From Uche Usim, Abuja
Are you one of those who believe in pumping huge chunk of cash into a budding business to fatten it without thinking through thoroughly?
Hit the breaks. Flooding a start-up business with excess liquidity is no guarantee of growth. You can burn your fingers.
The popular myth that investing is for those with a tonne of money is simply not true.
Start small
For many youths, the thinking is that the seed capital must be huge. But you don’t need to have a lump sum to start investing or a business. Experts will tell you that investing small amounts of money regularly is better than investing a large lump sum in one go.
By investing a small amount of money each at regular intervals, you are less vulnerable to market fluctuations. Study the environment you are operating in.
Begin as Early as You Can
One of the most important tips to get into investing or business involves starting the process as early as you possibly can.
As a student, you can comfortably combine business with studies. It’s loosely called ‘edupreneurship’.
Look at the needs of the students on campus. Fill the gap. Is there anything for the immediate community where the school is located? Be passionate about meeting a need.
Business ideas are no rocket science. They have never been. The internet age has provided a robust platform to convert passion to funds. Flaunt your goods and services on the social media. Design catchy phrases to advertise.
What books are you reading? What business seminars and workshops do you attend? Cross-pollinate. Fraternise to get fresh perspectives.
Are you a passionate writer, content provider, editor, tailor, etc? Get online and flaunt what you’ve got. There buyers on the super highway.
Only make investments you understand. Don’t stray into unfamiliar terrain carelessly. Get experts to guide you in this area.
Eye export
Do not die a local player when there are greater prospects overseas. Look beyond the immediate environment and have a global vision.
Browse online for international markets needing your products and services. Visit the Nigerian Export Promotion Council and other agencies concerned about flaunting made-in-Nigeria goods on the global arena to guide you about export.
Audit Yourself
Know your strengths and limitations.
Do not bite more than you can chew.
Be unique
You must look for unique selling points of your product or service that sets you apart from every other business. It could be quality or durability in the product or being customer centric. Emphasis on this would set you apart and build customers that are loyal to you, especially for the values you chose to operate by. If your company does not have a vision, mission, or a company mantra you operate by. It’s easier for customers to believe that you are just in the business for money. Customers like to be loyal to businesses that have moral values that are beneficial to the customers.
Jump high where necessary
Many businesses today have the wish to scale their business and grow profits. However, they are afraid of taking risks. For example, expanding your business network would require you to stretch yourself farther; to expand to new market segments, to expand to new geographical locations. While activities associated with business growth are risky, it’s however possible to curtail these risks.
Mitigate your risk
Operate with a diversification mindset. Diversify your assets; in other words, don’t put all your eggs in one basket.
Plan for the long-term
In business, it is safer not to behave like a sprinter. Develop the mental space of a marathoner. Investing small amounts of money regularly might seem insignificant. But over 20 or 30 years, you could have built a very significant pot.
That saying about change being the only constant in life never felt truer than during pandemic times. Just as we changed our behavior to help guard against the spread of COVID-19, we can take steps to protect our financial lives from future turmoil.
Reduce Investment Costs
Investment fees matter. One of the easiest ways to boost your investment returns is to reduce the management fees and other expenses you pay. This includes the fees you know about, as well as the fees that are hidden in the fine print of your fund’s prospectus.
Why is this so powerful? Because each percentage point you pay in management fees directly impacts your returns. And even small amounts can have a massive impact when compounded over time.
Open a high-yield savings account
While lots of savings accounts are currently paying next to next to nothing, you could get a better deal if you don’t mind tying your money up for months or even years.
The best rates tend to come from regular saver accounts but they often have conditions attached, such as saving up a certain amount each month.
Pay Attention to Taxes
Taxes are a part of life. Ensure you cultivate the habit of paying the right taxes and levies as expected of your business.
Tax evasion could lead to scathing penalties when could and could terribly hurt your business.
Visit the Federal Inland Revenue Service for guide on tax payable.