Chapter 12

Watch the recorded lesson HERE

This week we are reviewing the required parts of your loan application packet. Below are the templates for you to complete and share with your area supervisor when completed:

1. Business proposal using the Entrapov template in Word or Google Docs format
2. Revenue & Expense logs in your local currency for the past 60 days (any format is fine)
3. Income Statement in Google Sheets or Excel format
4. Recorded 1 to 2 minute pitch video 

Area Supervisors make sure all homework assignments have been completed. They review each student’s Shark Pond Application Packet to make sure it is complete and is well done. To help you prepare your loan application packet, we will continue our weekly classes. Each Saturday you can share your progress in creating a business plan and income statement. Mentors will help you work on them during the Google Meet call. It way take several weeks or even months to get these documents right, but we are here to help.

After you have finished your business plan and Income Statement to the satisfaction of your area supervisor, they will schedule a Pre-Qualification Pitch Event with their local Rotary Club to help you practice.

Keeping a Revenue and Expense Log Every Day

Read: Even after being sponsored and receiving the loan funds, you must continue keeping daily records using your Revenue and Expense Log. You will be asked to sign a Rotary Shark Pond Loan Agreement. In this agreement you commit to maintaining an accurate daily revenue and expense logbook. It is important to remember that Rotary Shark Pond loans are distributed in phases, not all at once. To receive your second and third loan payouts, you must provide an updated Revenue and Expense Log and an Income Statement showing exactly how all net profits were spent or saved. If you do not track your daily money, you will not be able to unlock the rest of your funding.

Discuss: When your business gets very busy, what are the biggest distractions that cause you to forget to write down a sale or an expense?

Watch: “A Busy Owner’s Guide to Keeping Up a Revenue & Expense Log Every Day” at https://youtu.be/a6Vrps_KHfY or by scanning the QR code below. 

Read: Every good business must know its money, but when your market stall is busy, you cannot always stop to write everything down while customers are waiting. Instead, use one simple rule: capture now, count later. This means you collect the information while you are busy and calculate it later when you are calm.

Here are the best ways to do this:

• Two Zipper Bags: Use one bag for “money in” (all money from sales) and a second bag for “money out” (money spent on the business, like rice, fabric, or airtime). Always keep these separate.
• Tally Lines: For items you sell many times, do not write every sale. Make one small line on paper for each sale (like each egg tray or phone repair). At night, simply count the lines and multiply by the price.
• WhatsApp Voice Recording: If you are too busy to write, record your voice on WhatsApp saying what you sold or bought (for example, “I sold two shirts” or “I bought cooking oil”). Listen to it later to write it in your ledger.
• Count Your Stock: Count your stock in the morning and again in the evening. The difference shows exactly how much you sold that day.
• The 10-Minute Routine: Every evening, take 10 minutes to count your “money in” bag, your “money out” bag, and your remaining stock. Write today’s totals in your revenue and expense log, and take photos of your cash, stock, and ledger page to help sponsors understand your progress. You do not need to be perfect, but you must be consistent every day.

Chapter 12 Quiz 1: Turn in your homework by answering the questions below in an email:

Questions: Design the daily record-keeping system that will work best for your business when you are very busy. Answer the following in your email:

1. How will you “capture now and count later” during your busiest hours? (Will you use two zipper bags, tally marks, WhatsApp voice notes, counting stock, or a mix of these?)
2. What time of day will you commit to doing your 10-minute routine to update your ledger book?
3. Why is it important to keep up this daily habit even after you receive your first loan payout?

Understanding the Loan Repayment Agreement

Read: If you are chosen by a sponsor at the Shark Pond event, you will sign a Rotary Shark Pond Loan Agreement with Entrapov and your local Rotary Club. This interest-free loan is provided to support your business growth, and your repayments go toward creating a Perpetual Entrepreneurship Fund that will allow future entrepreneurs in your community to benefit from the same opportunity. Under the agreement, you commit to repaying the total loan amount within 12 months. 

Making Loan Repayments to Your Local Rotary Club

Read: Your monthly loan repayments will be made as donations directly to your area supervisor’s local Rotary Club. When you sign your agreement, the Rotary Club will describe the payment method to be used, which might include a mobile money number, a bank account number, or a mailing address.

Every month, after you make your payment, you must send a receipt for the payment to your Area Supervisor so they can ensure your payment is officially logged with the Entrapov Controller. Remember, making consistent repayments is required before your sponsor can approve the release of the second and third phases of your loan.

Homework:

Chapter 12 Quiz 2: Your Preferred Repayment Method 

Turn in your homework by answering the question below in an email:

To: homework@entrapov.com 

CC: [your supervisor’s email address] 

Subject: Chapter 12 Repayment Homework – [Your Name]

Question: Think about the easiest and most reliable way for you to send money. In your email, explain to your area supervisor how you would prefer to make your monthly loan repayments to the local Rotary Club (for example: mobile money transfer, crypto currency transfer, cash, or some other way).

Homework: Continue attending the Saturday classes and keep a daily Revenue & Expense Log to track daily sales and expenses for your business.