� Good Financing Practices to Consider
Please share these with the participants: 1. Issue invoices promptly and follow them up if / when they are overdue. 2. Offer a discount for prompt payment( possibly within 7 days). 3. Consider charging interest for late payments.
4. Set and monitor performance indicators( sales per month, for example) and recognise when Cash Flow might fall below your projected budget.
5. Consider hire-purchase or leasing as these may be a better option.
6. Make sure supplier invoices are accurate and if needed negotiate longer payment periods or discounts.
7. Monitor your stock effectively. Don ‟ t tie your cash up in unsold products. Establish an efficient turnover of stock that frees up cash but is flexible enough to meet demand.
8. Create a balance sheet to present at every training session. Each balance sheet should reflect the interval between two mentoring sessions. For example, at Session 5, present a balance sheet that reflects the period between Session 4 and 5. The balance sheet should identify the expenses( how the funds have been used), and the sources from which these funds were used.
‣ Tasks for participants to complete before Session 5
1. Continue with the marketing materials, marketing plan and marketing the social start up.
2. Work on the Cashflow Template
2. Complete the Financial Tools: cost benefit analysis, break even analysis, operational gearing, pricing.
3. Prepare a presentation on your financial planning and documents to update the mentor in Session 5.
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