Many small businesses find it difficult to raise funding because their business case is not clearly articulated and their model will not scale well. Business Case Developer will help you to think through all the elements needed to build a successful business, and ensure that these are integrated and aligned. It is ideal for entrepreneurs who wish to build a thorough business case before seeking funding or investment, or before going to market.
Module 1 Talking money
The first module delves into our beliefs as business owners about wealth, finance and money, and explores the psychological drivers that unconsciously influence our relationships with money. Recognising your own underlying beliefs, fears and attitudes towards money will empower you to unlearn old thoughts, behaviours and patterns that stand in the way of you embracing your business finances.
Module 2 Pricing and breaking even
This module unpacks two critical components of financial management – pricing and breaking even. We explore how you can add value to the pricing mix, and arm you with the knowledge you need to calculate the margin and mark-up percentages of your current products and services. You also learn the breakeven point calculation to determine the number of sales you need for your business to break even.
Module 3 The budget
Module 3 unpacks the value of the budget as a financial-planning tool to manage the spending in your business. Using a budget allows you to set “SWEETER” targets, and to analyse the successes and variances in your fiscal spending. As a bonus, this module also introduces you to the “Golden Income Ratio”, a Raizcorp tool designed to accurately calculate the salary you should be earning as the business owner.
Module 4 The income statement
Module 4 explores the income statement. This is critical in showing you whether your business is making a profit or a loss based on your invoicing practices. Not only will you learn how the income statement works, you will also analyse what it reveals about the financial health of your business. Finally, you will be introduced to three different methodologies aimed at improving the profitability of your business.
Module 5 Cash flow
This module delves into the value and importance of cash flow in the business. Together, we will apply the “Defensive Interval Ratio” calculation to your business to determine how long it could survive if no income were being generated. Armed with this knowledge, we will work on cash-flow-management strategies to mitigate difficult financial times and to leverage and grow when there is a healthy cash flow.
Module 6 The balance sheet
The aim of module 6 is to get you comfortable with what is often the entrepreneur’s nemesis – the balance sheet. Not only will you come to understand how the balance sheet works and apply it to your business, you will also complete an analysis to gain a clear picture of your business’s financial health.
Module 7 Debtors and creditors
As a business owner, you cannot mitigate the finances of your business without considering the payment of creditors and the management of debtors. This module lays out the debt-collection process, and helps you to build and implement your own strategy for debt collection.
Module 8 Navigating your finances
In the final module, we apply the concepts and tools we covered in the previous modules. We will base our financial knowledge on three common scenarios any business owner could potentially face: seeking funding; paying back investors; and tightening the belt during an economic recession. This module not only applies the theory and the assets but also builds out a strategy to manage these possible scenarios with the minimum risk and maximum benefit to the business.