� 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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