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Showing posts with the label Business

How to use Asaqeni Business Suite to reach your next business milestone

The whole "Be your own boss" thing isn't as glamorous as the rich looking Lamborghini guy made it seem. To be honest, it's very hard and we can attest to that. Over 75% of new businesses don't survive beyond their first year and less than 5% of new businesses make it to their 5th year. There are numerous reasons for this, but oftentimes it's because the founders didn't have a clear strategy or they didn't lay a solid foundation for their business. More importantly, many lack the tenacity required to keep going and hence it takes considerable grit to join the 1%. In this article we'll cover a few tips to help you start your business off on the right foot using the Asaqeni Web app. We'll help you come up with a strategy as well as a roadmap to achieving that vision. Setting up your account in Asaqeni The  Asaqeni Business Suite  is a comprehensive set of tools and resources designed to guide founders and small business owners as they start and gr

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

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

The key to setting profitable prices for your products and services

One thing I've learnt over time is to never leave anything to chance, especially in business. It's important to make data driven decisions. This means collecting and using the information around you to choose those options which give you the best outcomes. While you will not always get it right all the time, it's important to err on the side of caution. So with that said, many small businesses seem to be unknowingly undercharging for their goods in an effort to be competitive. They set prices based on the markets and totally ignore their internal cost structure. Some industries (like retail) are about moving volumes. The profit margins are often quite small and so the only way to be profitable is to sell as many units as you can, while minimizing your costs. However, you can only manage your costs effectively, if you understand them. How to set a good price There are 3 factors to consider when setting prices: a.) Your costs b.) Your competitors c.) How much your customers

Everything you need to know about startup funding

One of the major challenges that startups face is raising capital or acquiring funding to help them start or grow their business. Capital is often exchanged for equity and is used by businesses to build products, hire key staff and expand into new markets. In this article we will cover everything you need to know about startup funding and what you can do to position yourself to get funding. Table of contents i. Factors to consider ii. Sources of funding iii. Types of funding iv. Series funding v. What investors consider vi. Questions to ask yourself before seeking funding vii. Conclusion FACTORS TO CONSIDER WHEN SEEKING STARTUP FUNDING Every business goes through a number of stages during its lifecycle. Just like a baby first lives on milk, before they can handle solid meals, even small businesses need to start with simple funding models and then graduate to more complex ones. It is therefore important to understand the various stages in