By NKIRUKA  NNOROM

Cash flow forecast has been identified as a critical tool for the planning, monitoring and evaluation of activities of Micro, Small and Medium Enterprises, MSMEs.

A financial management consultant, Mr. John Ekpikhe, Senior Consultant, Mark-George Consultants, made the call recently while addressing owners of MSMEs at the 34th Diamond Bank’s Business Xpress Enterprise Seminar.

Speaking on a paper titled ‘SME Cash Flow’ Ekpikhe explained that the objective of the module is to expose entrepreneurs on how to manage and determine cash flow in a business, saying that cash is to a business what blood is the body.

Ekpikhe who advised participants to ensure they separate business from personal interest, noted that cash sufficiency is vital for the success of every business, even if a business is fundamentally profitable.

“Cash flow forecast assists in planning, monitoring and evaluation. For many businesses, cash flow is a big problem and obstacle to success. You must learn to plan your expenses in advance in anticipation of certain changes in income and expenditure,” Ekpikhe advised.

He also cautioned that before an entrepreneur starts a business, there is need for him to do research on the business and set his goals.

The consultant said a business plan was imperative because it is the document that banks and other investors would look at to determine whether to invest in such business or not.

Ekpikhe commended Diamond Bank for setting the pace by heavily supporting the growth of MSME acknowledged to be engines of economic growth and major contributors to employment generation, wealth creation, poverty alleviation and food security.

“With the seminar, Diamond Bank is positioning itself as number one caretaker of the small business industry and I believe they are not just controlling the market, they are the leaders. They are setting the pace and as we go round the country, we are unearthing more and more of the small business people, we are giving them capacity, we are training them,” he said.

Also, Mr. Collins Adeyemi, Chief Executive Officer, CA Diversified, in a presentation titled ‘Succeeding as an Entrepreneur: The Empire Builder’ noted that to be an entrepreneur, one must have vision, guts, foresight, direction, passion, heart and integrity among other attributes.

According to him, every great product started as an idea, but not every great idea became a great product, adding that the best product is that which is developed by research.

He listed some of the qualities of an entrepreneur to include initiative, ability to see and seize the opportunity, persistence, risk taker, goal setter and goal getter, dedication, networking, driven by excellence, ability to research, planning and self-confidence.

Alhaji Abduraman Mohamed, Managing Director, Daily Need Distributors Limited, in a lecture titled, ‘Starting Small, Ending Big’ admonished participants to ensure continuous investment of the profit into their businesses.

Earlier in his address, Mr. Chima Nnadozie, Head, MSME Propositions of Diamond Bank, noted that the purpose of the seminar, which is being hosted across the country, was to support owners of MSME to grow their businesses through capacity building.