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Showing posts from April, 2022

Cashflow Simplified: This is probably the easiest way to write a Cashflow statement

When starting a business or applying for funding, you will be required to prepare a cashflow statement. This is basically a simple projection of your cash inflows and outflows. It's main purpose is:  • to ensure that your business doesn't run out of money. So the document will show you any potential pitfalls, and that way, you can plan ahead e.g. proactively request a loan, defer payments etc. While business is unpredictable, most financial institutions(including investors) will need to be convinced that you've done your best to anticipate any possible events that could occur within your budgeting period. A Cashflow statement is a great tool to achieve that. HOW SMALL BUSINESSES RUN OUT OF MONEY: • You get a tender You have a small profitable business but you think a tender is what you need to take your business to the next level. You apply for one and that uncle of yours helps you get the deal. You get the tender but you don't have the money. So you borrow from friend

Part 5- Why I had to change my startup's name

I'm a 'NOW' person. When I say I'll do something I do it, or if I get excited about something I start working on it immediately. Not tomorrow or next week, but NOW. Nah, I'm just kidding... but its sounds cool when I say it, doesn't it? I won't lie, I do try, but I still have quite a long way to go when it comes to self mastery and discipline. One thing I've mastered though, is to cover as much ground whenever I can.  I do this for a number of reasons. The first one is that I know I won't always feel fired up. I work in bursts of superhuman energy- so much that at times I amaze myself, but at the same time I also have my off days (not sure what the opposite of superhuman is). So I try to cover as much ground during my ON days. The second reason is that I believe everything happens for a reason. So I take that inspiration and use it as a compass, to guide me towards my dream. While it may not always makes sense most of the time, I believe it will all

Avoid making this mistake when setting prices

When it comes to setting prices one thing we all seem to understand is that we need to add a markup to our cost. While this may seem easy, many small business owners take it at face value. e.g. I bought this for $5 so if I sell it at $10 I'm making 100% profit.  While that's a good start, it is not the end. They are making one critical mistake:  ignoring their fixed costs - and as a result, they undercharge. That's because most small business owners will tell you they don't take a salary or they understate their fixed costs. I work from home so I don't pay rent but at the end of the day, you still need to live, don't you?  Examples of costs that small business owners ignore How much do you deduct from your business for: • lunch • airtime • the electricity you use to bake • water • transport • the money you gave your helpers to 'buy a drink' and so on.  These amounts may seem inconsequential but over time they become significant... and they need to be fac