The BnB Business
Visit the City Library and borrow books: Every city/ or town/ village does have a government sponsored library. These libraries have valuable information that one can acquire free of charge. It must be emphasized once more that if you intend to know something, and master it well, you must master the basics. To acquire business skills forms the basics of any successful entrepreneur. Without business skills you are just like a ship that finds itself wandering in the deep blue sea having lost its compass. The driver does not know where the Nor th, South, East nor West is. The driver however keeps driving with the hope that he will eventually, by the grace of God reach their destination… Business does not work like this. There are many benefits that accrue to an entrepreneur once an entrepreneur has acquired business skills. Some of them include the following-Thee yes‘ open’ up-A lot of things that initially were ‘ invisible’ to you become visible because ‘ a mist’ has been removed from your eyes. Things that initially seemed impossible become possible because you have knowledge to f ix them.
Confidence-Once business knowledge has been acquired the entrepreneur develops confidence because the practices in your environment are based on scientific ally proven business principles instead of relying on ‘ luck’ / ‘ chance’ .
Refusing to learn is refusing to prosper . Tact ic Number # 2: Keep f inancial statements to capi tal ize the business wel l ;
With under-capitalized business one is limited, and prevented from doing a lot of things that one would ordinarily do to grow. It is therefore important that a business must be well capitalized.
A business that is under-capitalized may tend to grow at a very slow pace, or not to grow at al l which may end up discouraging its owner from proceeding with it. There are more than 12 effective methods for raising the capital or Corporate Finance as it is popularly known. The details of such mechanisms are beyond this article. It is however of great importance in this article to discuss in detail what the basics are that are absolutely necessary before one can raise business funding. Without these basics having been comp lied with, the chances of raising funding are very little, if any. These basics also help you to run the business well in any event even if you do not necessarily desire to raise funding.
These basics are that as a business owner you must keep proper books of account . There are 3 basic Financial Statements that one must keep on a monthly basis. These are the Balance Sheet , Income Statement , and Statement of Cash f lows. The Balance Sheet: It is a financial statement that summarizes the financial position in relation to the assets, liabilities and the owner’ s equity at a particular point in time( for example as at the 30 June 2016) .
Income Statement: It reports a company’ s financial position and performance over a specific accounting period( for example one month ). This is assessed by giving the summary of how the business incurs its revenues and expenses.
Cash Flow Statements: Is a summary of the actual or anticipated incoming sand outgoings of cash in a firm over a certain accounting period( a month, quarter, year ). It answers the questions like where the money came from( or will come from ), where the money went to( or will go ). Cash Flow assesses the amount, timing, and the predict ability of cash inflows, and cash out flows, and are used as a basis for budgeting and business planning.
Finance and accounting is the language of business. Without these basic statement son a monthly basis then you are not talking the language of business. Without these statements you do not know whether your business is moving forward or backwards, and if backwards , how to f ix that problem, where is the problem and the like. You are effectively running your business relying on chance instead of relying on business principles. Failing to make use of these financial statement son a monthly basis amounts to mismanagement.
In our next issue we wi l l cont inue to deal wi th more of these useful tact ics! It must be emphasized though that as an entrepreneur it is not necessarily expected of you that you must know how to draft these financial statements, the accountant must do so. It is however expected that you, as an entrepreneur must know how to read, analyze and interpret these statements so that you are in a position to make informed business decisions that are not based on chance and/ or luck.
Unused walls in public spaces;
In every community there are unused walls in public spaces like in taxi ranks, sports fields, malls and the like. These walls usually have a large traffic that passes by whether to catch a taxi, a bus, or just to wander around it. The entrepreneur can, and should paint these walls by their promotional materials, their brands, and their products. Every time that the potential consumers pass by the walls the consumers are constantly being reminded of the brand and its products.
You must get Car Stickers that promote your brand. If one buys at least 20 (twenty) of these stickers, this makes a big difference. The size should be at least 30cm long by 15 cm wide for them to be visible. Get friends and associates who have cars to paste these stickers free of charge. Each car on an average business day is seen by more than 30( thirty) people. If one multiplies 30 by 20 one gets 600( six hundred). This means that if one bought 20 stickers as suggested their companies will be viewed by more than 600( six hundred) people per day. In one month this translates to about 18,000[eighteen thousand] people.
Free Public Service;
Your company can arrange to have a free public service engagement like a car wash day. Get at least 12( twelve) assistants to work with you. 12 people are able to wash at least 100( one hundred ) cars per day. The company must make a public announcement that for two consecutive Saturdays when the company will have a fun day when the company will do free car wash. This day must be accompanied by small cookies and drinks to be a fun filled day. To have the attention of about 100 potential customers is a very good seed to start to market your company.
Get a group of about 15 people to walk as a group. They must ‘attack’ a shopping mall [or any other busy place] wearing your company gear. Distribute pamphlets, business cards and other promotional materials. Make sure that each customer who accepts the promotional materials gets a small gift like a small chocolate, or a biscuit.
A Birthday Party for a Child;
Arrange a birthday party for a child. Invite all other children around the community to come by. Naturally their parents will also attend to monitor their little ones.