The
Basic Scopes In Business Optimism.
This
context will enhance the basic needs of an organizational business management
and editorial roles in making profit in any render-able service. Below are some
hints to focus on business managerial roles.
To enhance beneficiaries knowledge on profit
maximization.
ü To
encourage budgeting among beneficiaries.
ü To
enhance wealth creation.
ü To maintain a proper cash flow.
ü To
encourage record keeping among beneficiaries.
ü To
control finance
ü To
ensure confident financial decision
FINANCIAL
MANAGEMENT
What is
financial management?
Financial management refers to the efficient and
effective management of money (funds) in such a manner as to accomplish the
objectives organization or individual management strategy. It includes how to
raise the capital and how to allocate capital, i.e capital budgeting.
Finance is the life blood of any business and it
is not possible to form any business without it. Good financial management is
critical to the ongoing success of you business
Financing is needed to start a business and ramp
it up for profit making. There are sources to consider when looking to start-up
financing. But first you need to consider how much money you need and when you
need it.
The financial needs of the business will vary
according to type and size of the business. For example, processing businesses
are usually capital intensive, requiring large amounts of capital. Retail
businesses usually require less capital.
Debt and equity are the two major sources of
financing a business. These are two ways of financing business.
EQUITY
- Equity financing means exchanging a portion of the ownership of the business for financial investment in the business. The investment should be properly defined in a formally created business entity. Type of equity sources include: Personal saving, Life insurance policy, Friends and relatives Home equity loan and Government and Non Governmental organization grants.
DEBT
- Debt financing involves borrowing funds from creditors with the stipulation of repaying the borrowed funds plus interest at a specified future time. Debt financing may be short term or long term in their repayment schedules. The reward for providing the debt financing is the interest on the amount lent to the borrower.
o Debt financing may be secured
or unsecured
o Secured
debt has collateral( a valuable asset which the lender can attach to satisfy
the loan in case of default by the borrower
o Unsecured
debt does not have collateral and places the lender in a less secure position
relative to repayment case of default.
This type of financing can be obtained through
Banks and other commercial lenders, government programs and bonds.
HOW TO START
The following questions are relevant during
planning for your business.
o What
business should you start (if none)
o Things
to do before you start a business
o How
to raised finance
o Setting
up the business
o Regulation
and practice
o Dealing
with suppliers
o How
do you begin to sell my product
o Get
further advice and support
What business should you
start?
There are multitudes of
options available depending on the business available at the location and the
choice of business an individual opt for. In starting a business, most major
priorities are identification, costing and site location.
o Part-time
business
o Franchising
o Buying
a business
o Start-ups
can run from home
o Budget
Things to do before you start a business?
o Choose
a business structure
o Market
research
o Write
a business plan
o Think
about your brand
o Finance
How
to raised finance
o Investigate
potential grant
o Apply
for a bank loan
o Get
funding from the Government or start up grant NGO
o Friends
and families
Setting up the business
o Get
equipped
o Location
Regulating, practice and customer relationship
o Protect
your intellectual property
o Understand
tax law
o Source
the best suppliers
o Be
friendly to customers
o Purchase
Goods that are quality
In relation to customers, business must possess
an attitude or behavior that will ensure regular visit by customers. The level
of growth recorded or success achieved depends on the number of customers that
visit your business location. In addition the quality of items attract too
because that alone give value for money and services.
FACTORS THAT AFFECT BUSINESS
Business are easily affected by the following
§ Lack
of budgeting
§ Mismanagement
of finance
§ Improper
behavior toward customers
§ Lack
of communication