SEC-S20W2 | My Business Ideas |Capital Management

Q1. Please tell us about your initial investment value in terms of Steem as well as in US$, and how you manage it.

Source

Every year business requires an initial investment which based on the type of business I have in mind to start, the initial investment is around ₦33,000,000 which is equivalent to $20,000, and in Steem it is valued at 107,785 STEEM.

It is the money that I will use to kick-start my business. I will part of the money to register my business with CAC, rent the shop, stock the shop with goods, and do all other things that need to be done for the business to be minor.

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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?

I will always keep a track record of my business to know if I am making gains or losses. To this, I will be preparing monthly profit and loss statements for my business to ascertain my revenue and expenses over the period.

In ascertaining my profits, at the end of the month, I will substrate my total expenses from my total revenue, and whatever I get 50% will be reinvested into the business whereas 25% will be kept aside for any unforeseen circumstances that may arise and the remaining balance is what I will then use in taking care of myself and my staffs. Should in case I make some losses I will work towards overcoming such losses in the coming months.

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Q3. Loans and working capital

Source

If I take a loan from a financial institution, I will repay the loan with the interest that is attached to the loan that I took. The reason why I wouldn't waste time or delay paying back whatever loan I took from a financial institution is for me to build trust with the financial institutions and for me to avoid further increases in the interest rate.

Most financial institutions such as banks usually increase their interest rates which I wouldn't want to happen to me. In a situation where I cannot pay back my loan on a specific day, I will collect from family and friends to pay back my loan.

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Colleterial securities and your understanding

In Nigeria, without collateral, you cannot think of collecting a loan from a financial institution like a bank. Collateral securities is an agreement that is signed and stamped by the lender and borrower stating the asset should be given to the lender in case the borrower is unable to pay his or her loan at the time fixed.

I understand how important collateral is when it comes to collecting loans and I will accept to give out my valuable assets to collect loans for my business. It is only when I am unable to pay back my loan that the lender would seize my asset, but as long as I can pay my loan my lender has nothing to do with my asset that is provided as collateral for the loan.

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I am inviting my friends; @dave-hanny, @ruthjoe, and @vickyson to also join me.

Cc:-
@dove11
@aviral123