Beyond accessing finance, comes a conglomerate of factors that may affect business’s ability to spend budgets adequately while driving self-sustainability. What makes business complicated is not the ability to execute the service or produce the product, but it is the actual running of the business that seems to offer entrepreneur’s the ultimate survival challenge.
ACCA recently hosted the Entrepreneur and Business Success event with South Africa’s biggest start-up players within the entrepreneurial and business funding space.
Like many other African markets, entrepreneurs locally, often face the challenge of creating a financial utopia while pushing for growth. The overall purpose of this event was to gauge the importance of planning, funding, growth and risks taking for entrepreneurs entering the South African market.
According to Panellist Don Mashele, Head of Regions, Small Enterprise Finance Agency (SEFA), companies that have a keen understanding of risks and policy factors, are generally the businesses that show steady growth patterns and overall financial sustainability.
When looking for funding, it is vital for entrepreneurs to use business planning as a crucial factor in building a solid starting foundation. There are instances when funding will be required beyond the start-up phase. However, in both instances business planning helps identify possible pitfalls and can quickly provide a company with valuable financial information. This will also ensure a proper understanding of the risks and ultimately the rewards the company would venture into.
“Entrepreneurs need to measure financial growth requirements, before applying for funding. This will ensure long-term survival.” – Panellist Sandiso Ncube, Serial Entrepreneur
There is no such thing as hindsight when it comes to building a business. Dealing with failure and overcoming challenges is what makes up the DNA of an entrepreneur. Panellist Jan de Kock, Barclays Africa, points out; “understanding that failure can build a business will help entrepreneurs understand the importance of planning, even when the company is showing slow or little growth. Planning will navigate a business out of rough seas.”
Related: How to Fund your Small Business
ACCA recently released a guide titled “Financial Management and Business Success – A Guide for Entrepreneurs”, unlike other financial literacy guides, this ACCA guide stresses the importance of business planning and the role it plays at every stage in the life of a business. The guide adopts ‘the plan first approach” looking at what entrepreneurs are trying to do with their business first and linking this directly to the financial knowledge they need.
To view the guide click here.