Lioness Playbook Series / Get Your Business Funding Ready

Lioness Playbook Series

Get Your Business Funding Ready

How to prepare your business to be ready for funding conversations with your bank or financial institutions. Successful South African women entrepreneurs share their playbooks on how they got their businesses ready to take those important funding meetings.

Lioness Data

A division of Lionesses of Africa Public Benefit Corporation

Introduction

About the

Lioness

Playbook Series

Lioness Playbook Series provides practical business advice and insights delivered directly by leading African women entrepreneurs selected from the Lionesses of Africa community. These experienced women entrepreneurs share their proven hacks, tactics and strategies for getting things done in business. Hard won, tried and tested business knowledge is presented in an easy-to-read format for you to learn from and apply in your own business. Relevant, agenda-free, pragmatic, advice and strategies that are sure to help drive successful change in your business and guide your personal growth journey as a woman entrepreneur.

Your journey to getting your business funding ready starts here

Talk to most woman entrepreneurs and they will say that getting access to funding is a real game-changer for business growth. It means they can take control of the future trajectory of their business and fulfill its potential. Yet, applying for funding support from a bank can be a daunting process for many women entrepreneurs. But it doesn’t have to be!

With the right funding support and advice, women entrepreneurs are empowered to confidently make important strategic decisions, expand their businesses into new markets, and invest in growth opportunities. Bank loans can provide the capital needed to purchase specialist equipment, increase inventory, and hire new talent to drive business growth.

As woman entrepreneurs in the Lionesses of Africa community, it’s time to work smartly and get your businesses funding ready. Accessing funding and support when you need it from your bank will help you grow your business and fulfill its potential, and in the process help to advance women's economic empowerment.

So, where to start? Use this Playbook as your guide. It will help you to focus on important information that needs to be prepared, steps to be taken, conversations to be initiated. Gain insights and advice from some of your fellow Lionesses who have already walked the journey to getting funding ready.

Enjoy our Lioness Playbook.

Melanie Hawken Founder & CEO Lionesses of Africa

Building partnerships, being part of the solution and reimagining a better tomorrow for our colleagues, customers and communities are ingrained in our DNA at Absa. We want to walk together with our partners to empower Africa’s tomorrow, together, one story at a time.

As key contributors to our society, Small and Medium Enterprises (SMEs) are a critical part of our strategy, and we strive to cater for their unique needs through financial and non-financial support. In addition, it is vital that we recognise the contribution of women entrepreneurs in job creation and the growth of the South African economy.

One of the ways in which we support women entrepreneurs to achieve their full potential is by meeting their needs holistically through our wide range of innovative products and services and our enterprise development programme. We have a highly experienced team of dedicated sector-specific specialists with an in-depth understanding of the industry within which SMEs operate, offering knowledge, skills and experience as well as personalised services to help them succeed and grow.

Absa is honoured to have collaborated on this project with the Lionesses of Africa. Our long-standing relationship has helped us extend access to training and networking opportunities to women entrepreneurs. It is our hope that this playbook will help you create a thriving small business enabled by services and solutions from Absa.

Ronnie Mbatsane Managing Executive for SME Business Absa Relationship Banking

Empowering Africa’s tomorrow, together, one story at a time

Reimagining a better future for small businesses

At Absa, our ambition is to be a force for good in everything we do by giving back to the societies in which we operate. We are fully committed to partnering with small businesses along their journey by building strong value-added relationships with them and creating innovative solutions that meet their unique needs.

Our focused approach to the various client segments we serve, coupled with our strategy of keeping close to our customers, allows us to respond to the specific challenges faced by today’s women entrepreneurs. Key learnings that emerged from our relief efforts during the initial COVID-19 lockdown period, was the realisation that there is a need to tailor specific solutions to suit each client’s unique circumstances and requirements. We also realise that business solutions are increasingly digital and are constantly working to offer solutions with a digital focus.

Against this background, the Lionesses of Africa Digital Playbook was a natural fit as one of the ways we can support women-owned businesses. We believe appropriate resources and sharing of experiences can go a long way in unlocking the potential of women entrepreneurs.

We know that every action we take has a consequence for a meaningful tomorrow and we embrace the challenge of reimagining a better future for small businesses.

Sanah Gumede Managing Executive for Strategy and Customer Value Management, Absa Relationship Banking

Get your business funding ready: Understanding the process

Knowing when the time is right to apply for that business loan

Knowing when the time is right to apply for a business loan from a bank or financial institution is crucial for startups and S Es iming is everything, as it can impact the success or failure of the loan application and, ultimately, the business itself t is essential to consider several factors before taking this step

ssessing the financial health and stability of the business is paramount re there consistent revenue streams and steady cash flow demonstrating the ability to repay the loan

Understanding the purpose of the loan and its potential impact on the growth and sustainability of the business is crucial Will the funds be used to expand operations, hire more workforce, or invest in new technology

Researching and comparing loan options, interest rates, and repayment terms offered by different institutions can help determine the most favorable financing option.

By carefully considering these factors, entrepreneurs can determine when the time is right to seek a business loan, ensuring it will catalyze growth rather than burden their ventures

“As a woman entrepreneur, you've invested blood, sweat, and tears in your business. You've bootstrapped and done the rounds of friends and family. Now it's time to access capital from a financial institution to take your business to the next level.”

The advantages of accessing capital through bank funding

Accessing capital through bank funding instead of equity funding can offer several benefits for s all businesses

Bank loans typically feature fixed interest rates and repay ent schedules, providing businesses ith a predictable cost of borro ing and allo ing for better financial planning

Bank funding does not require the dilution of o nership or control that equity funding often entails. This eans that business o ners can retain full o nership and decision aking authority over their ventures

Bank loans can provide businesses ith a strong credit history, hich can i prove their financial standing and eligibility for future funding

By successfully repaying bank loans, s all businesses can build strong relationships ith banks, hich can lead to increased access to additional funding and financial support in the future.

Overall, accessing capital through bank funding offers s all businesses stability, control, credibility, and the potential for future gro th.

“Bank funding does not require the dilution of ownership or control that equity funding often entails.”

What are South African women entrepreneurs saying about getting funding ready?

Our Financial Plan is the heartbeat of the business, if there is one place we keep the finger on the pulse, it s the financial performance of the business.”

— Refilwe Sebothoma

“A financial plan is the financial roadmap for the business, assisting in planning, ensuring goals are met, and there is measurable growth.”

— Unathi Singata

“Manage and maintain your Cashflow. Cashflow is the “blood” of the business, and no Rand nor Cent is too small.”

— Zinhle Mbatha

Empower yourself with financial information. Do your research on what funders look for in a business, then prepare your plan so that it talks to those requirements.

— Gwendolyn Mahuma Madida

“As you prepare to get your business funding ready, don t be intimidated. Remember, you are a powerful woman, and you can accomplish anything as long as you put your mind to it.”

— Thobile Nyawo

“You need to understand your cash flow position, without that knowledge you cannot plan effectively. We set up a budget for every product and check our budget performance every month with our management accounts.”

— Carmen Stevens

Focus on creating traction for your business, especially in the beginning stages. Money follows money, and investors want to invest in a scalable concept.”

— Ntsoaki Sibiya

“Have proof that you have in-depth knowledge of the needs and pains of your customers so you are sure that you are offering a solution they want… funders/investors love that.”

— Kealeboga Tshikovhi

“To get your business ready for funding requires you to track your business activities in terms of income and expenses. Prepare a simple but clear business plan for your funders.”

— Beauty Monene

“As small business owners, we cannot expect ourselves to know everything, as such it s best if we find those people who are experts and bring them onto our team.”

— Bontle Tshole

Understanding the types of finance banks offer startups and SMEs

There are a variety of finance options that banks offer to startups, existing businesses, and SMEs (Small and Medium Enterprises). It is important to research and compare the different financing options available to determine which one is the best fit for your business's needs.

One of the common types of finance available is a business loan, which women entrepreneurs can use to fund initial investments, equipment purchases, or working capital. Banks can also provide lines of credit or overdraft facilities allowing businesses to access funds as needed, which is ideal for managing cash flow fluctuations. Another option is asset-based lending, wherein banks offer financing against the value of the company's assets, such as inventory or accounts receivable. Banks can offer term loans for those seeking long-term capital, which provides more significant amounts for expansion plans or major business investments. Moreover, banks can provide business credit cards to help entrepreneurs manage their expenses and build a credit history. With a range of financial products, banks play a pivotal role in enabling startups and SMEs to flourish and grow.

“It is important to research and compare the different financing options available to determine which one is the best fit for your business's needs.”

Benefit from banking solutions designed for women-led SMEs

Forward-thinking banks have recognized the significant role that women entrepreneurs and women-led SMEs play in driving economic growth and creating employment opportunities. As a result, some financial institutions have launched banking propositions and services specifically tailored to meet the unique needs of women in business. These offerings go beyond simple financial services, providing comprehensive support and guidance to help women entrepreneurs navigate the business's complexities. From specialized loans, advisory services, and networking platforms, banks empower women entrepreneurs to succeed and thrive in their respective industries. By acknowledging the importance of gender equality in the entrepreneurial ecosystem, these forward-thinking banks are driving economic empowerment for women and contributing to a more inclusive and equitable society.

Not all banks are the same when it comes to servicing women entrepreneurs. You should select a bank committed to lending to women-led SMEs, offering asset loans, working capital, and business expansion finance to support your business growth now and in the future. Also, look to a bank that provides additional support and resources that help women face numerous challenges in achieving business growth and success.

“Some financial institutions have launched banking propositions and services specifically tailored to meet the unique needs of women in business.”

Build a strong relationship with your business banker

Building a strong relationship with your dedicated business banker ensures open and effective communication for managing your business s cashflow. Here’s 5 ways you can effectively manage your cashflow with your business banker

Ma e y ur ban er a ta e lder in y ur bu ine : have regular meetings, strategy planning overviews (short and long-term objectives) with your banker

D a ca fl w pr jecti n: use the projection to anticipate slow trading periods in your business and plan in advance what to do about them with your banker

Finance big buy in tead f draining ca : use your cash flow projection to plan your financing needs ahead of time, not in the midst of a crisis, when bankers may be wary to len

Be c mpletely ne t: let your banker know about any challenges you are facing in the business. Honesty is the golden rule that builds trust with lenders

C mmunicate regularly: regular communication with your business banker is essential to ensure financial goals are aligned and strategic opportunities are maximized.

Establishing trust and transparency with your banker ensures that they have a comprehensive understanding of your business, enabling them to provide timely support and guidance. As you work together, you can develop strategies to maximize working capital, control expenses, and identify potential risks. Your dedicated business banker becomes an invaluable resource, helping you navigate the ever-changing financial landscape and providing the stability and confidence needed to grow your business.

“Regular communication with your business banker is essential to ensure financial goals are aligned and strategic opportunities are maximized.”

How to improve your chances of getting that business loan

reparing your business for funding conversations with a bank or financial institution is crucial to ensure a successful outcome Let's get started

Have a olid bu ine plan: Your business plan should be clear, concise, and well thought out It should demonstrate your knowledge of the industry, your target market, and your competitive advantage Your plan should also include financial projections, such as cash flow statements and balance sheets

ather your financial and legal document , such as personal identification, business licenses, tax returns, financial statements, and collateral information, to provide a comprehensive business overview

Review and prepare your financial and ca h flow po ition: as banks will want to scrutinise the financial health of your business

Know your a k Be prepared to articulate your loan purpose such as funding expansion, working capital, equipment purchase, or refinancing debt he bank wants to ensure that the loan aligns with your business's needs and can contribute to its growth and success

Build a olid relation hip with your bank Establishing relationships with lenders before you need a loan can improve your chances of getting approved Attend networking events and conferences to meet lenders and learn about their lending criteria.

In the next section, we provide a 5-step roadmap to assist you in preparing for your bank funding conversations with confidence.

“Establishing relationships with lenders before you need a loan can improve your chances of getting approved.”

roadmap to success

Prepare a solid Business Plan

Before approaching a bank or financial institution, it is crucial to have a well-prepared business plan that outlines your business model, market analysis, financial projections, and marketing strategies. A comprehensive and professionally presented business plan showcases your seriousness and helps the bank understand how the loan will be utilized and repaid.

Steps for developing your loan application business plan:

A well-prepared and compelling business plan is paramount when securing a bank loan for your business. To create a solid plan, you should define the business's purpose, objectives, and target market. You must conduct thorough market research and analyze competitors to highlight your unique value proposition. Furthermore, you must provide a detailed financial plan that outlines projected revenues, expenses, and cash flow. This comprehensive plan should include a marketing and sales strategy, operational procedures, and a management structure. To impress the bank, you must demonstrate a deep understanding of your industry, showcase your experience, and emphasize realistic financial projections. By diligently organizing and presenting this information, you can significantly increase your chances of success in securing the bank loan to fuel your business growth and success.

Executive Summary: Begin your business plan with a concise and compelling executive summary that provides an overview of your business, key details about your business model, and your loan request.

Business Description: Clearly articulate what your business does, its mission and vision, and the unique value it offers to customers. Describe your target market, competition, and how your business will stand out in the market.

Organizational Structure: Outline your business' legal structure and provide an overview of your management team's experience, skills, and roles. Include resumes or profiles of key team members.

Products or Services: Detail the products or services your business offers, including their features, benefits, and any intellectual property or patents associated with them. Explain how these offerings fill a gap in the market or meet customer needs.

Market Analysis: Conduct a thorough analysis of your industry, identifying market trends, growth potential, and target demographics. Showcase your understanding of the market and competition and explain how you plan to capture a significant market share.

Steps for developing your loan application business plan:

Describe your Loan Purpose:

Marketing and Sales Strategy: Outline your marketing and sales tactics, including your pricing strategy, distribution channels, advertising and promotional campaigns, and plans for customer acquisition and retention.

Operations and Processes: Describe your business' operational workflow, production processes, supply chain management, and facilities requirements. Provide insights into how your operations will ensure efficiency, quality control, and scalability.

Financial Projections: Present a comprehensive financial plan that includes income statements, balance sheets, cash flow forecasts, and break-even analysis. Show the bank how you will utilize the loan and demonstrate how it will lead to sustainable growth, profitability, and repayment.

Loan Purpose: Clearly state the purpose of the loan and the specific amount you are requesting. Explain how the loan will be used to advance your business goals and drive profitability. Outline your proposed loan repayment plan.

Risk Analysis: Conduct a thorough risk assessment, identifying potential challenges or obstacles that your business may face. Develop a contingency plan to mitigate these risks and provide details on how you will manage potential downside scenarios.

Appendices: Include any additional documents or supporting materials that bolster your loan application, such as market research reports, resumes of key personnel, licenses, permits, or legal agreements.

The bank wants to ascertain the purpose of the loan and how it will benefit the business. Common reasons for SME business loans include expansion, working capital, equipment purchase, or refinancing debt. The bank wants to ensure that the loan aligns with the business's needs and can contribute to its growth and success. Explainer: When applying for a business loan at a bank, it is essential to explain its intended use clearly and convincingly. Start by examining your business plan and identifying how the loan will contribute to its growth and success. Break down the loan amount into specific areas such as equipment purchase, inventory, marketing campaigns, or expanding operations. Demonstrate a thorough understanding of your industry and competition, highlighting the potential impact of the loan on your company's competitiveness. Use concrete examples and data to support your projections and emphasize the expected return on investment. By clearly illustrating your business's strategic goals and how the loan will enable their realization, you will demonstrate professionalism and increase the chances of securing the funding needed to take your company to the next level.

Assess your financial position

Banks will scrutinize your financial status, so it's essential to assess your current financial situation honestly. Review your credit score, personal and business financial statements, and tax returns. Being transparent and clearly understanding your financial standing will help during the loan application process.

Steps to Presenting Your Financial Position to a Bank for a Business Loan Application:

When presenting your financial position to a bank for a business loan application, it is crucial to be prepared and organized. Gather all relevant financial documents, including balance sheets, profit and loss statements, and cash flow projections. Clearly articulate your business's financial performance, demonstrating its stability and growth potential.

Highlight any assets or collateral that can be offered as security for the loan. Be transparent about debts or financial obligations, and provide a clear repayment plan. Additionally, thoroughly analyze your industry's market trends and competition to show your understanding of potential risks and how you plan to mitigate them. Presenting a comprehensive and well-structured financial picture will give the bank confidence in your ability to manage the loan effectively

Compile Accurate Financial Statements: Start by preparing comprehensive financial statements for your business. These documents typically include income, balance, and cash flow statements. Gather detailed records of your sales, expenses, assets, and liabilities. Accuracy is critical, so make sure your financial statements are up-to-date, audited if possible, error-free, and reflect the proper financial health of your company.

Create a Clear Business Plan: Develop a detailed business plan that outlines your company's objectives, strategies, and financial projections. Include a thorough analysis of your industry, market opportunities, and potential risks. Be transparent about your financial needs and how the loan will be used to support your business growth. Communicate your repayment plan and the anticipated return on investment for the bank.

Prepare Supporting Documentation: In addition to your financial statements and business plan, gather supporting documents validating your financial position. This may include tax returns, bank statements, contracts, client agreements, purchase orders, and other relevant financial records. Organize these documents in a logical, easy-to-read format, making it easier for the bank to review.

Steps to Presenting Your Financial Position to a Bank for a Business Loan Application:

Continued.

Demonstrate Collateral and Personal Assets: Banks often require security or collateral to lower their risk when granting business loans. Identify and present any tangible assets, such as property, equipment, or inventory, that can serve as collateral. Additionally, provide an overview of your personal assets and liabilities. Demonstrating your commitment and willingness to put your own resources on the line can enhance the bank's confidence in your financial position.

Seek Professional Advice: While not mandatory, seeking professional advice to navigate the loan application process can be helpful. Consider engaging the services of an accountant, financial advisor, or business consultant who can ensure your financial documents are accurate, compelling, and aligned with the bank's requirements. Their expertise and knowledge of the business loan landscape can significantly increase your chances of success.

Top Tips from a Banker: Presenting Your Financial Position for a Business Loan Application

As a SME business owner seeking a loan from a bank, it is essential to present your financial position in a clear and compelling way to increase your chances of success. Firstly, maintain accurate and up to date financial records, including profit and loss statements, balance sheets, and cash flow projections. This demonstrates to the bank that you have a strong grasp of your business's financial health. Secondly, highlight any previous loan history, emphasizing your prompt repayment track record as evidence of your ability to manage debt. Additionally, provide comprehensive information about your business's assets and liabilities, showcasing any valuable collateral that can be used to secure the loan. Finally, be prepared to explain your business's revenue streams, financial goals, and contingency plans to address potential risks. By following these tips, you can create a compelling case for your small business and significantly improve your chances of obtaining the loan you need.

Top Tip: Remember, effective communication and preparation are paramount when presenting your financial position to a bank. Be transparent, organized, and persuasive in showcasing the potential of your business.

Be transparent and accurate when presenting your financial position for a SME loan application honesty is the golden rule that builds trust with lenders.”

Research & choose the right bank

Not all banks are the same when it comes to SME business loans. Research and identify banks that have experience lending to small businesses, understand your industry, and commit to lending to women entrepreneurs. Consider the terms, interest rates, and additional benefits each bank offers. Choosing the right bank that aligns with your business needs will increase the chances of loan approval.

Steps for choosing the right bank that aligns with your business needs as a woman entrepreneur:

Research and Compare Options: Take the time to research and compare different banks to find the one that best aligns with your business needs. Look into factors such as the bank's reputation, experience supporting women entrepreneurs, and the range of services it offers. Consider their fees, interest rates, loan options, and the convenience of their online and mobile banking platforms.

Seek Expert Advice: Reach out to other women entrepreneurs or business mentors with experience dealing with banks. They can provide valuable insights into their experiences and recommend banks that have supported and understood their unique challenges and needs. These personal recommendations can save you time and effort finding the right banking partner.

Understand Specific Women-Centric Products and Services: Look for banks with specialized services tailored to women entrepreneurs. Some banks offer programs or workshops focused on financial literacy, business management, and networking opportunities specifically for women. Such initiatives can provide additional support and resources to help your business grow and prosper.

Consider Relationship & Long-term Partnership: When selecting a bank, think beyond the immediate needs of your business. Consider how the bank can support you in the long run and help you achieve your future goals. Building a solid relationship with a bank that understands and supports your vision can make a significant difference as you navigate your entrepreneurial journey. Seek a bank that values your business and treats you as a partner rather than just another customer.

Top Tip: Remember, choosing the right bank is crucial for the success of your business. You need to find a bank that aligns with your needs as a woman entrepreneur and provides the necessary financial support and resources to help your business thrive.

Gather your documents

Banks require various documents during the loan application process. Be prepared to provide documents such as personal identification, business licenses, tax returns, financial statements, collateral information, and legal documents. Having these documents readily available shows preparedness and professionalism.

Preparing your documents for the loan application process.

Organizing and preparing your documents when getting ready to submit a small business loan application is of utmost importance for several reasons. First and foremost, it demonstrates professionalism and makes a solid first impression on potential lenders. A wellorganized loan application package reflects your diligence, attention to detail, and commitment to your business. Secondly, having all the necessary documents at hand saves time and avoids delays in the loan approval process. Lenders need to assess your business's financial health and credibility, and having your documents readily available allows them to make an informed decision decisively. Lastly, organizing your documents will enable you to accurately understand and showcase your business's financial standing. Reviewing your financial statements, tax records, and business plan gives you a comprehensive view of your operations. You can effectively communicate your future plans and aspirations to lenders.

Organizing and preparing your documents before submitting a small business loan application is crucial for portraying professionalism, expediting the approval process, and presenting an accurate picture of your business's financial health.

These are some of the most common items that are requested when getting approved for a business loan. However, be prepared to provide additional information as it is requested.

Your business plan

Your professional resume

Personal and business tax returns

Personal credit report Legal documentation

Present your case confidently

When meeting with the bank representative, be confident and well-prepared to present your loan request. Clearly articulate why you need the loan, how it will benefit your business, and how you plan to repay it. Be prepared to answer any questions the bank may have and address any concerns they might raise. A confident presentation can make a positive impression and increase your chances of securing the loan.

Top tips from a ban ker on how to present your S ME loan request:

As a seasoned banker, I have encountered countless SME business loan requests, and I understand what it takes to present a compelling case to lenders. Firstly, be prepared. Take the time to thoroughly understand your business finances, projections, and the purpose of the loan. Secondly, provide a comprehensive business plan that outlines your industry analysis, target market, and competitive advantage. This will exhibit your strategic thinking and commitment to success. Thirdly, demonstrate your ability to repay the loan by presenting a realistic and well-thought-out financial forecast. Include details of your cash flow, balance sheet, and the key performance indicators that will drive your business forward. Lastly, be transparent and honest about any potential risks or challenges, and offer alternative solutions or mitigation strategies. By following these tips, you will significantly improve your chances of securing the funding your small business needs to thrive.

Prepare a compelling presentation: A well-crafted presentation is vital for capturing the attention and interest of potential lenders. Keep it concise, clear, and compelling. Clearly articulate your business's unique selling points, addressing the problems your product or service solves and how it adds value to customers' lives. Use visuals, such as infographics or product demos, to enhance understanding and engagement.

Showcase your business achievements and potential: Lenders want to see that your business has proven its viability and growth potential. Be prepared to present key metrics, customer acquisition data, and sales figures. Highlight any partnerships or collaborations that validate your business model. Demonstrate a deep understanding of your target market and the strategies you plan to implement to capture a larger share.

Show confidence and professionalism: Lenders are not only looking for a great business idea but also for a team that can execute it successfully. When presenting your business, exude confidence and professionalism. Be prepared to answer tough questions and address potential concerns or risks.

Get your business funding ready:

Women entrepreneur Playbooks

Beauty monene’s playbook

Insights from a business founder on getting your business funding ready my approach

Beauty Monene

Founder of Monenebe Maintenance & Projects

www.monenebe.co.za

Beauty Monene is the founder of Monenebe Maintenance and Projects in South Africa, established in 2006. She has a passion for giving opportunities to those in her community. Beauty completed a BCom degree and a senior management diploma, working in various entities in both finance and customer services, before establishing her business which employs 39 people. In 2020, Beauty opened another manufacturing entity and is now mentoring her daughters in the business.

Creating a business plan I had a clear understanding of what my business is all about, how I started it, and where I want it to be in 5 years’ time. I had a short-term goal, I wrote it down, and made my own projections on how I see the business operating, and then I looked for a professional person to draft my business plan for me.

Communicating a Vision and Mission

I created a vision and mission at the beginning of my business journey, but over time I changed it. They were clearly communicated to my Customers, Employees, and Stakeholders using my business profile.

“I had, and still have continuous workshops with my staff management team and always ensure I remind them of our vision and mission, so they can also communicate the same to our customers and other stakeholders.”

The importance of a vision, mission and realistic goal-setting

Establishing clear goals

I established clear goals for my business from the beginning, and as the business and the economy evolved, I had to realign my goals accordingly. Communicating our goals to our stakeholders was key.

Identifying business risks

It was important for us to identify potential risks in the business in order to mitigate. For example, I am in plant hire and an opportunity arose to do construction work. We took the opportunity, were busy with the work, a risk was identified in the construction sector, and the business decision was taken not to continue with that risk and construction was stopped.

Undertaking a SWOT analysis of the business sector

Creating a financial plan

I created a monthly cashflow projection and budget for the business.

The budget is incorporated into our financial management system and helps us to check if we are on track or overspending. We constantly revisit the budget we have committed to, ensuring that all key fixed and operating expenses are taken care of before spending on unplanned activities, and I track our cashflow.

Creating a sales forecast and tracking cashflow

I base my cashflow on existing contracts that the company has, and I also add conservatively on sales prospects based on our existing capacity. This helps the business to stay within expected spending and in line with the growth plan.

As part of our business plan development, we carried out a SWOT analysis of our sector and our company. We revisit the findings regularly with our management team in the business to stay on top of strengths, weaknesses, opportunities and threats.

Getting the right financial advice

It was important for us to build a strong relationship with our financial advisor to ensure they understood our short and long-term goals.

“Monitoring the performance of your business against set goals helps to check for alignment.”

“Having a strong relationship with a financial advisor helps them to ensure we implement our goals or identify when we are deviating from our planned goals”

Learn from Beauty Monene’s Playbook

Communicate a clear vision & goals

Entrepreneur Advice

tip one

Create an effective Business Plan, build a clear vision and set realistic goals. Mitigate your risks.

tip two

To maintain a strong cashflow, manage your expenses, eliminate unnecessary costs, and manage your inventory.

“To get your business ready for funding requires you to track your business activities in terms of income and expenses. Have clear business goals. Prepare a simple but clear Business Plan for your funders. This must not be confusing, so create your plan in such a way that any interested funder can have the appetite to look at it.”

Bontle Tshole

Founder of Baaa Enterprises & Luminary Thrivist

www.baaahealth.com

Bontle Tshole is the founder of Baaa Enterprises (2014) and Luminary Thrivist (2020). Baaa is a healthy food and beverage production company in South Africa that is on a mission to change the narrative of access to healthy quality food by partnering with small scale farmers to produce healthy, delicious food and beverages. Bontle obtained her BA Psychology in 2014 with distinctions in Social Psychology and Religion Studies, and her BA Politics degree in 2016.

Insights from a business founder on getting your business funding ready my approach

Creating a future-focused business strategy

Creating a business plan

I didn't start out with a business plan but with a vision and passion. It carried me as far as it could, but I realized I needed a strategy that wasn't based on emotion, situation, or even customers. It needed to speak to the future of what we were trying to create. I combined a business plan template with research tailored for my business, and sought advice from mentors and industry experts to refine my plan.

Communicating a Vision and Mission

I established a clear Vision and Mission from the start. Whether I was able to adequately communicate them was another story. Very often as young entrepreneurs we know what we want, what we believe in, and where we want to go, but are unable to communicate that.

“Effective communication is a learnt behaviour. As the company grew, and myself as an entrepreneur, I communicated through marketing materials, employee onboarding, focused customer engagement, and started aligning everyone with our core values.”

Bontle Tshole’s Playbook

The importance of goal setting

I have set goals for the business and regular performance tracking is crucial - it helps you adjust your sails and move your ship in the right direction. Communicating goals to employees fosters alignment and accountability and helps them understand the direction you're taking the company.

target

Creating a financial management plan

I started off using Excel spreadsheets for my business and checking my bank statements frequently. As the business grew, I started using accounting software to help me monitor cashflow. A financial plan, including forecasting future revenue and costs, is based on previous revenue and costs and anticipated future revenue. By regularly updating projections and reviewing actual financial data, it helps ensure sound financial management.

Creating a sales forecast and tracking cashflow

Sales forecasting is tied closely to cashflow projections. Analyzing historical data, market trends, and sales pipeline helps estimate future cash inflows more accurately. Considering market trends and factoring in seasonal fluctuations is also important. This data-driven approach helps estimate future sales volumes, helping the business to align production, inventory, and expenses with expected cash inflows.

Identifying business risks

Identifying risks and opportunities is vital. Regular risk assessments, both internal and external, help manage and mitigate potential threats while seizing advantageous prospects. Some risks are obvious whilst others are not. Factors like expanding in a contracting economy or many competitors may be an obvious risk. However, subtle factors like dishonest employees or giving credit without terms to multiple customers can be a serious risk.

Undertaking a SWOT analysis of the business sector

A SWOT analysis of the business is included in the Business Plan. This analysis aids in understanding strengths, weaknesses, opportunities, and threats, informing strategic decisions. It forms part of strategic thinking and understanding of the business and planning for its future.

Building a strong relationship with a financial advisor

Establishing a strong relationship with a financial advisor is crucial. As small business owners we often don't understand the complexities of every area of business, especially finance. Their expertise offers insights into financial strategy, risk management, and navigating complex financial landscapes

“Setting goals is extremely important in business. You can't hit a

you don't have.”

“As small business owners, we cannot expect ourselves to know everything, as such it’s best if we find those people who are experts and bring them onto our team.”

Learn from Bontle Tshole’s Playbook

Build a solid business foundation

Entrepreneur

Advice

tip one

Ensure realistic financial projections and a clear roadmap for implementation. Don't be pressured into drafting unrealistic numbers.

tip two

Regularly update your Financial Plan and cashflow projections. Manage expenses wisely and maintain a cushion for unforeseen financial challenges.

“Focus on building a solid business foundation. Showcase your expertise, highlight your unique value proposition, and emphasize the market need your business addresses. This groundwork enhances your readiness for funding opportunities. Last, but definitely not least, research your funder and understand their requirements, then analyze whether you speak to those requirements. As a parting truth, business finance is difficult to get a good grasp of. Should you have the opportunity to have access to someone who can assist you with your financial journey, use it wisely.”

Carmen Stevens

Founder of Carmen Stevens Wines Pty Ltd

www.cswines.co.za

Carmen Stevens is the founder of Carmen Stevens Wines Pty Ltd, the first black person accepted to study winemaking in South Africa. She qualified in 1995 and was recognised with a Top 10 Pinotage award in 1998 for her very first red wine production. Carmen Stevens Wines continue to win recognition and industry awards every year. In 2019, Carmen registered the first 100% black-and-woman owned winery in Stellenbosch, South Africa.

Understanding your sales forecasting

Creating a business plan I searched the internet for Business Plans and templates. I familiarized myself with a few of the business plans that I found to better understand what needs to be addressed in a plan. On the templates I reviewed online, I found the DTI ‘s example was one that addresses the most important points.

Communicating a Vision and Mission

My company’s Vision statement speaks to my ambitions of a creation that I am proud to put my name to. Our Mission statement addresses how to get to that point. I communicate both to our team by being actively involved in every aspect of the value chain of our wines.

“Our Vision and Mission are our soundboard, our grounding. It assesses our performance in the value chain not just against ourselves but that of our competitors and is therefore of supreme importance.”

Carmen Stevens’ Playbook

Insights from a business founder on getting your business funding ready my approach

Establishing clear goals

I have a 5-year plan which is revised and adjusted every year. The aim is to identify whether we were successful and how to build on that, and if not, the reasons behind not achieving goals and adjusting accordingly.

Creating a sales forecast and tracking cashflow

You need to understand your cash flow position, without that knowledge, you cannot plan effectively. We set up a budget for every product and check our budget performance every month with our management accounts.

Undertaking market research

Our business plan includes market research but is more focused on identifying opportunities as the market is very crowded. Opportunities are created through marketing activities and by communicating the achievements of our offering through different platforms. We also track our competitors’ performance. We work with a marketing and sales plan, this is crucial for planning and forecasting. Our tracking is linked to visibility, sales, and following of customers.

Our offerings have two “legs” - one speaks to cash flow within the same year and the other to cash flow in the second year. We only get one opportunity per year to get the product in production. For this reason, we need to understand and constantly be up to date with our sales position, and that flows into our cash flow position.

“I am always looking at new ways of working and as a team we experiment to determine the outcome.”

“It’s important to understand the power of social media in a sales and marketing plan. And also to understand the value of ‘boots on the ground’ to bring a sales and marketing plan to life.”

Learn from Carmen Steven’s Playbook

Stay on top of your sales and cashflow

Entrepreneur Advice

tip one

When preparing your business plan, compare how other industry sectors address the same headings.

tip two

Understand how a SWOT analysis can help you build your business.

“Have your documentation in order. Ensure that your business is registered with CIPC. Have a valid BEE certificate. Check that you have all the legal licenses for your sector if required. Have your audited financials ready. Do your research and have proof of markets. Ensure you have valid Tax Clearance certificates.”

Gwendolyn Mahuma-Madida

Founder of Mahuma Investment Holdings (Pty) Ltd

www.mi-holdings.co.za

Gwendolyn Mahuma-Madida is the founder of her own investment company, Mahuma Investment Holdings (Pty) Ltd, otherwise known as MIH, a South African based investment company with interests in the steel trading, steel fabrication and precast concrete product manufacturing. Gwen has a B Com Degree with majors in Economics and Business Management, as well as a B Com Honours Degree in Business Management, plus an Executive Development Program Certificate obtained from Wits Business School.

Insights from a business founder on getting your business funding ready

Creating a business plan

We created the business plan ourselves using a template. Because one has done business plans over the years, it has become easier with time. There are aspects of the business plan where one has sought assistance, for example with financial modelling.

Creating and communicating a Vision and Mission

We set our vision and mission for the business ourselves. We communicate these through our website, and when presenting the company to potential clients and other stakeholders.

“The mission is pasted on the walls of the businesses we operate in as a reminder to the employees.”

Gwendolyn Mahuma-Madida’s Playbook

The importance of establishing clear business goals and targets

Establishing clear goals for the business

We have established clear goals and targets for the business which we measure ourselves against on a yearly basis. It is critical to communicate these with the employees so that they are also aligned to achieving the goals.

Identifying business risks

It’s critical to identify business risk so that one can put measures in place to mitigate the risks. If not managed properly these risks could have an adverse effect on the business. Having a plan in place to deal with each identified risk is key. Also assessing the risk regularly to get a view of where it stands in terms of risk and whether the mitigation is successful or not.

Undertaking a SWOT analysis of the business sector

Creating a financial plan and managing cashflow

We have a finance division headed by a Chief Financial Officer that produces a financial plan and manages the cash flow of the business. As Exco we have access to this information at any given time.

Creating a sales forecast and tracking cashflow

To create a sales forecast and track cashflow, we look at a mixture of the previous year’s numbers, the pipeline of quotations done with a high probability of closure, existing contracts against required deliveries, as well as data shared by our sales team.

As part of our business plan development, we carried out a SWOT analysis of our business.

Getting the right financial advice

Getting the right financial advice when needed is very important for the business. Sometimes cash flow problems are affected by late payments or extra orders, etc.

“By establishing clear goals, employees get an understanding of the impact of their roles to the overall success of the business.”

“The assistance of a helpful financial advisor comes in handy.”

Learn from Gwendolyn Mahuma-Madida’s Playbook

Empower yourself with financial information

Entrepreneur Advice

tip one

Your Business Plan must be realistic. Write a comprehensive Executive Summary so that funders get a clear picture of what you require.

tip two

Time the procurement of supplies to be when the products are needed to avoid cash flow being stuck in materials.

“Empower yourself with financial information. Do your research on what funders look for in a business, then prepare your plan so that it talks to those requirements.”

Kealeboga Tshikovhi

Founder of Lamo Fuel

www.lamofuel.co.za

Kealeboga Tshikovhi is the founder and ceo of Lamo Fuel in South Africa, a business focused on building resilience towards carbon emissions by providing an alternative clean source of fuel. She has grown as a green technology and innovation activist, advocating for women-led initiatives. She has a track record of making meaningful contributions around creating an inclusive environment for entrepreneurial ecosystems in sustainable energy and energy access.

Insights from a business founder on getting your business funding ready my approach

Creating a business plan

Running a business without a plan is like taking a journey without knowing where you’re headed to. I like visualizing what I want to achieve. A solid plan allows me to set goals and map my way on how to achieve them. The first step towards creating a business plan was writing my idea down, laying it out for its day-to-day operations including key functions such as product development, processing, marketing, finance, and strategic partnerships.

Being intentional about the Vision and Mission

As the founder and ceo, I have been committed to our vision and mission by consistently showing up and be intentional about it. I work hand in hand with my team through constant training and open feedback.

“We are accountable to various stakeholders who provide continuous non-financial and financial support to us. We celebrate and share our achievements and milestones with our customers and stakeholders and also acknowledge our challenges and shortcomings.”

Kealeboga Tshikovhi’s Playbook

Turning ambitious goals into action plans

Establishing clear goals and action plans

I tend to have ambitious goals every year, but breaking them down into monthly and daily targets has made it easy to turn them into smaller tasks. Taking realistic steps helps my team to achieve these goals and build positive motivation.

Identifying and managing business risks

Providing an alternative fuel as a start-up means we are challenging the existing perspective on biofuels and trading in an established market for regular diesel. This on its own has been a risk where we had to optimize by offering lower prices, meet the diesel quality standards to remain relevant and competitive, and constantly work around feedstock availability to maintain production. Risk identification was a significant strategy for our value proposition and positioning.

Undertaking a SWOT analysis of the business

Creating a financial plan

We have a financial plan outsourced from an accounting and bookkeeping service provider. However, I am also accountable to keep records of what money is coming into the business and what is going out. I keep a record of basic business-related costs per month versus income.

Creating a sales forecast and tracking cashflow

We have a predetermined plan for the business, the objective of plan is to increase sales and customer numbers, facilitated through a dedicated marketing strategy. The projected sales of Lamo Fuel are determined using four different indicators - market size, production capacity, product demand and selling price.

We carried out a SWOT analysis which is instrumental to creating a unique product offering and a competitive advantage. By identifying our strengths and opportunities, it also gives us an indication on how to turn our threats and weaknesses into opportunities regarding product quality, product availability, product distribution and product price.

Building a strong relationship with a financial advisor

It is very, very important to build a strong relationship with a financial advisor - they assist with financial objectives, and determining the income and expenses to check if you are profitable and not running a loss.

“It is of paramount importance that my employees know what we want to achieve and how I’d like us to work together to achieve our goals.”

“A financial advisor helps with making sure that the company is compliant with regulations and laws, safeguarding the reputation of the business and building trust with stakeholders.”

Learn from Kealeboga Tshikovhi’s Playbook

Develop a clear and concise business concept

Entrepreneur Advice

tip one

Create a roadmap of what you are providing as a product or service and how it serves your customers.

tip two

Test your business model assumptions: the sooner you validate them and see if the idea is feasible the better.

“Never stop looking for new opportunities, go to potential customers and talk to them about your products or services, invest in marketing. Be realistic and truthful: have some proof that you have in-depth knowledge of the needs and pains of your customers so you are sure that you are offering a solution they want…funders/investors love that.”

Ntsoaki Sibiya

Founder of Tsoabelo Security Solutions

www.tsoabelosolutions.co.za

Ntsoaki Sibiya is the founder of Tsoabelo Security Solutions, a 100% black woman-owned company in South Africa specializing in security & risk management services. She is a prominent entrepreneur who has established herself as an expert in the realm of mentorship and mindset transformation for mentees. As a successful businesswoman in a male dominated industry sector, she understands the potential of economic growth through the empowerment and mentorship of women.

Insights from a business founder on getting your business funding ready my approach

Creating a business plan

I signed up for an incubation programme that offered advice and support in creating a business plan. As small businesses, we were then tasked to develop a business plan and model that we had to pitch to a panel of judges who then determined whether our business was feasible to be part of the 3-year incubation programme.

Communicating a Vision and Mission

I set my vision and mission for the business at the beginning of my entrepreneurial journey. However, learning to articulate and communicate my message to our customers, employees and other stakeholders took some time. Throughout the years, I have had to learn how to clearly define and refine my vision and mission.

“I have been intentional about communicating my vision and mission through consistency in how we serve our employees, communities, and clients.”

Ntsoaki Sibiya’s Playbook

Engaging stakeholders through a consistent vision and mission

Establishing clear business goals

It takes genuine introspection and asking thought-provoking questions to gain clarity about your business goals. Taking time to focus on doing this has given me a framework to help articulate, lead, and track our performance against our goals.

Identifying business risks

The ability to identify risks is a key part of strategic business planning. Over time, we have developed procedures to make sure things don’t go wrong and have put plans in place to reduce organizational impact if they do. Our business has a risk management plan that has been formulated to formalize the procedures we have developed and to outline how we devote our resources more effectively.

Undertaking a SWOT analysis of the business

Creating a financial plan

Our financial plan has always been the foundation of the financial story that we are creating for our business. Therefore keeping track of our cash position is significant and fundamental to keeping our business afloat. We use a cash flow report to keep track of our cash flow. It enables us to get an overall view of all money that has come in and out of the business’s bank account, and basically helps us understand our company’s cash position (whether it is positive or negative) every month.

Creating a sales forecast and tracking cashflow

Our aim is to run a profitable business. So, we use our automated sales forecasting system for the purposes of budgeting and to guide how much we should be spending on marketing to acquire new customers, and how much we should be spending on operations and administration.

We have undertaken a SWOT analysis of the business and we are constantly reviewing the business landscape and environment of our industry sector. We then revise our business model according to our current strengths, weaknesses, opportunities and threats.

Getting the right financial advice

Building a strong relationship with a financial advisor, and getting the right financial advice is extremely important, more especially if you are seeking long-term growth.

“It is extremely important to communicate your objectives and goals with your employees in order to be aligned in the direction that both you and your team are steering the business.”

“For us as a business, it has helped us to organize our finances and has given us a clear picture of our preparedness, our long-term objectives, and our goals.”

Share your growth strategy with prospective lenders

Entrepreneur Advice

tip one

Understand how your business creates value for itself while serving it's customers and be clear on what your value proposition is.

tip two

Create a system that monitors where your money is going, and on a monthly basis keep reserves of extra cash.

Focus on creating traction for your business, especially in the beginning stages. Money follows money, and investors want to invest in a scalable concept. So it is important to show them how you plan to grow, show business acumen and some kind of evidence that you’ve got a real business in the making. Furthermore, stay up to date with your admin because financial records, current financial statements and personnel records are all required during the due diligence process. Do the hard yards to present your business in its best light.

Refilwe Sebothoma

Founder of RefilweS Capital Investment

www.refilwes.co.za

Refilwe Sebothoma is the founder of RefilweS Capital Investment in South Africa. She is a visionary entrepreneur with proven business savvy, and a Business Development strategist (establishing, maintaining & retaining relationships and growing businesses; with financial acumen (driving profitability, cash flow management, performance measurement & management, value creation & sustainability); market orientation (skilled in analyzing & synthesizing market & competitive data); strategic management (demonstrated ability to understand & manage critical interdependencies across the business value chain.)

Insights from a business founder on getting your business funding ready

my approach

Ensuring

Creating a business plan

I started with industry research and then got some help to create a first draft of our business plan.

Communicating a Vision and Mission

I set our vision and mission for the business at the start, but I changed them quite quickly as we started understanding our positioning better.

“As soon as we got set on what we believed was the one vision and mission, we started including them in our daily activities and ensured that they were part of the company culture and deliverables measurements.”

Refilwe Sebothoma’s Playbook

strong financial planning and reporting

Tracking business performance against key goals

We have established very clear short, medium, and long-term goals. We communicate, measure, and track them as part of our periodic dashboards. We have further broken them down into KPIs (Key Performance Indicators) and OKRs (Objectives and Key Results).

same page and well equipped to contribute and support the goals.”

Keeping a finger on the pulse of financial performance

Our Financial Plan is the heartbeat of the business, if there is one place we keep the finger on the pulse, it’s the financial performance of the business. We manage this by creating realistic budgets, building great relationships with suppliers by paying them on time and buying in bulk for better pricing, and getting customers to pay as quickly as possible. Investing in and creating an accurate financial reporting system helps to track cashflow.

Creating sales revenue projections

We create our sales revenue projections, calculate the cost of sales and operational costs, and create cashflow statements from there. It is important to keep and monitor both the budget amounts vs actuals and make adjustments as and when required.

Identifying business risks and opportunities

The ability of businesses to be able to identify risks and opportunities can help to make great and focused strategic decisions, saving the business time, money and resources, resulting in minimized failure. This can also help the business to prepare and respond better to crisis and market unpredictable changes.

Undertaking a SWOT analysis of the business

Yes of course we undertook a SWOT analysis of our business! A SWOT analysis helps businesses understand their Strengths, Weaknesses, Opportunities, and Threats. When applied well it can help businesses build on and maximize what they do well, while they also mitigate against their areas of weaknesses, taking advantage of opportunities, managing and minimizing risks.

Building a strong relationship with a financial advisor

Financial advisory is critical and shouldn’t be treated as an “after event” as we business owners normally do, like with legal advisory. We should make it part of the business functions.

“Clear communication will ensure that the entire team is on the

“Engaging with a financial advisor on a regular basis and not only reactively after something has gone wrong, helps us navigate and avoid unnecessary problems and build financially stronger businesses.”

Learn from Refilwe Sebothoma’s Playbook

Get your financial and business planning in order

Entrepreneur Advice

tip one

Do proper market research. Ensure your business plan is a working document which updates consistently as changes happen.

tip two

Get your money from customers faster than you pay back suppliers. Save as much money as you can.

“Have an effective way of recording finances which will help you know and understand your numbers and make decisions based on real data such as profitability and cashflow. Separate your personal finances from those of the business. If you outsource your financial reporting, do your best to have a solid understanding to be able to interpret the data, and question them.”

Thobile Nyawo

Founder of Nyawo Group

www.linkedin.com/in/thobile-nyawo-21b719147

Thobile Nyawo is an award-winning entrepreneur and the founder and Group Chief Executive Officer of Nyawo Group in South Africa. The Group has three divisions, namely Nyawo Construction, a civil and building construction business; ZETE Telecoms, and Isambane Energy. Thobile is building a successful, game-changing business that empowers and creates opportunities for others. Her business has generated much needed jobs over the years in the construction and civil sector.

Thobile Nyawo’s Playbook

Insights from a business founder on getting your business funding ready my approach

Creating a business plan

As part of my entrepreneurial journey, I was able to attend a series of township entrepreneur training and development programmes, and part of the learning modules was on creating a business plan. As a result of being on the programme, I learned how to write a business plan, and I created my own bespoke business plan template for use going forward.

Creating a Vision and Mission for the business

At the start of my business, I did set out the company vision and mission and It was, and remains, an integral part of our company profile.

“We ensure that we submit our vision and mission statement and our company profile before we are awarded any work.”

The importance of a strong business model

Communicating clear goals in the business

Over the years, I made the mistake of not effectively communicating the goals of my business to my employees. As a result, it was hard for me to efficiently run the business on a daily basis. I realized that delegation was required to achieve the desired results, but my team needed to align with business goals.

Identifying business risks

It is very important to identify business risks and business opportunities and to also calculate the risks against the benefits that come with the business. Having a thorough understanding of the industry and business sector you are getting into is key. Constantly studying competitor companies that are already operating businesses in your industry sector provides a useful learning opportunity.

Undertaking a SWOT analysis of the business sector

Creating a financial plan

Nyawo Construction has an accountant that assists the business with tracking our finances and developing a good financial plan. Over the years it has been a major challenge ensuring the maintenance of good cashflow in the business based on the shortage of good construction projects.

Creating a sales forecast and tracking cashflow

When doing my sales forecasting, I always wear my ‘Honest Hat’, and make conservative sales projections, ensuring I understand the company profit and loss accounts at all times. I set our sales forecasting structure and estimated revenues based on time-frame and potential market size.

As part of our business planning process, we carried out a SWOT analysis (strengths, weaknesses, opportunities, threats) of our business, and the findings of that analysis are included in our Business Plan.

Getting good financial advice

It is very important to build a strong relationship with a financial advisor, because business Is hard and you need to avoid making bad decisions which can lead your company to bankruptcy or total closure.

“The power and strength of any business depends on team work and good communication of business goals.”

“Build a strong relationship with a financial advisor to help you make better decisions.”

Learn from Thobile Nyawo’s Playbook

Build a sustainable business model

Entrepreneur Advice

tip one

To create an effective Business Plan, know what you want to achieve, and be honest with yourself.

tip two

To maintain strong cashflow in the business, have an investment account and ensure your business model takes care of itself financially.

“As you prepare to get your business funding ready, don’t be intimidated. Remember, you are a powerful woman, and you can accomplish anything as long as you put your mind to it. Achieving business success is a lonely journey, get ready to walk it alone sometimes, but keep your head held high.”

Unathi Singata

Founder of Unoshea Cosmetics

www.unoshea.co.za

Unathi Singata is the founder of Unoshea Cosmetics in South Africa, a business founded in 2016, offering a range of natural skincare, perfumes, and home scents. With 15+ years in the financial sector as an internal auditor & risk management specialist, Unathi has built a strong collaborative business, supplying bespoke products and branded promotional items/gifts. The business has partnered with a manufacturing plant that is both SABS and CTFA approved, to produce high volumes.

Unathi Singata’s Playbook

Insights from a business founder on getting your business funding ready my approach

Building a market-driven business roadmap

Creating a business plan

I designed an initial business plan using an online template. Later I engaged with a specialist financial advisor to refine the plan into a more polished and professional document. I have always valued the importance of seeking guidance from specialists and getting a second eye prior to submitting documents of this importance.

Communicating our Vision and Mission through storytelling

Our vision and mission reaches our clients through impactful storytelling. The creation of engaging content, transparent partnerships, and testimonials connect our purpose with valued customers. Through collaboration, we empower all our partners, as well as customers for inclusive growth.

“Our

vision is to be a trusted quality global brand offering natural body, hair, and home products synonymous with family holistic well-being, embodying health, and vitality. Our mission is crafting premium, luxurious natural products that enhance wellness, driving positive social change.”

Creating specific goals

Without goals there is nothing to aim for, so we are intentional in creating goals that are specific to where we would like to see ourselves within a set time frame that can be measured.

Identifying business risks

As someone with a background in risk management, risk identification is second nature, as this allows me to make informed decisions and prevent pitfalls. Although I am accustomed to the subject of risk management, I have had experiences in my business where I have not measured the risks adequately. The best way to track is to assess the risks, prioritise, and conduct regular reviews.

Undertaking a SWOT analysis of the business

Creating a financial roadmap

A financial plan is the financial roadmap for the business, assisting in planning, ensuring goals are met, and there is measurable growth. I am currently finalising the process of my application for funding, applying tools and advice from my Absa ESD programme advisor to ensure that I track my business cashflow, follow a budget, and demonstrate that my business account has positive and trackable movement.

Tracking industry trends for sales forecasting

Tracking industry trends provides the best indicator for forecasting. I have been in the cosmetics business for quite some time, so I have learned to track which product moves during key periods, resulting in greater sales. I have also studied my consumers to track what influences their product purchases.

Conducting a SWOT analysis has helped us to have a clear snapshot of the business's internal and external landscape, helping in decisionmaking. We have been able to identify strengths, areas for improvement, potential growth avenues, and potential challenges. Now we are able to use it to our advantage.

Getting objective financial advice

Building a strong relationship with a financial advisor is not only important but necessary as one gets the benefit of an extra set of eyes, an objective view, and valuable advice.

“It is important to communicate company goals with employees as they are as part of the business. Where goals are clear, everyone is inspired.”

“The experience and knowledge that a financial advisor has gives one an upper hand and saves time.”

Learn from Unathi Singata’s Playbook

Know your industry and your numbers

Entrepreneur Advice

tip one

Before drafting your business plan, research the industry which your business is in.

tip two

Get your numbers in order: Develop comprehensive financial forecasts, including revenue, expenses, and profitability. Get a professional to review your plan.

“Start by creating your business plan supported by financial records that will feed into the plan. This solidifies your business idea and clearly defines your product or service, target market, and unique value proposition. Make sure your business idea is well-researched and has a strong market demand. Ask for help!”

Insights from a business founder on getting your business funding ready my approach

Zinhle Mbatha

Founder of Emmaculate Designs t/a Macaw Printers

www.macawprintshop.co.za

Zinhle Mbatha is the founder of Emmaculate Designs cc, which trades as Macaw Printers and Stationers, a printing, design, publishing, and office supply services company based in Durban, South Africa. The business was established in 2005 and the client base includes SMMEs, corporations, government institutions and individuals in all industries. Zinhle is a highly accomplished, seasoned award-winning black business woman with interests in various different industries.

Creating a business plan

A business plan is a dynamic and essential tool that provides guidance for success. It requires consistent review and research. I find that utilizing a combination of methods is effective. Seeking guidance from experts provides a broader understanding while using simpler templates can yield similar results. I prefer to create my own business plan, it allows me to have a better understanding of my business. I cannot manage what I cannot measure.

Communicating a Vision and Mission

Initially, we didn’t set our Vision and Mission for the business - our decisions were guided by our own values and boundaries. However, we soon realized that this was insufficient. Our experiences along the way have also played a critical role.

“We learn from interactions with different types of customers, both positive and negative, and strive to improve from there. For instance, a customer expressed frustration with broken promises, which led us to emphasize this aspect in our mission statement.”

Zinhle Mbatha’s Playbook

The importance of knowing your own business

Establishing clear goals for the business

Establishing clear goals is crucial for any business. Tracking performance against those goals helps measure progress and identify areas for improvement.

Identifying business risks

My worst fear in business is to be caught by surprise unnecessarily. In the business environment, I’ve learned there are two types of risksthose that are internal which can be controlled, and those that are external. My strive is to always try and convert my internal risks into opportunities. Part of the exercise I enjoy doing is checking on my competitors, trends, and keeping tabs on customer feedback.

Undertaking a SWOT analysis of the business

Creating a financial plan

A solid financial plan is essential for any business. We create budgets, monitor expenses, and track revenues to manage our financial plan effectively. We track cash flow by monitoring incoming and outgoing funds to ensure we have a healthy balance. Financial statements are regularly reviewed and the plan is always kept in check and adjusted when needed.

Creating a sales forecast and tracking cashflow

My learning from my business journey is that sales forecasting is not “cast in stone”, it requires a continuous check and adjustments as the future unfolds. I use different approaches, from historical sales data to new trends, or sales pipelines to customer feedback of new initiatives, to cash flow impact.

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is the backbone of the business plan. Yes, it is included in my own business plan.

Build a strong relationship with a financial advisor

I believe building a strong relationship with a financial advisor is crucial for your financial well-being and long-term goals. It helps you stay informed, and get tailored guidance.

“Communicating goals to employees is vital for alignment and motivation. We do this to ensure everyone understands and works towards the same objectives.”

“A financial advisor can save you time - instead of the long and tedious research exercise on how to handle certain matters, you can delegate while focusing on other aspects of the business.”

Learn from Zinhle Mbatha’s Playbook

Manage and maintain your cashflow

Entrepreneur Advice

tip one Craft your own Business Plan. You can seek advice, but know your own business.

tip two Manage and maintain your Cashflow. Cashflow is the “blood” of the business, and no Rand nor Cent is too small.

“Know your Pitch Deck - this includes knowing the nature of your business, where are you on your business journey, your financial current situation, what funding amount you need for the business, and the roles of your team members.”

Conclusion

In conclusion, applying for SME business funding can be a crucial step in turning your entrepreneurial dreams into reality. By following this Get Your Business Funding Ready Playbook, you can navigate through the funding application process with confidence and increase your chances of securing the funding you need. Remember to thoroughly prepare your business plan, gather the necessary documentation, and present a compelling case for why your business deserves the funding. Additionally, maintaining open communication with your bank and being proactive in addressing any concerns or questions can help further strengthen your application. While the process may seem daunting, with determination, patience, relationship building, and a wellcrafted application, you can improve your chances of obtaining the SME funding that will fuel your business growth and bring your vision to life.

Next Steps. Get ready for funding conversations with your bank or financial institution

When a startup or SME seeks a loan from a bank, there are several key things that the bank will consider before making a lending decision. Understanding these factors are important next steps to enhancing the chances of obtaining business funding.

Creditworthiness: The bank wants to assess the creditworthiness of your business and its owners.

Business Plan: A comprehensive and well-structured business plan is vital.

Collateral: For larger loan amounts, banks often require collateral as security that can be sold if the loan isn't repaid.

Cash Flow and Financial Statements: Banks want to evaluate a business's cash flow, profitability, and financial health.

Loan Purpose: The bank wants to ascertain the purpose of the loan and how it will benefit the business.

Business Experience and Management: The bank considers the experience and expertise of the founder and management team.

Paying Capacity: Alongside cash flow projections, banks assess the business's ability to make the monthly loan payments.

Essential Documents: Banks will want to see your business plan, financial statements, tax returns, and collateral information.

The Lioness Playbook Series represents a collaboration between Lionesses of Africa Public Benefit Corporation’s Lioness Data Division and Absa Group. We are grateful to them for their funding support in making the production of the Playbook possible and for our teams to advance our respective missions to empower women entrepreneurs across the African continent.

Acknowledgements

We would like to express our gratitude to each of the 10 women entrepreneurs from the Lionesses of Africa community who so graciously participated in the production of this Playbook. They contributed their valuable time, shared their considerable insights, and gave us the benefit of their years of experience, all of which was gratefully received and so important to the success of this project.

Thank you to our Lionesses, Beauty Monene, Bontle Tshole, Carmen Stevens, Gwendolyn Mahuma-Madida, Kealeboga Tshikovhi, Ntsoaki Sibiya, Refilwe Sebothoma, Thobile Nyawo, Unathi Singata, and Zinhle Mbatha for sharing their Playbooks.

About

lioness data

Lioness Data is the research and insights unit of Lionesses of Africa Public Benefit Corporation, a social enterprise advancing Africa’s women entrepreneurs. Lioness Data taps into a growing network of over 1.7 million women entrepreneurs across Africa to extract actionable insights that help investors, policy makers, and development agencies make faster and better data-driven decisions. Lionesses of Africa builds and delivers development programmes, business tools, community platforms, digital media, networking events and information resources that women entrepreneurs need—connecting them with key global markets for growth. Lionesses of Africa’s community stretches across 54 African countries and thousands of users in the Diaspora in Europe and North America.

For further information about Lionesses of Africa, visit www.lionessesofafrica.com

absa GROUP LIMITED

Absa Group Limited (‘Absa Group’) is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services groups. Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance. Absa operates in 15 countries. The Group owns banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia.

The Group also has representative offices in Namibia, Nigeria and securities entities in the United Kingdom and the United States, as well as an IT specialist office in the Czech Republic.

For further information about Absa Group Limited, visit www.absa.africa