Experiential marketing agencies should be proactive to maintain liquidity – Adedeji
By Felicia Nwosu
Samuel Adedeji, Chief Financial Officer at Connect Marketing Services, has observed that a proactive approach to managing cash flows will help experiential marketing agencies in Nigeria to maintain liquidity. According to Adedeji, this entails keeping a close eye on revenue, spending and making sure the organisation has enough cash on hand to cover its debts.
He stated this in his LinkedIn page while shedding light on how experiential marketing agencies in Nigeria can better manage their finances to stay liquid in 2023.
The financial expert added that this might entail putting strategies into action like prompt client billing, negotiating fair terms of payment, managing working capital, and using credit lines or other financing options to fill in any gaps in cash flow.
“This entails being proactive in managing cash flows, cutting costs, and maximising revenue streams. It is more crucial than ever for the agencies to have a sound financial plan in place given the increasing level of market and economic volatility,” he said.
The Fellow of Chartered Institute of Taxation of Nigeria (CITN) explained that the initial step should begin with focusing on developing a substantial and diverse clientele, which is a crucial strategy for managing finances and maintaining liquidity.
“In order to achieve this, the agency must actively seek out new clients and projects, as well as make sure that both short-term and long-term contracts are present. This can assist in generating a consistent flow of income and lowering the danger of financial instability. Carefully controlling spending and upholding a tight budget is another crucial tactic. This entails determining areas where expenses can be cut and exercising strategic investing and spending. For instance, organisations can give priority to mandatory costs such as employee salaries and benefits, and over optional costs such as office renovations or pointless travels,” he said.
The CFO also maintained that having a well-defined and efficient financial plan in place is crucial for experiential marketing agencies in Nigeria, which he said entails establishing specific financial goals, regularly assessing the agency’s performance in relation to these goals, and monitoring any deviations.
He noted that, as a result of these, the agency will be able to identify potential obstacles and opportunities and adapt its financial plan as necessary.
“It will be difficult for Nigerian experiential marketing agencies to manage finances and maintain liquidity in 2023. However, these organisations can overcome the difficulties and continue to prosper in the upcoming year by concentrating on developing a solid and diverse client base, controlling expenses, controlling cash flow, and having a well-defined financial plan in place,” he concluded.
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