SEC-S20W2 | My Business Ideas |Capital Management

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Hello teacher

I am determined to make my business work therefore, am willing to learning more about business in this class.

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

Initial investment many times can be a barrier to starting up a business. We may have amazing ideas but get stuck on the way because of the initial investment. Initial investment as we already know is simply the first income we put into the business we have in mind to start up.

I have already mentioned in the first class about my chicken business. With the current price of steem on coin gecko against naira as seen on the screenshot below

coin gecko price of steem in my currency

For me, the initial investment I need for my business is 200,000 naira with steem equivalent of 752.9 steem As at the time I checked the price of steem.

My plans of how to generate my initial investment on the business is ongoing and I plan to get from the savings. I have been trying to save up money for this business for a while. I do not believe in taking a loan to start up a small business. Maybe as time goes on, when I see the progress made in the business I could seek for financial help.

My break down for my initial investment in the poultry business(chicken) will be as follows;

Materials needed	naira	Steem price	US$
Birds, 50 pieces	30,000	112.9	18.75
feeds and material	100,000	376.4	62.5
Bird housing	50,000	188.2	31.25
Transportation	20,000	75.2	12.5

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?

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The idea of every business person is to make profit. This is why I will have have a big record book where I would record expenses made for the business no matter how little all money that came in from either sales.

Are you earning profit or incurring losses?

At the end of each week from my record If the expenses made is higher than the money that came in from sales then I am at losses but if the money from sales made is higher than expenses then I am making profits.

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

I have plans such as getting a delivery van which will help me deliver my products to my costumers. It will also be used to carry feeds from the market to my business location.

I will have an online space where customers can make their orders without necessary coming to my work place, the products will be delivered to them.

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

Oh yes my profits will be reinvested but may not be into the same business. My personal expenses will be taken care of by other means until I decide otherwise.

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

For now I do not have staff but when I do, they will be taken care and their expenses will include, feeding and transport allowance.

Did you take any loans or working capital for your business from any financial institute?

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If you took any loan from any financial institute, how do you repay your loan? What is the interest rate?

I have not taken a loan or intend to take a loan to start up business. Over here in my country, the story is not always good when you take loans secondly their interest rate is usually high. I saved up money to start. I have prefer to save up my own money to start a business

How frequently do you pay the loan installment?

I don't have an idea but from what I have heard depending on how much loan collected, monthly payments is the most come type of payment I have heard of from my friends.

Have you ever faltered in repayment of an installment?

Well no I haven't because I have not taken a loan and do not have an interest to do so.

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?

Sounds like a great idea but I don't know about it and I don't have such account. Over here in my country such account doesn't exist.

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Do you have any plans to seek a loan from a financial institute against your property?

No I don't have plans to seek a loan from a financial institute against my property. This is because of my personal restrictions after I witnessed how a close family members house was taken by the financial institution because he couldn't pay back the loan he took for a business at a stipulated time, I have many other bad experiences I witnessed from some friends.

Do you intend to seek a loan for establishing a business or do you need it as running capital?

No like I stated earlier I don't like the idea of seeking loans to start up my business. There are many reasons why i have decided to use my savings over time to start up my business. If the money is not complete to start I will just have to learn to wait rather than seek for loans.

Let me invite my friends to join this contest
@ninapenda @eveetim @jovita30