SECRECT OF GROWING YOUR BUSINESS

By Penjani Nzima

FARMING in every aspect of how and where it is done must be regarded as a business. This is regardless of the farm’s size and the who owns it. Records keeping is paramount in attainment of great growth to the business.

And involves the safe keeping of daily, weekly, monthly and annual business transactions. This task can be achieved in a good way if only the business is keeping the records of its transactions properly.      

According to Farming as a Business (FaaB) Manual for Smallholder farmers, it describes a record as a written proof of what happened, what is happening, or anticipated to happen.

The manual further goes on to say that this can also be a written proof of what was said, and who said it. Some examples are: minutes of a meeting, are port on the number of group members who worked in the group project, a record of the names of members who have brought in their membership contribution.

Why Keep records?

Many people do not write down how much money comes in and how much money goes out of their business. This may be because they do not know how to do it, or they do not know how it can help their business.

Therefore, people do not really know how much money they are earning. Record keeping means that you write down all the money that comes into your business and all the money that goes out of your business, including the production activities.

Record keeping is important because you cannot keep everything in your head. People are forgetful by nature.

Advantages of record keeping

•You will know how much money you have received, how much money you have spent, and how you have spent it.

•You will know the amount of the inputs and materials used to grow the enterprise.

•You will know the price of produce sold and cost of inputs.

•You can calculate whether you are making a profit or a loss.

•You will be able to make better decisions on what to buy and sell.

•You can keep records of buying and selling on credit, so that people cannotcheat you.

Consequences of keeping poor records

•You will not know how much money you are earning, whether your business ismaking a profit or losing money.

•You will not know why you are making a profit or losing money.

•You will not be able to make good decisions that will allow you to make moremoney and prevent your business from losing money.

•You will not know which customers owe you money, how much they owe you or howmuch you owe someone else.

•Where groups of people work together, lack of a proper record-keeping system often leads to mistrust and accusations between group members.

Therefore, farmers ought not to give any manner of excuses in line with record keeping in their business as this undertaking guarantee a true reflection of how the business is fairing.