Level 10
Finance
Plan your money so the business can last
Many good businesses fail not because the product is bad, but because the money runs out at the wrong time. Finance, at this level, means knowing what you need, what comes in and goes out, and when. It is a thinking tool, not a promise of profit.
Farmers, processors and young entrepreneurs who are starting or running a small agricultural business and want to plan and track their money.
How this level is written
The lessons are practical teaching suggestions written by AfricAgric. The reading list is background reading, not the source of every sentence. Examples with numbers are invented and say so. Use the level as a way to think, then check facts and rules for your own place.
What you will learn
- Tell startup capital from working capital, and estimate what each needs.
- Work out the full cost of one unit of your product.
- Build a simple cash-flow plan and see when money may run short.
- Think carefully about borrowing, savings and group finance before taking any commitment.
Not financial advice
This level teaches general ideas. It does not tell you which loan to take, whom to borrow from or how much to invest. Rules, lenders and costs differ by country, so check with regulated providers, your cooperative or a qualified adviser before committing.
Where this level fits
Level 1 introduced costs, margin and break-even. Here you add time: when money comes in and goes out. You can try numbers of your own in the AfricAgric planning calculator.
Parts of this level
- Part 1Startup capital and working capitalOne pays for what you set up. The other pays for the days between spending and being paid.
- Part 2Costing one unitKnow what it truly costs you to make and deliver one unit, so you can set a price that works.
- Part 3Cash flow: when money comes in and goes outA business can be profitable on paper and still run out of cash. Plan the timing.
- Part 4Borrowing, saving and group financeAny borrowing is a promise to pay. Count the full cost, and borrow only what you can repay.
- WorkbookAll exercises from this level in one place, with space to think and a printable layout.
- QuizCheck what you learned. Answers and short explanations are hidden until you choose to show them.
Related
Not advice
This level is educational. It is not legal, financial, regulatory, nutritional or medical advice. Rules, fees and programmes change, so check every requirement with the authority named before you act.
Background reading
- Start and Improve Your Business (SIYB) — International Labour Organization (ILO)
- RuralInvest: Fostering Access to Finance for Small-scale Entrepreneurs — Food and Agriculture Organization of the United Nations (FAO)
- Developing Sustainable Food Value Chains: Guiding Principles — Food and Agriculture Organization of the United Nations (FAO), 2014