Completing the Financial Viability Risk Assessment (FVRA) Tool is not just about numbers; it's about demonstrating your organisation to achieve long-term success. Here are my top three tips and advice for ensuring the success of your FVRA Tool application.
Tip 1: Ensure You Have All Supporting Documents
Your FVRA Tool application relies on accurate and complete supporting evidence. This includes financial statements, aged debtors/creditors reports, reconciliations, and compliance-related documents like insurance certificates and superannuation records. Missing documents can delay or weaken your application.
Actionable Advice:
Before starting the FVRA Tool, create a checklist of required documents and gather them in advance. This will streamline the process and ensure your application is complete.
Tip 2: Keep the Long-Term Vision in Mind
The FVRA Tool is not just about your current financial position. It is also about your organisation to thrive in the long term. The regulator will assess whether your Business Plan and financial projections reflect a sustainable vision beyond two years.
Actionable Advice:
Ensure your business plan and FVRA tool reflect your organisation's long-term goals. Include strategies for growth and plans for new courses or markets, and demonstrate how you will maintain financial stability. This shows that you are not just meeting current requirements but are also prepared for future challenges.
Tip 3: Focus on Running a Dedicated Training Business
The applicant entity should focus exclusively on running the training business if possible. The higher the percentage of training revenue in total revenue, the better your financial viability assessment will be. I will reflect on this. This represents your entity's clear focus on training activities and aligns with regulatory expectations.
Additional Advantage:
This approach also provides a strategic benefit in the long term. An RTO that operates solely as a training provider is much easier to sell if you ever decide to exit the business. Potential buyers are more likely to value a streamlined operation focusing exclusively on training activities, making it a more attractive acquisition.
Feel free to contact us for expert help with the FVRA Tool.
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