Thursday, April 10, 2014

Few things to consider before starting a business


The ideas in this piece is not totally mine but  a product of a book titled “So you want to start a business: 8 steps to take before you make that Leap” by Edward D Hess and Charles F. Goers, 2008. With this book starting a business is easy and a great fun. Some of the steps to prerequisites of starting a new business are as follows:

SHORE UP YOUR SAVINGS
Before you think of starting a business, make sure you have savings of at least six months of your salary. In the earlier notes, I refer to this as  your emergency fund. This saving will help balance you out in the first six months of your business when you will be working hard to create a brand and win new customers. In this way, you can meet your obligations and live a decent life.

Sourcing for capital

Engage Partners not Lenders
As much as is possible, do not borrow from a bank to start a business? Yeah, you say that is so easy right!!!  Before you draw up a plan, or do a feasibility study think up at least five people who you know trust your judgement and character, and would support you in whatever you do. Let them be your test market. Sell the idea to them, gauge their reactions and take positive  feedback from them. From there, you can launch  out and engage partners or stakeholders who will invest in your business. Aim to raise/save enough money to pay your rent, your monthly working expenses and at  least one year’s salary of your staff. This way, you will not be under undue pressure for cash. The killer for most start up business is a lack of finance or access to funds in the first year.

LEARN THE BUSINESS
Please, do not start a business because your neighbour  did it or you assume it is a simple thing to do. Do a proper research and study of the business environment. If possible, understudy in an existing company and learn the ropes there.

START PART TIME
Start  on a part time basis and grow the business to such a stage that you can leave your job and focus on it.

CHOOSE A MENTOR IN THE SAME LINE OF BUSINESS
Yes, you need to have someone who has been through  the start-up phase in the same terrain to teach you the ropes. Knowledge is never too much but can be too little. Humble yourself and learn from the mistakes  or experiences of others. You will be better prepared  to deal with the challenges that come your way.

PLAN FOR FAILURE
Too many business plans to turn a profit in the first month and that in itself is a sure way to lose your courage. Give yourself and your business time to grow.  In your projects, plan for no sales or customers in the first three months.  Prepare for rejections or outright refusals to patronize you. Use the feedback to fine-tune your value proposition and come back with a winning punch. It is unrealistic to expect to turn profit from day 1. Having looked at his pre-start requirements, let’s consider some basic rules and steps to take.

CHOOSE A GOOD BUSINESS OPPORTUNITY
A business idea is very different  from an opportunity. An opportunity equals revenue potential and that is what should always drive your business. A business opportunity must have the following:
·        Potential customers
·        Access to these customers
·        Customer’s ability to pay for the goods or services.

CHOOSE THE RIGHT CUSTOMERS
Know the class of customers you want to service. Research their buying habits and threshold for loyalty. Do not think because a group displays a certain style, they will automatically appreciate our services.

CHOOSE THE RIGHT CUSTOMERS
Following  from the above, build your product around the customers. Today’s customers know what they want and you can’t squeeze  them into what you think is right for them. Though they may buy once, you will not build a sustainable business with one-off client. You need repeat customers.

PRICE RIGHT
Do not over price or under-price your goods and services as either way may kill the business. Choose the right price so the customer understands he is getting value for money.

PEOPLE ISSUES
Seek to employ qualified personable people. This is a tough one to follow as there is dearth of qualified personnel in today’s market. However, if you can find personable teachable people, then commit to regular training and skill upgrades to make up.

EXECUTION
After you have made all the fancy plans and reports, execution remains your biggest challenge. Execution is simply your ability to carry out the plans and bring them  to reality. You will need to be courageous; bold; daring and fast mover. Sometimes, the courage to make the first step is worth a lot more than all the business plans and investor agreements. All the aces may not be accurately lined up but with a first step you put things in motion for success.

Edward D. Hess, JD, LLM,  has spent most of his life in business advising entrepreneurs and financing their business ventures. He is a Professor of Business Administration and Batten Executive-in-Residence at the Darden School of Business, University of Virginia. He has personally built three successful service businesses. His website is www.edhltd.com
Charles F. Goetz, MBA, Distinguished Lecturer in Entrepreneurship at Emory’s Goiszueta Business School. He has built nine successful businesses in six industries. He serves on the boards of several entrepreneurial ventures and not-for-profits. He recently published The Great Entrepreneurial Divide. His specialties are marketing, customer acquisition and product development.
 



 

Freedom from Debt: GOD’S WAY!


Preamble 
Contentment is crucial if you must stay out of debt. Jesus does not gather people to use them, but rather to bless them. He is not an opportunist taking advantage of people. No matter what debt you are in right now, God has the resources to bring you out of it within a twinkle of an eye. The truth is truth for all ages and all times. The day you get addicted to following the truth, you have committed the author of life to take charge of your affairs. 

Debt has become an acceptable way of life for most people. Unfortunately, due to this mind-set, they will remain in bondage to it. To eliminate debt from your life, you must change the way you think about it. God does not want anyone to be in debt; however, if you are  in over your head, He has  a way out to deliver you out of it once and for all.
There are two ways  to get out of debt. You can use the world’s system or the kingdom of God system. World in the bible doesn’t  necessary  refer to the physical world, but a way of doing things. In 1Corinthians 7:31, the Greek definition for world is “worldly affairs”, which include the whole circle of earthly goods and riches, while although fleeting, stir desire, seduce from God and are obstacles to the cause of Christ”.
The world’s system is influenced by Satan and is designed to keep you in bondage. Methods of debt reduction include bankruptcy, second mortgages and ways to “manage” debt, such as consolidation and signature loans. These options may look good at first, they often lead to a dead-end.


It is disheartening  to see people develop great faith for something like healing but quickly charge or obtain loans for the items they desire, not the items they need. Often they don’t  even consider trusting God for the  increase necessary to purchase  whatever it is that they want. Instead, people continually fall back on the things they can see and touch. Others attempt to do things God’s way, but stop when it does not seem to be  working. They have not implemented  certain requirements – such as checking their hearts for unforgiveness  or offense, tithing or showing love towards others, for God to be able to work in their lives.
God has proved Himself time and again throughout the Bible. He is not a respecter of persons (Romans 2 :11). If He delivered one person from debt, He’ll do it for you as well. Rest assured that God has a way out for you, but it is up to you to take the time to hear from Him and then follow His instructions.

GOD’S WAY OR THE HIGHWAY

Matthew 3:33 (AMP) says, “But see first of all His kingdom and His righteousness (His way of doing and being right), and then all these things taken together will be given you besides.” Your aim, or focus, should be directed towards God’s  way of doing and being right. According to the scripture, if you follow God’s way, then the things that you don’t have will be given to you. These includes things such as money, promotion and favour.

What does the Bible mean by “God’s  way”, when it concerns money? The parable of the sower, or farmer, in Mark 4 : 11 – 29 reveals the  answer to this question.
Basically, a farmer sows seed to produce a crop that will ultimately be sold. From the proceeds of the sale, he is then able to pay his bills and feed his family. You could say that he has to sow to make a living. Likewise, a sower (one who gives to the kingdom of God above his or her tithe) sows seed  for a living. I encourage you to become a sower who gives to live and lives to give.
Many people look at their jobs as their only source  of income. How well does it sustain you? Does it meet all of your needs, including everything God asks you to do? Probably not. Your job alone won’t get the job done. It is therefore an avenue whereby you can collect seed. It is therefore an  avenue whereby you can collect seed.
Before you sow any type of financial seed, you must sow the word into your heart. The Bible calls the Word of God an incorruptible seed (1Peter 1:23). In other words, the Word will always produce a harvest. You should not consider sowing money if you have not first sown the Word into your heart. Why? You must have a clear understanding of the purpose for the blessings of sowing before you can become a willing and cheerful giver.

After the word is sown in your heart, it must be cultivated. In following the farmer’s example, he waters and fertilizes the seed after it is planted. He can’t afford to lie around and neglect his crops. Likewise, you can’t neglect the things of God, such as reading your Bible, praying and living a life that is pleasing to Him. A quick way to keep your seed from growing is to get caught up in sin. This could range from bitterness and gossip to lying, fornication or adultery. Sin of any type will block your harvest from manifesting.
Mark 4:2 says “…so is the kingdom of God, as if a man should cast seed into the ground”. Combining this scripture with Matthew 6:33, the verse  could read, “seek ye first (seed time and harvest time)… and these things shall be added unto you”. This is God’s way of doing things. Before a farmer can harvest a crop, he first has to sow seeds. Likewise, before you can receive, you must give.
If you  want to get out of debt, stop looking at the world’s way of debt cancellation. Look to God’s way of seed, time and harvest.


Sowing into the kingdom of GOD  unleashes an awesome force. You may not start off giving large amount of money, but the $5, $10 or $20 you sow will release God’s unlimited power towards your debt reduction. Giving is loading your cloud and when your cloud is full, God turns it into showers. (Joel 2:23) (Eccl 11:1-3). These showers come in the forms of favour, breakthrough, divine ideas, etc.

Some Covenant Channels of Giving
·        
   Worship Offerings We are admonish not to appear before the Lord empty handed. Our worship offering is not complete without our seeds being involved.
·       
       Project offerings Deuteronomy  16:16-17).
·      
     *   Giving to the poor He that gives to the poor shall not lack. Proverbs 19:17, Proverbs 28:27, Psalm 41:1-3
·         
    * Giving to charity:  This is giving for the common good. Job 38:3-18, 2Corinthian 9:8, Matthew 25:31-44

·        * Giving to parents: Genesis 27:1-end

·     * Kingdom Investment: Investing towards the expansion of the kingdom. Haggai 1:3-11. Exodus 35:4,16,22.
·         
     * Tithing
·       
           *  Prophet offerings

YOU REAP WHAT YOU SOW Luke 6:38

Giving provokes the release of blessings and blessing is the cure to curses.  Looking also at Luke 6:13, “And as ye would that men should do to you, do ye also to them likewise”. If you want to be released from debts, start by releasing those who owe you. Verses 32-35 explain how easy it is to do things for the people you like. But anybody can do that! You will receive a greater reward, however, if you do this for those you don’t see as your friends.
 Giving is not enriching the church but empowering the giver. Give to those who don’t give in return. The law of seed-time and harvest will never cease as long as the earth remains (Genesis 8:22).

Whatever you sow will produce a harvest (Luke 6:36-38). When someone treats you badly, don’t sow the same seed, instead, sow a good seed. You will reap a good harvest while the opportunity to sow “do-good” seeds instead of do-bad seeds.
Jesus said that when you give, it would be returned to you. The word promises that your harvest will be pressed down, shaken together and running over. If you help one person get out of  debt, God will use someone else to help you get out of debt.
As  you follow God’s way today, I see unusual favour from God flowing your way. (Genesis 7:11)
Finally, know that in this kingdom, it is either you  are a giver or a beggar.