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What The Poor Must learn From The Rich Be Rich
The rich get richer and the poor get poorer because of how they think and act. The mindset of the rich is different from that of the average person. The rich person has learned the truth of life. The wealthy individual knows that “life is not for self but for others”, in other words serving other people in the community and creating value in the ecosystem of life, creates wealth and riches. On the other hand, poor people always think that the rich are lucky and blessed. But the truth is that we are all blessed according to our ability. It is what we do with our ability that determines what good comes to us. The mindset of self-preservation and personal happiness is the key drawback for the poor person. They want to meet their immediate needs and wants without thinking about others.
The willingness of rich people to be selflessly confident and determined is the source of their courage in resource acquisition and management. They manage resources with courage, mindlessly seeking to add value to their society rather than their self. This is because they understand that in serving others they meet their own needs and wants. It is in the returns on investment that they find value in luxury.
The rich people have learned to harness the natural and environmental resources that are available to all on earth to create values that benefit everyone in their community and return, the community repays them with cash to continue to add value. This process is called investment, trade and commerce. Therefore, the rich have mastered the management of earth resources, for the good of others and the happiness of the world.
When we know ourselves through meditation on the truth and love for knowledge, with understanding and wisdom, our potential, gifts and talents fit into our world. In this mindset, the rich do not make choices based on the influence of society or their immediate environment. Rather they conjure the image of their world in their mind to bring their wishes to the point of belief and from belief to reality. This positive energy and mindset created by self-knowledge enable the rich to use for free the natural endowments of the earth to build riches either through production or service industry.
Rich people have learned to see opportunities in every need and every crisis. They panic in adversity like everyone, but it does not last. They cry, clean their tears, and open their eyes to see opportunities to make a better world. This is a habit of the rich. Necessity is the mother of invention. Crisis is always present on earth to offer opportunities to those who have developed their mindset to know the truth of life. Crisis is the tool used by the earth and the universe to provide opportunities for change and the creation of wealth.
Change is welcomed and used by the rich to create more wealth. This is why the rich are restless with the acquisition of knowledge and are always seeking to understand what opportunities the new knowledge will offer for them, to create a change and to generate commerce and business growth. Growth is change and progress. The rich have the confidence, determination and courage to seize opportunities and create value for society. The poor are always looking for the reasons for the change that occurred and who to blame. This mindset of looking for excuses for every change that occurs occupies the minds of the poor and stunts growth in positive thinking and making wealth. The poor always play the blame game because they do not understand that the engine of growth is crisis and change. When they obey the principle of multiplication of resources they create new values that change the environment and create opportunities for growth and wealth. This is a clear ignorance of the truth of life.
These qualities of the rich are learned from birth. It begins with the knowledge of core values in life, love, joy, peace, kindness, goodness, diligence, perseverance, gentleness and self-control. It is our choice to learn these core values or to remain ignorant. Unfortunately, they are not taught in the classroom of any institution. They are learned at home and the teachers are the environment, parents, community, social ecosystem, culture and peers. It is within this choice process that all humans are equal. So we have to choose whether we want to be rich or poor by the type of habits we form and embrace. The basis of these two categories of life called rich and poor is a choice of mindset and values. The rich will always choose to invest resources and focus on earning rather than saving while the poor meet their wants with existing resources.
Consequently the rich get richer and the poor get poorer because the poor is always digging a hole that consumes resources while the rich creates more resources to enrich the earth and make it a better place. It is mindsets and understanding of the truth of life. When people steal money and resources they are not rich, because they have not created value. Wealth is the creation of value and the management of earthly resources to bring peace of mind, joy and goodwill to the world. Consequently, the poor will always be with us as long as there are good and bad choices.
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What To Do Before Starting a Business Venture.
In Nigeria and most of Africa, starting a business can be very stressful and discouraging. Economic activities that yield profits and bring added value to social life in the communities are at the rudimentary stages. Trade by barter is still existing in many rural areas and are now being frustrated by the new social and economic realities driven by technology. Societies have developed their own methods of entrepreneurship that depend on unwritten values and systems. However, with increased levels of education, cultural changes, urbanisation and increased unemployment, there is a rapid change in societal expectations and values that have introduced modern enterprise requirements.
It is significant to note that in post-colonial Africa, many educated people were not trained for business and do not possess the skills for modern business ventures. Consequently, the ways of doing commercial activities have been changing and now demand new skill sets that may not be tangible but are natural and true.
Therefore, to many nascent entrepreneurs in Africa, it often feels like there are insurmountable obstacles to laying a good foundation for business in the communities. This situation may explain why most African entrepreneurs do not venture into enterprise and when they do, they quit when the going is tough and return to paid emplyment or nothing at all.
Starting a business in the African environment is a lot of work, but it is important to note that success is made of sterner stuff. However, there’s no avoiding some basic steps and reality for new small business owners who aspire to grow in future in the present day.
So with simple steps such as Prepare, Form, Fashion and Create, it is possible to develop a business mindset and take actions with a sense of purpose toward building the foundation of a strong business. Often experienced business consultants say to their clients, you must give it all. Giving it all is like directing energy to a blunt axe. When the axe is sharpened then it can add value to the purpose.
The natural first step in starting a business is to be prepared and ready to do something that humanity will use, cherish and appreciate and are willing to give something in return to the entrepreneur or businessman for their efforts. This first step involves being convinced that one can do something useful to make the human community better. The conviction leads to a mindset change that will drive the ability to form the concept that leads to a defined but flexible pattern. This foundation or set out, is forged by continual and dynamic experience as the enterprise is built in the mind of the business starter. Continuous meditation on the concept brings knowledge of the purpose of the business to the mind and strengthens the mindset through communications and linkages with experts and interested parties. This situation change also continually shapes the nature of the industry in the mind and creates the avenue for an appropriate understanding of the legal and financial aspects of the industry operations.
Upon this understanding, the image of the business begins to form in the entrepreneur’s mind and the Fashioning process begins. At this stage, the businessman begins to take inventory of the resources available in the environment that will support the shaping, structuring, fabricating and casting of the foundation of the enterprise. The structure of the enterprise determines the growth process and how far the business can go within the existing legal and financial policies and framework. This image may be blurred at first but will continue to be clear as the mind is transformed daily through the renewal of concept.
Then with a good visualisation of the business shape and structure, available resources can be used to create the business from the foundation to growth. The transformation of the wishes of the entrepreneur, to belief and the belief to reality is driven by an energy source only generated in oneself through thinking, meditation, knowledge, understanding and wisdom. This energy which sets the entrepreneurs apart, can be drawn by anyone who has such self-control to develop the mind to the point of obedience to the Infinite source of all things.
Anyone aiming to start a business venture on this earth must understand that there is a Spirit behind every business, and all entrepreneurs have absolute control of their minds and are obedient to their inner thoughts. The discovery of self is the beginning of wisdom and a successful business venture.
Check out my blog for everything you require to build a strong business with a solid foundation.
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Entrepreneurs Should Aim To Sell Joy, Hope, Happiness and Peace of Mind.
The goal of everyone on earth is to find joy, hope and happiness in life and have peace of mind in something. Human interaction in all forms provides avenues and routes for developing the sense, feelings and emotions of this goal. These interactions can be commercial, social, religious and technical as the case may be. Often a form of exchange of products, services and activities forms the platform for these interactions.
The individuals responsible for the transformation of these interactive sessions, and the ones that added value to the reality, and fulfilment of goals are the entrepreneurs. Through the power of faith and creativity, entrepreneurs transform wishes into beliefs and then beliefs into reality. When entrepreneurs transform either physical or intellectual resources into products and services, they create values that bring joy, hope, or happiness to the user or consumer, as the case may be.
On the other hand, when the entrepreneur adds value to the products or services through continual improvement and quality management, the business grows without much friction. Thus, the development of a quality mindset by the entrepreneur provides the ingredients for transferring the set goal of hope, joy, happiness and peace to the consumer. Products and services, provided by entrepreneurs that exceedingly meet their requirements bring joyful emotions to the customer and give them peace of mind.
Drawing from the above analysis, fresh entrepreneurs must understand that merely providing a product or service in itself is the main goal of the consumer. The consumer demands meet the needs of the moment and bring a smile to the face of the consumer or the system.
In order to achieve the capability to make customers happy and give them peace of mind, entrepreneurs must build into the company structure, a type of Quality Management system that fits their trade and ensures that customer’s needs are exceeded, while being met. In this way hope, joy and peace of mind are transferred to society.
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How A Fresh Entrepreneur Should View Delays and Failures.
I hope that this short story will help my readers learn patience, endurance, perseverance, and consistency in mindset. Several new entrepreneurs are always in a hurry to start off and hit the road, forgetting that the incubation period of their chosen business varies in accordance to the business sector of the economy it belongs to and the legal and commercial environment in which it is being established. The story I am about to adapt from the animal kingdom will help those who are still in the phase of struggle while their mates are about to settle in their chosen businesses.
When I was preparing for entrepreneurship 33 years ago, I did what I know to do and that is teaching those that work in industries to improve their understanding of the technicalities of their work and develop the skill to use known principles to solve industrial problems. I registered my organization legally and sorted out administrative issues and regulatory operational permits without understanding the applicable commercial issues associated with the incubation of my training and consultancy business.
Sometimes during this incubation period I lost hope, became inpatient and no longer derived satisfaction from my work because I wanted to achieve more in life so quickly to justify the reason I left University lecturing to industrial training. I then tried to figure out other ways of moving on quickly but what had to be must be. This lesson was very hard to learn..
One of the hardest tasks while preparing for entrepreneurship is to stay focused on your goal with no distractions.
When one starts a business in an environment that is not organized and volatile, where time and hard work does not mean to anything, where other are enjoying their life to the fullest without hard work, where people with goals are failing in their endeavors, trying for an onsite opportunity or switching the organization for better packages through entrepreneurship is very daunting. Often new entrepreneurs are alone, fighting for an uncertain goal, staying away from friends, devastated sometimes after seeing friends/people are getting settled with their lives while they are still struggling to do something good in life.
One fine day, I stumbled upon this picture story of A Pregnant Elephant on the internet and it helped me to stay motivated all the time in my entrepreneurship journey.
Below is the story of a pregnant Dog and the pregnant Elephant. Enjoy the dialogue.
For fresh entrepreneurs it is important to focus on the goals of the business and keep learning patience, endurance, perseverance and consistency of vision because the longer the incubation the more significant, mighty and great the fruit is. The young entrepreneur must learn to keep faith in self and think about success not failure. The journey to maturity in entrepreneurship has been beautiful, friutful and memorable.
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Entrepreneurs Must Get System and Structure Right
In my last two articles, I advocated for the establishment of a form of quality management system in any nascent business venture. Further, I outlined the various types of business structures that are possible to establish in Nigeria and their structures. In the article, it was emphasized that the structure must fit the vision and mission of the business venture to offer the intended services and product effectively, and thereafter grow to sustainable levels.
Following my 37 years of experience in Geological and Environmental Data collection and interpretation for various businesses in different industries, I have come to understand the importance of having a sound system and structure. A business system is an organized way of carrying out business activities, through the interdependence of processes, each with a step-by-step procedure for achieving the ultimate goal of the process. I have seen companies with huge potential struggle because of the failure in their structure and systems design.
The budding entrepreneur needs to establish a business venture that incorporates a system and structure from beginning to end, that can consistently drive predictable outcomes. -
Which Companies Can Be Registered and Operated in Nigeria?
Companies and Allied Matters Act (CAMA) is the legislation that improves and promotes a better business climate and provides a regulatory framework for doing business at different levels in Nigeria. The Corporate Affairs Commission (CAC) registers business ventures in Nigeria.
The Companies And Allied Matters Act, amended in 2020 and effective in 2021, made several welcoming changes to the law. It introduced the Limited Liability Partnership and limited partnership, which had hitherto not existed in Nigerian law. The choice of the company that is best for a particular business will depend on several factors, the business goals, the number of owners, and the level of liability protection desired.
The simplest form of business entity is the Sole proprietorship or a Business Name or Trade Name and may operate as a partnership. It is simply the case of an individual or set of individuals doing business through a registered trade name. In the eyes of the legal system, the business venture is the same as the people running it and cannot have over 20 members.
A company is a more complex business entity with shareholders, directors and a secretary. It is a legal person and has a distinct personality different from its owners. There are three types of companies recognized by Nigerian law they are:
- A limited liability company (LLC) is a type of business entity that limits the liability of its owners. It can have one or more owners (members) who are not personally liable for the debts and obligations of the company.
- A company in which the liabilities of its members are unlimited by share is called an Unlimited Company.
- Company Limited by Guarantee is a not-for-profit company as members do not share profit, but Plough back the profit in the business. This company is registered to promote commerce, art, science, religion, sports, culture, education, research, and charity. The income and property of the company are applied solely towards the promotion of its objectives only.
The member’s liability is limited to the Guarantee of not less than N10,000 for each member. Each of the companies above can either be private or public.
A Private Limited company (Ltd) is a business entity that is privately owned and has limited liability for its shareholders. The private company may not have a secretary and must have at least one member who is the sole director and not over 50 members.
A public limited company is a business managed by directors and owned by shareholders and can offer shares to the public. These companies must make their financial reports public, so would-be shareholders can have all the information they need before investing. A public limited company is also quoted on the stock market and should be more open about its details than a private company.
A Limited Liability partnership is a business structure formed by two or more individuals or corporations to make a profit. One distinct feature is that the liability of the partners involved is limited. Also, a limited liability partnership must have at least two designated partners who are individual partners or nominees of corporate partners. One of the partners must be a resident of Nigeria to ensure that they comply with the Companies and Allied Matters Act. They are also the ones who would be liable for any breach or contravention of the Act. The Limited Liability Partnership company also has a distinct legal personality. Hence it can sue and be sued in its name or purchase and own landed properties in its name. A partner in a limited liability partnership is not personally liable for the contractual affairs of the Partnership.
A Limited partnership is a business structure that comprises at least two partners and not over twenty partners. A Limited partnership company must consist of at least one or more entities called general partners and one or more limited partners. General partners are liable for all debts and obligations of the partnership. Limited partners are not accountable beyond the amount they have contributed.
A franchise is a type of business where the owner (franchisor) licenses or sells the rights to use their company name, trademarks open in new windows and business model to independent operators, called ‘franchisees’ in exchange for a fee.
A cooperative is a business entity owned by members and operated to share the profits and benefits of the business while each member gets a voice in the business operation. Services or goods provided by the co-op benefit and serve the member-owners.
Incorporated Trustee is a Non-Governmental Organization (NGO) made up of trustees appointed by any community of persons bound by custom, religion, kinship or nationality for any religious, educational, literary, scientific, social, development, cultural, sporting or charitable purpose. They usually seek funds from specific sources and must appoint a chair and secretary to manage their affairs.
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QMS in New and Small Business Enterprises.
Quality management systems (QMS) are a collection of business processes and procedures that ensure that products or services meet or exceed customer expectations. These systems are typically repeatable and measurable and depend on continual improvement in sustainability. Implementing a quality management system (QMS) in a new small business help ensure that products or services are consistently delivered to comply with customer requirements, relevant laws and other requirements.
A form of QMS from the beginning of a business venture ensures that the business grows into a brand name that delivers specific services that meet the client’s requirements.
Four kinds of quality processes are important in many industries: ISO 9001, AS9100, Six Sigma, and CMMI, but the correct quality system depends on the requirements of the business. The business must have a unique set of products and services, goals, values and quality objectives that suit better than others.
An ideal quality management system should be easy to integrate and use. It should meet the desired quality standards and show compliance with policies, strategic objectives and procedures. It should also be sufficiently flexible to change and adapt as processes improve through continual improvement strategies.
The key steps a young entrepreneur with a new small business venture use to incorporate QMS are the quality goals and tracking metrics to use. The next step is to identify the processes involved in delivering products or services and define the steps required to complete them. Documenting processes and procedures will include process maps, standard operating procedures (SOPs), and work instructions. To achieve this step, training employees on the QMS procedures ensure they understand how to follow them. Also, training them on how to use specific tools and equipment and complete specific tasks ensures they meet the client’s requirements.
The entrepreneur must set up measures to monitor performance against quality objectives. These measures include tracking customer satisfaction, monitoring product or service defects, and conducting internal audits. Continuous improvement of the QMS requires the identification of areas for improvement and the implementation of corrective measures. It includes conducting root cause analysis and tracking process improvements.
Effective recordkeeping is key to the success of QMS certification and regulatory compliance. During QMS design, entrepreneurs create specific definitions of records and make policies for document creation, retention, and editing.
The specific steps required to implement a QMS in a small firm may vary depending on the needs of the business. Entrepreneurs must seek guidance from a qualified consultant or QMS company that can help the business.
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Why A Young Entrepreneur Must Understand Business law Before Starting A Venture
Business or Commercial is a branch of civil law that involves the study of business organizations, their legal rights and duties, and their relations with each other, stakeholders and with the government. Understanding and applying business law concepts keeps a business venture safe and efficient. Entrepreneurs must understand the legal aspect of the business venture before even opening their doors for business, otherwise, they end up spending a lot more money than necessary.
Understanding and applying business law precepts and principles early, helps the entrepreneur keep the laws of the government, avoid lawsuits and set up a sound foundation for the venture. As a young entrepreneur, one of the most significant benefits of understanding business law is the ability to comply with legal and other requirements. Business law governs a range of legal obligations that entrepreneurs must follow, such as registering their business, getting necessary licenses and permits, and paying taxes. Another benefit of understanding business law is the ability to mitigate risks.
Entrepreneurs who understand business law identify potential legal issues and take proactive steps to prevent them. This can help avoid legal disputes, lawsuits, and other legal problems that can damage the business’s reputation and financial health. Entrepreneurs need to negotiate contracts with customers, suppliers, and other stakeholders. Understanding business law helps entrepreneurs understand the terms and conditions of these contracts and ensure that they are legally binding and enforceable. Intellectual property is a crucial asset for many businesses, and protecting it is essential for their success. Understanding business law helps entrepreneurs identify and protect their intellectual property, such as trademarks, patents, and copyrights.
Finally, understanding business law can help young entrepreneurs make better decisions. Knowledge of business law provides entrepreneurs with the tools to assess legal risks, evaluate legal options, and make informed decisions that align with their business goals.
Overall, understanding business law is crucial for young entrepreneurs as it helps them comply with legal requirements, mitigate risks, negotiate contracts, protect their intellectual property, and make better decisions.
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Why Is Industry Knowledge An Essential Ingredient of A Successful Business Venture?
Industry knowledge is crucial for any business venture because it provides a foundation for making informed decisions, understanding market trends, identifying opportunities, and managing risks. It’s important to have industry knowledge because it allows the entrepreneur to stay updated and informed of constant trends and changes that might occur in their industrial sector. Some entrepreneurs prefer to hire knowledgeable employees with advanced industry experience. This is often because they can typically apply their industry knowledge to develop and submit quality tasks that improve the company’s performance, increase revenue and make them stand out from competitors.
Industry knowledge allows entrepreneurs to gain a deeper understanding of the market they plan to enter, including the target customers, competitors, and key trends. With this understanding, entrepreneurs can identify gaps in the market and tailor their product or service offerings to meet the needs of their target customers. Similarly, Industry knowledge helps entrepreneurs spot opportunities for growth and expansion, such as new markets or emerging trends. By staying up-to-date with industry news and developments, entrepreneurs can stay ahead of the curve and capitalise on new opportunities.
In addition, every industry has its own unique set of risks and challenges. By having industry knowledge, entrepreneurs can identify potential risks and develop strategies to mitigate them. This can minimize losses and protect the business from failure. Moreso, investors, customers, and partners are more likely to trust entrepreneurs who have a deep understanding of their industry. By demonstrating industry knowledge, entrepreneurs can build credibility and establish themselves as experts in their field.
Modern clients expect entrepreneurs to have a strong understanding of updates in the industry so that they can offer guidance, support and project ideas that improve their client’s businesses. Professionals who work in marketing can also use this advanced industry knowledge to publish content that educates current and potential customers. This can make the company stand out from its competitors and establish it as a trusted source and thought leader in the industry.
Overall, industry knowledge is an essential ingredient for any business venture. Without it, entrepreneurs risk making uninformed decisions that can lead to missed opportunities and increased risk. With industry knowledge, entrepreneurs can make more informed decisions, identify growth opportunities, and mitigate risks, ultimately increasing their chances of success.
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How Knowledge, Understanding and Wisdom Creates Wealth and Abundance
The earth is filled with treasures and is a reservoir of wealth and abundance. The key purpose of entrepreneurship on earth is to harness, multiply and control earth resources for the benefit of the human race.
Through knowledge, understanding and wisdom entrepreneurs relate the biotic and abiotic components of earth’s treasures and continue the work of creation and transformation by forming products and services that enhance the lives of people. Many things we see come from ideas, unseen things that have been imagined by entrepreneurs, and through wisdom they use knowledge and understanding to form the foundation of creativity.
Knowledge is the foundation of entrepreneurship. Entrepreneurs need to have a deep understanding of their industry, their customers, and the challenges they are trying to solve. Without knowledge, entrepreneurs are likely to make costly mistakes, overlook critical opportunities, and struggle to build sustainable businesses.
Understanding is about applying knowledge to specific situations. Entrepreneurs need to understand how to take their knowledge and use it to create value for their customers. This involves understanding how to identify and solve problems, how to communicate effectively, and how to create products and services that meet the needs of their target market.
Wisdom is the ability to make sound judgments, and decisions based on experience and understanding. Entrepreneurs need the wisdom to navigate the challenges of building a business, including managing risk, making tough decisions, and adapting to changing market conditions. Wisdom comes from experience, and successful entrepreneurs are constantly learning from their mistakes and using that knowledge to make better decisions in the future.
Knowledge, understanding, and wisdom are all essential for entrepreneurs who are seeking to build successful businesses. The mind of the entrepreneur is the operating engine of wisdom. The earth is filled with treasures and reservoirs of wealth and abundance and it is the goal of the entrepreneur to search them out, through knowledge, and create values from these treasures through understanding. No one can see these treasures and apply the knowledge without wisdom. Entrepreneurs can only build sustainable businesses through wisdom. By having a deep understanding of their industry, customers, and challenges, and by applying that knowledge to create value and make sound decisions, entrepreneurs can build sustainable businesses that create value for their stakeholders.
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How An Entrepreneur Should Build Leadership Skills
Leadership is a skill that enables entrepreneurs to achieve their goals. It is necessary for every aspect of life and has its prime importance in business ventures. True leaders have integrity they are forthright with their business deals. They also communicate openly and often to ensure that they are properly understood. Entrepreneurs, who build leadership skills are essential to managing and growing their businesses. Here are some steps they take to develop your leadership skills in their companies:
Lead by example:
Entrepreneur, who intends to build leadership in their company should aim to be role model for their team. They demonstrate the values, ethics, and work ethic that they want their team to follow.
Learn from other leaders:
Attending seminars, reading books, listening to podcasts, and learning from the experiences of the leadership styles of successful entrepreneurs and business leaders breed good leaders in an organisation.
Communicate effectively:
Effective communication is crucial in leadership. Learning how to communicate ideas, goals, and expectations clearly to your team is a very critical skill for a leadership position in a company.
Empower the team:
It is crucial to encourage the team to take ownership of their work, give them autonomy, and trust their abilities. It is also important to make the team understand that it is critical to accept and learn from mistakes and failures while building leadership skills. This will not only boost the team’s confidence but also free up their time to focus on other aspects of the business venture.
Be open to feedback:
A leadership student asks for feedback from the team and other stakeholders and is open to criticism. This will help them identify their strengths and weaknesses and improve their leadership skills.
Set clear goals:
Defining the business goals and communicating them to the team by breaking them down into smaller, achievable milestones, and tracking progress regularly builds a smart business through leadership.
Lead through change:
Entrepreneurs must adapt to changing market conditions, technologies, and customer needs. Learning to lead the team through these changes by being agile, flexible, and innovative is the mark of good leadership.
Remember that leadership skills are not developed overnight. It takes time, effort, and a willingness to learn and improve. Entrepreneurs should be patient, persistent, and consistent in their efforts to build their leadership skills, to see the benefits in the growth and success of their business.
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Why Financial Knowledge is Vital for Entrepreneurs
Financial and accounting knowledge refers to the understanding and awareness of financial concepts, principles, tools, and strategies that help individuals and entrepreneurs make informed decisions about their financial affairs.
Financial and accounting knowledge covers knowledge about personal finance, investment, budgeting, risk management, taxes, and other related areas.
Entrepreneurs need to have the financial knowledge to effectively manage their finances, achieve their financial goals, and make sound financial decisions. Financial and accounting knowledge can be gained through education, experience, and professional advice from financial experts.
Entrepreneurs need financial and accounting knowledge for several reasons:
- Financial management: Accounting and financial knowledge help entrepreneurs manage their finances effectively. They can keep track of their income, expenses, profits, and losses. This allows them to make informed decisions about their business, such as when to invest in new equipment, hire new employees, or expand their operations.
- Budgeting: Entrepreneurs need to create budgets to plan their spending and ensure that they are not overspending. Financial and accounting knowledge can help entrepreneurs to create accurate and realistic budgets based on their income and expenses.
- Tax compliance: Entrepreneurs must comply with tax regulations to avoid penalties and legal issues. Financial and accounting knowledge can help entrepreneurs to keep accurate financial records, calculate their taxes correctly, and file their tax returns on time.
- Access to funding: Entrepreneurs often need to raise funds to start or grow their businesses. Investors and lenders require financial information to assess the viability of the company. Financial and accounting knowledge can help entrepreneurs to prepare financial statements and reports that demonstrate the financial health of their business and its potential for growth.
- Business planning: Entrepreneurs need to plan for the future and set goals for their businesses. Accounting and financial knowledge can help entrepreneurs to create financial projections based on historical data and market trends. This allows entrepreneurs to make informed decisions about the future of their businesses.
In conclusion, financial and accounting skills are essential for entrepreneurs because they provide the information they need to manage their finances effectively and make informed decisions about their business ventures.
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Goodwill Ofunne 