Tag

Money Matters

Browsing

This is the kind of headline you see and get a panic attack, especially if you have been working so hard and trying to keep hope alive! I don’t mean to be the bearer of bad news, but I have seen it so much and experienced it myself after working with over 5,000 small businesses either in a training, coaching or consulting capacity. I hear the hope in their voices, see the eagerness in their eyes, maybe just maybe they are about to create a business that will change the game from their kitchen to Wall Street like Carols daughter. I don’t have the heart to tell them it is not going to happen, so I decided to write an article and tell you (now I am not talking to anyone directly, but I am talking to everyone who needs to hear!) These are the reasons:

1. The danger of a single channel: God bless Instagram! Maker of millennial millionaires and torture to generation Xers who can’t seem to get a hang of how to translate this single channel to millions. The next time I have a strategy session with a generation Xer who laments to me about their lack of business growth due to an inability to monetize Instagram, I am probably going to pull my hair out!

Instagram is an amazing social media channel to reach customers and it should be harnessed. However if you are looking to scale your business in a Country where over 70 percent of transactions are still done off line, you have to explore multiple channels to reach your customers.

Go where your customers are and believe me, they are in multiple places aside from Instagram. (I share more details about channels in my new book small to scale. Details on how you can get the e-book for free is at the end)

If that’s your only marketing channel, surely you are neglecting 70% of your market and you want to scale?

2. Your money is our money: after paying school fees from my business revenues, I am low on cash flow! Alas this was the lament of a client who was the breadwinner in her home. Can you blame her? Her Children have to go to school, after all why was she working so hard… 95% of businesses in Nigeria are micro businesses and they struggle to grow because they are really just vehicles for the business owner to take care of their family needs. I am sure you have heard several times that you should separate your business finance from your personal finance and instead pay yourself a salary. But how many of us are practicing this strictly? How do we grow or scale a business when we keep eroding the capital to meet our personal needs?
I know, I know, it’s not your fault. It’s the state of the economy and other life realities….

3. Doing it the way they do it: hey ‘Tale, have you noticed that XYZ Company seems to be making a lot of money? Really, I replied. How do you know? Well, they just bought a new bus or opened a new store. This is how “Me too” strategy is killing a lot of small businesses who are attempting to copy others without really knowing what is happening behind the scenes.

There is nothing wrong with bench marking with your industry colleagues, but making major business changes or decisions based on something you heard or think you understand is unreliable. Your business decisions should be driven by a clear strategy and not by trying to do it the way they do it without clear direction.

4. I can do “bad” all by myself: one of the greatest tests I have seen small businesses fail is the hiring test. I know the excuses…I can’t afford to hire the type or quality of staff that I need, so I will do everything by myself. Okay it might not be an excuse, it is your reality right? Some years ago, one of my clients hired a COO who earned twice the salary of the CEO. I had to ask why that decision was made. I was told that the person came with many years of experience working in a multinational and that they wanted their small business to grow and operate at that standard. Suffice to say, the business experienced exponential growth in a few short years. The next question I am usually asked is; what if I make the wrong hiring decision? My response is; like in everything in life, correct your mistake quickly, learn from it and hire right the next time. However what I see a lot of businesses doing is returning to status quo. At least I will have one less person to pay the business owners rationalizes, how about the loss of revenues from trying to do it all by yourself and dropping the ball?

5. Planting an oak tree in a flower pot: the thought of the analogy sounds ridiculous right? But that’s what I see so many small business owners trying to do! People want to build million dollar factories with a few hundred thousand naira and expect that by some miracle and pure resilience, things would translate as such. I am not saying you shouldn’t start small, I am a big advocate of starting small and scaling.

I am currently building my third business with the principle of starting small, however what is different is the approach and the structure that would ensure that it scales. When you want to build a business that will scale, you build it with that mindset from day one. This will include your vision, your business structure, your capital structure, your business model and your team.

You have to lay the right foundation for the type of building you want to construct. If you have laid the foundation for a bungalow and you attempt to build an eight story building on it, do you know what will happen? Then you know why many small businesses won’t scale….

Learn how to avoid these mistakes in my new book- “Small to scale-The blueprint for transforming your small business into a high growth company” I am giving it out for free in ebook format to the first 10,000 people who subscribe to join the waitlist of our new finance matching and business support platform-Owoafara. Join at www.owoafara.com/join

2019 is the year to get serious with your personal finance and stop making good financial decisions if you really want to become financially independent.

Making money and spending it anyhow has never helped anyone. Instead, it’ll only leave you to be financially stagnant.

To have a good relationship with your money in 2019, here are five money mistakes you must seriously avoid.

1. Living beyond your means

Living beyond your means only leaves you financially stagnant.

.

Living beyond your means while the little finance you have is going down the drain is really a drastic financial mistake you must avoid in the new year.

If you keep living an expensive lifestyle you cannot maintain, you end up trying to borrow money from people to keep up with that lifestyle. This only leaves you in serious debt and incurring debt is bad for your finances because your focus would be on paying your debt instead of focusing on your financial goals.

2. Not having an emergency fund

If you have never introduced the emergency funds to your financial practices, 2019 is the right time for you to start. You won’t like to go through financial issues that’ll leave you broke again. To avoid that experience, you need to start saving for unplanned and unexpected issues now.

3. Over-subscriptions

Every month you pay for data, newspaper, magazine, cable/satellite TV subscriptions and you wonder why you didn’t save enough in 2018. Do you know how much all that cost you? You may need to cut down on your monthly subscriptions or avoid it completely if you don’t really need it.

4. Not saving for retirement early

Save money

Save money

One of the worst financial mistakes is not saving and planning for retirement early in life. You might think planning and saving for retirement early is a waste of time because you have other financial obligations to meet but you might regret your decision in the future.

5. Waiting to invest 

You failed to invest in 2018 because you think investments require a huge amount of money. That’s a lie. Do not wait to have a large chunk of money before you start using your money in a way that makes it work for you.

The best time to start investing is now. No matter how small your income, you should set some money aside for the sole aim of investing. It’s 2019, you need to start makings plans on how to grow your money.

 

 

Culled from pulse.ng

Credit: Bayo Wahab

The complex nature of our nation’s turbulent economy has impacted all Nigerians and leaves many feeling confused and anxious. The good news is that no matter how challenging things may be, the basic fundamentals of personal financial management still apply; stay focused on this.

Have you made your New Year Resolutions? Did you include any financial ones? All major life events such as getting married, having a baby, educating children, losing a job, getting divorced, buying a home, losing a loved one, planning for your retirement and your estate come with financial consequences that must be prepared for. Here are 12 resolutions to consider for 2019. Don’t try to tackle them all. Tackling just 3 or 4 will lead to significant improvement in your financial life.

Establish a budget
Living as though nothing has changed during challenging times can make a situation worse; changing your spending habits must be a priority. Budgeting is one of the most important tools for financial security. A good budget will help you to plan and monitor your expenses so you can identify where to cut back if necessary. Where does your money go? The traditional suspects are eating out every day, recharge cards etc. Can you cut back a little on these?

Build an emergency fund
An emergency fund is a must-have, particularly during times of financial challenge. Build a fund with at least six months’ worth of your expenses in an accessible, interest bearing account. If you are suddenly faced with unemployment, medical expenses, or other unexpected events, you will have this financial cushion to fall back on. If you can’t build 6 months, focus on 3 months. The key is to have something saved.

Automate your savings
Can you set aside a minimum of ten per cent of your monthly income for savings. One of the most effective ways to increase savings is to automate the process by having the funds deducted via a direct debit into a savings, money market or mutual fund account. If the funds are in an account attached to your debit card you may be tempted to dip into the funds.

Reduce your debt
Getting out of debt or at least reducing it is another key step to taking control of your finances. List all your debt, and prioritize by focusing on the debt with the highest interest rates first. Are you one of those people that avoid your lenders? Have you stopped taking their calls or ignore their reminders? You need friends and family as a lifeline when things are really bad, so if you damage relationships, it only comes back to haunt you. If your debt has become overwhelming, contact your creditors to discuss the possibility of coming up with more palatable repayment arrangements.

Invest for the future
If you have some savings and your debt is under control, consider investing in the stock market. It is important to remember that the stock market, over the long-term, has outperformed other asset classes. Many stocks are currently selling well below their true value. If you are fortunate enough to have cash for long term investing, this is a good time to seek professional advice to build a diversified portfolio. Remember that investing comes with risk; to mitigate this, you should diversify across the primary asset classes.

Improve your Health
A healthier lifestyle means fewer medical expenses. If you are healthy, you will have brighter prospects in all aspects of your life. Do you need to lose weight, eat more healthily, or exercise more regularly? Take your health seriously and take concrete steps to improve it. Make this a way of life for your family to ensure that your spouse and children are healthy.

Invest in yourself
There is something everyone of us can do to earn extra income and it is time to find out what that is. What can you do outside your full time job? If you are unemployed, this becomes even more urgent. Have you considered tutoring, consulting, blogging, photography? Identify and nurture your passion and talent and begin to leverage on it to earn in 2019.

Protect Yourself and your Assets with Insurance 
You are your greatest asset. Do you have adequate cover for your health and your life, particularly if you are the primary breadwinner? Are your properties including your car and home adequately insured? Things happen and you cannot afford to be careless with insurance. In addition, do keep up with routine maintenance of your assets so that you can identify festering problems before they require expensive repairs. The odd noise coming from your car engine should not be ignored. Attend to issues early.

Retirement 
Most Nigerians do not have enough money saved by the time they face retirement. Most of your retirement income will have to come from money you set aside and invest today whilst you are still young and earning. Do you have a Retirement Savings Account? Make this an important part of your long-term plans.

Put an Estate Plan in Place 
No one wants to think about death at the start of a new year, but you owe it to your family to put something in place should something untoward happen to you. Make an appointment with an estate-planning attorney who will put you through a relatively simple process. If you already have a will, review and update it to make sure you have included any new assets or beneficiaries.

Build Philanthropy into your Plans 
In spite of how difficult things might be for you, there are always people worse off. Philanthropy is a powerful and effective way to change lives. Determine your area of interest and identify ways in which you can make a positive impact.

It’s not all About Money 
It is important to note that the most fulfilling things in life have little to do with money. They have to do with relationships; with your partner, your spouse, your children, your siblings, your parents, your friends. Remember to count your blessings in 2019. Enjoy your Life and may God grant you good health, happiness, and peace this year and beyond. Happy New Year!

Register for Financial Resolutions in 2019 HERE

About Nimi Akinkugbe

Nimi Akinkugbe has extensive experience in private wealth management. She seeks to empower people regarding their finances and offers frank, practical insights to create a greater awareness and understanding of personal finance. You can reach Nimi via the following: Email; info@moneymatterswithnimi | Website: www.moneymatterswithnimi.com | Twitter: @MMWITHNIMI | Instagram: @MMWITHNIMI | Facebook: MoneyMatterswithNimi