It is no secret that SME’s are the most significant contributor to economic growth and job creation in South Africa. According to the Minister in the Presidency, SME’s contribute to 42% of GDP and employ 47% (7.3 million) of the South African workforce. However, their importance notwithstanding, SMEs are confronted with significant obstacles which hinder them from thriving! The most significant barrier is access to funding to scale up and expand businesses on their growth trajectory.
Getting your business funding ready from the get-go is crucial! You do not want to miss out on opportunities that can enable your business to thrive because it looks to funders like you do not have a presentable business.
Presenting a bankable business should at least focus on the following:
Prepare a business Plans and elevator Pitch that summarises the solution you have to the problem. Be transparent about challenges and make sure you can defend your business. Your pitch needs to be consistent with your business plan, financial data and projections. This should include market and competitor data. Your goal here is to present an overall summary of your business and how it will make money.
Depending on where your business might find itself on its journey, financial data can provide valuable insights to investors which might influence their business decisions. Still, more importantly, it shows the investors that you take pride in your business which will build trust with investors. Credibility in your business is vital.
Good governance is when a business ensures a good decision-making process in place and shows investors that you take accountability. Secretarial work, like CIPC records, annual company returns, and resolutions should be up to date. If you employ people, compliance with the Department of Labour and Compensation Commissioner is a must. Be in good standing with SARS over all the tax types. Don’t let the governance of your business question your accountability.
Know precisely what you need and for what you are asking. It would be best to focus on what is required to hold the line and focus on growing the business while delivering returns. Things like financial forecasts and product road maps will prove that your business will make money and be of great value to set out funding requirements for investors. Make sure that you also have skin in the game by investing some of your savings! This will show investors that you believe in your business!
You might think presenting a bankable business is easier said than done, but the truth is it doesn’t need to be. Reach out to your trusted advisors so that they can help you in the preparation to get your business funding ready. Let them help you to get your financial records up to date and that dreaded forecasting on point. Why not outsource your secretarial duties, income tax and payroll administration so that you can have peace of mind over your governance?