BUSINESS AND MONEY

TOPICS:1) Source of Money / Sustenance

2) Skill Acquisition

3) Building up a Business

4) Diversification

1)              Source of Money/ Raising of Money for Business

1.        Definition:

2.        Ways to source money:

1) Through bank – Commercial, Micro Finance

2) Through partnership

3) Through joint venture

4) Through borrowing from friends and relatives – attitude; remember not to shy, be confident, have the knowledge of the business very well

5) However the amount of money one can source depends on the business level and the business level depends on individual capacity

i.e. N20, 000 – N100, 000

      N100, 000 – N500, 000

      N500, 000 – Millions

      Millions – Billions

2)              Skill Acquisition

1) Definition – Have practical and clear     knowledge. What you want to do, learn it from others

 2) What you have as your skill is what you sell to other to get money since money is exchange of service for money e.g. hair dressing, barbing saloon, trading, importation, mechanic e.t.c.

 3) Attitude to get skill – Humility, endurance, hard   working, commitment

3)              Building up a Business

1)        Introduction

2)        Set strategies with skill and money already available

i.            Where to set shop

ii.        How to locate customer

iii.     How to fix price

iv.      How to sustain customers

v.          How to source good/materials

vi.      How to save money cost

3)        Facilities, e.g. Car, staff, office equip.

4)              Diversification

1)        Is most profitable on the same product line, Trudy to manufacturing

2)        Only required when enough capital is available to run original business

3)        Necessary to maximize profit

4)        Increase cash flow

5)        Cushion poverty in terms of problem in the main line of business

6)        Brings proper establishment