COVID-19 measures, visit: Office of the Prime Minister
Friday 30th July 2021 Update
After a 15-day complete lockdown in Kigali and eight other districts, the government reviewed and issued new COVID-19 preventive measures on Friday 30th July 2021. The new measures issued took effect from 1st August and will last till 15th August 2021, where the cabinet will review them upon a health assessment.
Below are the updated government measures.
- The complete lockdown was lifted in the City of Kigali and eight. Movements are prohibited between 6:00 pm, and 04:00 am, and businesses will close by 5:00 pm.
- Movements between Kigali and other provinces and districts have been resumed except for sectors under localized lockdown.
- Public and private offices were re-opened but not exceeding 15% capacity while other employees continue to work from home. Private business also resumed with essential staff not exceeding 50%
- Meeting and conferences are allowed but should not exceed 30% of venue capacity, and event organizers must comply with all COVID-19 preventive measures (negative COVID-19 test results required for all participants)
- Arriving passengers at the airport must present a negative COVID-19 PCR test taken within 72 hours before departure.
- Public transport will continue to operate at 50% capacity with strict adherence to the health guidelines (social distancing and mask-wearing). Motos and bicycles will continue to work with strict compliance with the health guidelines (disinfecting passenger’s helmets).
- Schools and higher institutions of learning are closed.
- Malls and markets will continue to operate with only essential vendors not exceeding 50% capacity of registered traders.
- Tourism will continue with strict adherence to COVID-19 health guidelines. This includes hotels, tour operators, and transport services assisting guests.
- Individual and non-contact sports activities will continue with strict adherence to health guidelines. Gyms are closed.
These measures will be reviewed after two weeks upon a health assessment. For more detailed COVID-19 measures, visit: Office of the Prime Minister
Monday 21st June 2021 Update
In light of the uptick in cases of COVID-19 in the country, on Tuesday 29th June, the government of Rwanda announced a revision of the COVID-19 restrictions issued on Monday 21st June 2021. These new measures will take effect starting Thursday 1st July and will be reviewed after two weeks upon a health assessment.
Below are the updated government measures.
General measures for the whole country
- The country will observe curfew time from 6:00 pm to 04:00 am, and businesses will close by 5:00 pm. People are encouraged to limit unnecessary movements.
- Arriving passengers at the airport must present a negative COVID-19 PCR test taken within 72 hours before departure.
- Public transport will continue to operate at 50% capacity with strict adherence to the health guidelines (social distancing and mask-wearing). Motos and bicycles will continue to work with strict compliance with the health guidelines (disinfecting passenger’s helmets).
- Private business will continue with essential staff not exceeding 50% capacity.
- Schools and higher institutions of learning are closed.
- Malls and markets will continue to operate with only essential vendors not exceeding 50% capacity of registered traders.
- Tourism will continue with strict adherence to health guidelines.
- Individual and non-contact sports activities will continue with strict adherence to health guidelines. Gyms are closed.
Measure specific for Kigali
- Movements between Kigali and other provinces and movements between districts nationwide are prohibited except for medical services and transportation of goods.
- Private and public offices are closed for staff except for those providing essential services.
- All meetings and social gatherings are prohibited. Restaurants will only provide offer delivery services.
Measures specific for the rest of the country
- Movements between districts nationwide are prohibited except for medical services and transportation of goods.
- Physical meetings will continue but not exceeding 30% of venue capacity. Participants will be required to present negative COVID-19 results taken within 72 hours.
- Public offices will continue to operate but not exceeding 15% capacity of all employees. Other staff will continue working from home on a rotational basis.
- Restaurants will continue to operate not exceeding 30% of venue capacity closing by 5 pm.
Updated Government COVID-19 Preventive Measures & Considerations for your Business
Saturday 12th June 2021 Update
In light of the uptick in cases of COVID-19 in the country, on Monday 21st June 2021, the government of Rwanda announced a revision of the COVID-19 restrictions issued on 12th June 2021. These new measures will take effect starting Wednesday 23rd June and will be reviewed after 2 weeks upon a health assessment.
We know that it is a tough time for many and particularly for entrepreneurs as you strive to protect both your families and businesses. We are here to help with a summary of the updated measures and some things to keep in mind as a business owner operating during this time.
Updated Measures
- Movements between Kigali and other provinces and movements between districts nationwide are prohibited except for medical services and transportation of goods.
- The country will observe curfew time from 7:00 pm to 04:00 am, and businesses will close by 6:00 pm.
- Arriving passengers at the airport must present a negative COVID-19 PCR test taken within 72 hours before departure.
- Public transport will continue to operate at 50% capacity with strict adherence to the health guidelines (social distancing and mask-wearing).
- Motos and bicycles will continue to operate with strict compliance with the health guidelines (disinfecting passenger’s helmets).
- Physical meetings will continue at 30% of venue capacity, and all participants must possess negative PCR tests.
- All social gatherings, both private and public, are prohibited.
- Private business will continue with essential staff not exceeding 50% capacity.
- Malls and markets will continue to operate with only essential vendors not exceeding 50% capacity of registered traders.
- Restaurants will continue to operate at 30% of venue capacity closing by 6 pm. For some designated restaurants, customers must present negative COVID-19 results.
- Tourism will continue with strict adherence to health guidelines.
Considerations for Your Business
- If your business is permitted to continue operations during this time, ensure that you have implemented all safety protocols to keep your clients and employees safe.
- Brief all employees in advance where possible on operational changes you plan to make that could affect their work schedules or responsibilities. Allow employees to work remotely where possible.
- Reach out to clients proactively about changes in product or service delivery, operating hours, or protocols when visiting your business.
Meet Jeremiah Ogola, the Chief Executive Officer and Founder of Cotton and Paper Products Limited
The KCB 2Jiajiri initiative through its technical training courses aims at equipping the young and micro-entrepreneurs with essential skills that empower them to profitably turn their passion into a service and, or product. The program gives you access to funds and also connects you to the relevant market and its players.
Meet Esther Lenolkulal from Maralal
KCB Rwanda in partnership with the National Youth Council has launched a youth scholarship program named ‘KCB Igire’ in which 100 youth will receive intensive vocational training. The program is sponsored by the KCB foundation.
The launch follows the signing of an MoU between KCB Bank Rwanda and the National Youth Council tenter a collaboration with the aim of turning youth into job creators and increase their employability.
The KCB Foundation made available Rwf 45 million to provide six months of accelerated training in culinary arts, domestic electrical installation and ICT to 100 selected youth. The disciplines were identified as crucial to fill the skills gap in the country as well as according to the personal preference of the applicants.
The program’s launch held at IPRC Kicukiro campus was presided over by the Minister of Youth Rosemary Mbabazi, the executive secretary of the National Youth Council Robert Mwesigwa, the principals of IPRC Huye, Ngoma and Kigali, KCB staff and the selected candidates.
Continue Reading: http://www.hope-mag.com/index.php?com=news&option=read&ca=1&a=3589
Call for Applications for Entrepreneurs in the Wood Sector
Call for Applications for Entrepreneurs in the Wood Sector
The National Industrial Research and Development Agency (NIRDA), with support from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, has established a new Incubator and Accelerator Facility (I/AF) for the wood sector. The main objective of the I/AF is to improve the competitiveness of start-ups and companies in the wood value chain. Selected applicants will participate in 7-8 months incubator/accelerator programs to support them to improve the performance of their businesses, increase their access to the market, and the ability of their companies to compete in the market. The facility will offer a general and tailored set of services for start-ups, companies, and cooperatives from the wood sector, including:
- Business advice
- Entrepreneurship and business management training
- Coaching and mentoring
- Access to technical infrastructure
- Technical assistance
- Market information services
- Marketing assistance
- Facilitation of financial and investment linkages
- Facilitation of linkages for technological upgrading
The incubator program will target early-stage start-ups with less than 12 months of business operations to increase their competitiveness within the wood processing sector and established entrepreneurs who seek to diversify into the wood sector for the first time. To be eligible for this program, the business has to be new to using wood components.
The accelerator program will target entrepreneurs, business owners, and management teams in more mature micro, small, medium-sized, or large enterprises and cooperatives in the wood sector. During the program, participants will be given general and tailored assistance to accelerate their growth, attract investors and expand into their market reach nationally, regionally and internationally. Only businesses in the wood sector with more than 12 months of business operations are eligible to apply for the accelerator program. The applications opened on 10th June 2021, and they will close on 25th June 2021, at 12 pm.
The I/AF program seeks to support companies with the potential to grow and contribute to the development of the wood sector.
To apply for the Incubation program, visit: National Incubation Program for Wood Sector in Rwanda
To apply for the Accelerator program, visit: National Accelerator Program for Wood Sector in Rwanda
For detailed instructions on how to apply, visit Guidelines for Applicants.
Empowering Rwanda's SME’s - The engine for growth
I would say to clients of the industry that the banking sector will stand for you as we have always done, until our customers can come back into their businesses as before.
- Joshua Oigara
Chief Executive, Kenya Commercial Bank
Empowering Rwanda’s SME’s – The engine for growth
Message from Joshua Oigara – Chief Executive, Kenya Commercial Bank
Kenya Commercial Bank (KCB) CEO Joshua Oigara identified the state-backed credit guarantee scheme as a great resource for medium and small enterprises looking to stay afloat or thrive in 2021.
Offering an outlook for the new year as part of conversations with the Kenya Bankers Association (KBA), Oigara described the newly launched scheme as ‘the most exciting part of innovation during the pandemic by financial institutions’.
He noted that the scheme offered SMEs with no security and inadequate cashflow access to affordable credit, cushioning their businesses from the shocks of Covid-19. Oigara further noted it was the first scheme of its kind in the region.
KCB is among participating banks set to extend credit to SMEs after the government through the Public Finance Management Regulations (2020) set up the Ksh3 billion stabilization facility. To qualify, businesses will be required to meet requirements including compliance with tax obligations and business permits as well as having a good credit standing. “The credit guarantee scheme which is the first across the region is a very exciting initiative set up between the banks, the Central Bank and the National Treasury.
“In many ways small customers or what we call SMEs who have no access to credit because of no security, because their cashflows are not strong enough, get a chance to qualify,” Oigara noted.
Ingamba zo gucunga Ingorane mu Kigo cy’Ubucuruzi Gito n’Igiciritse
Ingamba zo gucunga Ingorane mu Kigo cy’Ubucuruzi Gito n’Igiciritse
Imicungire y’ingorane ijyana no gufata no gushyira mu bikorwa ibyemezo bigamije kugabanya ingaruka mbi ku bikorwa by’ubucuruzi. Ubungubu kurusha mu bindi bihe byahise, bitewe n’icyorezo cya COVID-19 gihungabanya uburambe bw’ibikorwa by’ubucuruzi ku isi hose, iki ni igice gikomeye kijyanye n’imicungire y’ibikorwa by’ubucuruzi. Kudacunga ingorane neza bishobora kugira ingaruka mbi cyane cyane ku bigo by’ubucuruzi bito kuko bikunze kuba bifite amikoro adahagaije ari nta n’ubuzobere mu bucuruzi ugereranyije n’ibigo by’ubucuruzi binini byabifasha guhangana n’ibihe by’amage bitunguranye. Muri urwo rwego, hari ingamba nyinshi ibigo by’ubucuruzi bito n’ibiciriritse bishobora gukoresha mu gucunga ingorane mu bucuruzi bwabyo.
Soma ibikurikira maze umenye uburyo wacunga ingorane neza mu bucuruzi bwawe.
Curuza ibicuruzwa cyangwa serivisi zinyuranye.
Hari amagambo akunze kuvugwa agira ati: Ntugashyire amagi yawe yose mu nkangara imwe. Utitaye ku rwego waba ukoreramo rwose rwaba urwa serivisi, urw’ubucuruzi, urw’inganda cyangwa urundi rwego urwo ari rwo rwose, gukora ibintu binyuranye mu bucuruzi bwawe ni igitekerezo cy’agahebuzo. Guha abaguzi bawe uburyo bwo guhitamo ibintu byinshi bizamura uburyo bumva bishimiye ibyo ukora; ibyo bigatuma hinjira amafaranga menshi mu bucuruzi bwawe. Ibyo bishobora kandi gushyiraho intera hagati yawe n’abo muhiganwa. Urugero rumwe rufatika ni iduka ricuruza ibijyanye n’ikoranabuhanga rigurisha telefoni zigendanwa cyangwa ibikoresho bya elegitoronike. Uburyo bumwe bene icyo kigo cy’ubucuruzi gishobora kongera mu bucuruzi bwacyo ibindi bicuruzwa binyuranye ni ugucuruza ibyuma byo kubikora igihe byapfuye- ibi bishobora gutuma wa mukiriya waje rimwe ahinduka umukiriya uhoraho uza buri gihe.
Iyigishe ibijyanye n’amategeko.
Kugira amakuru asanzwe nko kwandikisha ubucuruzi, ibigomba gukorwa mu rwego rw’ubuzima n’isuku cyane cyane muri ibi bihe, ingamba zo kwirinda ikwirakwira rya COVID-19 bishobora kugufasha gucunga ingorane zishingiye ku mategeko. Ibi ni ngombwa ku bafite ibikorwa by’ubucuruzi kugira ngo babashe kumenya uburenganzira ibigo by’ubucuruzi byabo bifite ugereranyije n’ibindi bigo by’ubucuruzi cyangwa abandi bantu ku giti cyabo. Ni ingenzi kandi kumva ibikorwa bimwe bishobora gutuma ikigo cy’ubucuruzi cyawe gifungwa n’ubuyobozi; urugero, niba ushaka gufungura uruganda rukora amasabune cyangwa umuti wo gukaraba intoki, ugomba kureba niba ibyo ukora byemewe n’Ikigo cy’Igihugu Gishinzwe Ubuziranenge mbere yo kubishyira ku isoko. Byongeye kandi, niba ikigo cy’ubucuruzi kigomba kugirana amasezerano n’ikindi kigo cy’ubucuruzi, kigomba kumenya uwo kigiranye amasezerano nawe n’ibizakurikiraho igihe umuntu umwe cyangwa benshi mu bashyize umukono ku masezerano atazabasha gukora cyangwa gutanga ibyo yiyemeje mu buryo bushingiye ku mategeko.
Kubika inyandiko zumvikana ziciye mu mucyo.
Ni ngombwa buri gihe kubika inyandiko z’ibikorwa bikomeye by’ikigo cy’ubucuruzi cyawe nk’inyandiko z’ibyacurujwe, imyenda uha abakiriya bawe, ikiguzi cy’ibikorwa, ingengabihe z’akazi, n’ubwishyu bw’imisoro. Ni ngombwa nanone kumenya niba abakozi bawe bandika ibikorwa by’ubucuruzi byawe uko bikwiye ku buryo nawe byagufasha gutegura raporo z’imari. Ibi bigabanya ingorane zijyanye n’igihombo gishobora kubaho, amakimbirane n’abakiriya, ubujura cyangwa uburiganya bushobora gukorwa n’abakozi; kwandika ibikorwa by’ikigo cy’ubucuruzi cyawe bigufasha kugenzura aho imari yawe yerekeza kandi bikagufasha kumenya niba amafaranga usohora akwiye cyangwa adakwiye. Urugero, niba ucuruza imyenda, amakuru wandika atuma umenya ibicuruzwa byo mu iduka ryawe bigurwa kurusha ibindi kandi byinjiza amafaranga menshi; ibyo bikagufasha gufata ibyemezo uzi n’impamvu yabyo ku byerekeranye n’ibicuruzwa ugomba kwibandaho.
Mu gihe ukeneye amafaranga, saba inguzanyo ahantu hazwi hakorera mu mucyo.
Benshi mu bantu bafite ibigo by’ubucuruzi bari mu ngorane zakomotse ku cyorezo bakeneye amafaranga yo kongera gutangira cyangwa kongera imbaraga mu bikorwa byabo by’ubucuruzi. Inguzanyo itanzwe n’ikigo cy’imari kizwi ishobora kugira akamaro cyane muri uru rwego. Irinde gusaba inguzanyo abandi bantu cyangwa ngo uguze amafaranga ahantu hatazwi kuko bashobora kuguca ibiguzi bitagaragara cyane cyane inyungu zihanitse cyane cyangwa bakakwishyuza mu buryo budakwiye igihe ugize ikibazo cyo kwishyura. Mu gihe usaba inguzanyo mu kigo cy’imari kizwi, ugomba kureba niba amafaranga usabwa kwishyura ushobora kuyabona, niba ijanisha ku nyungu n’amafaranga yo kwiga dosiye aciye mu mucyo kandi niba ikigo usabamo inguzanyo kizewe.
Niba bishoboka, fata ubwishingizi.
Ubwishingizi ni kimwe mu bikoresho byifashishwa mu gucunga ingorane mu nzego nyinshi z’ubucuruzi ariko bukaba butabasha kwishingira ingorane zose ubucuruzi bwawe bushobora guhura nazo. Ubwishingizi bwose bugira ibintu butishingira; ibyo bikavuga ko ari ngombwa kumva ikishingirwa icyo ari cyo. Ni ingenzi kumva ubwoko bw’ubucuruzi ukora kugira ngo ubashe kumenya n’ingorane bushobora guhura nazo. Nk’urugero, umucuruzi wa resitora ashobora guhitamo ubwishingizi bw’inkongi y’umuriro kubera ko akoresha umuriro igihe ategura ibiryo naho umucuruzi ukora imirimo y’ubwikorezi agahitamo ubwishingizi bw’impanuka bitewe n’urwego rw’akazi akoramo. Baza ushinzwe gucuruza ubwishingizi maze agusobanurire ibyishingirwa n’ibitishingirwa mu bucuruzi bwawe.
Strategies for Managing Risk as an SME
Risk management involves making and carrying out decisions to minimize potential adverse effects of risk on a business. More than ever, with the COVID-19 pandemic threatening business survival worldwide, this is an important part of running a business. Failing to effectively manage risks can be especially damaging for small businesses since they tend to have fewer resources and expertise than large businesses to help contain unexpected emergencies or situations. With that in mind, there are a number of strategies SMEs can use to manage risk in their businesses. Read below to find out how to effectively manage risk in your own business.
Diversify your products or services.
There is a common expression that says: Never put all your eggs in one basket. Regardless of whether you are involved in the service, trade, manufacturing or any other sector, diversifying your business offers is an excellent idea. Offering a wide range of options to your clients enhances customer satisfaction while also creating several income streams for your business. It can also give you a competitive edge over your competition. One example would be a tech shop selling mobile phones or electronics. One way that kind of business can diversify its offering by providing device repair for damaged items – this can turn one-time customers into regulars.
Educate yourself about the law.
Simple information like business registration, health and hygiene protocols, and most importantly in today’s environment, COVID-19 preventive measures can help you manage legal risks. This because its critical for business owners to be aware of what rights their businesses have against other businesses and individuals. It is also essential to understand certain activities that may lead to closure of your business by governing authorities; for example, if you want to start a small manufacturing business with products like soap or hand sanitizers, you need to make sure your products are approved by the Rwanda Standards Boards before you put them on the market. Additionally, if a business is to engage in contracting agreement with another business, its important to know who is bound to the contract and what may happen if one or more parties cannot perform what they legally agreed to do or deliver.
Keep clear, transparent records.
It is critical always to document important transactions in your business such as sales, credit you offer to clients, operations costs, work schedules, and tax payments. It is also essential to make sure that your staff are documenting transactions properly so that you can in turn prepare accurate financial records. This reduces the risk of loss of income, potential conflict with clients, and employee theft or fraud. This is because documenting your business transactions helps you monitor where your finances go, and it will also help you determine whether your spending is appropriate or not. For example, If you’re operating a clothing business, your accounts information will help you determine which products from your shops have more sales and generate more incomes hence enabling you to make informed decisions on which products to focus on.
When you need financing, acquire business loans from a formal, transparent source.
Many business owners struggling due to the adverse effects of the pandemic need financing to restart or invigorate their businesses. A loan from a formal financial institution can be a great resource to help in this case. Avoid using moneylenders or other informal sources of financing, which may charge hidden costs, typically have very high interest rates, and may resort to unethical recovery practices should you run into trouble paying. When looking for a business loan from a formal financial institution, be sure that the repayment amount is manageable, the interest rate and fees are transparent, and the institution is trusted.
If possible, invest in insurance.
Insurance is one of the tools used to manage risks in several business disciplines but may not cover all the risks to which your business may be exposed. All insurance policies have exclusions, making it essential to understand what is covered. It is critical to understand the nature of businesses you are operating to ascertain the likely risk that can affect it. For example, a restaurant business may opt for fire insurance given they deal with fire to prepare meals, and a transport business may opt for an accident insurance given their line of work. Consult with an insurance broker who can clearly explain both what is covered by your business insurance and what is not.