Financial Management

The success of small, medium and micro enterprises (SMEs) is extremely important in any economy, yet their failure rate is amongst the highest in the world. Research has shown that the lack of financial management skills and application of financial management practices are some of the biggest factors contributing to SME failure. Importance of financial management practices such as working capital, profitability, balance sheet, strategic finance, cash flow and decision making cannot be overemphasized so is planning and analyzing. Financially, from procurement, product design, marketing and selling, the whole value chain should be soundly managed for a product designer to run a successful business.

Duration : 3 Weeks

Many start-ups rely on financial support from family and friends. However, as many business owners fail to plan their finances correctly and often find that the money they need to start and subsidise the business is not enough. Costly trial and error in the use of capital often result in business failure. Some of the new business owners do not understand the financial requirements of a business or the VAT, tax, costing, financial controls and other obligations that are part of the business mix. The business owner should also understand the link between stock on the shelves and the costs attached to having too much, too little or incorrect stock on hand so that they put proper controls. Poor calculation of margins and cash flow often leads to crippling pressures impacting on the business. In the course, you will learn

1. - How to create and analyze a balance sheet
2. - How to create and analyze a cash flow statement
3. - Strategic financial decision making
4. - How to plan for procurement
5. - How to optimize the use of finances during product design, marketing and selling