Financial management is a key aspect of every startup, and this is especially important for those with a social impact. This was precisely the topic discussed by Gordana Ćorić, the facilitator of a workshop held as part of the EWA program (Empowering Women in Agrifood). Cilj radionice bio je pružiti sudionicama uvid u osnovne financijske alate i strategije koje mogu pomoći u dugoročnom uspjehu njihovih poduzetničkih pothvata. Ovo je 3. online radionica u sklopu EWA 2024 Croatia programa. Tema prve radionice bila je Empathy and active listening in business, dok while the other workshop was divided by the topics of Innovations in the agrifood sector and the impact of the climate change.
Why is financial management essential for startups?
Gordana began the workshop with questions that every entrepreneur must ask when starting a business: How much money do I need to start the business? How do I set the price for a product or service? How many products do I need to sell to cover all costs? Gordana specifically emphasized the importance of detailed planning to avoid financial pitfalls and support the growth of the startup.
One of the key concepts discussed was the calculation of the break-even point.which is essential for understanding how much needs to be sold for the business to become profitable. Additionally, Gordana highlighted the importance of managing the cashflow, which includes monitoring cash inflows and outflows to ensure business liquidity.
Tips for Successful Financial Planning
Gordana shared several practical tips for successful financial management in a startup. Some of the most important include:
- Separating personal and business finances.
- Allocating funds for key expenses such as taxes, loans, and bills.
- Negotiating with suppliers for better delivery terms and prices.
- Using free technologies and apps for financial tracking and planning.
It is especially important for entrepreneurs with a social impact to think about long-term financing and securing capital through various sources, such as business angels, microloans, and crowdfunding platforms.
Funding Sources for Startups with Social Impact
The workshop also discussed various funding sources, including traditional options such as bank loans and leasing, but also newer methods like ventur capitala (VC), business angels , and crowdfunding. Poseban fokus bio je na tome kako startupovi s društvenim ciljevima mogu privući investitore i donatore zainteresirane za društveni utjecaj.
“The rule of financial leverage,” Gordana emphasized, “helps entrepreneurs understand how to use external funding sources as long as the rate of profitability exceeds the cost of capital.”
Key Questions About Funding
Through an interactive approach, Gordana encouraged participants to consider key questions related to funding: Is risk a decisive factor when choosing a source of funding? How can stable cash flow be ensured in the early stages of business?
The workshop concluded with an assignment to create financial projections and plan a crowdfunding campaign, allowing participants to apply what they learned through practical examples. EWA program participants gained insights into specific tools for better financial management and the development of their startups.
The next EWA workshop is scheduled for November 4, and the final pitch event, open to the public, will be held on November 21, 2024. If you would like to attend, you can register here: https://smion.com/hr/eit-food-ewa/empowering-women-in-agrifood-demo-dan/
If you want to enhance your financial skills or learn more about ensuring financial sustainability for a startup with social impact, sign up for our mentoring support or explore other resources on social entrepreneurship.
Here’s what EWA program participants had to say about the workshop:
“ Very useful workshop, in a short period of time we’ve got a frame of thinking, which is necessary for thinking about the financial planning. ”
“The presentation style is engaging. I’m grateful for the links related to Croatian business angels.”
“The flow of the lecture was good, it wasn’t difficult to follow, and the structure of the lecture was well-organized.”
“An interesting topic that provided me with new insights.”
