Financial Management and Budgeting
One of the urgent needs that have come to our attention during the on-going engagements with SMEs across sectors is assistance with financial management and literacy.
This is important as it is the platform on which all the SMEs’ key relationships, including with banks are built. In particular Captiva BDAs have noted that this has been a critical component as we assisted the various businesses access funding.
At Captiva Africa, we see one of our roles as helping SMEs document and track their achievements. We take advantage of our extensive project experience with a number of SMEs in the region to help clients improve the effectiveness of management reporting to best facilitate their decisions.
In addition we use our in-depth sector knowledge to inform financial modeling scenarios and advise clients on whether the businesses would benefit from injection of capital and if so, advise on the optimal blend of funding required.
Our business development support takes a number of dimensions in this area:
- How should businesses define the role of the finance function in a pancake structure?
- How do we increase the effectiveness of management reporting as a basis for strategic decisions?
- How can we identify and manage operational and financial risks at the start-up phase and times of crisis?
For clients with more informal structures
We encourage them to regularly produce financial statements. We emphasize that a business can be profitable but still have cashflow problems. We help such clients implement basic procedures – such as preparation of cashflow forecasts for more effective management of cashflows. In addition we help them institute optimal financial controls to ensure the information generated is reliable and will lead to correct decisions.
For our more established clients
We perform diagnostics on operational performance by analyzing profitability and returns on capital to help them understand areas with potential for improvement and indentify performance gaps. We analyze historical sources of growth such as product portfolio or geographical coverage and their implication on the overall performance of the business and the extent to which they may be replicated.
On business plans and future performance projections, Captiva applies bespoke tools to determine market profitability for clients and the industry. We then work with management to assess the gaps between the projections and their own strategies and identify potential initiatives to address these gaps.