09/04/2020
A WALK INTO FINANCIAL FREEDOM:
HOW TO START SMALL AND GROW BIG.
CASH MANAGEMENT.
ENTREPRENEURSHIP. ETC
Financial freedom is the desire of most people, yet only very few attain it. It has become very important for us to discuss this topic, considering the background most of came from. I am sure that over ninety percent if Izhians who attended higher institutions trained themselves through one meager job or the other. This wasn’t because our parents were lazy, but because there are more to financial freedom than just hard working.
In this presentation, I will be dwelling more on starting little and growing big. I may not talk much on Financial Vocabularies, Cash-flow Quadrant, (Employee, Self-Employed, Investor, and Business) etc. we will have to dwell more on starting because a child must first learn to stand up, before walking, and then running. However, we will still address them a bit. Have said that, let’s move to the business of the day.
STEPS TO START AND RUN A SUCCESSFUL BUSINESS
Here are some of the steps necessary in starting and running a successful business. These steps, if taken meticulously, will guaranty your 90% success in business.
1. DETERMINE WHAT YOU WANT AS A BUSINESS
The first thing to do is to take a decision on what you want to venture into. This must be done by you and you alone. Don’t allow anybody to do this for you, (not even your parents).
HINT: Go to a quiet and serene environment; ensure that you dispel all form of distraction from anywhere. Ensure that your phones are switched off, and have your pen and paper with you. You have got to ask yourself series of questions in order figure out the best business for yourself. Start from your talent, do you have a particular talent? You can develop a viable business through your God-giving talent. What about your hobby? You can also turn your hobby into a profitable venture. I have a friend who opened a view centre just because of his love for football, and he is making good cash from it. Aside from those ones, look at your environment and find out what the people are in need of, then provide solution to that need. DO NOT CHOOSE A BUSINESS BECAUSE SOMEONE IS DOING WELL IN THAT LINE OF BUSINESS. TRY TO CREATE A SIGNIFICANT VALUE.
2. MAKE YOUR FEASIBILITY STUDY
A feasibility study is an assessment of your business idea to ascertain its viability. Whatever business idea you have, first look at the environment to know if people really need it. Move around, check for such business if it already exists in the environment. Know the strength and weakness of your competitors, and build your strength from their weakness. Ask questions and be sure that your business idea is worth venturing into before you start.
3. WRITE DOWN YOUR BUSINESS PLAN
A Business Plan is written document that explains the nature of the business, the vision and mission of the business, the financial background, the sales and marketing strategies, a projected profit and loss statement, etc. It serves as a road map to the business and its management. It could be very concise or voluminous, but it has to contain, among other things; the VISION of your business and the steps to achieve them.
4. DECIDE THE DATE TO START IT
Weather you have the needed recourses to start or not, fix a date to launch your business. When I say date, I mean specific date (day, month and year). It is important to be realistic. The time period should be long enough for your goal or desire to be achievable but short enough for you to find it worth pursuing. Don’t allow money to stop you from launching the business. There is no amount that is too small and no amount is big enough to start a business. THINK, THINK AND THINK, until you find a way to start it, no matter how small.
5. CLOSE ALL THE DOORS OF DISTRACTION
From the outset, you will definitely meet with people who will apply so many strategies to discourage you. Some will criticize, some will mock, and others will encourage and appreciate you. Do not be discouraged; turn their criticism into a stepping stone. Take responsibility for all your actions and quickly make amend whenever you make mistakes. Write out boldly the section of your business plan that state your vision and paste it where you can see every now and then. Read that vision statement twice a day – morning and evening; it will help you to be more focused and avoid distraction.
6. DETERMINE TO SUCCEED AGAINST ALL ODDS
In 2014, when I left Abakaliki to Bayelsa in search of greener pasture, with no cash no body to meet over there, and nowhere to lay my head. My elder brother Stone, who knew my condition when I left, called to know how things were going. After explaining to him how tough things were; he asked again: “what is your resolution?” I answered from the depth of my soul that “I AM NOT COMING BACK FROM BAYELSA ALIVE WITHOUT TESTIMONIES.” That statement keep ringing in my memory and makes me to keep pressing hard each time the road seems blocked.
If you want to succeed in that business, consider that there is no other business meant for you except that which you are into. Press hard, look for new ways to do it better, keep improving and keep moving. Your testimonies are already close.
7. KEEP LEARNING
Never you stop learning. Albert Einstein said: “Once you stop learning, you start dying” that is very true. Your business will begin to die gradually once you stop learning and improving upon your knowledge of the business. So, never you get tired of searching for new innovations about your business.
8. PLACE GOD AT THE CENTRE
All our effort, knowledge, certificates, etc, are of no use if God is not at the centre of our affairs. “Unless the LORD builds the house, the builders labor in vain. Unless the LORD watches over the city, the guards stand watch in vain” (psalm 127:1). Always go to him seriously in prayer and he will turn things around for your good.
9. MIND YOUR SPENDING
Very soon your business will start generating cash; be conscious of how you spend them. This is where many people usually get it wrong and mess the whole thing up. When cash starts flowing from your business into your hands, keep these few points in mind:
i. All the cash are not your profit. As a beginner, it’s wise to spend not more than forty percent (40%) of your profit while the remaining sixty percent (60%) goes back into the business.
ii. Know the different between assets and liability, and spend more on assets while doing everything possible to reduce spending on liabilities. In brief; Assets are those things that generate more money into your pocket, eg. Shares, real estate, bonds, commodities, etc. While Liabilities are those items that take money from your pocket, eg. Residential building, Cars, etc.
iii. Get a good knowledge of Cash-flow quadrant.
Employee Investor
Self Employed Business Owner
I don’t want to talk on this, but let me quickly tell you the difference between BUSINESS OWNER and SELF EMPLOYED:
A Business owner has ownership stake of the company but does not involve in the day to day running of the business. While Self Employed person is the owner and still take full time responsibility of the operation of the business. If you start as an Employee or Self Employed, gradually move into the other side – the Business owner and Investor. That is where every entrepreneur wants to hit.
Note: as you start your business, give her hundred percent attention; business needs more attention than a jealous wife.
With these, I think we will have to treat more during the question and answer section. I hope to see you at the top soonest. Thanks.
