The topics in this module are crucial for youth workers supporting young women in entrepreneurship because they provide the foundation for understanding how money flows within a business: how to plan, allocate, and control financial resources responsibly. Drawing on principles of financial management from the manual, the module explores core financial statements, cost structures, revenue sources, and cash flow management. These concepts help youth workers guide women in evaluating business viability, maintaining liquidity, and making informed funding choices. Understanding financial indicators and break-even analysis empowers them to anticipate challenges and build sustainable models of enterprise.

Key questions the module will address:

1. How do financial planning and budgeting contribute to business stability and growth?
2. What funding options and financial structures can support young women’s ventures?
3. How can financial analysis guide better decision-making and long-term success?

After completing this module, youth workers will be able to:

• guide young women in developing financial literacy and confidence in managing business finances
• understand how to interpret basic financial statements, plan and monitor cash flow, and identify sustainable sources of funding. 
• gain the ability to support the creation of realistic financial plans, including budgeting, cost analysis, and forecasting profitability. 
• learn how to assess financial indicators to evaluate business performance and risk. 

By the end of the module, youth workers will be equipped to help young women make informed financial decisions, access appropriate funding opportunities, and ensure the long-term financial sustainability of their entrepreneurial initiatives.

This module develops key competences from the EntreComp and LifeComp frameworks essential for supporting young women in entrepreneurship.

EntreComp:

• Planning and Management – ability to organize resources, set financial priorities, and monitor progress towards business goals.
• Financial and Economic Literacy – understanding cash flow, cost structures, and funding options to ensure business sustainability.
• Mobilizing Resources – identifying and accessing diverse financial and non-financial resources to support entrepreneurial growth.

LifeComp:

• Self-Regulation – promoting responsible financial behaviour, discipline, and goal-oriented decision-making.
• Wellbeing – fostering confidence and reducing stress through informed financial choices.

Learning to Learn – developing reflective skills to continuously improve financial planning and adaptability in dynamic markets.

Many young women with strong business ideas struggle to turn them into reality due to limited financial knowledge, lack of confidence in handling money, and difficulty navigating complex funding systems. This module directly addresses these challenges by demystifying financial concepts and providing practical tools for planning, budgeting, and evaluating business viability. By understanding how money flows through a business, you can better support young women to make informed decisions, reduce risk, and feel empowered in negotiations with investors or partners. The module encourages confidence, independence, and long-term thinking—helping youth workers create an environment where young women see finance not as a barrier, but as a pathway to achieving their entrepreneurial goals.

Ružica & Antea – Founders of Room8, Mostar

Ružica and Antea launched Room8, Bosnia and Herzegovina’s first UGC & TikTok agency, turning a market gap into a thriving business. After completing the Financial Planning and Funding Pathways module, they applied core principles to ensure sustainable growth:

• Budgeting & Cash Flow: Monthly financial cycles, cost analysis, and break-even checks kept liquidity stable.
• Funding Strategy: Leveraged organic revenue before considering targeted micro-investments, avoiding unnecessary debt.
• Financial Analysis: KPI tracking (cost per video, average revenue per client, retention rate) guided resource allocation.

Key Metrics:

• Break-even per UGC package: 12 videos/month
• Average client revenue: €1,200/month
• Retention rate: 78%

By combining storytelling expertise with financial literacy, they scaled Room8 into a multi-lingual creative hub offering UGC creation, TikTok management, SEO, and analytics. Their journey proves that mastering finance transforms creativity into a sustainable enterprise.

Financial planning may sound complex, but at its core it’s simply about understanding how money enters and leaves a business, and how to make sure there’s always enough to keep things running smoothly. Every business, no matter how small, needs a plan for how to use its financial resources wisely.

1. The foundation – knowing where you stand

A financial plan begins with three basic tools called financial statements. The balance sheet shows what a business owns (assets) and what it owes (liabilities). The income statement shows how much money comes in and how much goes out – helping identify profit or loss. The cash flow statement tracks the timing of payments and income, ensuring the business can meet its daily obligations. Understanding these basics helps young women see the real picture of their business – not just what’s in the bank today.

2. Planning for sustainability

Financial planning is not only about recording numbers – it’s about predicting the future. By estimating income, expenses, and investments, entrepreneurs can anticipate problems before they happen. This is called budgeting. A good budget helps prioritize spending and ensures resources are available for growth, not just survival.

3. Understanding costs and pricing

Every product or service has costs. Some costs stay the same each month (rent, salaries) – these are fixed costs. Others change depending on production or sales (materials, delivery) – these are variable costs. Knowing the difference helps calculate the break-even point – the moment when income covers all costs. Beyond that point, the business starts to make profit.

4. Finding the money – funding pathways

Most entrepreneurs need financial support to start or grow. Funding pathways include personal savings, loans, grants, crowdfunding, or partnerships. Each has its pros and cons – loans require repayment, grants often need project justification, while investors may seek part ownership. Learning how to match the right funding type to the stage and goals of the business is a key skill.

5. Making informed decisions

Financial management is about using information to make smart choices. Simple financial ratios – like how quickly money is collected from customers, or how much debt is used compared to income – can show if a business is healthy or at risk. Youth workers who understand these basics can guide young women to plan, adapt, and grow confidently.

Guide 1: How to Create a Basic Financial Plan for Your Start-Up

1. Gather Key Business Information

Before working with numbers, clearly define:

• What your business sells
• Who your customers are
• What resources you need to operate

2. Estimate Your Start-Up Costs

Start-up costs include everything you need before you officially begin operating:

Equipment and tools, Initial inventory or materials, Licenses and permits, Marketing and branding, Website or online store, Transportation, software, and other initial expenses.

3. Calculate Your Monthly Operating Costs

These are expenses that repeat each month, both fixed and variable:

Rent, utilities, Internet, Materials and supplies, Salaries or service fees, Marketing and advertising, Transportation/delivery, Loan repayments.

4. Forecast Your Revenue

Estimate your expected monthly income based on:

• Price per product or service
• Number of units you expect to sell
• Seasonal demand
• Market trends

5. Estimate Your Profit

Profit = Revenue – Expenses

Create simple projections for the first 3 months or quarter

6. Calculate Your Break-Even Point

Break-even tells you how many units you must sell before you stop losing money.

Break-Even = Fixed Costs ÷ (Selling Price – Variable Costs)

7. Identify Your Funding Needs

Ask yourself:

• How much do I need to start?
• How much do I need to operate for the first 3 months?
• Which funding sources best fit my situation?

8. Keep Your Plan Updated

A financial plan is never “finished.”
It changes with real sales, expenses, and market changes. Update it monthly.

Guide 2: How to Choose the Right Funding Pathway for Your Business

1. Identify Your Business Stage

Funding needs depend on where you are

2. Assess Your Needs and Risk Tolerance

Clarify:

• How much money you need
• What you need it for
• How quickly you need it
• How much risk you can accept
• Whether you want to keep full ownership

If you want control → grants, personal funds, revenue-based growth

If you want fast scaling → investors, partnerships

3. Match Each Funding Type with Your Goals
4. Do a Quick Self-Assessment

What do my projections tell me? _______________________________________

What assumptions are most uncertain? _________________________________

Do revenues cover costs? _____________________________________________

What risks do I need to monitor? _____________________________________

Bosnia and Herzegovina’s growing creative economy is shaped by local cultural diversity, digital transformation, and evolving regulations. OREA Bazaar, based in Sarajevo, taps into this dynamic landscape by connecting over 200 predominantly women-led small producers with global consumers through handcrafted clothing, jewelry, home décor, and more. 

Local Case Studies & Community Events

The annual OREA Art Market, held at venues such as Dom mladih and Metalac, gathers 48–53 artisans from across the region. It blends commerce, cultural storytelling, child-friendly programming, sustainability efforts, and charity—raising over 100,000 KM for the “Srce za djecu oboljelu od raka” foundation. 

Regulatory & Market Context

Launching in 2017, the OREA team faced challenges related to Bosnia’s underdeveloped e-commerce ecosystem and hesitancy toward online payments. They innovated by integrating offline markets with digital initiatives, increasing trust before expanding online aligning with local regulatory standards and GDPR compliance. 

Support Networks

Strategic collaborations with the Government of Sarajevo Canton, UNDP, EcoPak, and TOMRA highlight strong institutional backing. These partnerships provided grant support, eco-packaging infrastructure, sustainability guidance, and market visibility. UNDP data shows over 90% of OREA sellers are women, with 70% adopting eco-conscious production methods.

💡 GENDER INSIGHT: Confidence Gap

Women often underestimate their financial knowledge, even when their skills match or exceed those of men. Build confidence by practicing financial statements regularly — numbers become easier with repetition.

⚠️ FUNDING BIAS ALERT

Studies show women-led businesses receive less investment due to unconscious bias, not lack of potential. Use strong data, clear forecasts, and evidence of traction to counter biased assumptions.

⭐ CAREGIVING REALITY CHECK

Many women juggle entrepreneurship with caregiving responsibilities. Integrate flexible budgeting and time-based cost planning to reduce stress and support sustainable growth.

💬 NEGOTIATION BOOST

Women are sometimes penalized for assertiveness in negotiations. Focus on facts: market data, ROI, customer traction, and financial projections. Let the numbers speak confidently for you.

🔍 NETWORK VISIBILITY TIP

Male-dominated financial networks can be harder to access. Actively seek women-focused accelerators, grant programs, and mentorship circles to build financial and social capital.

💸 PRICING WITHOUT GUILT

Women frequently undervalue their work. Base prices on real costs, market rates, and value delivered — not on fear of “charging too much.”

Task 1: Select and Justify Your Funding Pathway

Choose one:

☐ Personal savings
☐ Family financing
☐ Public grant
☐ Microloan
☐ Crowdfunding
☐ Business angel
☐ Partnership

Write 5–6 sentences explaining:

• Why this path fits your business
• Risks you see
• What you must prepare (documents, pitch, projections)

Task 2: Create a One-Page Financial Plan

Include:

• Start-up costs
• Monthly costs
• Revenue forecast
• Break-even
• Funding needed
• Preferred funding pathway
• 3 financial KPIs (profit, margin, LTV/CAC, burn rate)

Use these prompts to reflect on your personal growth, mindset, and challenges throughout the Financial Planning and Funding Pathways module.

• How has your understanding of financial planning evolved during this module?
• Which funding pathway feels most aligned with your values and business goals — and why?
• What surprised you most about how your business model creates and captures value?
• How confident do you feel discussing financial topics now compared to before?
• What gender-related barriers or biases have you recognized, and how might you navigate them differently?
• What is one financial habit or mindset shift you want to carry forward from this learning experience?

• Understand how to create, deliver, and capture value through a clear business model.
• Gain essential skills in financial planning — defining, tracking, and managing income and expenses.
• Explore diverse funding pathways and how to select the right one for your business stage.
• Recognize and address gender-specific barriers in entrepreneurship and funding.
• Strengthen decision-making through a holistic understanding of how finance and value creation connect.

Rate your confidence in applying these skills in real life.
Circle or mark the number that best represents how you feel right now.

My current confidence level after the training on Financial planning and Funding Pathways 

☐ 1 ☐ 2 ☐ 3 ☐ 4 ☐ 5