The BnB Busi­ness

Thembu Royals Magazine - - Community Spotlight -

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.

Car Stick­ers;

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.

Door-to-Door Can­vas­ing;

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.

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