Quick Maths (1): How to generate income to start a business with FDSH Asset Management
Smart moves early in life can pay BIG long-term….. Now, what’s the point in looking good and slaying when your bank account isn’t smiling back at you? Listen. This is the year to SLAY 100%, and we’re ready to show you how to make money moves the right way. So, are you ready to cash out like Cardi’s got nothing on you? We are partnering with FSDH Asset Management Ltd to share with you a 4 part downloadable guide to enable you to boost your finances. We want to make sure that every Motherland Mogul is prepared to master the money world. [bctt tweet=”Learn how to generate funds to start your business with @FSDHCoralFunds. Click here for more: bit.ly/FsdhGuide1″ via=”no”] Topics this 4 part series will cover: Seed Money: How to generate income (capital) to start a business. Diversifying: Different ways to save and protect savings (for low and high-income earners). Bottom Line: How to use your business net income to your advantage Emergency Funds: Why you must have some investments. Now let’s talk about you. You’re about to start a business but you need capital to begin? Girl, we’ve got you! In this first downloadable guide, we’ve done some Quick Maths for you, highlighting how you can generate capital for your business or launch your new project. First, you need to understand that money does not come for free, as a MotherlandMogul, you have to know what your options are, and work towards them. After reading this first downloadable guide, you’ll understand what moves to make to get closer to your money goals. But what’s next after you get that capital and the bills start rolling in? We have more juice coming your way. To continue learning basic principles that will lead to a happier and healthier financial you, get prepared for our next guide. Because girl, we’re going deeper. FSDH ASSET MANAGEMENT LTD – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm. FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel. Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive. Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered. Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide, remember this is only part 1, there’s more to come – so stay updated. By joining our community, you also get to enjoy our AWESOME weekly content as well.
Lessons on Pitching: from JamJar Founding Partner Frances Quarcoopome
About Seedstars Pitch competition Seedstars World promotes, connects and invests up to $1.5 million in emerging market startups, through its exclusive startup competition, held in in 60 countries. Seedstars is one of the largest pitch competitions in the world, they hold a series of local start up competitions, a regional one and then global. The motivation to pitch I had been following Seedstars for over 3 years, and had been thinking about pitching, however I didn’t quite have the idea yet. I just knew that if JamJar was going to expand into Africa we needed something scalable and relevant. Within the last 3 years of working in the events industry, our experience has highlighted challenges that our customers face, particularly international customers who are unsure about the African market. I decided there was a solution for this: A platform which makes it easier for clients to find, book and plan events in Africa, through our network of venues and suppliers. This is what I pitched and although it was my first time pitching ever, I came second place. The whole experience of pitching was thrilling and also interesting, in terms of venturing into the tech space. The one thing I noticed was also the fact that in Accra, I was the only woman pitching. Now, some people say this would have been an advantage, but considering that all the other contestants and the judges were male, I wasn’t too sure. I did however see this as a great opportunity to stand out further by delivering a stellar pitch. Lessons learnt as the only woman pitching Don’t be intimidated, You know what you are capable of and no matter what, do what you have to Put your gender aside, let your capabilities shine through Never see it as a problem, rather an opportunity to stand out from the crowd. Lessons for a successful Pitch Be clear about what your product is and what you are trying to achieve Practice your pitch, but most of all, your answers to the tough questions Get a mentor, someone who has pitched before that can guide you and give you valuable insights Sometimes it’s not about whether your product is good, but what the pitch competition is trying to achieve. You may have the perfect pitch, but if your solution doesn’t align with the goals of the fund, it may not work out. If you can find this out before hand, do so. The key here is to keep going, believe in what you are trying to create, and the problem you are solving. The biggest lesson I learnt is that, there is still a long way to go for people and companies to acknowledge the tech innovations in the creative industries, particularly fashion, events, photography, design etc. Many investors continue to focus on Fintech, agriculture, health and education, and although these may be the big industries, it’s also time to value the creative and service industries and provide them with the support they need. About JamJar JamJar was created in 2013 out of frustration with the way corporate and creative events were organised in Ghana. Many events felt poorly organised and were identical. As a result JamJars’ founding partner, Frances Quarcoopome, found the need to put her skills to work and provide the industry with a creative alternative. JamJar continues to be recognised for its innovative and forward thinking design concepts and exceptional event planning services. Their vision is to be the top African creative agency, fueled with passion, innovation and the desire to make every client happy. http://www.jamajrgh.com/ instagram.com/jamjar Do You have any tips on how to deliver a successful pitch? Let us know here.
4 Steps To Get The Raise You Deserve
There is nothing like excelling at a job you love! This is the job you have always dreamed of, and this is a career which allows you to fulfill your purpose- Monday to Friday 9 to 5. There is just one problem, you feel undervalued, underappreciated and no one seems to notice how you go above and beyond for this company. You have been at this organisation for a number of years and you have worked your way up the ranks, however, your salary has not had the upliftment you feel you deserve. Well it’s high time you demand your value be addressed accordingly. Here’s a four-step process to help you get that get the raise you rightly deserve. Conduct thorough research Find out what other people in a similar role are earning. What is the current going rate in the market? Whilst you are it, find out what other people on a similar level to you in the company are also earning. You want to know what to ask for when you go in guns blazing. By doing your research, be sure to also find out what the role entails for other people at other organisations. The same role can be different at two different organisations, others might do more or less. I recall during my legal days. As I was working as a Paralegal, I met other Paralegals from other firms who were earning more than me. Now as they told me of their higher earning power I was infuriated, but it turns out their roles demanded more of them than mine did. Your research should expand to you as a person as well. What have you been doing that entitles you to a pay rise. If you have been turning up late, missing days, taking extended long breaks and not performing well, perhaps you need to go back to the drawing board and think about why the company should not deduct your pay instead. Napoleon Hill said, going the extra mile, “tends to make one indispensable, in many different human relationships and it therefore enables him to command more than average compensation for personal services.”. Initiate the conversation Schedule a meeting with the person at your company who has the authority to give you a raise ,or bring it up during one of your reviews. Put the issue out there/ on the table. Don’t be aggressive and don’t be emotional in your address. You’ve done your research, come armed with facts and data. Remember, you are worth something to them and if they don’t see that, that is their loss. You are in control of this. Sometimes the company will not think about giving you a raise until you mention it. If you don’t ask don’t expect to receive. Stand firm in your worth If you have asked for a pay rise, be brave enough to stand up for yourself and tell the company what you think you are worth. If they fail to give you a raise, be brave enough to exude your worth, politely remind them elsewhere this is what they are offering, and you have no issues going elsewhere if need be. I would advise having a plan, if you decide to go down this route, just in case they call your bluff. This should not be too much of an issue. The only issue is as human beings we get complacent. I have worked in firms where some of my colleagues had been there for years, not earning much because they were comfortable at their work place. You may not be getting the pay rise you deserve because you are unwilling to explore. Have you considered moving to another city or even out of the country? Execute Whatever the outcome of your pay rise meeting is, execute the results. If a pay rise has been agreed on continue working hard and go the extra mile. If one has not been agreed on and you still feel you deserve one, figure out your next step. Are the reasons for the pay rise being refused justified? i.e let’s review it in three months. Are you willing to wait around or are you ready to make a jump into the next role? You need to see the value in you before you expect anyone to. As human beings, we are sometimes oblivious to our faults. Evaluate yourself and be honest, would you give yourself a pay rise. If so get to working on it and show them why you deserve one. Do you have any tips on how to get a raise? Let us know here.
Sonya Sandra Toukam Inah : Tips for taking up a banking career in Cameroon
In Cameroon, a banking career is every girl’s dream job. For one thing, working in a bank comes with a glamorous lifestyle, which most young ladies dream of; a well organised air-conditioned office, a safe place to work and obviously the glamour of dealing with money. But 25-year-old banker, Sonya Sandra Toukam Inah says being a banker takes a lot of hard work. There is no substitute for hard work, “you must be willing to work, to make a contribution and have a personal sense of identity”. Toukam has five years’ experience working with Union Bank of Cameroon. Throughout this time her humility, dynamism, and spirit have given her the opportunity to serve in several capacities in the bank. From an internship, Toukam has been able to accelerate all units of the operations department ranging from customer service, fund transfer agent, clearing officer and personal assistance to the General Manager at the prestigious bank. Toukam told SLA contributor Marriane that, even though dynamism and humility propelled her career, what really did the trick for her was hard work. She equally advocates for a great degree of clarity and purpose. “I think having clarity of where you are headed, is important. It is important to know where one is headed.” [bctt tweet=”having clarity of where you are headed, is important. It is important to know where one is headed.” username=”SheLeadsAfrica”] When asked for her advice to other young ladies who dream to take up banking as career, Toukam proposed the following tips: Ladies…you have to be clear on what your goals are and how important they are to you. When this is known, you have to go for it. But remember, nothing comes on a silver platter. Choose your subjects rightly and remember hard work is key. As an aspiring banker, you have to be confident, smart and above all well groomed. A good banker should be very optimistic. This is because your positive attitude is a pulling factor to all potential customers. A bank is a confidential institution; every potential banker should be of good morals and integrity. Lastly, you must be smart and willing to learn from your superiors and colleagues. Do you have a career in banking? What other tips would you offer aspiring bankers? Let us know here.
8 money tips from African finance experts
[bctt tweet=”We share inspirational finance tips from 8 African finance experts to get you going” username=”SheLeadsAfrica”] Where has all the money disappeared to? This is the age where financial literacy for women is needed more than ever! Whether you are just starting out in your journey to be financially savvy or already an expert, these tips from African finance experts can be a quick reminder and will also inspire you to continue on the journey to financial freedom. Take control “…don’t relinquish the financial health of your life or home to your partner; always give your input and direction. Single ladies don’t postpone your wealth creation activities until after you are married (which is not guaranteed) or have kids (which is also not guaranteed). Start creating a legacy NOW. Set up your own family trust, establish and define your own investment philosophies. Every individual is ultimately responsible for his or her financial health and outcome. You can’t blame anyone else later in life if you are in financial distress”. – Samke Mhlongo-Ngwenya, Founder Justsamke.com The time to start is now! “Lots of people in their 20s don’t save or invest because they are waiting to get a better job or start a business to earn more money but the truth is most millennials spend 30-50 percent of their paycheck on entertainment while they claim they are too poor or too young to save and invest but the reality is by the time you get to your 30s you realize you wasted a golden opportunity… time! It’s better to start putting a little aside when you have minimal responsibilities and take advantage of the power of compounding interest. You have to find a balance between having fun and having funds. Sometimes It’s okay to miss out to stack up”. –Arese Ugwu, Author “Smart Money Woman” Take responsibility “You worked so hard for your money; you owe it to yourself to ensure you protect it”. –Nimi Akinkugbe, Author “A-Z of Personal Finance” Say no to overspending “In order to build wealth and actually accomplish your money goals, you have to keep your spending under control. Start by tracking your spending in a detailed way – one way to do this is by keeping spending journals where you write down every transaction you make every day for 30 days (reviewing your spending each evening). This exercise will not only show you trends of where your money is going but it will keep you conscious of how and when you are spending”. –Bola Onada Sukonbi, Certified Financial Education Instructor [bctt tweet=”Being financially conscious is not easy, it is hard work, but it can be done – Mapolu Makhou” username=”SheLeadsAfrica”] Be a budget freak “A useful tool is to budget. Create a budget and live on a budget”. – Omilola Oshikoya, Life and Finance coach Know The Difference “…there is a huge difference between savings accounts and investment accounts. Knowing this will help you plan better for the future, help you choose the correct financial products and set you on your way to financial freedom”. –Nicolette Mashile, Founder Financial Literacy with Nicolette Mashile Don’t do it alone, seek professional help “…use an experienced fund manager, portfolio advisor, investment advisor or whatever you call it to manage your entire equities. They have access to tons of historical data. And with their skills coupled with advanced analytical tools, they are able to advise on rates and purchase of equities to maximise the full potential of your returns. Also note that, the experienced middleman will advise you on risks and diversification plans.” –Abeena Brigidi, Investment Analyst Finally, I leave you with the words of Mapolu Makhou, Founder Woman and Finance, “being financially conscious is not easy, it is hard work, but it can be done. Nothing good ever comes easy! Stay committed”.
Why review your business accounts?
[bctt tweet=”The bookkeeping records are the mirror that you look into to know how your business is performing” via=”no”] The ultimate goal of a business is to make money for the entrepreneur. On the way to attaining this goal, there are many things that you must do in your business which includes, producing the service or product, selling, managing your customers and keeping financial records. Record keeping sometimes referred to as bookkeeping is an integral part of a business and these records are the mirror that you look into to know how your business is performing. Once you have your records in place, the next important step is to use them to improve your business. This entails pouring through the numbers to understand the patterns and trends that the records reveal. For you as an entrepreneur, there are two reasons why you want to go over your business accounts; To check that they are accurate; reviewing your accounts allows you to make sure they give a fair reflection of the state of your business, which will help to highlight any weaknesses and areas for improvement, for example, you will be able to note the missing records, vouch estimates used and even assess how stock is being managed. To compare performance; when accounts are compared with previous years or with your competitors, they can show unique trends and help you learn from other businesses in a similar position to yours. Business accounts should be reviewed at least every quarter. [bctt tweet=”Reviewing your accounts allows you to make sure they give a fair reflection of the state of your business” via=”no”] What to look out for There are some important things to look out for when reviewing accounts. On the income statement check whether the business has made a profit in the year and whether revenue or costs has gone up or down compared with the previous year? The balance sheet will tell stories about how much money is in the bank. Remember, from the Cash is King article, we discussed why money should be available. The balance sheet will also gauge whether cash levels are moving in line with profit? On the balance sheet, you will be able to note if the stock level is reasonable and also whether there are any big payments due soon in terms of loan repayment or large invoices. When analysing business accounts, ensure there is nothing that is obviously missing and use ratios to help you to compare and contrast the performances of businesses. Comparisons can be made internally with past performance or budgeted results or externally with competitors or industry averages. It is good practice for the accounts to be independently reviewed and you can one or more of the following people to do this on your behalf: Any person other than yourself An accountant or An auditor In our ‘Reviewing Financial Accounts’ guide, you’ll find a section on key ratios for analysing business performance. It will provide you more information on how to go about reviewing your accounts. Download our guide on reviewing financial accounts here.
Bookkeeping for dummies
[bctt tweet=”Bookkeeping is an important skill to have when you’re starting your business” username=”SheLeadsAfrica”] One thing that you quickly learn when you start your business is that you’ll have to handle every aspect of it; from marketing your products, hiring your employees and most importantly getting a handle of your accounts. It is therefore important that you get a good understanding of the basic set of accounts for any business, how they relate to each other and how the different actions you take are represented in your books. The more your business grows the more complex it becomes and at that point, you might want to consider getting yourself some professional help. In this Forbes article, the writer talks about what you need to know about the 10% of start-ups that succeed. One of the things he talks about is making sure you understand the ‘’boring’’ stuff about your business. It is so easy to get carried away by the more interesting aspects of your business and forget to handle the less interesting but many times the most important aspects of your business. One of these is the accounting. What we are going to do here is to give you a basic introduction to the business accounting concepts that you need to understand as you run your business. Don’t be worried about whether or not you have an accounting degree, these are things you can do with your eyes closed. [bctt tweet=”Every business transaction is an exchange of one thing for another” username=”SheLeadsAfrica”] Double entry: All business transactions have a double effect on the accounts Every business transaction is an exchange of one thing for another. This is the basis of accounting, the idea here is to get an all rounded picture of where your money is going and keep yourself from small mistakes. As a boutique owner, you sell an outfit (inventory) in exchange for cash. This simple transaction has a double effect of increasing the amount of cash in your business while reducing the count of inventory. Very simply put that is double entry affecting your cash account and your inventory account. The accounts are interrelated At this point, we are basically building up on the double entry concept by creating an account for every element of your business. If for example, you did not sell the outfit for cash but for credit, then you’ll want to keep an account of the person to whom you sold the outfit to until you get the money in cash and then close off that account while increasing the amount of actual cash that you have. Every time you use your cash for something new then create an account for whatever aspect of your business is affected by that transaction. If it is an account that you already opened then you just keep building on that account. Balance the accounts You’ve probably heard this phrase before, what it simply means is that after some time you’ll want to know how your accounts look. Say every month or every week when you want to know where your business stands you’ll make sure that for every account you opened both sides have an equal amount. For example, your inventory account had a balance of $1000 when you started off, every time you sold something that balance reduced. Let us assume that at the end of the month your inventory reduced to $250, you’ll continue selling it off at the beginning of the next month so to balance your account the $250 will simply be considered as inventory carried forward. [bctt tweet=”Bookkeeping grows more technical as your business grows & there are many apps you can use to do this” username=”SheLeadsAfrica”] These are the basic accounting ideas that you need to understand. Bookkeeping, of course, grows more technical as your business grows and there are many applications that people employ these days to do this, however, the idea remains the same. In the next article in this series, we’ll help you understand the important accounts when doing bookkeeping for your business. We’ll talk about differentiating between cash and profit, understanding the incoming statement as well as the balance sheet.
How to monitor a budget to inform business decisions
[bctt tweet=”Budgets play a key role in the day to day decisions, here are 4 scenarios” username=”SheLeadsAfrica”] The budget is not only important for future decision making but for day to day decisions as well. To be able to use it this way, you must monitor it frequently by comparing your actual income and expenses versus what you had budgeted. When you notice differences in actual performance compared to your budget that is major, consider what caused the variance and what action you can take if the variance is negative or positive. To give you a look at how you can go about this process we will take you through four types of variances that can occur in your business and the kind of decisions you can make to remedy. 1. Sales aren’t coming through Sometimes the projected sales fall short of what was expected due to unforeseen circumstances; maybe a new competition came in or business was just slow. What this means is that you will have a stock in excess of what you had expected. This needs to be followed up by decisions that will enable your business to perform better; your options may include changing the sales strategy or buying less stock than was budgeted for the next month. 2. An employee disses you Maybe you had a bit of a tiff with one of your employees and they ended up walking out on your business. What does this mean for your business? Can the work be done without him/her? Can those left do additional hours? Do you need to budget for overtime? These are all possibilities that can arise based on losing an employee. This will determine whether the positive change in your budget will be a temporary one or a permanent one depending on how it affects the running of your business. 3. Your landlord is acting up… Unfortunately, this happens quite often than we would like to think about; worse still, you might not even get enough notice to organise yourself if the landlord increases the rent at the last minute. Based on the overall outlook of your budget, you can decide if your business can sustain the costs of an increased rental expense. The options you might have would be to negotiate the exact amount of increase or when the new rent amount can be effective to give yourself time to plan. You might also opt to look for more affordable space elsewhere, which may lead to double charges in the month of booking and moving. 4. Repair expenses went up Your loyal van is coughing, your mechanic is charging more for his services based on your desperation. Repairs will be higher than usual. You may not have very many options here except maybe try and find out if the rates are competitive and if it warrants you looking for another mechanic. If this specific expense is on a continuous rise then you might consider getting another van to reduce the monthly expenses. A new van brings in a whole other dynamic to your budget and your financial accounts. In addition to giving you a picture of how your business will look in the future, budgets play a key role in the day to day decisions. It is important to constantly monitor the difference between the budgeted expense and the actual expense and make decisions accordingly. Remember that the decisions should be based on the overall outlook of the budget and how one decision will affect another aspect of the budget. Consider the budget holistically and not as standalone budgeting decisions.
The 3 C’s of the budget cycle
[bctt tweet=”Before you create a budget for your business, you need to know what the budget cycle is” via=”no”] You are probably asking yourself what this thing called the ‘’budget cycle’’ is. You have heard about the budget and how it works but you are less likely to have heard about the budget cycle. The budget cycle simply refers to the phases or stages that you should go through while working on the budget for your business. Following this step-by-step process will help you make sure that your budget is actually beneficial to you and not just a dreaded process. 1. Coordinate This is the very first step of the budget process and is highly dependent on what you want to see happen in your business within the period that is relevant to your budget. Three questions you need to ask yourself What do I plan to do and achieve? How much money do I have to spend? What method will I use to budget? Obviously, you can only budget to spend money that your business already has or is expecting to get. You can project your sales based on past performance and consider that as expected revenue in your budget. The methods for preparing and presenting business budgets vary and are as many as there are businesses. If you haven’t been budgeting for your business though, this is a simple template that can get you started. 2. Construct This is where you get your hands dirty and prepare the actual budget. The past performance of your business and what you want to do in the year should drive this stage of the process. Also, consider engaging other pertinent people for your business. For example, your suppliers’ credit policies will determine how much you intend to pay out to them at what time. Carry out this process on a monthly basis before coming up with a full year budget. Just as with the financial accounts, have your budget reviewed by external parties and make any necessary changes and then communicate the final budget to all stakeholders. 3. Control This is also referred to as the monitoring phase. We mentioned earlier that the budget is not meant to be 100% accurate. The monitoring needs to take place at periodic intervals e.g monthly; it involves comparing the budgeted numbers with the actual numbers. This step is important for three reasons: Helps you compare what you estimated with what is actually happening Helps you pinpoint why things are not going according to plan It’s an opportunity to react to the costs and respond to them In a case where the first two months monitoring process shows that the sales budgeted are less than the actual sales because business was slow, then you can consider whether you need to order as much stock as you had intended to or you could decide at that point to try a new technique to increase the sales. Similarly, if the rent expenses go up because the landlord increased your rent at the last minute you can adjust the budget accordingly for the subsequent months.
Facebook Live with Mapalo Makhu: Planning your personal finance and investments (Mar. 28)
Are your expenses greater than your revenue? You may have all the designer cloths and bags right now, but if your bank account balance is flashing red, then now is the time for you to start investing and planning towards your future. Join us for a Facebook Live session on Tuesday 28th March, with one of South Africa’s finance experts – Mapalo Makhu, founder of Woman & Finance. She’ll be talking extensively about planning your personal finance and investments. [bctt tweet=”Join @WomanAndFinance to discuss personal finance and investments on Facebook Live (28 Mar)” username=”SheLeadsAfrica”] Some of the the topics we’ll cover: What you need to understand about investments 3 financial questions every woman should ask herself Planning a budget Top 3 things to look out for when selecting an investment advisor Identifying your investment goals (safety, income and growth) Date: Tuesday 28th March 2017 Time: 1pm Lagos// 2pm Joburg// 3pm Nairobi Where: facebook.com/sheleadsafrica/ About Mapalo Mapalo is a financial planner, wealth coach and founder of Woman&Finance , a platform that empowers and educates women to make the best financial decisions for their current and future selves. Having completed a Bcom finance degree from the University of Johannesburg and recently obtaining her post graduate diploma in financial planning, Mapalo created Woman&Finance to educate and inspire women to take charge of their finances and make the best financial decisions for their current and future selves. Woman&Finance was established with the goal of giving power back to women and showing them how to have control when it comes to managing their personal finances.