For many township entrepreneurs who grind through rain and shine selling fat cakes, kota, and everyday essentials, the main challenge is not just making money; it is keeping it, according to financial coach Mahanadi Lehadima.

Speaking at the City of Johannesburg’s recent Spaza Shop and Informal Traders’ Summit and Expo in Alexandra, Lehadima urged local business owners to change how they think about money and how they use it.

“What is happening to our profit once we get the money? We spend it.”

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His observation resonated with many entrepreneurs in the room who know first-hand how their hard-earned cash often evaporates by month-end despite long hours and relentless effort.

The solution he posed is deceptively simple, yet holds true. He said people need to respect the profit. He urged many to budget before the cash lands in their pocket.

He emphasised that a budget is not a restrictive document as many think, it is a needed directive. “A budget tells your money where to go, instead of wondering where it went. You must budget.”

He broke it down using the popular 50/30/20 rule, a straightforward framework ideal for variable-income entrepreneurs. He noted that 50% of the income should be spent on essential needs, 30% on wants, and 20% on savings.

This allocation, for small business owners, would prioritise survival and growth, while allowing breathing room for enjoyment.

Beyond personal cash flow, Lehadima warned against a common entrepreneurial trap of minding everyone else’s business instead of your own, as the pressure to replicate what others are doing can lead to unnecessary strain.

Also read: Empowering women in business in Sandton

Lehadima extended his advice to credit health, a critical but often overlooked area for small business owners seeking growth capital. He said a poor credit profile can slam doors at formal financial institutions.

He emphasised that the goal should be to push for a higher credit score, adding that late payments, multiple accounts in arrears, and debt review programmes are major drags on one’s credit score.

The summit was not only about personal finance. It built on broader themes of empowerment. Presenters, including Tsholofelo Hlabane, of Ngoma SA, highlighted hands-on support programmes they provide to their franchisees, rather than leaving them isolated.

Africa Mokgele, of BGMM Holdings, on the other hand, made a case for collective bargaining, highlighting that when spaza owners connect into bigger networks, they gain access to wholesale pricing and efficiencies typically reserved for big chains.

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