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Unlock the Power of Your Numbers – Build Africa’s Next Business Giant

Let’s talk numbers – because mastering your finances isn’t just smart, it’s the golden ticket to building Africa’s next big market leader! 🏆💸

Author

Sitan Cissé
December 23, 2024

Hey Future Category Leader,

Here’s the truth: Most businesses don’t fail because of bad ideas. They fail because they don’t track their money. But that won’t be you.

Why This Changes Everything:

Imagine trying to fuel a rocket without knowing how much gas you have. That’s what running a business without tracking your financials feels like. Knowing your numbers gives you control, clarity, and confidence to grow faster and attract investors and build a solid foundation to scale.

Remember: Small Business move from day to day, Category Leaders plan and control where they are hitting!

Your Financial Power Tools (No Fancy Degree Required):

Revenue (Your Business Fuel) 💰
The money your business earns from sales.

  • Formula: Revenue = Number of products sold × Selling Price

  • Example: 50 dresses at $20 = $1,000 in revenue.

Expenses (Your Business Engine) 💸
The money you spend to run your business and keep moving:

  • Fixed Expenses: Rent, salaries (same every month).

  • Variable Expenses: Materials, shipping (changes with sales).

  • Variable Expenses per Unit: Total Variable expenses / Units sold
    Formula: Fixed Expenses + Variable Expenses
    Example: Rent ($200) + Ingredients ($100) = $300 total expenses

Profit (Your Trophy) 🏆
What’s left after paying your expenses.

  • Formula: Profit = Revenue - Expenses

  • Example: $1,000 revenue - $300 expenses = $700 profit.

Cash Flow (Your Business Lifeline)🔄
The movement of money in and out of your business.

  • Formula: Net Cash Flow = Total Inflows - Total Outflows

  • Example: $500 in sales - $200 in costs = $300 positive cash flow.

Break-Even Point ⚖️
How much (in pieces) you need to sell to cover all costs.

  • Formula: Break-Even Point (units) = Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit)

  • Example: $200 in fixed costs / ($20 selling price - $2 variable cost per unit)
    You need to sell 12 dresses to cover costs.

Budget 📑
Your plan for your expected income and expenses over time.

  • Example: $1,200 in expected sales, $850 in planned expenses = $350 left for growth or emergencies.

How Understanding Financials Changes Everything

When you know your revenue, expenses, profit, and cash flow, you take the guesswork out of running your business. You’ll be more organized, make smarter decisions, and position yourself to attract investors. Investors want to see businesses with clear financials – businesses that understand their numbers and are prepared for growth.

Action Steps for This Week

  • Download our Financial Tracker Template here

  • Track every sale and expense (use your notes app or Excel)

  • Calculate how many items you need to sell to cover your costs.

  • Create a simple budget – where will your money go next month?

  • Watch your cash flow like a hawk (weekly check-ins are game-changers).

👉 Want extra support? Join our Whatsapp Group, with future giants like you – let’s build together!

Cheers,


Sitan

P.S. Ready to take this up a level? Join our 6-week Scale and Lead Program and transform your business into an investor-ready powerhouse! 🚀