Sharpen your income generation skill
updated: Monday 02.11.2009
The stock market
closed the week
lower last Friday with market capitalisa-tion standing at N4.5 trillion.
Within three months in 2009, the capital market had chiseled a whopping 37 per cent off investors’ fortune.
This is not encour-aging at all. Only for the fact that good stocks can be acquired cheaply at this time in readiness for the better time to come (medium to long term investment); but only those with extra cash can do so.
This is why it is important that everyone puts on his or her thinking cap and gene-rate profitable business ideas. Either at micro or small level, a business that can bring in extra income is necessary at this moment.
And if such busi-nesses meet basic needs, it will thrive. At this time, it is important that tips are given on how you can successfully launch your business.
If you want to have your own business, you may experience some hassles trying to think about the kind of business you should start. The easiest approach is for you to start a business you have at least a little knowledge about.
Choose a business you have been involved
Perhaps, you have passed through tutelage or apprenticeship in the business line, your experience has become an advantage. You can use your knowledge, your training and skills, and the people you have met in the course of the business to launch yourself.
Study the business, don’t rush
Rushing into the business may confront you with unsavoury situation. First, attach yourself to someone, who is already established in the line of the business and learn the techni-calities of the venture. Don’t fall into the trap of starting a business just because someone tells you it is moving very well.
Don’t start a business in an unfamiliar industry:
It is not advisable to start what you are not familiar with. Don’t just believe in luck. You need facts and figures. You need to face reality, not emotions. Otherwise, failure may be so close. If you don’t know anything about the business you want to start, be prepared to spend enough time to learn the business before you launch out.
Carry out research and prove your business idea
Whatever you spend on research is not wasted. It will surely be regained as you continue with the business. The magazine you are reading had passed through several reviews and constant changes as a result of extensive research to prove the acceptability of what we are doing. Talk to people who are already in the business you want to start. Seek their sincere counsel and don’t be emotional about what you are told.
Do you find pleasure doing the business and do you possess unique skill?
If not, you are not yet where you should pitch your tent. Successful men engaged themselves doing what they enjoyed doing as if they were playing.
Judge your ability and capability to handle the business of your choice:
Initially, you are everything to your business. You are the CEO, the production manager, marketing executive, as well as the product research consultant. You may have to produce and, at the same time, take your products to the market by yourself.
Therefore, you must be knowledgeable and skillful enough to handle various aspects of your business. This is very important. At nursing stage of your business, you have to forgo income till it stabilised.
How profitable do you foresee the business?
You should have a good idea whether the business is potentially profitable.
Analyse your market and find out how long you would have to go before you can be thinking of receiving returns on your investment. Most wonderful businesses don’t yield immediate profit. You may have to nurture the business for some years.
Appraise the hazards:
Does the business carry higher risks? Or what hazards are associated with it? But it doesn’t mean that you should abandon the business even if the risk is high. Every business is risky. Some volatile businesses are very profitable. Let your business plan and feasibility study be thorough and be less emotional.
Till next week, enjoy my pen and stay financially fit.
