MOTIVATED MANKIND

YOUTH DEVELOPMENT | EDUCATION | ENTREPRENEURSHIP

Series: Entrepreneurial Mindset

Financial Management for Entrepreneurs

Managing finance is the very crucial part of a business, we all know that the sustainability of a business is in the inflow of income, but what we  forget that the sustainability of a business is actually in the manner at which we re-invest our income.

Excerpt:

I will be discussing on managing your finance as an entrepreneur, which I will split into Four points. I will start by saying financial management is a heart of running a successful business. It affects every aspect, from managing cash flow and tracking business performance to developing plans that ensure that  business owners can make the most of opportunities.

Managing finance is the very crucial part of a business, we all know that the sustainability of a business is in the inflow of income, but what we  forget that the sustainability of a business is actually in the manner at which we re-invest our income.

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Therefore, in other to be a good financial manager, one will have to adopt this few principles,
1. Prudence: being economical , not extravagant. "Only prudent expenditure may provide quality within a restrictive budget.

2.Ability to forecast: as a good entrepreneur, this is the greatest skill one should have, you need to have a glimpse of the future and plan cause in business the competition is always introducing new ideas. Therefore, ability to identify the trait of your business line  and your weakness, which you will turn into your strength.

3.draw a line between your business fund and your personal fund: In a land where there is no law, abuse  is inevitable. One of the problem most entrepreneur have is separating personal fund from business, some don't know that as they pay their employees salary, they ought to pay themselves too. There must be a balance I. Your income and expenditure, cause for every credit entry there must be  corresponding debit entry.

4. Aim for customer satisfaction: in my little life. I got to understand that the satisfaction of your customer is key. Therefore. You need to be creative, consistent, reliable, offer quality product to the market. The satisfaction of customers expand the target market, and help the entrepreneur to segment the market and get.more audience.

Moreover, financial management is at its most powerful when u use it to drive improvement in the business.

Finally, financial management plays such a vital role for the survival and growth of a business. It's like a telescope into the future guiding you to walk around pitfalls and find the shortcuts on the way to your goal thanks for reading.

COLLAPSE

Questions:
For a beginner that the customers do not say appreciative words. What can you do?
Well,  for a beginner,  you need to actually have a selected target market, which you will get your feedback from.
Let take a lady making package chin chin for am example, she supplies then to nearby stores and supermarkets.
Her feedback comes from those points, because the customers get to lay their complaint to the cashier, so as an entrepreneur always ask.

Question:
1. Since I'm the owner of the business, how do I determine how much I am to pay myself?
2. If I must really meet up with my customers satisfaction 100% I might  actually lose my net profit may begin to run at loss or what do you advise?

Answer:

The point in paying your self is to differentiate between your capital and profit, E.g let's assume I invest 30,000 and I in turn got 60,000, before expenditures such as (light, transportation,) etc, and then you pay yourself and at least the person, which after it all u discovered you have 40,000 which means on  that particular job, you just had a profit of 10000 to add to your capital and re-invest. Meeting up to customer satisfaction in an effective. Efficient way, cause human want is insatiable, so my point is to pay attention to your target audience.

Proper Record Keeping for Entrepreneurs

It is necessary for entrepreneurs to understand the need for record keeping. Once record keeping practices are in place, entrepreneurs will be able to focus more of their attention on growing their business, and less time on paperwork.

Record keeping is a process were all income and expenses incurred or accrued in the business are systematically gathered or put in place for references and decision making..

Record keeping helps entrepreneurs to be able to work on smooth process.

Excerpt:

It is necessary for entrepreneurs to understand the need for record keeping. Once record keeping practices are in place, entrepreneurs will be able to focus more of their attention on growing their business, and less time on paperwork.

Record keeping is a process were all income and expenses incurred or accrued in the business are systematically gathered or put in place for references and decision making..

Record keeping helps entrepreneurs to be able to work on smooth process.

So, what kinds of records do an entrepreneur need to keep?

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Any small business must keep the following two types of common records:
1. Income: As an entrepreneur, you must keep a record of all income (profits and losses) the business generates. This aspect should be kept in a spreadsheet (if using an Excel Microsoft office on your PC) or a separate income book, that is properly designed in detailing how much the income was, what date it was logged and who the client was (there are also many accounting tools out there that make this process a lot easier). You would also be wise to keep a record of all the invoices, you’ve sent your customers, as proof of business. It’s wise to separate your invoices into separate folders for your different customers, and update these each time you complete a piece of work.

2. Receipts: You need to keep a copy of all your receipts, so you can accurately claim expenses on your annual tax return. This includes all bills related to your property, spending on equipment, goods or even lunch when you’re meeting clients to discuss business. By keeping a record of all your income and receipts, you know that, once it comes to paying your tax, you will be able to easily access all the information you need.

Good records will help you do the following:
1. View business progress: By keeping records of income, you can view the business’s financial health over time.

Hopefully, you’ll be able to plot a continual upward chart of income and profits – but it will also tell you if there are any problems.

3. Identify sources of income: The greater the variety of services you offer, and the more customers you have, it can be hard to work out where money actually comes from. For instance, if you have 20 products and 60 customers, it can be difficult to think strategically and decide which products or services bring you most value – and which customers are the most important.

However, if you keep consistent records, you might decide that 10 of your products bring so little income that you may as well stop offering them, and focus instead on the higher paying work.

4. Remember deductible expenses: for instance, you may have bought a table for the office 11 months ago or the lunch you had with a new client last June; Many business owners short-change themselves by forgetting to state all the expenses they could claim on their tax return. Keeping all your records makes it less likely you’ll forget, so you can claim the tax back on expenses.

5. Prove your finances to banks or investor.

6. If you go to a bank for a loan, they will expect to see proof of your cash flow and financial stability. Records help you prove that your
business is financially sound.

7. Prepare your tax returns.

8. Support items reported on your tax returns.

9. Enable you to know the amount of debts owed by your debtors, etc.

Many entrepreneurs use some form of accounting software to log all their transactions, and this helps them work out their tax bills.

It is necessary to get the right form of record keeping for your business. Whatever approach you choose, you also need to keep other documents – such as invoices – in a central place, and most firms now opt for a customer relationship manager (CRM) where they can accurately track  all information they hold on customers, and all the services those customers paid for.

Alright, now questions or comments can begin to roll in..

Question:

1. Can you please share with us the place of taxation in business and how it is done?
At what point can begin the record keeping process in the business?
Are there any disadvantages of this record keeping e.g tax?
If one is not knowledgeable in the record keeping process, how can one do it at a minimal cost to the business?

Tax is simply known, is a compulsory levy on taxable individuals and businesses.

Once your business is registered, you generate your Tax Identification Number, that will enable you to file for annual tax liabilities.

For VAT, there's need for VAT application, to be able to file in for monthly VAT returns.

When a business fails to file in for monthly VAT, there be penalty charged on the business.

Once, your business has a TIN with the Federal or State Inland Revenue, don't fail to do annual filing for tax liabilities and monthly VAT returns for Vat-able goods

Once you start a business, it's necessary to keep records of all expenses and income

2: How can you do these things if you don't have a good knowledge of tax?

There are manual method of record keeping, which doesn't attract any cost.

For start up businesses is advisable to start with the manual method. Then once the business start growing, you migrate to technology bases, like using some accounting software such as quickbook.

There's a disadvantage for not keeping proper book keeping records.

3: Is it advisable to wait till your business is doing well before you register it especially because of taxes? When your business can hardly take care of itself such that you spend all incomes back on the business....

You need to keep accurate records in order to claim expenses on your annual tax returns.

There simple steps on this:

Firstly, identify with the tax office closer to you. Get a tax consultant if your business is big.

Or for startups, get an accountant to educate on tax processes, or you get a tax officer in the tax office you've identified with, to educate on tax matters.

My professional advice is this, once you've registered your company or business with CAC, you should generate your TIN immediately (that's register with the tax office).

So that,your business will be recognized and you won't need to have issues when there is need for bidding of contracts or handling big business deals.

Even if you don't make profits at all, it is allowed to file in for Nil tax value (that's on tax liabilities). This includes monthly VAT as well.

There are considerations given to businesses that are not making profits, when it comes to filing of annual tax liabilities.

For monthly VAT, you remit 5% of income accrued to your business in that month.

If there are no sales or services rendered that will bring in income for that month, you file Nil value.

Still in this aspect, if there is total lose accruing at the end of the accounting period, the only education tax will be paid on the accessible profit for that year.

COLLAPSE

Business Etiquette for Entrepreneurs

I have been privileged to run my current business/ministry for about six years now aside other things I started long before that so I can say confidently that it takes more effort to sustain than to start.Let me use child birth to explain what I mean..

Anybody can give birth to a child. It is very easy for a lady to fall pregnant but when it comes to paying school fees and baby foods, that is where the issue is.. The same applies to business too.

Excerpt:

Now it is said that most Nigerian businesses never live beyond five years
I was not the one that said it, It is popular scientific statistics that came up with that and I am wondering why this is so. Part of the reason is because the business owners do not know how to sustain their business

 

See it is very easy to start a business. Anybody can borrow 5000 naira, go to Corporate Affair Commission CAC and register a name and guess what, you are already a businessman. You may check www.cac.gov.ng for more details on registering a business name.
So starting the business is not the main thing, but sustaining it.

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I have been privileged to run my current business/ministry for about six years now aside other things I started long before that so I can say confidently that it takes more effort to sustain than to start.Let me use child birth to explain what I mean..

Anybody can give birth to a child. It is very easy for a lady to fall pregnant but when it comes to paying school fees and baby foods, that is where the issue is.. The same applies to business too.

So the goal is not just to start a business but to sustain the business. Now one of the things that can help you sustain your business are the business etiquettes you imbibe. And these etiquettes must be adopted early enough in your business life cycle. They are not things that you think would just happen but they must be imbibed.

 

So let's look at a few of these etiquettes and see how far we can go with them
first is integrity.

 

Integrity


Integrity is one thing that many business people lack these days. But it is one of the things that is needed for our business to remain sustainable over the years. Now I know that the primary purpose of business is to make profit. And because a lot of business people want to make a lot of profit, they think of cutting corners.


Now this would work for some time, but such a business would not last long
Why? You can deceive some of the people some of the time but you cannot deceive all of the people all of the time.

Integrity means keep to your word. I know there might be some people here who have not yet started their own business, now is the time to develop the habit of integrity.

Let me share a personal experience with us...

About three years ago, I got into real estate for the first time. So I needed capital to buy some plots of land which I was going to resell and make profit on it but I had zero naira with me
Then I prayed about it and asked God what to do, and God laid three specific people on my heart. Then I sent them a similar WhatsApp message telling them I wanted them to borrow me some amount of money and I would refund it by so and so date.

Within thirty minutes, I got three responses. One of them said I would come to WiGRadio tomorrow, we would talk and I would give you the money.

The second person said, it is almost 4pm already so first thing tomorrow morning, I would go to the bank and send the money to you.

And the third person said send your account number to me right now and I would send it to you
So I got confused. I did not know which one I should accept.

So I asked them all one question... Why did you decide to part with you money without even asking me what I wanted to use it for?

This is a time when people are so skeptical. Well, I asked why they were ready to part with their money. And the three of them said something similar, “We know you and we trust your integrity”

Those words broke me down. That was the day that I realized that integrity is serious capital. I know you have not expanded your business yet o... But one day you might need maybe a million naira or maybe ten million to expand.

Do you remember that day you borrowed 1000 naira from your friend and you did not return it?

Okay... That friend might have that ten million ... But he would just be like this guy does not have integrity, so I cannot trust him with my money.

Start your integrity with little things. Don't wait to become big to have integrity.. Start now. When you give people your word, stick to it

Integrity would cost you sometimes. You might even end up losing some profit because you chose integrity.. But on the long run, it would sustain your business

So back to my story ...
I told the three of them that I am confused o... That I sent that message to three of you.

And I now have three offers. One of them advised me to go for the guy who wanted to send the money immediately so I opted for that.  Before the date I promised, I repaid his money.

If I need money today, I can still go back to these people and they would gladly give me except they don't have.


Have you been able to build trust in people's heart?


Can people say that this man or Lady has integrity and they don't even need to be doing any confirmation?
You can start now!

The second is  Value people


Value people
Never take people for granted. There is no business without people, so you need people.
Now a Pastor can pour gallons of anointing oil on your head and tell you that your business would move on to the next level but see, if you don't value people, those prayers would just be hanging.
There are three key people you should pay attention to
1. Your clients
2. Your staff/employee or team mates
3. Your contemporaries in business

Please treat your clients well... You need them. They are the ones that pay the bills
Please give me some few minutes... I would be right back. Need to quickly sort out something. So please don't look down on any of your clients.

Even if what they are paying is just N100, treat them well. I had an experience one time of going to buy something in a supermarket. And the person selling was rude.

Initially I just looked over it, then it happened again. So I just skipped going there and started going elsewhere. People buy products and services based on sentiments and emotions.

If I feel happy when you sell to me, I would come back again and again. But if you don't treat me well, I would just carry my money to another place.

Now, you may think you have lost nothing after all it is only N200 goods I buy from you, but the same person buying N200 things from you today might be the one to come and buy N200,000 worth of goods tomorrow because they feel happy with you.

Maybe I should give a practical example now. When WiGRadio started, there was this Pastor who used to run broadcast with us. After some time he could no longer pay and I knew he was a sincere man. So I told him he can continue at no cost.

 

Something registered in his mind. Now he has not paid the money he owe till today... But guess what. He introduced me to another ministry one time and I did media coverage for them and they paid heavily.
That ministry later asked me to consult for them to set up their online radio and online TV platform and we are not talking about small money here.

This same man introduced me to one pastor one time who supported what we are doing with some good amount of money.
Now this was a man who could not afford to pay the money we billed him but see what we benefited from him.

I could have fought with him for not paying... But I was practicing the etiquette of valuing people. Treat your staff and team well. Even though I own a radio station, I cannot remember the last time I actively spoke on the radio. It is our people that do the job.

And they are happy doing what they do. And I always remind them that they are the best. Now for your business to expand, you need other people who would carry the vision as theirs.

Recently I traveled to Ife and I told our team that they were in charge of everything and they should not disturb me.

I came back and activities were still running fine? Why? They know I value them
So what am I trying to say? Value the people that work with you. Even if they are volunteers, value them and never take them for granted.

If you don't treat them well, your business cannot grow because they are the ones your clients would meet Then relate well with your contemporaries.

Learn from them and help them too. Think beyond competition. Practice the blue ocean strategy.

I have to stop now but I would love to wrap up with a word of prayer
Heavenly Father, we thank you for what we have learnt tonight.. We ask that you would imbibe in us grace for integrity and to value people in our business. Help our business to make progress in Jesus name. Amen!

COLLAPSE

Turning your ideas into a business

What is an idea?

An idea is also a mental picture of something.

An idea is a chain of thoughts with a specific purpose.
An idea is a mental picture of thoughts and concept that is designed to motivate an individual into discovery something that could make him or her achieve a greater purpose in life.

An idea can come in a figment of something that you can't really put your hands on.
An idea from the beginning might not be clear or explicit enough.
An idea is different from a leading.
Ideas are originated from the brain but conceived with the mind
Ideas are not imaginations
Ideas are not speculations
Ideas are not speculations
As much as I agree with this definition I want to take it a step further
Business is purely for profit making, while career is what we love doing.

 

Excerpt:

What is an idea?

An idea is also a mental picture of something

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An idea is a chain of thoughts with a specific purpose.
From all that has been discussed on this platform so far I know that we know what a business and career is, although there are different but still have similarities.

What makes business different from career?

Your ability to answer this is an indication that you really know what a business is and also what a career is.

Well I feel a business is set up with the intention of making profits, while a career is built over time and involves a lot of self developments training.

An idea is a mental picture of thoughts and concept that is designed to motivate an individual into discovery something that could make him or her achieve a greater purpose in life.

An idea can come in a figment of something that you can't really put your hands on.
An idea from the beginning might not be clear or explicit enough.
An idea is different from a leading.
Ideas are originated from the brain but conceived with the mind
Ideas are not imaginations
Ideas are not speculations
Ideas are not speculations
As much as I agree with this definition I want to take it a step further
Business is purely for profit making, while career is what we love doing.

What we are made for?

What our purpose is purely for?

Sometimes we use our business profit to sponsor our career.

So how do we go about it?

I have a big believe that the only reason that we can have access to idea is because deep within us we can achieve it.

Let me try and break it down.

If deep within me I am looking for admission and an idea on how to run a bottle water company is running within me, it means that I have all it takes to run a company.
Now when we have an idea or an idea drops into our brain, we need not to rush
We need to be careful and we also need to take some strategic steps such as

1) this idea, is it my place of strength or my place of interest.

The last time that I took a class here I am sure that we told us the difference between both.

If it is your place of strength it is for profit making

If it is your place of Interest it is a place of career

2) how soon or far, do you want it materialize?

Don't forget that an idea not utilized will be transferred to another.

You shouldn't take forever and work out your idea.

Someone said that for the idea to drop in your heart is because God wants you to do something about it.

3) Translate your idea into a business

I am sure that we all know that ideas will forever remain null and void of appropriate steps are not taken as soon as possible.

4) Make a feasibility study

Ask your self if your idea has fulfill the Acronym SMART that is,

S - Specific ( ideas are not jack off a trades)
M - Measurable ( we don't have ideas in abstract)
A - Achieve able ( this means that has possible is it for you to be able to bring a success out of this idea) I have listened to so many ideas that sometimes I get confused.
R - Realistic. All ideas must be visible. You can't ask an idealistic *where is the car you told me you have an idea about? and he will tell you that it is still in my mind oooo* that person is not yet ready for business.
T - Time. All ideas must be time bound. It is an idea not a rolling budget

5) Get mentors

There is always someone who has done what you are about to do. Find out from them how they went about it.

Only those that have father's go further in life

6) Don't be too eager to start

Take your time but don't waste time in the process.  Be calm about it

6) Pray serious about whatever you want to do.

Prayers make all impossibilities possible
I think that is where I would like to stop today
Do we have anyone who wants to ask one or two questions, the person can ask me now

Question:
Between an idea and the actualization of that idea is a Process and Work

1. Can you expatiate on Process and work?

I learnt that An Idea or dream will remain a dream if the dreamer refuse to wake up and work.

2. Many young people believe that idea is so beautiful but it is not feasible

How can one make his/her idea feasible?
1. Can idea be sold?... If yes is it ideal to sell ideas....or should one even be selling ideas?
2. Assuming someone has an idea of over 20 million Naira and above net worth and due to his or her financial limitations doesn't seems to be close and therefore cannot act....so what do you advise?

Answer:
Let's start with the first one

1) I should give more insight and understanding on Process and work

Process is the systematic arrangement of how an activity should be done.

Example of a Process is a person who has the dream of having a car wash.
The process of that dream are the following.

1) He needs a strategic location where he can be easily identified

2) the needs to ensure accessibility of water

3) Get certain equipment such as buckets, hose,brush etc

4) Do hos recruitment and selection

5) .... And so on and so forth

While work is the physical or/and mental activity that an individual gets into in order to satisfy self and meets his demand and wants. Process is activity one engage in to activate the work.

How can a beautiful idea be feasible?

In fact what makes the idea beautiful is because of the feasibility characteristics embedded in it. There is no idea that cannot be feasible.

Ideas can be sold.

In Lagos State in less than a year a body was initiated called neighborhood some of us have seen their patrol van.

A young man who is a fresh graduate got the idea and took it to Governor Ambode for sponsor and Ambode told him that he can't .

He read through his idea and told him to leave.

As he was leaving someone told him to go back and tell Ambode that he would give him the plan for free but he must hold a strategic position there and the governor agreed.

He decided to be the He of that new development and today he his doing fine
There are so many ideas that needs to be sold out. Acrimony is a film we need to watch.

A man has an idea that took him years to sell, but he eventually sold it and he became made. Selling your idea is work on it's own. If we can sell our ideas in this part of the world, we will end up living in a better Nigeria.

Nevertheless we must be careful on the ideas we are to sell or not. I also heard that most of this musicians don't write their songs themselves. I was told that the people who write the lyrics of their songs can't sing. But they have the strength of putting words together to make sense, and they sell as high as $1,000,000.

There is a silent law of nature, the more you give the more you get. Before you even have an idea 20 million, you need to do the following

1) Build character capacity (people will always remember you because attitude is everything)

2) Build strong relationship with like minds( it is unwise for a goat to move with a lion) move with people who believe in your dream.

3) Start little. There is an adage that says that we don't that the depth of a river with two feet no matter how big your dream is there must be a starting point. Identify the starting point and start from there.

4) Involve people. GTBank is owned by a lawyer and an accountant. Without mixing words together we know how updated they are with the activities technology.

5) Because of the volume of money involved you can't afford to make mistakes get a mentor on that line and learn.

There must always be a learning period.

COLLAPSE

Developing your business plan

Your business plan allows you to put everything that is in your head on paper in an organized way. This will help you stay focused on what is important to you.

Before I proceed, I will like to different these term
*Business Model

*Business Proposal

*Business Plan

Though they have a lot in common.

Business Model is the mechanism through which a company generates its profit, while
Business Proposal is a sales document sent to prospective client in order to obtain a job or contract which describe how the company will approach a project, state the value of the project to the client and solicit the client's business.

For Business Model, there is what is called Business Model Canvas that is used to structure every Business.

The purpose of this session is to discuss Developing Your Business Plan

Your business plan is a working document that you refer to regularly. It is not a static document. Make it work for you and update it regularly.

Excerpt:

If you have a business idea you will need to prepare a business plan. Unless you will try to woo investors, it can be quite simple.
Your business plan allows you to put everything that is in your head on paper in an organized way. This will help you stay focused on what is important to you.

Before I proceed, I will like to different these term
*Business Model

*Business Proposal

*Business Plan

Though they have a lot in common.

READ MORE

Business Model is the mechanism through which a company generates its profit, while
Business Proposal is a sales document sent to prospective client in order to obtain a job or contract which describe how the company will approach a project, state the value of the project to the client and solicit the client's business.

For Business Model, there is what is called Business Model Canvas that is used to structure every Business.

The purpose of this session is to discuss Developing Your Business Plan

Your business plan is a working document that you refer to regularly. It is not a static document. Make it work for you and update it regularly.

Later, as you make new business decisions, you can return to your plan to identify what you might change, how to go about changing, and how that change might affect the rest of your business.

There is no specific method of writing a business plan because we have different type of businesses. It is what you can do yourself.
It is a map or a guide for your business, although running a business is not always 100% with the plan, but it will help.

COMPONENTS OF A BUSINESS PLAN
1. Executive Summary
2. Background
3. Key Personnel
4. Operations
5. Marketing
6. Financial Plan

EXECUTIVE SUMMARY
The purpose of an executive summary is to provide a quick and concise overview of the business (in one or two pages).  Although this section appears first, it should be written last.

The plan summary should highlight key elements of the entire business plan, including:
- Objectives of the business (Mission Statement)
- Your products or services, with emphasis on distinguishing features and the market needs they will meet
- Your estimate of market potential and assessment of the competition
- Your management team's experience and talent
- How the products will be made or the services performed
- Projected financial results
- How much money is needed, and what will be done with it
- The anticipated return on investment

BACKGROUND
It contains company description, vision, mission, etc.
- The business you are in or plan to be in
- The background of your business, including when it was started, highlights of its progress
- Any previous financing and by whom
- The current ownership of your company

KEY PERSONNEL / ORGANIZATION & MANAGEMENT
- Explain how your company's management team is organized and describe the primary role each team member plays.  If appropriate, use an organization chart.

- Demonstrate how team members' skills complement each other.  Show the balance of marketing, financial, management and production skills, as well as experience with the product or service your are developing.

Key Managers:
Prepare a brief synopsis of each key manager, including:
- Duties and Responsibilities
- Career highlights
- Significant past accomplishments that demonstrate ability for the tasks that will be required
- Include resumes in an exhibit.  Resumes should include sufficient detail for future verification by a financial institution, an investor, government agency,...etc.
- This section should also discuss any apparent weakness in your management team.  

Are any critical skills missing?  If so, how will this be overcome - by training?  recruiting? outside advisors?

Compensation & Ownership:
- State how each person will be compensated (by salary? incentive bonus? profit sharing?), and what investment each has in the company.  Include a list of the stockholders and the number of shares each owns.

- Identify your board members (if any) and briefly discuss how each help in the development of your company.

Indicate any investment board members have made in your company.

OPERATIONS
This section should cover items such as:
- Location, capacity
- Costing and control
- Employees (numbers, union, etc.)
Sources of supply
Purchasing (Machinery-new or old, tools, dies, etc.)

- Facilities and equipment (describe the facilities and the equipment that will be required - What will these cost? Will you lease or buy? discuss future needs)

- Describe the manufacturing process or the method of performing the service

- Discuss the labour force where you will operate - What are the costs - Is there enough labour available with the right skills?  Will additional training be required? What will it cost? Is the labour force unionized or likely to be in the future?

MARKETING PLAN

Marketing research is the most important part of any business plan since it determines not only potential demand and the target market but also expected sales levels, future opportunities in the market, how many employees will be needed,...etc.  

In essence, the marketing plan is the foundation of a good business plan.

This section should demonstrate that you understand how your market should be segmented, and that you have the ability to sell and deliver your product or service effectively to the right targets.  This is the place to show why customers will buy from your company.

The marketing plan also contains the market history, Target market, competition, market share, pricing, sales plan and advertising.

I am trying to summarize it as best as possible because your business plan must be detailed and we'll focused document containing everything about the business the WHAT, WHY, HOW, WHERE & WHEN

FINANCIAL PLAN

You will need to include financial statements and projections for the past as well as next three to five years, including:
- Financial statements for the past three years of operation
- Cash flow projections by month for the next year
- Projected balance sheet and income statement for the next three years
- Break-even analysis

Your financial projections should be tied to your market expectations.  It is important to state clearly the assumptions you used when preparing the projections.  

Your financial analysis should identify and support the amount of money you are seeking from potential investors or financial institutions.  Preparing financial projections requires accounting and finance knowledge.

If none of your team members are qualified in this area, get a professional's help.

Make sure you include Money needed if you are applying for a loan or grant:

This section of your plan should indicate the amount of money you will need, when you will need it, and how it will be used.  Respond to questions like:

- How much money do you need now?
- How much will you need over the next three to five years, and when?
- What will you do if you have underestimated the amount you will need?
- How will you use the initial funds?
- What financial structure are you proposing for the financing (i.e. what portions of the funds will be debt and equity?)

- What will the terms be?
- Do you qualify for government assistance?

The generic business plan presented above should be modified to suit your specific type of business and the audience for which the plan is written.
Is it for Raising Capital or for Business?

To  Bankers
• Bankers want assurance of orderly repayment. If you intend using this plan to present to lenders, include:
- Amount of loan
- How the funds will be used
- What this will accomplish—how will it make the business stronger?
- Requested repayment terms (number of years to repay). You will probably not have much negotiating room on interest rate but may be able to negotiate a longer repayment term, which will help cash flow.
- Collateral offered, and a list of all existing legal claims against collateral.

To  Investors

• Investors have a different perspective. They are looking for dramatic growth, and
they expect to share in the rewards:
- Funds needed short-term
- Funds needed in two to five years
- How the company will use the funds, and what this will accomplish for
growth.
- Estimated return on investment
- Exit strategy for investors (buyback, sale)
- Percent of ownership that you will give up to investors.

For Business

*Manufacturing

• Planned production levels
• Anticipated levels of direct production costs and indirect (overhead) costs—how do these compare to industry averages (if available)?
• Prices per product line
• Gross profit margin, overall and for each product line
• Production/capacity limits of planned physical plant
• Production/capacity limits of equipment
• Purchasing and inventory management procedures
• New products under development or anticipated to come online after startup

*Service Businesses

• Service businesses sell intangible products. They are usually more flexible than other types of businesses, but they also have higher labor costs and generally very little in fixed assets.
• What are the key competitive factors in this industry?
• Your prices
• Methods used to set prices
• System of production management
• Quality control procedures. Standard or accepted industry quality standards.
How will you measure labor productivity?
• Percent of work subcontracted to other firms. Will you make a profit on subcontracting?
• Credit, payment, and collections policies and procedures
• Strategy for keeping client base

*Retail Business

• Company image
• Pricing:
- Explain markup policies.
- Prices should be profitable, competitive, and in accordance with company image.

• Inventory:
- Selection and price should be consistent with company image.
- Inventory level: Find industry average numbers for annual inventory turnover rate. Multiply your initial inventory investment by the average turnover rate. The result should be at least equal to your projected first year's cost of goods sold. If it is not, you may not have enough budgeted for startup inventory.

• Customer service policies: These should be competitive and in accord with company image.
• Location: Does it give the exposure that you need? Is it convenient for customers? Is it consistent with company image?
• Promotion: Methods used, cost. Does it project a consistent company image?
• Credit: Do you extend credit to customers? If yes, do you really need to, and do you factor the cost into prices?

COLLAPSE

Fine-tuning your business process

Excerpt:

Today I’ll be sharing on Fine tuning your Business process and will be speaking based on the following bullet points Also during the course of this session I’ll be using 2 case studies; a Local example and an International Example to give a clear picture of the benefit of the subject matter
What?
Why?
How?

READ MORE

The First  - What?

A business process can be defined as the series of activities that occurs during the process of creating value for your customer. In other words, every singular effort/action that takes place from the point of conceptualization of a customer needs down to the point of satisfying that need.

This very part of business growth largely tells the difference between a startup and a full fledge company. In perspective, a start is a business entity that cannot carry out its basic service offering without the presence of its principal partner, Founder, CEO or whatever. However, a full fledge company has carefully identified and defined a series of laid down rules (SOP) for the offering that value to its target customer.  Activities within the business process can be grouped into;
- Production activities
- Stock taking
- Staffing
- Customer relations
- Procurement activities
Etc.

Why?
As previously stated, the difference between a startup and a full fledge company is clearly seen in the perfection of their business processes. Fine tuning the Business Process BP makes room for growth and expansion as your model can then be replicated in different location. Another benefit is the reduction in cost as it leads to efficiency for example creating a checklist can help a new staff render the same service with little or no prior experience.

Case Study 1:
McDonalds: A review of the movie “The Founders” will show you a clear example of the benefits of fine tuning a BP. The McDonald brothers where faced the limitations of the fast food world and wanted to create something different hence they tried several models all geared towards cutting cost and reducing customer waiting time.

A model used china wares to serve food but they soon realized that it wasn’t cost beneficial. Another was walk in rather than drive through, but it still didn’t give them the needed result. At a point they had to close down shop for 2 weeks till they arrive at a 30 sec Turnaround time TAT for customer service.  That way they were able to save time and money.

This reduce the time a plane needed to be on the ground(not making money) thereby increasing revenue

Next is How?

How can I fine tune my Business Process.

First things first, draw your customer journey From

Promotion-Customer Calls
👇🏽
Customer places order and makes payment
👇🏽
Order sent to store keeper
👇🏽
store keeper packages products and hands over to front desk
👇🏽
front desk hands over package to delivery guy
👇🏽
delivery guy delivers product
👇🏽

Front desk calls to confirm order has been received and takes feedback.

The next thing is to ask at what point are we having negative feedback?
At what points are we wasting time?
Can we skip a part and collapse the Turnaround time?
What happens when one person in the chain is absent?
So you have to Measure, Build a better model, Test the model  And Measure again,

You keep coin this till u get the near perfect system

Final case study...

A friend owns a smoothies corner and it takes about 15 mins from when the customer places an order to when he gets his smoothies. She needed to attend to more customers so she thought of  hiring more staffs. However after reviewing the BP we were able to reduce it to just under 2 mins

How?
When an order is made, she
1. Prepares the juice,
2. Pours it in the glass
3. Pour ice
4. Decorate the glass
5. Serves customer

This takes
7mins
1min
3mins
2mins
1-2mins

So we divided the activities into before order and after order...

Before order
1. Decorate glass

After Order
1. Prepare juice
2.  Pour
3. Ice
4. Serve

This saved 2 mins

 Going forward
Before order
1. Decorate glass
2. Pour ice and keep in cooler

After Order
1. Prepare juice
2.  Pour
3. Serve

By the end we had

Before order
1. Decorate glass
2. Pour ice and keep in cooler
3. Prepare juice

After Order
1 Pour
4. Serve

That way we reduced the time to 2-3 mins, so she was able to serve 5 customers with the time it takes to serve 1.

In conclusion, understand that 50 years ago it took about 5 mins to change all 4 tires of a formula 1 race car. Today it takes less than 10 secs.

COLLAPSE

Marketing Your Business with Digital Tools

By way of introduction It’s no news that the world has gone digital and any individual, organization including churches, mosques and *institutions* that will not go digital will soon go into extinction is just a matter of time. #LeverageOnTheDigitalSpace.

Mitchell Obama said "Successful people are deliberate people, they are very intentional". You need to be intentional about your activities online: what you do, what you write and your shares on the digital space.

Bottom line you need to be intentional about everything you do online especially on social media!

I know we all are familiar with social media channels like facebook, instagram, WhatsApp, twitter and the likes, I’ll be speaking on the importance of this Channels to our business growth: this is also part of what you should (all of these are even Free digital tools you need to leverage on.

Excerpt:

I will also like to call this How To leverage on The Digital Space To Break Ground

By way of introduction It’s no news that the world has gone digital and any individual, organization including churches, mosques and *institutions* that will not go digital will soon go into extinction is just a matter of time. #LeverageOnTheDigitalSpace.

The truth is, the way people search for things has really changed, only a few go the traditional way by asking friends and family. Most people now google everything including “which is the best school in Orile area of Lagos” “How to eat well and not grow fat”, etc.

Are you surprised?  

READ MORE

Don’t be surprised. This is why you as an entrepreneur, a budding entrepreneur, a business person, needs to be visible to the global world. #LevearageOnTheDigitalSpace.

Let me shock you... 

If I ask us to do a quick search now, you’ll be surprised that even some individuals can’t be seen by google!

More often than none, when I ask people to google my name: I know I have enough content on online : this is why it’s easier for anyone to google *Prolific Stella* with any device and I’m sure that I’ll be on the first search results: this is called SEO. It’s not that you use your phone to just do a quick search (if you do, you may likely be in the result: you know why? Because it’s your phone and your email has link to you; you will definitely be in the search)

But this is how to be sure, just use another device or someone else’s phone. Then you can tell how far it will go.

How are of us, have tried doing a search engine optimization on their business or on you as a brand if that’s what you are trying to build? You need to sure.

Going back to the topic: Marketing your business with digital tools.
I will try to make teach us in a simple to begin.

Again, you need to know that as the world is involving you also need your business to.

Like I normally say, There are two important *Gs* you must be close to

The first is G is the God factor... Hear this: You need God to scale height in your  business/career.

Running your business without God is running without knowing the purpose...

Make God your director and number 1.

Then the second G Factor is Google.  You need to make google your friends and even drive to ensure that app called knows you as well. Just like I said, you can search for anything and everything on google!

How to you make google identify you? There is what is we called *Keyword*  Make sure you are familiar with the keyword related to what you do...then ensure you use it often in your content.

Digital marketing like we all know encompasses many moving pieces that work together to generate interest results.

How to start

The way to begin is very easy, start with a Facebook page
Facebook is seen to be the largest country now in the world because everybody is on it. (Forget about what some are doing and what some are not doing).

As a nation builder or entrepreneur, how audible is your voice globally? If I tell you that must of the awards I have been privileged to receive as an entrepreneur has come via my activities that has been made visible online.

Mitchell Obama said "Successful people are deliberate people, they are very intentional". You need to be intentional about your activities online: what you do, what you write and your shares on the digital space.

Bottom line you need to be intentional about everything you do online especially on social media!

I know we all are familiar with social media channels like facebook, instagram, WhatsApp, twitter and the likes, I’ll be speaking on the importance of this Channels to our business growth: this is also part of what you should (all of these are even Free digital tools you need to leverage on.

Social media management has a lot to do with engaging with your audience and looking for new opportunities to increase reach and visibility

Yeah... Do you know there are lots of people online observing what you do even though they don’t like or comment on your post

Let’s start with your dp (Display Picture)

I see some people dp and I shook my head because their display pictures didn’t even show them as a serious person!

I will just share this info I got from a friend:

A few of the tasks involved with social media management are : 

Choosing the right social media platform: proper consideration on the best social media platform is essential as each platform has its different benefit to our businesses.

I’ll like to consider a few platforms and their benefits

  1. Facebook: has nearly 2 million monthly active users who are from different parts of the globe, it’s also having a nice balance of genders and age groups, this makes it a very good platform for businesses that are trying to reach a wider audience.
  2. Instagram : it’s a great media channel for brands that create a lot of visual contents, it’s audience tends to be more on the younger side with more females than males, this is a good platform for businesses selling products relating to fashion, art, lifestyle, and other visual focused industries.
  3. Twitter: has 328 million active users worldwide and tends to be where users go for news and trends, this is ideal for brands that want to join a conversation about trending topics in their industry, it’s good for content sharing with influencers and other individuals who might find your brand valuable.
  4. Linkedin: on the other helps you interact and share content with people of like minds, company type, industry and job title.
  5. YouTube: Is now the second largest search engine in the world, second only to google, business videos can be shared here and through to other channels.
  6. Pinterest: is another great Chanel for image sharing, and is becoming unavoidable for consumers who are interested in crafts, home improvement l, nutrition, fashion, fitness and more, if your brands does anything related I think Pinterest will be worthwhile.

Developing a social media strategy: is an important part of making your campaigns gets close to meeting your marketing goals, after deciding on which platform to use, you’ll need to consider how often you want to post and what content you’ll post.

You can start by considering what you know about your audience, what content they prefer albeit addressing their needs and challenges.

How often will you like to respond to questions or request, and many more should be part of your social media strategy.

Creating a social media schedule: consistency is key in social media platforms, if you want to keep your customers engaged, you’ll need to grow your followers on these channels by posting quality contents, an editorial calendar will be advisable.

Creating and posting contents: involves creating visual contents to relevant topics, albeit this requires you to have an in-depth understanding of both the platform and the audience.

Responding to fans and followers: it’s also an important part of social media management, when a question or request is made on your page, this presents a new opportunity for you to provide value for your leads while you also demonstrate excellent customer service.

Engaging with others on platforms: includes seeking out new leads or other opportunities and starting a conversation with them via comments and messages on your page.

Building relationships with influencers can help you expand your reach over time. Especially if there are certain individuals on your platform that have significant following.

Creating social media advertising campaign: it’s an integral part of answering what’s social media management, it complements the organic activities by allowing one to target specific audiences and improve visibility.

Eg. use of Facebook will give room for new leads similar to new customers, this can be individuals who might have never encountered or visited your site but got encouraged by your relevant content posts.

You are right. I think our youth needs to wake up to this call! I know of a manager that won’t give employment to the post qualified employee because when they checked her tags and recent post; she was not looking like someone they need plus the people she was with, in the pictures she posted!

At the board meeting, while deliberating on her issue, they said, if their company were to be an entertainment company, that won’t matter but because it’s not; it matters a lot to them!

A friend lost a job with UNICEF because of the content he was posting on Facebook. That’s another close example so we need to know what we are doing.

The fact is that, it’s this same tools other are using to make cool and clean money o! While other are ignorantly using it to block their way into they next level.

Again, most of The speaking engagements I get, are from my online activities. In fact, 90% of those that have me on their platform have not seen me before.

It's better not to post anything than post something that will spoil your reputation....

We also need to manage our privacy and control those that tag us on irrelevant things that can deter our  image.

I activated that I approve post that am been tagged on.

An example was the two weeks engagements I was privileged to do for the Sowoolu campaign team for NAPPS was online... it was when I go there(I can tell you lots of people where gathered at this event) that they even told me they are doing all of that training on behalf of Sowoolu!

I will share a few tips to improve your social media employability skill for those that needs

Note: I got it from a mentor

I have tagged it, Bonus: Leveraging The Social Media To Improve Your Employability Skills

I have modified it to suite you though
#Have a social media presence especially *LinkedIn and Facebook*

#Create a great profile,  this is what is selling me... in fact I help people even write a google profile as business too ; or bio (sell yourself here).  

 

Convince recruiters that you've got what it takes to add value to their organizations. Answer the question,  'Who Are You? I have been privileged to be part of interviewers board for AYEEN; you need to hear how graduate answer who are you? some will even mention villagers’ name lol (this isn’t funny though but I need that laughter)

#Post professional contents in line with your skills,  your industry or your desired industry or job

#Network With Professionals especially on LinkedIn. Search out top professionals in your industry or in the company you desire to work,  Network with them and maintain a healthy communication with them. In fact, pay to attend any events they will be attending and let them know you came.

#Build your skills. Attend trainings,  seminars, workshops...

#Get relevant certifications in line with your industry or dream job.

#Start applying to companies online via sites such as myjobmag, jobgurus,  etc. submit a great resume and always make reference to your social media profile

Thank God it's Monday and it's time to take action.

Do you know that there is always what to pass across (value) lessons to take away in every post I do even when I post a picture on myself in a funny way? That’s what I meant by been deliberate! Intentional!

COLLAPSE

The power of positive thinking in business

What does it mean to think?

According to dictionary, to think means to reflect on things,situation or people.

The fact remains that we all think but the question is what do you think about?
Sometimes we think about things either consciously or unconsciously.

We have every right to think what we want our mind to think of, we may not be 100% responsible for things we see,hear or feel, but we are responsible for what we allow in our mind/heart.

You are what you think… If your thinking is always negative your life will be negative as well.

"As a man think in his heart so is he"

 

Excerpt:

There is power in positive thinking to excel in business

What does it mean to think?

According to dictionary, to think means to reflect on things,situation or people.

The fact remains that we all think but the question is what do you think about?
Sometimes we think about things either consciously or unconsciously.

We have every right to think what we want our mind to think of, we may not be 100% responsible for things we see,hear or feel, but we are responsible for what we allow in our mind/heart.

READ MORE

You are what you think… If your thinking is always negative your life will be negative as well.

"As a man think in his heart so is he"

We have laid the foundation now. As an entrepreneur, as a staff of a company/organisation, as a leader, as a parent …

Can my thinking in anyway affect me or people around me?

The answer is YES!

Let me share one experience with you...

I sew for both male and female. The first guy I sew native for complained because there was an issue with the sewing. I felt so bad I thought I'm not good and not fit to sew for guys. So let me just base on female cloth and other things I sew.

For six months I didn't collect cloth from any guy even if you talk about sewing I will do as if I didn't have idea of male cloth. To cut the story short I started feeling bad anytime I passed a tailor's shop that has guys cloth been hung.

That is what negative thinking can do to anybody. I started missing the moment I thought I wasn't good enough. It didn't occur to me that what if the guy is a kind of person that complains a lot and cannot satisfy.

Many of us have allowed a little thing to shake us and push us down.

Common get up you are up to the task you are the best to deliver the task.

Thank God I met a woman that insist I must be sewing her husband's cloth.

Negative thought can cheat us of a lot of things. It's high time we change our mindset about things.

The fact that you failed today doesn't mean you are a failure. Your mates are doing well more than You, people are better than you, that is not the problem. The problem is your state of mind.

How do you react to things?

Life we not give you what you want or desire because life is not fair.
But in every bad situation, bad economy bad nation there is always opportunity in it if only we can be positive, if only we can have a good mindset if only we can be optimistic about things and situation.

Nigeria is bad, economy is bad,  no water No light no this no that......what are you seeing ?

If all you see is problem you are a failure already but if you can be calm and *think* we will surely see an opportunity to make it.

One of the problem we have in this country is wrong thinking pattern. We have been having this negative thinking for long we inherited it, it has become a pattern.

You see a young lady of 25 having a car and a house, we will say she is a prostitute  if he is a guy we will say he is into Yahoo. You see a wealthy man you say he did money rituals.

Excuse me ... you can make it with that thinking pattern. People still do well through working smart and hard work.

Until we come to a point where we tame our heart/mind to think positively we will continue to have problem.

If we look well you will realized everybody is doing the same thing.
How can you as a youth be doing the same business with 'mama' ... and we won't see any difference? Package yourself well.

Package what you do and how you talk. I can know if you have a negative thinking pattern by the things you say for out of the abundance of heart the mouth speak.

Guide your heart diligently /seriously for out of it comes issues of life.

COLLAPSE

Question 1:  How can you think positively when you come to point when you realized that everything you want may not come the way you wish?

Answer:  

  1. With that either things is working out fine or not you know there is a force behind it which is God. Then will can say for all things work together for good.
  2. Always have it in mind that tomorrow will be better than today create the picture of that tomorrow see it every time especially when it seems all is not well.

You what will you do when you try a business and you fail, and your parents are not supporting you to do business because your parents believe you study hard to get a good job than study hard to create a job?

It's normal every parent believes when you graduate you must get a well paid job. Go in the morning suit up come back in the evening. month end bring money......have come to understand that being a first class graduate doesn't guarantee a good job in situation where there is no job and you feel you can start a business or trade. Do it please...

At first you won't get support but it's a matter of time when you succeed and make a name they will come to celebrate you.

As I said earlier there is nothing bad in falling
The fact that you fail doesn’t mean you are a failure. The most important thing is when you fail,
Learn , Get up, Re-strategize, Refire, Rebrand  and Start all over again.

Question 2: I know a lady that can quite sew well but doesn't have  a machine. What if one is in the No capital stage?

Answer:
Everything in life is gradual. You can't have it all in a day. Every man on heart has something. Since she can sew well But no money for machine, let her start as a stylist in a tailor shop.

While there you will be getting money it may not be much but Something will be coming in and at the Same time you will be learning. It's better than just sitting idle at home just because you don't have money for machine.

Be open meet people, be free to walk up to people and introduce yourself tell than what you can do. You can't know it all just when you think you have arrive the next minute you are outdated.

The fact that you don't have machine or shop should not be the reason why you won't have a plan. Have concrete plan so when money comes you fix things, but when you don't have any plan and you are complaining you don't have money, by the time money come you will be confuse and spend the money on things that are not useful.

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