Financing

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Financing your Business
Financing your Business
Financing your Business
Presented by Queen Kganyago
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BARRIERS ACCESS TO CAPITAL

• Lack of skills and expertise
• Lack of mentorship
• Lack of awareness through poor information
  dissemination.
• Lack of business infrastructure
• Complex tendering documents and procedures
• Lack of access to finance

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MARKET / INDUSTRY CHALLENGES

• A more enabling environment that contributes to
  better access to finance for very small/micro
  enterprises.
• Finance is not easily obtainable for start-ups,
  micro enterprises, groups with no/ limited
  collateral or weak credit histories.
• Access to information about SMMEs should be
  increased, to enable providers of finance to have
  sufficient knowledge to assess the risk of
  applications.
• Finance Providers are seeking owners having the
  relevant skills and expertise to drive the
  business operations.
• Receiving business plans that are viable and
  sustainable, supported by cash flow projections
  and historical financial information.
• Potential of the business to sustain itself with
  the support of comprehensive mentorship.

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SMME VALUE CHAIN
Integrated Model
Viability Sustainability
Funding
Competencies

• Basic knowledge
• Technical skills
• Basic experience

• Proper investigation into business set-up.
• Viability studies and bankable business plans
• Traditional information
• Business skills
• Cash flow projections
• Prove viability and sustainability

• Financial risks
• Repayment ability
• Own equity
• Collateral
• Credit worthiness
• Mentorship

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Financing you business

• Starting a business requires capital
• Determine what your financial needs are
• Precisely what the funds will be used for
• Establish what your short, medium and long term
  financial needs are
• Consider where you will source you funding to
  take care of these needs

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Financing you business

• You can finance your business in one of the
  following ways
• Use your own money
• Borrow from family and/or friends
• Approach a financial institution for a loan
• Get an investor to invest in your business
• Remember that any business can start small and
  there might not be a need to borrow a lot of
  money. If your business is well researched and
  managed properly it will grow itself without
  always having the need to be financed

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Financing you business

• Theres a myriad of products and services
  available
• Choose the most suited to your individual
  business
• Make the product you choose work for your business

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Financing you business

• Always remember that you are more likely to
  attract financial backing from other parties
  external to your business if you make an adequate
  financial contribution yourself.
• How can you expect other people to risk their
  money in your business when you, the ultimate
  beneficiary of its success, are unwilling to do
  so yourself? Your own contribution is viewed as
  your commitment to make the business work.

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Managing the business administration

• An entrepreneur must have full understanding of
  the administrative processes in the business.

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Managing Human Resources

• Finding employees and complying with the labour
  environment UIF, Health and Safety Act, Basic
  Conditions of Employment.

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Managing Finances

• If you cannot manage your finances properly you
  can either make or break your business. Record
  keeping, managing cash flow- money coming in and
  money going out, costing and pricing, managing
  the assets of the business.

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Managing Marketing Activities

• This involves branding the business, advertising,
  promotions, packaging and sales.

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In conclusion

• To ensure that your business runs successfully,
  you need to have systems in place that you can
  manage easily and effectively. You need to have a
  set way of doing things, a way that enables you
  to deal with any challenges thrown your way.