With its inception on October 31, 1924, World Savings Day has helped businesses manage their finances for a saving future.
As the world braces for marking the World Savings Day, Nikki Summers, the Regional Director for Sage in East Africa has offered saving tips for SMEs. With its inception on October 31, 1924, this historic occasion has helped businesses manage their finances for a saving future.
“World Savings Day is coming up and Nikki Summers, Regional Director for Sage in East Africa, would like to remind Small & Medium Businesses about the importance of creating a savings culture, as well as offer a few tips on how they can do so,” reads the statement in part.
In anticipating this occasion, Nikki Summers continues on the Kenya business context with these words:
“During tough economic times, it helps to have a healthy savings balance to fall back on. But while Kenya’s national savings average is higher than most countries of a similar size, rising debt levels, especially among Kenyan millennials, are preventing many people from stashing cash every month – even though they know it will give them a better future.
While encouraging a savings culture should be on the national agenda, Small & Medium Businesses can start forming savings habits among their teams, which they can apply in their personal lives and take the first step towards future empowerment. With World Savings Day (31 October 2017) coming up, there’s one thing small businesses can focus on that will have a knock-on effect across the entire company: their culture.”
The regional director says that when one perpetuates a saving culture in a business, it results into a sustainable savings model that thereafter comes naturally.
She says that it is snot all about setting money aside but exercising time management skills, and resource management, too.
The second factor according to the Regional Director are healthy habits:
“Encouraging a culture of savings in your business starts with getting your team into certain habits, many of which are not money related but still have positive financial consequences.
“Although the jury is still out on this one, they say that it takes 21 days to form a habit so, for three weeks, leave notes by light switches, reminding people to turn them off, or use pop-ups on their PCs, asking if they really need to print that document, or if they can work off a digital version.”
The conclusion to those remarks is that though habits are sticky, they get their prize eventually. This is why one needs to think of non-monetary methods of generating business savings.
For instance, Nikki Summers expounds, encouraging workers to decrease consumption affects the bottom-line with reduction in operating expenses, all coming naturally.
There is also a third way to make savings- via personal empowerment:
Nikki Summers: “Every team member who manages a budget – from procurement to marketing – should be given the tools, trust and authority to allocate their budget in a way that saves money while still meeting their business objectives. If, for example, the marketing department can save time and money by outsourcing the social media advertising function, empower them to make that decision.”
According to the source, financial empowerment ought to branch into the personal lifestyle, too. This is why one ought to bring in experts on social security to explain such baffling matters as retirement annuities and such. Indeed, of one is not smart with business’ money, so are they inefficient with their knowledge and tools of personal money.
Penultimately, the Regional Director calls for saving enthusiasts to make it a game:
“Research has found that games improve employee engagement, motivation and learning – and what better use for gaming than to encourage savings in your business?” She queries before continuing, “People are naturally competitive and competing against colleagues to fill up their money banks faster will quickly become addictive – especially if it earns them Friday off.”
Nikki Summers concludes on this anticipatory countdown to the World Savings Day with these remarks:
“Time is money : Automate as much as possible – especially the mundane tasks that your team is probably procrastinating on anyway. Again, reward your team for finding innovative ways to save time or to do things quicker or more efficiently.”
She ends with the catchy words that one needs to think outside the box while involving the teams- and the surprise may be a pleasant one.