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MULTIPLYING TOOLKIT

Simple, free tools to help you understand, organize, and grow your business—from your first records to planning new investments.

Running a business means making decisions every day: how much to produce, what to buy, what price to charge, and when to pay. Without records, these decisions end up relying on memory, and that comes at a cost: lack of liquidity, waste, miscalculated prices, and difficulty planning for growth

Multiplica Social’s experience in São Tomé and Príncipe has shown that a culture of record-keeping is built over time with the right tools. That’s why we’re offering five practical tools free of charge to support the management of micro, small, and medium-sized businesses—from the most basic to the most advanced. Start with the one that addresses your current challenge and move forward at your own pace.

1

Tracking of Production, Revenue, and Expenses

The challenge: Many businesses keep informal, sporadic records of their operations—or rely solely on memory. Sales may be confused with cash received, expenses with payments made, and production quantities are not always tracked.

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What can happen when there are no consistent records?

The business may have difficulty knowing:
 

  • how much it has produced, sold, received, or spent;

  • how much it still has outstanding from customers;

  • how much it still owes to suppliers;

  • whether revenue is sufficient to cover expenses;

  • where there are production losses or waste.

 

The solution: The Production, Revenue, and Expense Tracking tool allows you to record the following on a daily basis:
 

  • quantities produced and any losses;

  • products and services sold;

  • sales received and amounts still receivable;

  • expenses paid and amounts still payable;

  • methods of receipt and payment;

  • monthly operating results and cash flow.

 

It is the recommended starting point for companies that do not yet maintain systematic records.

2

Cash Flow

​The challenge: A company can generate sales and still lack the cash on hand to pay salaries, suppliers, or other obligations. This happens because making a sale does not necessarily mean receiving payment at the same time.

 

What can happen when cash flow is not monitored?

The company may:
 

  • take on commitments without having the cash available;

  • delay important payments;

  • use future revenue to solve immediate problems;

  • fail to recognize periods of greater financial pressure;

  • resort to emergency financing;

  • confuse profit with cash on hand.
     

The solution: The Cash Flow tool helps track:
 

  • opening balance;

  • receipts and payments;

  • closing balance;

  • monthly transactions;

  • cash needs for the coming weeks;

  • periods when the balance may become negative
     

By anticipating inflows and outflows, the company can better prepare to meet its obligations and avoid liquidity problems.

3

Inventory Control and Planning

The challenge: When inventory isn’t tracked regularly, it becomes difficult to know what’s on hand, what has been sold or used, and when it’s time to restock.

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What can happen when inventory isn’t managed properly?

The company may face:

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  • product shortages during periods of high demand;

  • loss of sales and customers;

  • excessive purchasing;

  • stagnant, damaged, or expired merchandise;

  • capital tied up in unsold products;

  • discrepancies between recorded inventory and actual inventory.
     

The solution: The Inventory Control and Planning tool allows you to:
 

  • record receipts, shipments, and adjustments;

  • track the available quantity of each product;

  • set minimum levels;

  • identify products that need to be restocked;

  • support the planning of upcoming purchases;

  • reduce stockouts, excess inventory, and waste.

4

Pricing

The challenge: Many businesses set prices based solely on competitors’ prices, an approximate margin, or the product’s primary cost. Costs such as shipping, packaging, energy, rent, wages, and losses may be left out.

 

What can happen when the price doesn’t cover all costs?

The company may:

 

  • sell without generating a sufficient margin;

  • lose money on every sale without realizing it;

  • struggle to cover fixed costs;

  • offer discounts that make the sale unsustainable;

  • set prices that are too high or not competitive enough.

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The solution: The Pricing Tool helps you:
 

  • calculate the direct costs of each product or service;

  • allocate monthly fixed costs across expected units;

  • calculate the total cost per unit;

  • apply the desired margin;

  • estimate a recommended price;

  • compare the current price with the cost and recommended price;

  • understand the difference between margin and markup.

 

The calculated price is a management reference and should be analyzed alongside demand, competition, quality, and customers’ ability to pay.

5

Feasibility Study

The challenge: Before starting or expanding a business, it is necessary to understand how much money will be needed, where the funding will come from, and whether the business will be able to generate enough cash flow to operate and repay any loans.

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What can happen when an investment isn’t properly planned?

The company may:
 

  • underestimate the amount needed to get started;

  • overlook the need for an initial cash reserve;

  • take on installment payments that exceed its capacity;

  • overestimate sales or underestimate costs;

  • run out of liquidity before the investment generates a return;

  • invest in a project that doesn’t recoup the capital within the expected timeframe.

 

The solution: The Feasibility Study tool allows you to:
 

  • calculate initial expenses and the cash reserve;

  • identify sources of financing;

  • calculate the remaining financing needed;

  • project sales, costs, and cash flow over five years;

  • estimate installment payments and track the loan balance;

  • calculate the break-even point;

  • assess repayment capacity;

  • estimate when the investment can be recouped;

  • test a conservative scenario with lower sales and higher costs.
     

This is the most advanced tool in the suite and should be used when the company already has reasonably reliable estimates of prices, sales, and costs.

Where to start?

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If you don’t yet keep regular records, start with the Production, Revenue, and Expense Tracking tool. As your data becomes more consistent, you can use it with the other tools to:

 

1. record transactions;

2. track available cash;

3. monitor inventory;

4. verify that prices cover costs;

5. evaluate new investments.

 

Free resources for more informed management

All tools:

  • are available free of charge as public goods;

  • are prepared in STN;

  • include instructions and examples;

  • distinguish between fields to be filled in and automatic calculations;

  • were designed for use by companies in different sectors;

  • can be adapted to the reality of each business.

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The development of these tools as public goods was funded by Multiplica Social, a Portuguese nongovernmental development organization.

 

Note: The tools support business management but do not replace formal accounting, tax advice, credit analysis, or validation by a qualified professional.

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