<\/p>\n
For many small and medium-sized enterprises (SMEs), securing external funding is viewed as the ultimate validation of a business idea.<\/p>\n
Experts argue that making sales is the single most important factor in securing SME funding. Investors and lenders need proof that there\u2019s a market for what\u2019s on offer, rather than relying solely on a business plan.<\/p>\n
In this episode of the Mzansi Business podcast, Jenine Zachar, head of value propositions and client experience for Business and Commercial Banking at Standard Bank, argues that financiers want to see a track record in the form of sales \u2013 because sales provide validation, revenue predictability, and the traction needed to justify capital investment.<\/p>\n
\u201cIt\u2019s not a piece of paper with a plan that gets you funding,\u201d she says.<\/p>\n
\u201cWhat that plan or business case provides you with [is] the ability and access to make your first sale. That\u2019s what starts building predictability.<\/p>\n
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\u201cThere\u2019s no bigger or better selling point than that, and then showcasing that it\u2019s repeatable. So one sale is good, [but] making repeatable sales is what you\u2019re aiming for to build a reliable track record.\u201d<\/p>\n
Read: From funding to growth: Mzansi Business launches on Moneyweb<\/p>\n
While business plans, market research, and projections are valuable, Zachar says nothing validates demand more convincingly than actual revenue, reducing uncertainty for potential investors.<\/p>\n
In addition to signalling stability, Zachar says the first sale also offers entrepreneurs critical insights.<\/p>\n
This includes customer feedback, purchasing behaviour, pricing acceptance, and operational challenges \u2013 which become visible in ways that theoretical planning cannot reveal.<\/p>\n
These lessons help refine the offering and strengthen the business before larger investments are sought.<\/p>\n<\/p>\n
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CONTINUE READING BELOW<\/p>\n
You can also listen to this podcast on iono.fm\u00a0here.<\/p>\n
\u201cWe often focus on how we get money in, which is important, but also, what are your behaviours? [What] money [is] going out of the business \u2013 all the way from paying yourself a salary, to how are you paying your suppliers.<\/p>\n
\u201cThere\u2019s nothing like predictability to start creating the pace for funding that\u2019s needed thereafter,\u201d Zachar emphasises.<\/p>\n
In this all-encompassing interview, Zachar also provides insights into the state of SMEs in South Africa \u2013 from challenges, opportunities,\u00a0digital transformation and innovation to strategies for scaling up, as well as a look at the policy environment.<\/p>\n
Read: Small businesses that go green could make a big impact in SA<\/p>\n
#Securing #sale #key #unlock #SME #confidence<\/p>\n","protected":false},"excerpt":{"rendered":"
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