SEC-S20W2 | My Business Ideas |Capital Management

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It's another week, haven talked about my business ideas in the previous topic . This is what I have to say about 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.

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Starting up this business I sat down to calculate myself and the money I have at hand, I said to myself instead of squandering the money I can use it to start small business.

This how I managed my initial capital.

Things	Price	Steem price
Shop rent(1year)	72,000	277
Painting	20000	77
Shelves	50,000	193
Goods for a start	250,000	1000
Total	392000	1547

From the table you can see how I managed to start up the business I'm doing right now with 392000/1547steem equivalent.

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?

I have been in this provision/foodstuffs business for 1year and some months now, initially I was finding it difficult to keep records, when something finishes and I wouldn't able to see the gain talk more the capital to buy it that was when i started recording, I can say there's profits in the business there are sometimes losses, When I tracked why the losses was persistently coming I discovered it was my helper at the shop that was eating and saving some money from the business.

B. What are your plans to make your business a more successful one?

From my research I have concluded that this type of my business needs my presence. Hence no one can handle , direct and manage it like I would do, as such I have to be available to run my business to become more successful.

• Availability of goods: For a business to strife there must be availability of goods that meets customers demand. I have been making sure I have what people need any time they walk into my shop.

• Time conscious. For a business to be successful the owner must be conscious of time, that's when to open and when to close. I studied my business I know when the demand starts which is early morning for workers who are going to office and school parents. Make sure I'm early in order to serve my customer.

• Curtailing much debt. There's always debtors in every business some are worthy while some are arrogant and cunny . The best way to make a business successful is by curtailing much debt,if possible stop.

• Setting my achievable goals. I have decided to be strict on my household in terms of giving them free hands to take things anyhow from the shop. Any goods taken from the shop must be paid for.

C. Are you reinvesting your profits or using them for your personal use?

As a business person is not all profits that are to be reinvested, I invest and also use for my personal use. I have a daily card where I save some little profits.
For example if I have profits of 3000/12steem I can reinvest 2000 and make use of 1000, because I can't be doing business and be looking unkept . Like the sayingA worker needs his wages so I need to use some profits.

D. What are your expenses for your staff and establishment, if any?

I had one sales person before I resigned from my work , then I was paying her 8000/32steem that was because she was leaving around the business place so she doesn't pay transport, aside her little pay I do make sure I give her food from my house once a day. All her expenses in a month was rounding up to 10000/39 Steem.

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?

Starting up business with loan did not come to my mind, I heard of one a lady that started business with loan when she wasn't able to meet up she was embarrassed by the loan agent in the street. That was how the lady's shop collapsed. So from her experience I learned not to start my business with loan.

I did not take any loan but I have seen people take loan some pays at when due while some abuse the opportunity. Repayment of loan depends on the agreement with the institution that gave you the loan , it can be daily, weekly or monthly.

Well , situation changes but I don't pray or wish to involve myself in anything loan, but if the situation overpowers me I can open such account.

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Q4. Colleterial securities and your understanding
We know that all of us are not wealthy enough to start a business with our capital, so we have to arrange through different methods. Collateral security is one of the methods to obtain a loan for starting a business by most businessmen.
Collateral security is a guarantee by a business owner or a partner of the business to repay the loan. Most financial institutes provide business loans against collateral security at a fixed interest rate. In most cases, this is your home, your business, or your fixed assets. Did you take any collateral loans for your business or intend to do so? If not, why not?
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 have said it before now I didn't borrow to start my business, there was no loan or collateral of any kind. Because I have the money to start up the business at hand.

Well, if the situation demands it's not a bad idea, but for now I don't have any plans.

In my country Nigerian we have these terms and conditions.

• Previous loan history.
• Evidence of your working income.
• Age
• BVN (Bank verification number) very important.
• Identification card
• Electricity bills
• Signatory

I will keep saying it that taking loan to start business is not for me ,I can take to run the business that's as running capital that's if needs be or the interest rate is favorable.

Business is not easy , there are risks to take of which if care is not taken the person may start from scratch.

I want to invite my friends @goodybest @eliany @chant