Taking Note: Tips for Tracking Production Metrics

Taking Note: Tips for Tracking Production Metrics

Taking Note: Tips for Tracking Production Metrics 272 362 Uzenzele Holdings

If you follow us on LinkedIn, you may have been watching our Tips Tuesday series in which Uzenzele Holdings co-founders Nadia and Zahra share their insights into how SMEs can build a convincing case for prospective financiers.

Most entrepreneurs have gotten to where they are with blood, sweat, and tears, not to mention significant financial costs to themselves.

However, applying for growth funding to bring your business to the next level means asking someone else to absorb at least some of the risk of financing the growth of a small enterprise. This means that prospective funders will be asking for extensive proof that the business is a worthwhile investment — and it’s probably different (or more detailed) data than you think. While entrepreneurship is a glowing testament to personal perseverance and commitment, in the case of applying for growth funding, having a long, detailed, and accurate record of your production capabilities and accomplishments is critical for getting the green light. This article includes some production-related examples we’ve discussed in our online series so that small entities seeking growth funding have some insight into the depth, breadth, and detail of the metrics that funders look for in a successful funding application.

Uzenzele Holdings’ top tips for tracking production metrics

Here are just some of the business insights that prospective funders request for assessment in a funding application. They will vary from industry to industry, but these examples give an idea of the scope of detail and organisational acumen required of successful applicants. If you don’t already have a system in place to track these metrics, it’s a good idea to start now. The more detailed and accurate they are, the stronger the case for funding is.

Cost per unit of production

What material or product is it that your entity produces? What is the unit of measure that your entity uses to quantify that production? Is it square metres, kilograms, or tons? And, finally, what is the cost of producing a single unit of that material or product? Figuring out the cost per unit of production is critical to calculating and understanding the profitability and affordability of your business. This is because the cost of producing one unit helps prospective funders understand the capacity that your business requires to satisfy your clients in granular, calculable terms.

Production shifts

As any business leader knows, the cost of production is not limited to the cost of materials. There is also the cost of labour to consider. Does your business currently use a shift roster to track how many people are required per shift to meet a certain production output? Keeping a formal record of how many employees are on shift and how much is produced per shift is essential to understand 1) the labour requirements of your business, and 2) the true cost of unit production.

Raw input

So far, we’ve figured out the unit of production and the cost of labour. Now, we’re unlocking the power of understanding raw inputs. Consider this an invitation to perform a detailed analysis of how much raw input goes into each product that comes out of your company.

Uzenzele Holdings regularly encounters businesses that turn over hundreds of millions of Rands per year, and yet do not have a record of their raw input metrics in satisfactory detail for financiers. Consider these questions:

  • How much raw material do you need to purchase?
  • From whom are you purchasing these raw materials?
  • What are your supplier’s payment terms?
  • What is the volume of raw input that goes into each product?

The answers to these questions are essential for us to work out how much you need for your working capital cycle.

The bottom line: keeping evidence always pays dividends

In matters of production and other areas of the business, implementing a formal system of evidence tracking and retention is an excellent strategy to prepare for a robust funding application. Capital-raising experts like Uzenzele Holdings can use evidence like supplier invoices and accurate payslips in assumptions we build into financial models. Any and all documentation that helps us accurately calculate the costing of your business is extremely valuable to building a convincing case for prospective funders.

Uzenzele Holdings can help collate these details and advise your business on how best to strategically present this information to a network of over forty funders. Get in touch to explore our case studies and to see how we’ve done it before.

      Privacy Preferences

      UZENZELE HOLDINGS (PTY) LIMITED WEBSITE PRIVACY POLICY This Privacy Policy provides the Company’s policies and procedures of for collecting, using, processing and disclosing your information. Users can access the Service through the Company’s website. This Privacy Policy governs the access of the Service, regardless of how it is accessed, and by using the Services you consent to the collection, transfer, processing, storage, disclosure and other uses described in this Privacy Policy on these terms and conditions. All of the diferent forms of data, content, and information described below are collectively referred to as “Information”. 1. The Information We Collect and Store We may collect and store the following information when running the Service: Information Provided by You When you register on the Website, you are required to provide us with certain personal information, such as your name, phone number, billing information, email address and business postal addresses. Log Data When you use the Service, we automatically record information from your Device, its software, and your activity using the Services. This may include the Device’s Internet Protocol (“IP”) address, browser type, the web page visited before you came to our website, information you search for on our website, locale preferences, identifcation numbers associated with your Devices, your mobile carrier, date and time stamps associated with transactions, system confguration information, metadata concerning your Files, and other interactions with the Service. Cookies We may also use “cookies” to collect information and improve our Services. A cookie is a small data fle that we transfer to your Device. We may use “persistent cookies” to save your registration ID and login password for future logins to the Service. We may use “session ID cookies” to enable certain features of the Service, to better understand how you interact with the Service and to monitor aggregate usage and web trafc routing on the Service. You can instruct your browser, by changing its options, to stop accepting cookies or to prompt you before accepting a cookie from the websites you visit. If you do not accept cookies, however, you may not be able to use all aspects of the Service. 2. How We Use Personal Information Personal Information In the course of using the Service, we may collect personal information that can be used to contact or identify you (“Personal Information”). Personal Information is or may be used: (i) to provide and improve our services and/or products and/or the website, (ii) to administer your use of the Service, (iii) to better understand your needs and interests, (iv) to personalize and improve your experience, and (v) to provide or ofer software updates and product announcements. If you no longer wish to receive communications from us, please follow the “unsubscribe” instructions provided in any of those communications or update your Profle information. Analytics We also collect some information (ourselves or using third party services) using logging and cookies, such as IP address, which can sometimes be correlated with Personal Information. We use this information for the above purposes and to monitor and analyse use of the Service, for the Service’s technical administration, to increase our Service’s functionality and user-friendliness, and to verify users have the authorization needed for the Service to process their requests. 3. Information Sharing and Disclosure Your Use We do not display your information to other users of the Service. You can review and revise your information at any time. We do not sell your Information to any third party. Service Providers, Business Partners and Others We may use certain trusted third-party companies and individuals to help us provide, analyse, and improve the Service (including but not limited to data storage, maintenance services, database management, web analytics, payment processing, and improvement of the Service’s features). These third parties may have access to your information only for purposes of performing these tasks on our behalf and under obligations similar to those in this Privacy Policy. Compliance with Laws and Law Enforcement Requests; Protection of the Company’s Rights We may disclose to third parties’ fles stored in your account and information about you that we collect when we have a good faith belief that disclosure is reasonably necessary in order to: comply with a law, including the Act; protect the safety of any person from death or serious bodily injury; prevent fraud or abuse; or protect the Company’s property rights. Non-private or Non-Personal Information We may disclose your non-private, aggregated, or otherwise non-personal information, such as usage statistics of our Service. 4. Changing or Deleting Your Information If your personally identifable information changes, or if you no longer desire our service, you may update or delete it by sending the updated information or a request for information to be deleted to popia@uzenzele.com. In some cases we may retain copies of your information if required by law. For questions about your Personal Information on our Service, please contact us on popia@uzenzele.com. 5. Data Retention We will retain your information for as long as your account is active or as needed to provide you services. If you wish to cancel your account or request that we no longer use your information to provide you services, you may delete your account. We may retain and use your information in order to comply with our legal obligations, resolve disputes, and enforce our agreements. Consistent with these requirements, we will try to delete your information quickly upon request. Please note, however, that there might be latency in deleting information from our servers and backed-up versions might exist after deletion. 6. Security The security of your information is important to us. We follow generally accepted standards to protect the information submitted to us, both during transmission and once we receive it. No method of electronic transmission or storage is 100% secure, however. Therefore, we cannot guarantee its absolute security. If you have any questions about security on our website, contact us at +27 12 346 5174 7. Contacting Us If you have any questions about this Privacy Policy, please contact us at: Email: popia@uzenzele.com Phone: +27 12 346 5174 8. Compliance with the Act The whole of this Privacy Policy is subject to - and shall be interpreted in compliance with - the Act. 9. Changes to our Privacy Policy This Privacy Policy may change from time to time. If we make a change to this privacy policy that we believe materially reduces your rights, we will provide you with notice (for example, by email). And we may provide notice of changes in other circumstances as well. By continuing to use the Service after those changes become effective, you agree to be bound by the revised Privacy Policy.

      Click to enable/disable Google Fonts.
      Click to enable/disable Google Maps.
      Click to enable/disable video embeds.
      Our website uses cookies, mainly from 3rd party services. Define your Privacy Preferences and/or agree to our use of cookies.