medium_Screenshot 2024-06-06 152242.png

small_Screenshot 2024-06-06 152242.png

thumbnail_Screenshot 2024-06-06 152242.png

Mariam Koyava

PSP is one of the biggest pharmacies in Georgia, they import and distribute pharmaceuticals in approximately 220 PSP pharmacies located almost in every region of Georgia. Their products are imported from over 100 of the world’s leading pharmaceutical manufacturers. Every month 2 million customers choose PSP as their family's pharmacy.In 2017, SavvY implemented the following services: Full Diagnostics of IFRS, IFRS Implementation and Audit Support. Deriving from the company’s specific business activities the most critical elements were Property, Plant, and Equipment, Inventories, and Revenue.

IFRS PSP.png

IFRS Adoption & Implementation

IFRS Implementation in pharmaceutical company

SavvY was the implementing party of International Financial Reporting Standards (IFRS) Capacity Building Activity across Georgia which was initiated by the Ministry of Finance of Georgia’s Service of Accounting, Reporting, and Auditing Supervision (SARAS) and supported by the United States Agency for International Development (USAID) project “Governing for Growth” (G4G).The project had very significant role in supporting the companies in successful IFRS implementation that was required by the new law regarding Audit and Financial Reporting.&nbsp;The project had the following outcomes:<ul style="list-style-type:disc;"><li style="text-align:justify;">The pool of IFRS trainers was created: 30 English-speaking and 58 Georgian-speaking trainers were trained&nbsp;</li><li style="text-align:justify;">The interactive training modules materials and syllabus was created that became publicly available resource&nbsp;</li><li style="text-align:justify;">100 accountants were trained via the newly designed interactive training modules</li><li style="text-align:justify;">35 training modules with the materials amounting to more than 2500 pages were translated to Georgian language</li></ul>&nbsp;<h2 style="text-align:justify;">How We Helped</h2>Together with the international experts, such as Mike Wells, SavvY team helped SARAS to implement multi stage capacity building activity for smooth implementation of IFRS standards within Georgian companies that was required by the new law of Accounting, Reporting and Audit.&nbsp;SavvY did outstanding stakeholder coordination, as this project aimed to increase the capacity of the existing talent pool in Georgia that would result in having lasting effect.&nbsp;SavvY has created different platforms to engage all existing stakeholders in different roles:<ul style="list-style-type:disc;"><li style="text-align:justify;">All existing experts in the field were cordially invited to join the distinguished Review Committee that would thoroughly work on checking the quality of the translated 35 modules of IFRS for SME. Eventually, the Review Committee worked out to be very effective.</li><li style="text-align:justify;">All newly trained and retrained trainers were invited to join the IFRS Training Network that became the platform to share any upcoming training opportunities as well as insights and new developments within the industry</li></ul><h2 style="text-align:justify;">&nbsp;</h2><h2 style="text-align:justify;">Impact and Potential</h2>The project had multiple areas of impact, which include but are not limited to:<ul style="list-style-type:disc;"><li style="text-align:justify;">A new pool of high-quality trainers in IFRS was created – The project created 88 new trainers in IFRS that resulted in the increase of supply of trainings that was indeed of the crucial importance to support the companies to transfer from National Accounting Standards to IFRS. In addition, this activity facilitated additional quite strong income stream for consulting companies and freelancers&nbsp;that started to offer IFRS related training products.&nbsp;</li><li style="text-align:justify;">35 Modules of IFRS for SME translated in Georgian language – these materials were the core stone support while country’s transition to IFRS standards as it enabled the practitioners in the field to have access on the demanded content in the local language. These materials are used even today by the accountants and reporting specialists in Georgia.</li><li style="text-align:justify;">Training Modules in Georgian language – specifically for this project, SavvY designed training materials that were used to train the pilot company’s accountants that were selected for this activity. It’s worth mentioning that these materials are public on the SARAS web page until today and all trainers, even those that did not participated int the training of trainer’s activity back in 2018 are eligible to utilize these resources for their training</li></ul><a href="https://saras.gov.ge/ka/Home/Modules?Length=4">You can see this module on link</a>.

USAID (G4G)

Saras

IFRS for SMEs training participants photo

IFRS for SMEs Ended.jpg

Ecosystem Development

IFRS for SME Capacity Building Project

SavvY created a business plan for Goodwill JSC to expand its hypermarket chain and fast food direction. Goodwill is Georgia's first hypermarket chain, providing customers with a diverse range of products. It has its own line of prepared meals, meat products, and confectionery. Additionally, Goodwill stands as a significant importer of food and non-food products from various countries including Germany, Netherlands, Italy, France, Bulgaria, and Ukraine.<figure class="table" style="width:100%;"><table class="ck-table-resized"><colgroup><col style="width:31.58%;"><col style="width:68.42%;"></colgroup><tbody><tr><td><h2>How we helped</h2></td><td>Throughout the project, SavvY’s&nbsp;team investigated the main target markets and assessed the potential demand.&nbsp;</td></tr></tbody></table></figure>The market investigation included secondary research, statistical data analysis, as well as primary research, face to face interviews with the sector representatives. On top of that, the team explored direct competitors operating in the local market&nbsp;and&nbsp;assessed their concept, pricing strategy, strength and weaknesses, and their current financial position.&nbsp;In the end, the team came up with the business concepts describing the business model, emphasizing the competitive advantage of the project and further development potential.&nbsp;Finally, a detailed financial model was prepared and various scenarios were discussed.<figure class="table" style="width:100%;"><table class="ck-table-resized"><colgroup><col style="width:25.15%;"><col style="width:74.85%;"></colgroup><tbody><tr><td><h2>Impact and potential</h2></td><td>As a result,&nbsp;the&nbsp;client was provided&nbsp;with a detailed business plan document with information about&nbsp;favorable and&nbsp;unfavorable conditions for business development in Georgia.</td></tr></tbody></table></figure>&nbsp;

Goodwill

Ready-to-eat and semi-finished food production.jpg

Business Plan

Financial Modeling

Ready-to-eat and semi-finished food production

The project was dedicated to develop the FDI attraction strategy for the agency Enterprise Georgia (under the Ministry of Economy and Sustainable Development of Georgia). SavvY team worked on this project with our international partner FDI Center, which is specialized advisory firm in the field of foreign direct investment Based in Berlin, Germany. FDI Center is entirely focused on helping governments and investment promotion agencies (IPAs) to attract investment and retain more efficiently and successfully.The project's objective was to pinpoint the sectors and sub-sectors in which Georgia possesses competitive advantages and relevant capacities or resources to attract international companies. This was addressed through a range of expansion initiatives outlined in the operational plan.<figure class="table"><table><tbody><tr><td><h2>How we Helped</h2></td><td>The project covered several phases. The aim of the first phase of the project was to gain a solid understanding of Enterprise Georgia’s current structure and operations, including the factors that have contributed to its success and any challenges or constraints that may be affecting the agency. In addition, our team worked actively with Enterprise Georgia to acknowledge the approach to investment attraction, and facilitation, including the selection of target sectors and companies and the support provided to potential and existing investors.&nbsp;</td></tr></tbody></table></figure>The second phase was research intensive and our team worked actively with the secondary data as well as conducted numerous interviews with sector experts, key stakeholders, government representatives, representatives in international companies in specific sectors or fields, etc. The goal of this phase was to determine “target groups” that have genuine potential for locating in Georgia. A target group is defined as a specific group of companies that share similar characteristics with respect to their activities, operations, and investment potential. The term can be translated as “sub-sector” or even more detailed description of the activity that company might perform. Our approach was to identify the longlist of target sectors and then search deep dive on each individual activity to assess the investment potential of each activity. We analyzed the activities’ expansion trends worldwide, while those who might have the potential to expand in Georgia based on the requirements of potential investors in these groups and Georgia’s location characteristics. The assessment focused on the operational requirements of the target groups (e.g., workforce, utilities, and property) as well as the market characteristics of each target group (e.g., key players, geographic concentration of companies, supply chain).&nbsp;For the selected target groups, at the phase 2 we developed a detailed action plan for Enterprise Georgia to identify and engage with individual companies. The action plan included:<ul><li style="text-align:justify;">Recommended channels for first contact (e.g., direct outreach, industry events).</li><li style="text-align:justify;">The potential for including existing investors in Georgia (and their parent companies overseas) in the action plan.</li><li style="text-align:justify;">Key partners (e.g., industry associations) that can support implementation of the action plan.</li><li style="text-align:justify;">Roles and responsibilities of Enterprise Georgia and other relevant organizations in implementing the action plan.</li><li style="text-align:justify;">Significant barriers that need to be addressed for the action plan to be implemented.</li><li style="text-align:justify;">The resources (financial and other) required for implementing the action plan.</li><li style="text-align:justify;">Timeline for implementing the action plan as well as milestones and KPIs for assessing progress and results</li></ul>To approach potential investors effectively, Enterprise Georgia requires specific materials that describe the advantages the country for the selected target groups. These materials are most effective when they are customized to the requirements of potential investors and one of the reasons for selecting individual target groups was to develop a clear understanding of their requirements. Thus, for the final phase, our team developed the value proposition marketing materials for each selected target activity.The project aimed to create a substantial impact on Georgia's investment landscape by strategically identifying and promoting key sectors poised for growth. By thoroughly analyzing Enterprise Georgia's existing structure and operations in the initial phase, we established a foundational understanding of the agency's strategy towards attracting FDI investment.The second phase involved intensive research, enabling us to pinpoint specific target groups with genuine potential for investment in Georgia. This data-driven approach not only highlighted sectors showing promising revenue growth and favorable market conditions but also identified the operational and market characteristics crucial for attracting international companies. The comprehensive analysis ensured that our recommendations were grounded in evidence, addressing the requirements of both investors and the unique advantages that Georgia offers.With the identification of five target groups that meet established investment prerequisites, we developed a detailed action plan for Enterprise Georgia. This plan outlines strategic outreach channels, identifies key influencers and partners, and addresses potential barriers to implementation. By fostering collaboration with existing investors and industry associations, the action plan positions Georgia as an attractive destination for investment.Overall, the project is expected to enhance Georgia's competitiveness in the global market, stimulate economic growth, and foster a sustainable environment for international investment. Through targeted strategies and comprehensive engagement with potential investors, Georgia is poised to attract significant foreign direct investment, creating jobs and driving innovation across key sectors.

Georgia Investment attraction.jpg

Georgia Investment Attraction, Facilitation and Aftercare Strategy and Action Plan

The Growth Hub (GH) project continued to be developed for some years and was supported by the several international organizations or projects.&nbsp;The initial scope and concept of the GH was supported by the UNDP Georgia, which at that time was implementing the second phase of the project entitled “Fostering Regional and Local Development in Georgia” (FRLD 2). After discussing the scope and concept with Irakli Nadareishvili, Deputy Minister of the Ministry of Economy and Sustainable Development of Georgia (MoESD), and Tornike Zirakishvili, Deputy Director of LEPL Enterprise (EG), the project was considered exciting and moved to the next stage. With the initiation and support of the EG stakeholders mapping and action plan for the GH for Adjara region was financed under the USAID Economic Security Programme and the same scope for Samegrelo-Zemo Svaneti was financed under the UNDP project "Fostering Regional and Local Development in Georgia, Phase 2" with the support of the Ministry of Regional Development and Infrastructure of Georgia (MRDI), the Swiss Agency for Development and Cooperation (SDC) and the Austrian Development Cooperation (ADC).&nbsp;As of now, both GHs in Samegrelo-Zemo Svaneti and Adjara regions of Georgia are announced to be launched in summer 2023 followed by the expansion of the GH network in all regions and eventually the full coverage of Georgia.&nbsp;We are honored to have been a part of the journey that brought the&nbsp;GH from concept to implementation.<figure class="table" style="width:100%;"><table class="ck-table-resized"><colgroup><col style="width:24.13%;"><col style="width:75.87%;"></colgroup><tbody><tr><td><h1>How We Helped</h1></td><td>Before preparing the concept of Growth Hubs, international best practices were analyzed. With respect to governance and structure, the most relevant and optimal analogue was found to be in Great Britain. We also analyzed examples India, Latvia, and Australia. In some countries, a practice similar to a growth hub is not implemented at all, and in some countries the functions of growth hubs are attributable to their ministry of economy.&nbsp;</td></tr></tbody></table></figure>Under the project “Fostering Regional and Local Development in Georgia” (FRLD 2) funded by UNDP, JSC SavvY developed the concept for the Growth Hubs. The studies conducted in the framework of the project revealed the importance of rural business development for economic growth of the regions of Georgia and factors preventing or contributing to this process. The results show the need of business support organization that will focus on researching the business environment and promoting local business development, that will be the bridge for rural businesses to find and access to intensive local support and advice where they have the opportunity, ambition and greatest potential to grow and scale-up. Although there is a business growth potential in regions of Georgia, the need and importance of support services for their growth and prosperity is crucial. Growth Hub may address all above mentioned issues. The main drive of GH is to be proactive and work closely with rural businesses to acts as a communicator and negotiator at a national level with government, advisers, businesses, academia and other target audience. GHs will be the bridge for rural businesses to access specialists in any field of development they need, including individual consultancy, exporting, accessing finance, trainings. Within the framework of the project, the SavvY team visited one of the Growth Hubs in the United Kingdom and gained firsthand knowledge of its scope of operation and structure.Working on the Strategy and action plan of the GH in different regions of Georgia, as well as analyze the macroeconomic background and prepare stakeholders mapping was proceeded under the other two projects: stakeholders mapping and action plan for the GH for Adjara region was financed under the USAID Economic Security Programme and the same scope for Samegrelo-Zemo Svaneti was financed under the UNDP project "Fostering Regional and Local Development in Georgia, Phase 2" with the support of the Ministry of Regional Development and Infrastructure of Georgia (MRDI), the Swiss Agency for Development and Cooperation (SDC) and the Austrian Development Cooperation (ADC).&nbsp;The scope of these two projects included preparing the concept of GH and conducting primary and secondary researches about the MSMEs attitudes, existence of local service providers and private sector development in target regions. Primary research included intensive face to face interviews and telephone surveys of MSMEs in the target region of Georgia. Secondary research was done to assess the level of private sector development in the target region of Georgia, specifically in the Samegrelo – Zemo Svaneti and to identify the sectors contributing most of all to the country’s GDP.The concept and services and the governance structure was developed with the involvement of an international consultant from Great Britain who had more than 20 years of experience in GHs and who greatly contributed to the development of the strategy and action plan of the GH. The document summaries the market research of the Growth Hub stakeholders as well as the concept, strategy and action plan of the Growth Hub.<figure class="table" style="width:100%;"><table class="ck-table-resized"><colgroup><col style="width:27.48%;"><col style="width:72.52%;"></colgroup><tbody><tr><td><h1>Impact and Potential</h1></td><td>Growth Hubs will assist MSMEs in attaining growth through various initiatives and services. Growth Hubs will act as conduits for rural firms to connect with specialists in a variety of sectors (e.g., exporting or access to finance) and formats (e.g., consultancy and training).&nbsp;</td></tr></tbody></table></figure>GHs will serve as national communicators and negotiators with the government, advisers, corporations, academia, and others. Their suite of programs and services will be geared to help the main industry sector manage change, adapt to business challenges, increase profitability, and plan for the future. Along with group trainings, services will mostly entail individual consultations, face-to-face meetings, and individual growth and export plans are developed in partnership with government, industry specialists and experts, and other organizations that support regional development to assist the development of competitive, sustainable, and resilient rural businesses.Physical, regional branches of the "Enterprise Georgia" agency will be established, with the goal of assisting local enterprises. The hub will feature support consulting and other service providers to network with local MSMEs and assist in building the fundamental skills of entrepreneurs in the region.&nbsp;This will also in part support the development of consulting businesses in the regions, with the agency becoming a partner for them on the local level and a facilitator for entrepreneurs to provide those services through the GH that MSMEs seek to receive.&nbsp;As a result, the Growth Hub will assist the development of rural/local MSMEs, facilitating local economic growth and prosperity across the country.See article about our project<ol><li style="text-align:justify;"><a href="https://www.enterprisegeorgia.gov.ge/en/News/enterprise-georgia-delegation">Enterprise Georgia delegation got acquainted with the operations of Growth Hubs in Englan</a>d</li><li style="text-align:justify;"><a href="https://bm.ge/en/news/icc-launches-centre-of-entrepreneurship-in-tbilisi/36886">ICC Launches Centre of Entrepreneurship in Tbilisi</a></li></ol>

Enterprise Georgia

USAID

UNDP

Growth hub

Strategy Development

Growth Hubs in Georgia

Insights

<img src="/uploads/Business_plan_4e8a45bdac.webp" alt="Business plan.webp">Starting or growing a business is not easy and it’s even harder without a clear plan. A&nbsp;<a href="https://wesavvy.co.uk/services/business-plan">business plan</a> is like a guide that helps your business stay in the right direction. It shows your goals, how you are going to reach them and what your company’s future could look like. If you want your business to succeed, writing a good business plan is essential.A business plan is important for any business, big or small. It helps with making good decisions, staying organized and planning for growth. It shows where your business is going and how to get there. For startups or small businesses, having a good business plan can decide success or failure.Whether you want to start a new business or&nbsp; improve your current one, a good business plan is the first step. In this guide, we will explain the structure of a simple business plan and talk about each part of it. You will learn how to create a plan that can impress investors and help your business succeed.What is a business plan? Understanding its purpose and importanceA business plan is a written document that explains how a business will achieve its goals. It describes the business’s strategy, target market, products or services and financial information. In simple terms, it explains how the business will work and grow, helping the owner stay focused on their goals.The purpose of a business plan is more than just explaining the business idea. It helps guide the company’s overall strategy, making it easier to make good decisions. For new businesses, a business plan is important for attracting investors who want to see that the business has a clear plan for success. A good business plan can give them confidence to invest.In short, a business plan helps business owners manage their work, make smart decisions and reach long-term goals. It provides a clear way to turn ideas into real plans while reducing risks and creating chances for growth. If you think about possible problems in advance, you can easily find solutions and avoid surprises.How to structure a business plan? Key elements you need to includeA good business plan is organized in a clear way. Each part of the plan gives important information about different areas of your business. While the details might change based on your goals, there are key parts that every business plan should include:Executive Summary -&nbsp;Although this section comes first in the document, it should be written last. The executive summary provides an overview of the entire business plan and highlights the key points. It should briefly explain your business, goals and why it's a great opportunity.Company Description&nbsp;-&nbsp;This section comes after the executive summary. It gives more details about your business, including what you do, your mission and your goals. It helps readers understand your business’s background and what makes it different from others.Market Research &amp; Analysis&nbsp;- This section comes after the company description. Here you share information about your industry, market trends, your target audience and competitors. It shows that you understand the market and know how your business fits into it.Organization &amp; Management&nbsp;- This part follows market research. It outlines your business structure, key team members and their roles.Products &amp; Services -&nbsp;After describing the team and structure, you’ll explain your products or services in this section. You should discuss what you’re selling, how it benefits your customers and what makes it unique.Marketing &amp; Sales Strategy&nbsp;- After the products and services section, you will explain how you plan to market and sell your products or services. This includes how you will advertise, set prices, offer special deals, etc.Financial Projections&nbsp;- This section comes after the marketing and sales strategy. It gives information about your business's expected financial results, including sales, profits, cash flow and balance sheets. This helps investors see if your business is financially strong.Funding Request (if needed) -&nbsp;If you need funding, this section comes last. You will explain how much money you need, how you plan to use it and how you will pay it back.&nbsp;How to choose the best business plan sample?&nbsp;When looking for a business plan sample, it’s important to pick one that matches your business type and goals. A good one should be clear and realistic. It should include all the main parts we mentioned earlier, such as the executive summary, financial projections, marketing plan, etc. Look for business plan examples that are detailed but easy to understand. This will help you know how to organize your own plan. Also, make sure the example comes from a similar industry or business size, because it will provide more relevant information for your plan.There are many online places where you can find business plan examples, such as government websites, business blogs and articles. However, since you're already here, you can explore the business plan examples, templates and all the related services we offer at&nbsp;“<a href="https://wesavvy.co.uk/">SavvY</a>”. Our business plans include detailed market research,<a href="https://wesavvy.co.uk/services/financial-modeling"> financial modeling</a> and strategic analysis to meet investor expectations and industry standards. Whether you need help organizing your plan or a custom solution, we offer a professional and detailed approach.&nbsp; Looking at these real templates can help you understand what works, what investors look for and how to write a plan that will be impressive.&nbsp;SavvY's tips for writing a successful business planWriting a successful business plan doesn’t have to be hard. At&nbsp;“SavvY”, we suggest keeping it simple and clear. Start by focusing on the most important points and avoid using too many technical words or extra details. Make sure each part of your plan is easy to understand and organized in a clear way. Always stay focused on your goals and be realistic about what your business can achieve. Investors like plans that are simple and easy to follow.&nbsp;Remember, a strong business plan is important for turning your ideas into reality and reaching your goals. It helps you make smart decisions, stay organized and show investors how your business can succeed.&nbsp;At&nbsp;“SavvY”, we believe that a good business plan is more than just a paper. It's a powerful tool that can guide you successfully in such a competitive business world.

Business plan.webp

The Must-Have Business Plan Sample for Success

<img src="/uploads/how_to_build_up_a_comprehensive_financial_model_8d20fed613.webp" alt="financial model">Would you ever think about making big business decisions without knowing the possible financial outcomes? Most business owners wouldn’t take that risk. Instead, they use financial modeling to study data and predict future results. A good&nbsp;<a href="https://wesavvy.co.uk/services/financial-modeling">financial model</a> helps businesses plan better and reduce risks, so they can stay financially strong.A financial model is an important part of&nbsp;<a href="https://wesavvy.co.uk/services/financial-management">financial management</a>. It helps businesses predict how much money they will make, how much they will spend and if they will make a profit in different situations. Whether a company is starting a new product, growing its business or looking for investment, business and financial modeling specialization helps make logical decisions.To better understand how financial modeling supports smart choices, it's important to first explain what financial modeling is.Definition and basic principles of financial modelingThe main idea of financial modeling is the process of making a detailed plan to predict a company’s future finances. This usually means looking at past data and making guesses about what will happen in the future. The goal is to create a model that shows how a business’s finances will change based on different decisions or events. The model helps businesses see what might happen and understand how their choices will affect their finances.Use of different financial modeling typesThere are different types of financial models and each has its own purpose. For example, a budgeting model helps companies plan their income and expenses. Forecasting models predict future financial results based on past data. Other models, like valuation models, help businesses figure out their market value. No matter the type, financial models offer important information that helps businesses improve their strategies, minimize potential risks and be prepared for future challenges.In addition to these common financial modeling types, businesses can also use cash flow models, which help control the money coming in and going out. This also ensures that there is enough money to cover expenses. Another important tool is the financial statement model, which combines the income statement, balance sheet and cash flow statement into one tool to understand how the business is performing.&nbsp;How to build a financial model: A step-by-step guide to forecasting and analysis&nbsp;Now that we’ve mentioned the different types of financial models and their purposes, it's important to understand the process of building one. Step-by-step financial modeling involves several stages that help businesses predict and understand their financial results. Each stage is important for creating a model that is clear and useful. Below, you will find the main steps in building a financial model:Step 1: Collect information and make basic assumptions&nbsp;- The first step is to collect important information from different sources, such as past financial data, market trends, etc. At the same time, make basic predictions about things like how much money the business will make, its costs and the market situation. These help to build the rest of the model.Step 2: Build the model structure&nbsp;- In this step, the basic structure of the financial model is created, which shows the main parts that will help make predictions. The structure is usually arranged in a spreadsheet, where the financial data is organized and calculated. This helps make sure that the information is processed correctly through the model and everything works together.Step 3: Forecast income, expenses and create financial statements - Once the structure and basic predictions are ready, the next step is to forecast future income and costs, based on the collected data. This includes making main financial statements, such as the income statement, balance sheet and cash flow statement. These show what the business is likely to earn and spend.Step 4: Cash flow modeling and risk analysis -&nbsp;In this step, cash flow forecasts are checked and the model is tested for possible risks. Cash flow modeling makes sure that the business has enough money to pay its bills. On the other hand, risk analysis is done to find and understand possible financial problems, like market changes, higher costs or unexpected expenses.Step 5: Final verification, refinement, and scenario/sensitivity analysis&nbsp;- In the final step, the financial model is carefully checked and improved. This includes scenario analysis, where different situations (like changes in pricing, workload or funding) are tested to see how they affect the results. Sensitivity analysis is also done to see how small changes in important details impact the model.&nbsp;Why choose SavvY for your financial needsAs we’ve seen, financial modeling is very important for making smart business decisions. It helps companies plan well, identify potential risks and stay financially stable. Different types of financial models, such as budgeting, cash flow and valuation models, provide useful information that helps businesses adapt to changes and improve their financial outcomes.<a href="https://wesavvy.co.uk/">SavvY’s</a> skills in this area are shown by the successful financial models we’ve made for many different clients. From a fashion e-commerce startup in the UK to the unique Quadrum Ski &amp; Yoga Resort, we have proven our ability to create financial solutions for different types of businesses. Whether it’s helping investors look at wine factory projects or supporting companies like Goodwill with their growth plans,&nbsp;SavvY’s team provides useful advice that helps make smart decisions and leads to success.If you want to understand your business’s financial future or need a personalized financial model for your next big decision, let&nbsp;SavvY guide you through the challenges of your industry and help ensure your business stays strong and ready for whatever may come next.&nbsp;&nbsp;

how to build up a comprehensive financial model.webp

how to build up a comprehensive financial model

<img src="/uploads/what_is_working_capital_1f73283076.webp" alt="what is working capital">If you’ve ever wondered how some businesses always seem to stay strong, no matter what, the secret is simpler than you think: working capital, which isn’t just about making sales or reducing costs, but about having enough financial resources to make sure that the business keeps moving forward.A company with sufficient working capital can pay its bills on time, invest in growth, and handle unexpected expenses without stress. On the other hand, poor working capital management can lead to cash flow problems, delayed payment,s and even more serious financial trouble.In this blog, we’ll explain&nbsp;<a href="https://wesavvy.co.uk/services/financial-management">working capital&nbsp;</a>meaning, how to calculate it and why managing it well is key to a company’s financial growth. But before we go further into why it is essential for success, let’s first understand what is working capital and why it’s so important for business leaders.<h2 style="text-align:justify;">Clarifying the working capital definition</h2>Understanding working capital meaning is essential for any executive who is focused on financial stability. While sales and profit are important, without enough working capital, a company may have trouble covering everyday costs, which can cause more and more problems.&nbsp;In the business world, working capital is a key number that shows how strong a business’s finances are. It’s the difference between what a company owns (like cash, money from customers and products) and what it owes (like bills and short-term loans). It also tells you, if a company can pay its bills and keep everything running without problems, at the same time.&nbsp;This is why business leaders pay close attention to working capital. They understand that managing it well opens the door to new opportunities. With effective management, companies can grow and reduce financial risks.However, while working capital is essential for daily operations, there are other financial tools that are also important for bigger projects and long-term growth.<h2 style="text-align:justify;">Working capital vs. other financial tools</h2>Besides working capital, which focuses on a company's daily operations and shows how well a business can cover its short-term expenses, there are other financial tools. With them, loans, debt and equity are typically used to fund larger projects. To put it simply, while working capital helps cover everyday costs, loans and debt provide the money that is needed for improvements. However, equity allows a business to raise funds without borrowing.For businesses, especially those that are in development phases, understanding the balance between working capital and these long-term financial instruments is even more important. For this reason, sometimes businesses invest in consulting firms to ensure they manage financial tools effectively. These firms help companies make the right decisions regarding their working capital, loans, debt and equity.&nbsp;<h2 style="text-align:justify;">How to calculate working capital: what you need to know</h2><h3 style="text-align:center;">Working Capital = Current Assets – Current Liabilities</h3>It’s rare to find a business owner or company that doesn’t know the meaning of this formula, which provides a clear picture of a company’s financial status. Understanding how to calculate working capital is essential, but what really matters is knowing the quality of your assets and liabilities. Some assets are not easy to sell quickly for cash, and some bills may need to be paid sooner than you thought. It’s important to know how fast you can get your money, when you need to pay your bills, and how different seasons can affect your cash flow.It is also worth mentioning that working capital management is not just about calculations; it's about making smart choices to keep a business stable and running well for a long time. For top management, having enough working capital is key to staying financially flexible.&nbsp;For this reason, consulting firms like&nbsp;‘’<a href="https://wesavvy.co.uk/">SavvY</a>” can help review and improve strategies to make sure they match your business goals.<h2 style="text-align:justify;">From numbers to strategy, managing working capital effectively</h2>The formula we mentioned earlier is just the beginning. After calculating working capital, the next step is to use that information practically, which is key to running your business effectively. You need to apply this data to make strategic decisions. It’s often said that effective working capital management is about balancing short-term needs with long-term goals to ensure that resources are used correctly.Once you understand your working capital, it can help you make better decisions. By checking it regularly, you can keep your business balanced between having enough cash and growing. For example, if your working capital is high, you might want to invest in new opportunities or grow your business. If it’s low, you may need to reduce unnecessary costs. The key is to stay flexible and be ready for changes in the market.<h2 style="text-align:justify;">Why positive and negative working capital matter</h2>After calculating and using your working capital effectively, the next important factor is understanding whether it’s positive or negative, because it significantly affects how your business works.Positive working capital means you have enough assets to pay your short-term debts and it shows that your business is financially stable. This helps you pay bills on time and take advantage of new opportunities. On the other hand, negative working capital means your debts are higher than your assets, which can make it hard to pay bills and run your business without problems. This situation needs careful attention to avoid cash flow problems. When you know if your working capital is positive or negative, you can make smarter decisions.<h2 style="text-align:justify;">“SavvY” -&nbsp;Your partner in improving working capital management</h2>In conclusion, managing working capital well is important for businesses to run effectively, but as we've seen, it’s not just about understanding the numbers; it’s about making good decisions based on that information. Since working capital and other financial tools are so important, many companies choose to get help from experts.Here’s where&nbsp;“SavvY” can make a difference for your company. This business consulting firm, based in Tbilisi, Georgia, uses a simple and effective approach to help businesses manage their working capital and improve their financial strategies. With good knowledge of the local market and global best practices,&nbsp;“SavvY” helps businesses turn challenges into opportunities.&nbsp;

what is working capital .webp

What is Working Capital? Understanding Its Importance and Role in Business Success

News

<figure class="image"><img src="/uploads/Screenshot_2025_04_01_164544_d3b33a61ac.png" alt="Free Industrial Zones – Time to Invest with Mariam Koyava"></figure>There is a belief that, amid high uncertainty and increasing unpredictability in the global economy, special economic zones provide a relatively predictable stable business environment.The World Free Zones Organization (WFZO) estimates that there are 7,000 special economic zones worldwide. However, tracking and identifying which zones are truly active and successful remains a challenge.&nbsp;According to Adrianople Group, there are 4,921 active zones in more than 90 countries.As for Georgia, the country currently has four operational free industrial zones: Poti Free Industrial Zone, Kutaisi Free Industrial Zone, Hualing Kutaisi Free Industrial Zone, and Tbilisi Free Zone.Additionally, two new zones are in development. The Sagarejo Free Industrial Zone is scheduled to begin operations no later than March 1, 2026, while the GIG Free Industrial Zone in Kutaisi is set to open by December 1, 2026.<a href="https://bm.ge/news/tavisufali-industriuli-zonebi-investitsiis-droa-mariam-qoiavastan-ertad">To watch the full interview, follow the link</a>

Free Industrial Zones – Time to Invest with Mariam Koyava

<figure class="image"><img src="/uploads/giorgi_gudabandze_w_h_598e10ae06.jpeg" alt="giorgi-gudabandze_w_h.jpeg"></figure>"The low share of the EU in exports is alarming," said Giorgi Gudabandze, Associate Partner at SavvY, in an interview with BMG.Exports from Georgia to the European Union have dropped to record lows. In the first ten months of 2014, Georgian businesses exported only $456 million worth of goods to EU countries. The EU’s share in Georgia’s total exports fell below 10%, reaching just 8.4%."The country and the private sector are not prepared for a market with high-level requirements. Moreover, Georgia’s recognition as a supplier of specific products in the EU market is quite low, which results in a lack of trust from European buyers in long-term business relationships. Logistics also remains a major issue, limiting Georgia’s competitiveness. We are not fully utilizing our geographical advantages, and as an overall result, our export share remains low," said Giorgi Gudabandze.&nbsp;<a href="https://bm.ge/news/eqsportshi-evrokavshiris-dabali-tsili-sagangashoa-giorgi-gudabandze">To read the full interview, follow the link</a>

Hey, I'm Mariam Koyava and I'm gonna help you

Projects I've worked on

IFRS Implementation in pharmaceutical company

IFRS for SME Capacity Building Project

Ready-to-eat and semi-finished food production

Georgia Investment Attraction, Facilitation and Aftercare Strategy and Action Plan

Growth Hubs in Georgia

See All projects

Publications

The Must-Have Business Plan Sample for Success

how to build up a comprehensive financial model

What is Working Capital? Understanding Its Importance and Role in Business Success

Free Industrial Zones – Time to Invest with Mariam Koyava

Low Share of EU in Exports is Alarming – Giorgi Gudabandze

Tell me how can I help