SEC-S20W2 | My Business Ideas |Capital Management

Hello Teachers,

I am pleased with the lessons learned so far, and I commend you for the hard work you put in to teach us. At least now, I know my way around my business as a starter.

I have shared my ideas below through my homework, and I stand to be corrected in any way. Thank you.

Initial investment value, also known as start-up capital, is the first money one uses to open up a business. Start-up capital is essential for running the initial cost of every business until it begins to yield returns.

My startup capital would be generated from the total amount of my savings. So far, the initial amount laid down for my business is #200,000 Naira which is equivalent to 749.8 Steem according to coin gecko as at when this post is published.

Below is the break down in Steem and in US$

How I mange it

From my breakdown, you will see that I intend to start small and not big. It doesn't matter the starting point; the end point is very important. I don't need a shop rent because online would mostly be my office where I can generate customers to build up the business.

However, I cannot spend money on tasks, commissions, or business registration yet. I would grow first before these ones come, so I think I am good to start up with. #2000,000- 749.8 steem

Q2. A profit and loss statement is commonly known as a statement that shows details of your business's revenue and expenses over a period that we calculate on a monthly, quarterly, or annual basis. How do you determine whether your business made a profit or loss during a stipulated period? We are interested to know: A. Are you earning profit or incurring losses? B. What are your plans to make your business a more successful one? C. Are you reinvesting your profits or using them for your personal use? D. What are your expenses for your staff and establishment, if any?

Please permit me to answer this question as a business owner and a business starter...

As a business owner

I was earning losses each time I checked my record booklet for the week, and you agree with me that losses in business are a no no. I was able to meet someone who helped me with some ideas, and at the end, I realized that my staff was not ideal for the business and my business location wasn't good enough for the business. Although each income generated would be put back into the business and my staffs were placed on a weekly pay, provision for lunch was made available to them.

As a business starter

Since I have learned my lessons from the previous business, I would want my business to insure all the necessary profits because losses are not good for any business.

source

To make my business a more successful one;

• I have identified my mission for the business.

• I have laid down daily goals to be achieved.

• I will ensure customer satisfaction.

• I will always make my goods available, no matter the weather.

• Be organized and packaged at all times.

Since I won't have staff, there won't be a need for staff expenses. I will manage my business with my business partner.

Q3. Loans and working capital: Did you take any loans or working capital for your business from any financial institute? A. If you took any loan from any financial institute, how do you repay your loan? What is the interest rate? B. How frequently do you pay the loan installment? C. Have you ever faltered in repayment of an installment? D. Working capital loan covers your business's short-term operational needs. A working capital loan is that you take from an individual or financial institute to run your business for the short term. E. Most financial institutes provide a fixed amount that you can draw when you need it and return to your account. The interest is calculated for the period you use this amount on a daily basis. Do you have any such account or intend to have one?

My working capital is coming from my long-term savings because I had this business in mind for a long time. However, I had borrowed a loan some years back to boost my dying business. I was given a space of one month to resume payment installment with an interest rate.

The interest rate was 2.5% with a 3% processing fee. Although monthly fees vary depending on the loan term. I pay back every month with a specific date. Unfortunately, I missed the last payment, but I finally paid up after a week.

source

About the account mentioned, I don't have such an account, and I don't intend to have one.

Q4. Colleterial securities and your understanding: A. Do you have any plans to seek a loan from a financial institute against your property?
B. If yes, what are the terms and conditions for such loans in your country?
C. Do you intend to seek a loan for establishing a business or do you need it as running capital?

I don't have any plans to seek a loan from any financial institute. I don't believe in borrowing money to start a business, but if the need be that it's the only option, then I would sort a way.

Eligibility criteria for a mortgage loan in Nigeria

• Age requirement
• Income requirement
• Credit history
• Down payment
• Insurance
• Legal documents

I have never had the intention of seeking a loan, although I am not starting a big business, and if I have to expand my business, then the funds should come from the already existing business; that way I know I am progressing.

I wish to invite @chima09 @okere-blessing @nancy0 to Join the contest!