Saturday, September 28, 2019
BEWARE OF SCAMMERS: Lafia Nitida and Zolavera Nitida Herbs by deogarherbalfarms.com and leroyherbalfarms.com
SCAM ALERT!!!!
www.deogarherbalfarms.com is a scam be warned!
www.leroyherbalfarms.com is also a scam.
Lafia Nitida and Zolavera nitida herbs are their baits....They are scammers
Here is an example of email the send ......
DEAR RECIPIENT.
This is to bring to your notice that we sell herbal product such as Lafia Nitida and Zolavera nitida to cure all kinds of sicknesses.
We invite every recipient of this email to contact us immediately for the cure of all kinds of sicknesses with our products.
Everyone interested is hereby required to register with the sum of $1,500:00 USD to enable us to supply the product to you to cure the following diseases:
Leukemia.
AIDS (Acquired Immune Deficiency Syndrome)
Lesch-Nyhan Syndrome.
Heart Disease such as Severe Coronary Artery Disease.
Ebola Hemorrhagic Fever.
We are the only once that can cure these problems and you do not need to visit hospitals.
We can give you western Union Names and Money Gran to pay from various countries of the world to Nigeria or USA.
Visit www.deogarherbalfarms.com
This officer for your health problem is confidential and I want you to deal with us directly and do not tell people you want to send money to us.
Your good health is our concern.
Yours Sincerely.
DEOGAR HERBAL FARMS
info@deogarherbalfarms.com
DEAR RECIPIENT.
This is to bring to your notice that we sell herbal product such as Lafia Nitida and Zolavera nitida to cure all kinds of sicknesses.
We invite every recipient of this email to contact us immediately for the cure of all kinds of sicknesses with our products.
Everyone interested is hereby required to register with the sum of $1,500:00 USD to enable us supply the product to you to cure the following diseases:
Leukemia.
AIDS (Acquired Immune Deficiency Syndrome)
Lesch-Nyhan Syndrome.
Heart Disease such as Severe Coronary Artery Disease.
Ebola Hemorrhagic Fever.
We are the only once that can cure these problems and you do not need to visit hospitals.
We can give you western Union Names and Money Gran to pay from various countries of the world to Nigeria or USA.
Visit www.leroyherbalfarms.com
This officer for your health problem is confidential and I want you to deal with us directly and do not tell people you want to send money to us.
Your good health is our concern.
Yours Sincerely.
LEROY FARMS
info@leroyherbalfarms.com
www.deogarherbalfarms.com and www.leroyherbalfarms.com are scammers be warned!
Read also https://antiscamnexus.blogspot.com/2019/09/scam-alert-beware-of.html
SCAM ALERT: Beware Of www.deogarherbalfarms.com And www.leroyherbalfarms.com , They Are Scammers
Both www.deogarherbalfarms.com andwww.leroyherbalfarms.com are run by the same fraud syndicates.
Avoid been scammed by deogarherbalfarms.com and leroyherbalfarms.com.
They claim to run a farm for Lafia Nitida and Zolavera nitida herbs and they are looking for people to scam.
Be warned of Scam by deogarherbalfarms.com and leroyherbalfarms.com
The two websites are own by the same Syndicates. They use the same nonexisting address.
HERE IS AN EXAMPLE OF SCAM THEY DO
DEAR RECIPIENT.
This is to bring to your notice that we sell herbal product such as Lafia Nitida and Zolavera nitida to Cure all kinds of sicknesses.
We invite every recipient of this email to contact us immediately for the cure of all kinds of sicknesses with our products.
Everyone interested is hereby required to register with the sum of $1,500:00 USD to enable us to supply the product to you to cure the following diseases:
Leukemia.
AIDS (Acquired Immune Deficiency Syndrome)
Lesch-Nyhan Syndrome.
Heart Disease such as Severe Coronary Artery Disease.
Ebola Hemorrhagic Fever.
We are the only once that can cure these problems and you do not need to visit hospitals.
We can give you western Union Names and Money Gran to pay from various countries of the world to Nigeria or USA.
Here is our website: www.leroyherbalfarms.com
This officer for your health problem is confidential and I want you to deal with us directly and do not tell people you want to send money to us.
Your good health is our concern.
Yours Sincerely.
LEROY FARMS
HERE IS ANOTHER EXAMPLE OF SCAM THEY DO
DEAR RECIPIENT.
This is to bring to your notice that we sell herbal product such as Lafia Nitida and Zolavera nitida to Cure all kinds of sicknesses.
We invite every recipient of this email to contact us immediately for the cure of all kinds of sicknesses with our products.
Everyone interested is hereby required to register with the sum of $1,500:00 USD to enable us supply the product to you to cure the following diseases:
Leukemia.
AIDS (Acquired Immune Deficiency Syndrome)
Lesch-Nyhan Syndrome.
Heart Disease such as Severe Coronary Artery Disease.
Ebola Hemorrhagic Fever.
We are the only once that can cure these problems and you do not need to visit hospitals.
We can give you western Union Names and Money Gran to pay from various countries of the world to Nigeria or USA.
Here is our website: www.deogarherbalfarms.com
This officer for your health problem is confidential and I want you to deal with us directly and do not tell people you want to send money to us.
Your good health is our concern.
Yours Sincerely.
DEOGAR HERBAL FARMS
deogarherbalfarms.com and leroyherbalfarms.com ARE SCAM
Wednesday, July 18, 2007
BUSINESS PLAN CONTINUES....4
THE BUSINESS PLAN FOR YOU
The primary value of your business plan will be to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects.
Since this course is broken down into twelve of the most important aspects to consider in starting a business, your business plan can follow this same format. Included in this session and in each of the following sessions there is a sample business plan outline covering each subject. When you put these all together, you will have a starting model for your overall plan.
A business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. This step is too often skipped, but we make it easy for you by providing a format to build your plan as you progress through this course.
Business plans can vary enormously. Libraries and bookstores have books devoted to business plan formats. But this course is a place to start. You can then go on from here to design one that would be ideal for your particular enterprise.
Be aware now that most start-up entrepreneurs are reluctant to write down their business plan. It is therefore strongly recommended that you complete each segment of the plan as you progress through this course. We make it easy for you by providing sample plans for both product and service businesses and also an attractive blank form that you can download onto MS Word and customize yourself.
Your business plan is going to be useful in a number of ways. Here are some of the reasons not to skip this valuable tool.
First and foremost, it will define and focus your objective using appropriate information and analysis.
You can use it as a selling tool in dealing with important relationships including your lenders, investors and banks.
You can use the plan to solicit opinions and advice from people, including those in your intended field of business, who will freely give you invaluable advice. Too often, entrepreneurs forge ahead ("My Way!") without the benefit of input from experts who could save them a great deal of wear and tear. "My Way" is a great song, but in practice can result in unnecessary hardships.
Your business plan can uncover omissions and/or weaknesses in your planning process.
What to Avoid in Your Business Plan Place some reasonable limits on long-term, future projections. (Long-term means over one year.) Better to stick with short-term objectives and modify the plan as your business progresses. Too often, long-range planning becomes meaningless because the reality of your business can be different from your initial concept.
Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting capital requirements, timelines, sales and profits. Few business plans correctly anticipate how much money and time will be required.
Do not ignore spelling out what your strategies will be in the event of business adversities.
Use simple language in explaining the issues. Make it easy to read and understand.
Don't depend entirely on the uniqueness of your business or even a patented invention. Success comes to those who start businesses with great economics and not necessarily great inventions.
Here are some suggested topics you can tailor into your plan:
A vision statement: This will be a concise outline of what your business purpose and goals will be.
The people: By far the most important ingredient for your success will be yourself. Focus on how your prior experiences will be applicable to your new business. Prepare a resume of yourself and one for each person who will be involved with you in starting the business. Be factual and avoid hype. This part of your business plan will be read very carefully by those with whom you will be having relationships, including lenders, investors and vendors. Templates for preparing resumes are available in your library, Kinko's, bookstores and the Internet under "resumes."
However, you cannot be someone who you are not. If you lack the ability to perform a key function, include this in your business plan. For example, if you lack the ability to train staff, include an explanation how you will compensate for this deficiency. You could add a partner to your plan (discussed in Section 4) or plan to hire key people who will provide skills you don't have. Include biographies of all your intended management.
Your business profile: Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve.
Economic assessment: Provide a complete assessment of the economic environment in which your business will become a part. Explain how your business will be appropriate for the regulatory agencies and demographics with which you will be dealing. If appropriate, provide demographic studies and traffic flow data normally available from local planning departments.
Cash flow assessment: Include a one-year cash flow that will incorporate your capital requirements ( covered in Lesson #7). Include your assessment of what could go wrong and how you would plan to handle problems.
Include your marketing plan and expansion plans.
Refer to helpful government websites such as the Small Business Administration. See "Resources" on the home page of this website.
Six Steps to a Great Business Plan
Start-up entrepreneurs often have difficulty writing out business plans. This discipline is going to help you in many ways so don't skip this planning tool! To make it easier, here are six steps that will get you to a worthwhile plan:
Write out your basic business concept.
Gather all the data you can on the feasibility and the specifics of your business concept.
Focus and refine your concept based on the data you have compiled.
Outline the specifics of your business. Using a "What, where, why, how" approach might be useful.
Put your plan into a compelling form so that it will not only give you insights and focus but, at the same time, will become a valuable tool in dealing with business relationships that will be very important to you.
Review the sample plans we furnish and download the blank format to a MS Word document. Fill this in as you progress though the course.
A sound business concept. The single most common mistake made by entrepreneurs is not picking the right business to begin with. The best way to learn about your prospective business is to work for someone else in that business before beginning your own. There can be a huge gap between your concept of a fine business and reality.
Understanding of your market. A good way to test your understanding is to test market your product or service before your start. You think you have a great kite that will capture the imagination of kite fliers throughout the world? Then hand-make some of them and try selling them first.
A healthy, growing and stable industry. Remember that some of the great inventions of all time, like airplanes and cars, did not result in economic benefit for many of those who tried to exploit these great advances. For example, the cumulative earnings of all airlines since Wilber Wright flew that first plane are less than zero. (Airline losses have been greater than their profits.) Success comes to those who find businesses with great economics and not necessarily great inventions or advances to mankind.
Capable management. Look for people who you like and admire, have good ethical values, have complementary skills and are smarter than you. Plan to hire people who have the skills that you lack. Define your unique ability and seek out others who turn your weaknesses into strengths.
Able financial control. You will learn later the importance of becoming qualified in accounting, computer software and cash flow management. Most entrepreneurs do not come from accounting backgrounds and must go back to school to learn these skills. Would you bet your savings in a game where you don't know how to keep score? People mistakenly do it in business all the time.
A consistent business focus. If you think of specific products or services you will find that specialists will outperform non-specialists. Zero in on something you can do so well that you will not be subject to competing with someone with a lower price.
Business Plan for Sessions 1 and 2: The Business Profile, the Vision and the People.
Now is the time for you to review the sample plans we have provided. This will help you in formatting your own plan. For some tips on appropriate information to fill in, refer to the sample business plans:Sample Business Plan (Product): Widget Corporation
MS Word
Sample Business Plan (Service): Smith E-Commerce Consulting
MS Word
You can now begin to assemble your business plan. If you have not yet selected a business, you can pick one out to practice on. Remember, we have provided attractive, individual business templates for each session that you can download as Microsoft Word documents or as printer friendly web pages. So start now!Section 1: The Business Profile
MS Word
Instructions on filling in the business plan template:
Each box has a permanent title in CAPITAL LETTERS
Below each title is a sentence starting with an "Insert here…" sentence. This will suggest information to insert. The boxes will enlarge as you take up more room so use all the space you need.
After completing each box, delete the "Insert here" sentence, which will leave only the permanent title of the box and the information you have filled in.
We suggest that you fill in each section of the business plan
as you proceed through the course.
The template for all sessions 1-12 can also be downloaded into your computer as a single document:Section 1-12: All
MS Word
Include sufficient research findings and background materials. Make it interesting up by the use of background data, your biography, charts, demographics and research data. When your business plan is completed, print off and assemble the 12 sections.
Many other business plan formats are available in libraries, bookstores and software.
[Back to top]
SESSION 2 Quiz: The Business PlanThe best place to find more information on designing your own individualized plan is:
Your lawyer
Your accountant
The Public Library, industry or government "Business Plan" websites, or bookstores
Business Planning Consultants
The primary reason to prepare a business plan before you begin is to create a tool to deal with investors and financing sources.
True
False
In preparation of financial projections for your business plan, it is as important to estimate long range sales and earnings as it is to project short-term objectives.
True
False
A potential investor or lender is going to look over your business plan and in his or her mind this question will arise: Where is the tough person to make the really difficult decisions, handle negotiations skillfully and exercise restraint? Your business plan should provide the answer by:
Projecting yourself in this image (assuming you're not!)
Making a point of stating that your team of consultants including your lawyer and accountant will be employed to maintain a disciplined business approach
Facing this issue and stating it in your business plan: your business will need tough and skillful management. Answer this need in a way that satisfies you as well those who will be doing business with you.
Preparation of a business plan is optional for some small businesses.
True
False
Your business plan could EXCLUDE:
All the subjects covered in sessions of this course.
Personal biographies of management.
Financial statement projections and cash flow projections.
Your marketing and expansion plans.
Your plans to build a new vacation home with your profits.
If your business plan includes the exploitation of an invention, and provided you do not blunder in major decisions, your success can be most likely assured.
True
False
Let's assume that your business plan is based on starting a real estate related business. This business plan session would lead you to most favorably consider:
Residential and commercial sales.
Industrial and commercial development.
Room additions and industrial construction.
Specialize in one of above.
None of the above.
In order to test your understanding of your market, the safest approach would be to:
Rely on your personal instinct.
Conduct a survey among your friends.
Test market your product or service.
To overcome the common stumbling block of not preparing a business plan, it helps to:
Complete the plan for each session as you proceed.
Have your business plan completed before proceeding.
Prepare your plan after you have completed this course.
The primary value of your business plan will be to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects.
Since this course is broken down into twelve of the most important aspects to consider in starting a business, your business plan can follow this same format. Included in this session and in each of the following sessions there is a sample business plan outline covering each subject. When you put these all together, you will have a starting model for your overall plan.
A business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. This step is too often skipped, but we make it easy for you by providing a format to build your plan as you progress through this course.
Business plans can vary enormously. Libraries and bookstores have books devoted to business plan formats. But this course is a place to start. You can then go on from here to design one that would be ideal for your particular enterprise.
Be aware now that most start-up entrepreneurs are reluctant to write down their business plan. It is therefore strongly recommended that you complete each segment of the plan as you progress through this course. We make it easy for you by providing sample plans for both product and service businesses and also an attractive blank form that you can download onto MS Word and customize yourself.
Your business plan is going to be useful in a number of ways. Here are some of the reasons not to skip this valuable tool.
First and foremost, it will define and focus your objective using appropriate information and analysis.
You can use it as a selling tool in dealing with important relationships including your lenders, investors and banks.
You can use the plan to solicit opinions and advice from people, including those in your intended field of business, who will freely give you invaluable advice. Too often, entrepreneurs forge ahead ("My Way!") without the benefit of input from experts who could save them a great deal of wear and tear. "My Way" is a great song, but in practice can result in unnecessary hardships.
Your business plan can uncover omissions and/or weaknesses in your planning process.
What to Avoid in Your Business Plan Place some reasonable limits on long-term, future projections. (Long-term means over one year.) Better to stick with short-term objectives and modify the plan as your business progresses. Too often, long-range planning becomes meaningless because the reality of your business can be different from your initial concept.
Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting capital requirements, timelines, sales and profits. Few business plans correctly anticipate how much money and time will be required.
Do not ignore spelling out what your strategies will be in the event of business adversities.
Use simple language in explaining the issues. Make it easy to read and understand.
Don't depend entirely on the uniqueness of your business or even a patented invention. Success comes to those who start businesses with great economics and not necessarily great inventions.
Here are some suggested topics you can tailor into your plan:
A vision statement: This will be a concise outline of what your business purpose and goals will be.
The people: By far the most important ingredient for your success will be yourself. Focus on how your prior experiences will be applicable to your new business. Prepare a resume of yourself and one for each person who will be involved with you in starting the business. Be factual and avoid hype. This part of your business plan will be read very carefully by those with whom you will be having relationships, including lenders, investors and vendors. Templates for preparing resumes are available in your library, Kinko's, bookstores and the Internet under "resumes."
However, you cannot be someone who you are not. If you lack the ability to perform a key function, include this in your business plan. For example, if you lack the ability to train staff, include an explanation how you will compensate for this deficiency. You could add a partner to your plan (discussed in Section 4) or plan to hire key people who will provide skills you don't have. Include biographies of all your intended management.
Your business profile: Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve.
Economic assessment: Provide a complete assessment of the economic environment in which your business will become a part. Explain how your business will be appropriate for the regulatory agencies and demographics with which you will be dealing. If appropriate, provide demographic studies and traffic flow data normally available from local planning departments.
Cash flow assessment: Include a one-year cash flow that will incorporate your capital requirements ( covered in Lesson #7). Include your assessment of what could go wrong and how you would plan to handle problems.
Include your marketing plan and expansion plans.
Refer to helpful government websites such as the Small Business Administration. See "Resources" on the home page of this website.
Six Steps to a Great Business Plan
Start-up entrepreneurs often have difficulty writing out business plans. This discipline is going to help you in many ways so don't skip this planning tool! To make it easier, here are six steps that will get you to a worthwhile plan:
Write out your basic business concept.
Gather all the data you can on the feasibility and the specifics of your business concept.
Focus and refine your concept based on the data you have compiled.
Outline the specifics of your business. Using a "What, where, why, how" approach might be useful.
Put your plan into a compelling form so that it will not only give you insights and focus but, at the same time, will become a valuable tool in dealing with business relationships that will be very important to you.
Review the sample plans we furnish and download the blank format to a MS Word document. Fill this in as you progress though the course.
A sound business concept. The single most common mistake made by entrepreneurs is not picking the right business to begin with. The best way to learn about your prospective business is to work for someone else in that business before beginning your own. There can be a huge gap between your concept of a fine business and reality.
Understanding of your market. A good way to test your understanding is to test market your product or service before your start. You think you have a great kite that will capture the imagination of kite fliers throughout the world? Then hand-make some of them and try selling them first.
A healthy, growing and stable industry. Remember that some of the great inventions of all time, like airplanes and cars, did not result in economic benefit for many of those who tried to exploit these great advances. For example, the cumulative earnings of all airlines since Wilber Wright flew that first plane are less than zero. (Airline losses have been greater than their profits.) Success comes to those who find businesses with great economics and not necessarily great inventions or advances to mankind.
Capable management. Look for people who you like and admire, have good ethical values, have complementary skills and are smarter than you. Plan to hire people who have the skills that you lack. Define your unique ability and seek out others who turn your weaknesses into strengths.
Able financial control. You will learn later the importance of becoming qualified in accounting, computer software and cash flow management. Most entrepreneurs do not come from accounting backgrounds and must go back to school to learn these skills. Would you bet your savings in a game where you don't know how to keep score? People mistakenly do it in business all the time.
A consistent business focus. If you think of specific products or services you will find that specialists will outperform non-specialists. Zero in on something you can do so well that you will not be subject to competing with someone with a lower price.
Business Plan for Sessions 1 and 2: The Business Profile, the Vision and the People.
Now is the time for you to review the sample plans we have provided. This will help you in formatting your own plan. For some tips on appropriate information to fill in, refer to the sample business plans:Sample Business Plan (Product): Widget Corporation
MS Word
Sample Business Plan (Service): Smith E-Commerce Consulting
MS Word
You can now begin to assemble your business plan. If you have not yet selected a business, you can pick one out to practice on. Remember, we have provided attractive, individual business templates for each session that you can download as Microsoft Word documents or as printer friendly web pages. So start now!Section 1: The Business Profile
MS Word
Instructions on filling in the business plan template:
Each box has a permanent title in CAPITAL LETTERS
Below each title is a sentence starting with an "Insert here…" sentence. This will suggest information to insert. The boxes will enlarge as you take up more room so use all the space you need.
After completing each box, delete the "Insert here" sentence, which will leave only the permanent title of the box and the information you have filled in.
We suggest that you fill in each section of the business plan
as you proceed through the course.
The template for all sessions 1-12 can also be downloaded into your computer as a single document:Section 1-12: All
MS Word
Include sufficient research findings and background materials. Make it interesting up by the use of background data, your biography, charts, demographics and research data. When your business plan is completed, print off and assemble the 12 sections.
Many other business plan formats are available in libraries, bookstores and software.
[Back to top]
SESSION 2 Quiz: The Business PlanThe best place to find more information on designing your own individualized plan is:
Your lawyer
Your accountant
The Public Library, industry or government "Business Plan" websites, or bookstores
Business Planning Consultants
The primary reason to prepare a business plan before you begin is to create a tool to deal with investors and financing sources.
True
False
In preparation of financial projections for your business plan, it is as important to estimate long range sales and earnings as it is to project short-term objectives.
True
False
A potential investor or lender is going to look over your business plan and in his or her mind this question will arise: Where is the tough person to make the really difficult decisions, handle negotiations skillfully and exercise restraint? Your business plan should provide the answer by:
Projecting yourself in this image (assuming you're not!)
Making a point of stating that your team of consultants including your lawyer and accountant will be employed to maintain a disciplined business approach
Facing this issue and stating it in your business plan: your business will need tough and skillful management. Answer this need in a way that satisfies you as well those who will be doing business with you.
Preparation of a business plan is optional for some small businesses.
True
False
Your business plan could EXCLUDE:
All the subjects covered in sessions of this course.
Personal biographies of management.
Financial statement projections and cash flow projections.
Your marketing and expansion plans.
Your plans to build a new vacation home with your profits.
If your business plan includes the exploitation of an invention, and provided you do not blunder in major decisions, your success can be most likely assured.
True
False
Let's assume that your business plan is based on starting a real estate related business. This business plan session would lead you to most favorably consider:
Residential and commercial sales.
Industrial and commercial development.
Room additions and industrial construction.
Specialize in one of above.
None of the above.
In order to test your understanding of your market, the safest approach would be to:
Rely on your personal instinct.
Conduct a survey among your friends.
Test market your product or service.
To overcome the common stumbling block of not preparing a business plan, it helps to:
Complete the plan for each session as you proceed.
Have your business plan completed before proceeding.
Prepare your plan after you have completed this course.
BUSINESS PLAN CONTINUES....3
CREATING AN EFFECTIVE BUSINESS PLAN
This workshop will help you create a business plan to guide your business through the start-up or growth phase, a search for capital, or any other endeavor your small business undertakes.
We've distilled the typical business plan into seven key elements listed below. For each and every element you will find a description, instructions for creation, for many, tips for avoiding common pitfalls. But reading about something isn't always enough, so we have also provided "Toolboxes" full of samples, worksheets, and glossaries that will clarify and walk you through the process.
To make sure you are ready to create the best possible plan for your business you can experiment on someone else's business! In the Try It Yourself section you have an opportunity to test your skills on a fictional business plan and be rated on how prepared you are to create your own.
HANDLING PROBLEM ASSOCIATED WITH BUSINESS EXPANSION
Once your business has started, you will face the challenge of making it grow. In this session you will learn about some basic rules to follow before expanding.
Before even thinking about growing your business, you must first have a stable platform from which to take off. You must work out the bugs in your initial operation including making it profitable.
Your readiness to expand will improve if you can gain experience in all aspects of your start-up unit. Whether you have started an Internet business or opened a restaurant, become personally involved in all the functions of your business. Then you can detect weaknesses that can be remedied early on, where changes can be made rapidly and at less exposure to loss.
Another reason to become personally involved in every aspect of your business is that later on, after expansion plans are implemented, you will be depending on others to whom you must delegate responsibilities. Then, no one can fool you about how to run the store. You will have had personal experience in doing so.
Remember that after your expand, you will no longer be the person at the cash register. You must have systems in place to prevent employee theft and shrinkage (shoplifting). The loss-prevention systems that work best for your particular business have probably already been figured out by your competitors. So, check out and implement systems already being used in your industry. (If you're going to open a convenience store, go to work for 7-Eleven beforehand to learn their systems that work!)
Try to avoid giving your personal guarantee on leases or creditor obligations. As much as possible, separate your business liabilities from your personal assets. While banks will most likely require your personal guarantee on business loans, exposure of your personal assets can be mitigated by drawing the line against this practice whenever possible.
For example, a potential landlord for your second store may ask you to personally guarantee the lease. Your exposure in a five-year lease of $3,000 per month would be $180,000. This amount could far exceed the initial capitalization of your business. Yet because of the desire and enthusiasm to add more stores, it will be tempting to incur such potentially overwhelming liabilities.
Instead, by practicing discipline in limiting your liability, you might insist on negotiating a one-year lease with options for additional periods of time. Your liability in this case would be reduced to $36,000.
[Back to top]
Reasons Why Start-up Entrepreneurs Overlook the Importance of Starting with a Pilot Operation FirstTestimonial
Colette Coffeman
Catering Service
"If it can't be profitable, make sure that you don't go out and show yourself off in a bad light."
Transcription - html
There are some understandable reasons why many entrepreneurs overlook the importance of having a successful pilot operation in place before expanding.
Entrepreneurs by definition are self-confident. The problem is that too often we are over confidant either in ourselves or our product or service. This overconfidence can propel us into expansion programs without carefully working out the wrinkles including getting to the point of having a proven and profitable pilot plant (model) from which to expand.
One reason for overconfidence is that many wealthy entrepreneurs have enjoyed success in an unrelated field. A wealthy tycoon who had a successful career, for example, might start a new business in a field that he or she doesn't know or understand and might meet with failure because he or she assumed their expertise would transfer.
Another enemy is haste. Entrepreneurs who start multi-unit businesses will experience some deficiencies in their first unit. Many will lose money at the beginning. This is the time to work out the bugs and produce a positive income statement. If you can't, this may be time to abandon the idea. But, if you are starting a restaurant chain and in haste open six of them with problems, your losses could become overwhelming.
[Back to top]
Elements You Must Deal With in an Expanded Business not Present in a Start-upTestimonial
Erik Wong
Video Producer
"It is important to pace yourself as to the number of initial clients you take on. "
Transcription - html
There will be controls needed in your expanded business that have not been present in your start-up mode. It will take careful preparation to break the do-it-yourself mode. For example, your business will need accounting and cash flow controls that measure performance of individual units within your overall operation. These reports will be required on a frequent basis. In many businesses weekly income statements are used to prevent small problems from growing into bigger ones that may become unmanageable. Your accountant can help you set up unit financial reporting.
Your expanding business will require delegation of responsibility and authority. New skills in recruitment, evaluation and training will be needed. The greatest leap of expansion for most businesses is growing from the first unit to the second one. Once you have made the big step from one to two, you are now a chain! From then on it can become a continually improving cookie-cutter operation.
Delegation of authority can be accomplished by:
Financial motivation of key employees
Creation of profit centersTestimonial
Flecher Hull
Fletcher Hull Motors, Auto Sales and Leasing
"Make sure that you don't wait too long to hire people to help you expand."
Transcription - html
Sometimes it is difficult for the beginning entrepreneur to delegate authority. There are many ways to do so without relinquishing certain functions that you will want to keep for yourself. For example, you should be the only person signing checks and deciding on capital allocations, yet you might want to delegate the training of employees to your managers.
But without giving up these functions, you can still motivate key employees in two ways: recognition and reward. Recognition means much more than bestowing an impressive title. The most important recognition is to let it be clear that your key people are in positions of authority as well as responsibility. While delegating authority will mean that your managers will be making some mistakes, their mistakes will be limited to their spheres of responsibility. Also, frequent financial reporting will minimize adverse financial impact of their mistakes.
Good managers are motivated by monetary incentive plans that are tied to their individual success. The incentive compensation of your management team should be therefore compartmentalized for each manager, so that a manager's bonus is based solely on what he or she has accomplished and not diluted by how other parts of the business are doing. For example, if you develop a chain of stores, each store manager's incentive compensation should be based only on the profit of his or her store.
If you are uncertain as to how to set up such a profit sharing plan, you might get ideas from your most successful competitors, who have already gone through the trial-and-error process of refining such systems.
[Back to top]
Ways to Motivate Key Employees: Reward and Recognition
Let's first set a definition of recognition: It is creating a business structure where your key employees are given authority and responsibility, which is tied to profit and accountability. This becomes a "profit center" that the key employee manages. Each profit center has separate profit and loss accountability, which is determined frequently. (Many fast food stores operate on weekly profit and loss statements!) The idea is to create an atmosphere where your key people feel they have entrepreneurial decision making authority, and are paid incentive compensation based on their own center profits. But, they are not given authority in two non-delegated roles, which remain your sole responsibility:
Capital expenditures
Signing checks
This suggests that your key people will be given enough latitude in operating their profit centers that they might make some mistakes.
By the two restrictions stated above, plus frequent financial reporting, you can recruit well-motivated managers and at the same time limit your exposure to big losses.
Obviously, the incentive plan must be tailored to each business situation and be based on the profit and loss report of the individual's separate responsibility.
By rewarding managers through profit participation, you create the engine that will drive your managers to success. And, the greater their success (and reward), the more your overall business will benefit.
Here are three types of plans (there are many) that have been used to structure a manager's incentive.
LEVERAGED PLAN. Managers receive all, or a large part of, unit earnings over a fixed target. This has been used successfully by fast food chains that are company owned and operated (rather than franchised units). Here is an example of a simplified weekly income statement of a doughnut shop that is operated by a company employee-manager. This plan is "leveraged" because every penny saved becomes a penny going into the manager's bonus check. Sales $5,000
Wages $1,500
Purchases $1,500
All other expenses (including co. profit) $1,500
Total expenses $4,500 $4,500
Weekly profit and manager's bonus: $500
UNLEVERAGED PROFIT SHARING PLAN. In this case your manager receives a percentage of earnings of his or her profit center. Here is an example: Sales $5,000
Wages $1,500
Purchases $1,500
All other (actual) expenses $500
Total expenses $3,500 $3,500
Net profit $1,500
Manager bonus @ 10%: $150
COMMISSION PLAN. In this plan, the manager receives a percentage of sales for the accounting period. Assuming, as above, that sales for the period are $5,000 and the commission is 5%, the compensation would be $250. In many instances, commission incentive is not appropriate because it does not include provisions for expenses. Your manager could get rich while you go broke. But commission incentive can work well when the manager does not control pricing. Salespersons in a retail clothing store would be a good example of a commission structure.
[Back to top]
Do's and Don'ts of Profit Centers:
Let's review some of the basic rules that apply in the creation of profit centers:
Create a separate profit center for each expansion unit. This means separate profit and loss statements that are compartmentalized for each manager.
Make the accounting periods very short. When there are not big fluctuations in inventories or other costs, even weekly profit and loss statements work well. But, if possible, don't wait for six or twelve months to reward managers. Rewards are best when received early!
Keep you profit sharing incentive plan simple and clear. It will avoid misunderstandings and misinterpretations. Use simple words and simple accounting.
Have all your profit sharing agreements in writing. It will avoid innocent differences of interpretation. A ball painted half black and half white is going to look differently depending on where you are viewing the ball!
Check out how your best competitor motivates their managers. Your competitors may have already come up with a system that is most appropriate for your particular business.
[Back to top]
Some Do's and Don'ts in Starting Your Business
Do's
Save Money.
Stay in a field you love.
Know your business before you start (work for someone else in it).
Copycat the winners in your business.
Specialize, even to a single product.
Find a product or service that is:
Needed or desired
Thought by customers to have no close substitute
Not subject to price regulation
Set a cap on your liability.
Learn computer skills.
Learn communication skills.
Have a lawyer, accountant, and insurance agent before you start.
Prepare a business plan.
Prepare the site criteria model for your particular business.
Do "for and against" lists for major decisions.
Buy when everyone is selling (and vice versa).
Deal with those you like, trust and admire.
Learn accounting.
Create your own internal control plan.
Keep going to school in subjects important to you.
Give back to the community.
Don'ts
Never sign a lease without your lawyer's review.
Don't rush: there is no such thing as the last good deal.
Avoid a "commodity" business (one without pricing power).
Don't burn bridges of job security to start a business if you can help it.
Don't become a business zombie: take time off.
Don't compete with category killers (Wal-Mart or Toys-R-Us) unless you have a special niche.
Begin Your Long-Range Financial Planning
Before expanding your business you should consult with your lawyer, accountant and insurance agent to develop benefits for your future employees as well as for yourself. The goal is to provide benefits sufficient to recruit and maintain outstanding managers. Provisions can be considered for retirement plans, health insurance and vacation and holiday benefits. These costs should then be included in your budget.
[Back to top]
Common Business ProblemsTestimonial
Martin Ruiz
Gardener
"Anyone who has the desire to be their own boss should consider going into business."
Transcription - html
Now let's identify some of the common mistakes made when businesses begin to grow. These mistakes can be deadly, so benefit from the others who have gone before you!
Uncontrolled Cash Flow. People fail because they run out of money. When you run out of cash, you crash. So, prepare your cash flow projections for expansion very conservatively. Review "Cash Flow" in Session #7. In projections, be sure to:
Forecast income (sales) very low
Forecast expenses very high
Provide for unanticipated contingencies.
A drop in sales or insufficient sales. If this happens, your income and cash flow will be impacted. Immediately take the necessary remedial steps by ruthlessly cutting costs.
Higher costs. Can you increase volume of sales? Can you offset with higher prices?
New Competition. The reality of the entrepreneur's life! Can you learn from them? Can you neutralize their opening impact?
Business recessions. You will need to promptly cut costs to maintain earnings and cash flow.
Incompetent managers or employees. Act swiftly to rid yourself of them.
Dishonesty, theft. Study the ways your most successful competitor controls all forms of dishonesty that your business is exposed to including shrinkage (shoplifting) and employee dishonesty. Each business will be different.
A combination of any or all of the above.
Basic rules for Handling Serious Business Problems:
Identify and acknowledge your problems with brutal honesty.
Immediately reduce your losses by unemotionally cutting your costs to maintain a positive cash flow and profitability. This is the first and most important action to take.
Don't switch horses. Stay with the business you know unless its future is fatally defective.
Take the initiative to explain to your creditors what your problems are and why slow or smaller payments will be necessary. Never write post-dated checks or send late payments without an explanation.
Don't cut value or quality of your products or services. Make them even better.
Improve every aspect you can of your performance and image.
Look for opportunity in adversity. Sometimes there will be bargain opportunities during business slumps.
Remember that businesses have cycles. So, hang in there and ride out the adverse periods.
[Back to top]
Suggested Activities
Review case histories of the most successful businesses in your field.
Review the case histories of businesses you know that failed to determine the reasons they failed. Was it inadequate testing, planning and experience?
Identify a typical business problem in your intended business and plan a solution.
Identify a combination of problems in your business and plan a solution.
[Back to top]
Business Plan for Session 12: Expanding and Handling Problems
We heartily recommend that you download the individual business plan template for this session Business Plan Template Document 12 and complete it now.Section 12: Growth Program
MS Word
Instructions on filling in the business plan template:
Each box has a permanent title in CAPITAL LETTERS
Below each title is a sentence starting with an "Insert here…" sentence. This will suggest information to insert. The boxes will enlarge as you take up more room so use all the space you need.
After completing each box, delete the "Insert here" sentence, which will leave only the permanent title of the box and the information you have filled in.
We suggest that you fill in each section of the business plan
as you proceed through the course.
The template for all sessions 1-12 can also be downloaded into your computer as a single document:Section 1-12: All
MS Word
Include sufficient research findings and background materials. Make it interesting up by the use of background data, your biography, charts, demographics and research data. When your business plan is completed, print off and assemble the 12 sections.
Many other business plan formats are available in libraries, bookstores and software.
[Back to top]
SESSION 12 Quiz: Expanding and Handling ProblemsWhen you decide to expand your business, which of the following activities should not be delegated:
Writing checks
Signing checks
Training employees
Profit center responsibility
If you are using a commission plan to motivate an employee, you should be sure that:
The employee controls the pricing.
The employer (you) control the pricing.
The best place to find the most appropriate bonus (profit sharing) plan for your growing business is:
Your accountant
McDonald's
Your most successful competitor
The library
One of the most important skills in managing your own business is knowing what to do when you get into trouble. When your business experiences an unexpected drop in sales, what is the FIRST step to take:
Reduce your prices to regain sales volume.
Review and improve on the quality of your service or product.
Look for ways to begin trimming expenses now.
If you find yourself in the position of not being able to pay your rent on time, you should:
Rather than writing a check that isn't good, postdate it to when you think it will clear.
Wait until you have the funds and then send in the check even though it is late.
Call your landlord and explain that you will be late and why. Tell him when the check can be expected and keep to this promise.
You plan to start a chain of convenience markets. The best way to find out how this business controls shrinkage and employee theft is to:
Join the Convenience Market Association.
Take graduate courses in marketing management.
Go to work for your most successful competitor.
Based on your personal experience in the business, create business systems to control these losses.
The "cookie cutter" approach to expansion refers to:
Following the marketing method of your favorite cookie competitor.
Working out all the problems of a pilot operation until it is profitable and then expand it by "cookie cutter" duplication.
Try different shapes and sizes of "cookie" concepts to produce a variety of expansion formats.
If your cash flow projection indicates a negative cash flow six months down the line, the FIRST remedy would be to:
Attempt to sell the business.
Begin looking for alterative business opportunities.
Bring your cash flow projection back into "positive" by increasing sales, cutting costs and obtaining financing.
If you open a second store (you are now a chain!) and sign a five year lease for $3,000 per month, you will create an obligation to pay:
$3,000 per month
$180,000
$130,000
Good managers are most motivated by:
Incentive compensation based on the company earnings.
Promotion to officer and vice president of the compan
This workshop will help you create a business plan to guide your business through the start-up or growth phase, a search for capital, or any other endeavor your small business undertakes.
We've distilled the typical business plan into seven key elements listed below. For each and every element you will find a description, instructions for creation, for many, tips for avoiding common pitfalls. But reading about something isn't always enough, so we have also provided "Toolboxes" full of samples, worksheets, and glossaries that will clarify and walk you through the process.
To make sure you are ready to create the best possible plan for your business you can experiment on someone else's business! In the Try It Yourself section you have an opportunity to test your skills on a fictional business plan and be rated on how prepared you are to create your own.
HANDLING PROBLEM ASSOCIATED WITH BUSINESS EXPANSION
Once your business has started, you will face the challenge of making it grow. In this session you will learn about some basic rules to follow before expanding.
Before even thinking about growing your business, you must first have a stable platform from which to take off. You must work out the bugs in your initial operation including making it profitable.
Your readiness to expand will improve if you can gain experience in all aspects of your start-up unit. Whether you have started an Internet business or opened a restaurant, become personally involved in all the functions of your business. Then you can detect weaknesses that can be remedied early on, where changes can be made rapidly and at less exposure to loss.
Another reason to become personally involved in every aspect of your business is that later on, after expansion plans are implemented, you will be depending on others to whom you must delegate responsibilities. Then, no one can fool you about how to run the store. You will have had personal experience in doing so.
Remember that after your expand, you will no longer be the person at the cash register. You must have systems in place to prevent employee theft and shrinkage (shoplifting). The loss-prevention systems that work best for your particular business have probably already been figured out by your competitors. So, check out and implement systems already being used in your industry. (If you're going to open a convenience store, go to work for 7-Eleven beforehand to learn their systems that work!)
Try to avoid giving your personal guarantee on leases or creditor obligations. As much as possible, separate your business liabilities from your personal assets. While banks will most likely require your personal guarantee on business loans, exposure of your personal assets can be mitigated by drawing the line against this practice whenever possible.
For example, a potential landlord for your second store may ask you to personally guarantee the lease. Your exposure in a five-year lease of $3,000 per month would be $180,000. This amount could far exceed the initial capitalization of your business. Yet because of the desire and enthusiasm to add more stores, it will be tempting to incur such potentially overwhelming liabilities.
Instead, by practicing discipline in limiting your liability, you might insist on negotiating a one-year lease with options for additional periods of time. Your liability in this case would be reduced to $36,000.
[Back to top]
Reasons Why Start-up Entrepreneurs Overlook the Importance of Starting with a Pilot Operation FirstTestimonial
Colette Coffeman
Catering Service
"If it can't be profitable, make sure that you don't go out and show yourself off in a bad light."
Transcription - html
There are some understandable reasons why many entrepreneurs overlook the importance of having a successful pilot operation in place before expanding.
Entrepreneurs by definition are self-confident. The problem is that too often we are over confidant either in ourselves or our product or service. This overconfidence can propel us into expansion programs without carefully working out the wrinkles including getting to the point of having a proven and profitable pilot plant (model) from which to expand.
One reason for overconfidence is that many wealthy entrepreneurs have enjoyed success in an unrelated field. A wealthy tycoon who had a successful career, for example, might start a new business in a field that he or she doesn't know or understand and might meet with failure because he or she assumed their expertise would transfer.
Another enemy is haste. Entrepreneurs who start multi-unit businesses will experience some deficiencies in their first unit. Many will lose money at the beginning. This is the time to work out the bugs and produce a positive income statement. If you can't, this may be time to abandon the idea. But, if you are starting a restaurant chain and in haste open six of them with problems, your losses could become overwhelming.
[Back to top]
Elements You Must Deal With in an Expanded Business not Present in a Start-upTestimonial
Erik Wong
Video Producer
"It is important to pace yourself as to the number of initial clients you take on. "
Transcription - html
There will be controls needed in your expanded business that have not been present in your start-up mode. It will take careful preparation to break the do-it-yourself mode. For example, your business will need accounting and cash flow controls that measure performance of individual units within your overall operation. These reports will be required on a frequent basis. In many businesses weekly income statements are used to prevent small problems from growing into bigger ones that may become unmanageable. Your accountant can help you set up unit financial reporting.
Your expanding business will require delegation of responsibility and authority. New skills in recruitment, evaluation and training will be needed. The greatest leap of expansion for most businesses is growing from the first unit to the second one. Once you have made the big step from one to two, you are now a chain! From then on it can become a continually improving cookie-cutter operation.
Delegation of authority can be accomplished by:
Financial motivation of key employees
Creation of profit centersTestimonial
Flecher Hull
Fletcher Hull Motors, Auto Sales and Leasing
"Make sure that you don't wait too long to hire people to help you expand."
Transcription - html
Sometimes it is difficult for the beginning entrepreneur to delegate authority. There are many ways to do so without relinquishing certain functions that you will want to keep for yourself. For example, you should be the only person signing checks and deciding on capital allocations, yet you might want to delegate the training of employees to your managers.
But without giving up these functions, you can still motivate key employees in two ways: recognition and reward. Recognition means much more than bestowing an impressive title. The most important recognition is to let it be clear that your key people are in positions of authority as well as responsibility. While delegating authority will mean that your managers will be making some mistakes, their mistakes will be limited to their spheres of responsibility. Also, frequent financial reporting will minimize adverse financial impact of their mistakes.
Good managers are motivated by monetary incentive plans that are tied to their individual success. The incentive compensation of your management team should be therefore compartmentalized for each manager, so that a manager's bonus is based solely on what he or she has accomplished and not diluted by how other parts of the business are doing. For example, if you develop a chain of stores, each store manager's incentive compensation should be based only on the profit of his or her store.
If you are uncertain as to how to set up such a profit sharing plan, you might get ideas from your most successful competitors, who have already gone through the trial-and-error process of refining such systems.
[Back to top]
Ways to Motivate Key Employees: Reward and Recognition
Let's first set a definition of recognition: It is creating a business structure where your key employees are given authority and responsibility, which is tied to profit and accountability. This becomes a "profit center" that the key employee manages. Each profit center has separate profit and loss accountability, which is determined frequently. (Many fast food stores operate on weekly profit and loss statements!) The idea is to create an atmosphere where your key people feel they have entrepreneurial decision making authority, and are paid incentive compensation based on their own center profits. But, they are not given authority in two non-delegated roles, which remain your sole responsibility:
Capital expenditures
Signing checks
This suggests that your key people will be given enough latitude in operating their profit centers that they might make some mistakes.
By the two restrictions stated above, plus frequent financial reporting, you can recruit well-motivated managers and at the same time limit your exposure to big losses.
Obviously, the incentive plan must be tailored to each business situation and be based on the profit and loss report of the individual's separate responsibility.
By rewarding managers through profit participation, you create the engine that will drive your managers to success. And, the greater their success (and reward), the more your overall business will benefit.
Here are three types of plans (there are many) that have been used to structure a manager's incentive.
LEVERAGED PLAN. Managers receive all, or a large part of, unit earnings over a fixed target. This has been used successfully by fast food chains that are company owned and operated (rather than franchised units). Here is an example of a simplified weekly income statement of a doughnut shop that is operated by a company employee-manager. This plan is "leveraged" because every penny saved becomes a penny going into the manager's bonus check. Sales $5,000
Wages $1,500
Purchases $1,500
All other expenses (including co. profit) $1,500
Total expenses $4,500 $4,500
Weekly profit and manager's bonus: $500
UNLEVERAGED PROFIT SHARING PLAN. In this case your manager receives a percentage of earnings of his or her profit center. Here is an example: Sales $5,000
Wages $1,500
Purchases $1,500
All other (actual) expenses $500
Total expenses $3,500 $3,500
Net profit $1,500
Manager bonus @ 10%: $150
COMMISSION PLAN. In this plan, the manager receives a percentage of sales for the accounting period. Assuming, as above, that sales for the period are $5,000 and the commission is 5%, the compensation would be $250. In many instances, commission incentive is not appropriate because it does not include provisions for expenses. Your manager could get rich while you go broke. But commission incentive can work well when the manager does not control pricing. Salespersons in a retail clothing store would be a good example of a commission structure.
[Back to top]
Do's and Don'ts of Profit Centers:
Let's review some of the basic rules that apply in the creation of profit centers:
Create a separate profit center for each expansion unit. This means separate profit and loss statements that are compartmentalized for each manager.
Make the accounting periods very short. When there are not big fluctuations in inventories or other costs, even weekly profit and loss statements work well. But, if possible, don't wait for six or twelve months to reward managers. Rewards are best when received early!
Keep you profit sharing incentive plan simple and clear. It will avoid misunderstandings and misinterpretations. Use simple words and simple accounting.
Have all your profit sharing agreements in writing. It will avoid innocent differences of interpretation. A ball painted half black and half white is going to look differently depending on where you are viewing the ball!
Check out how your best competitor motivates their managers. Your competitors may have already come up with a system that is most appropriate for your particular business.
[Back to top]
Some Do's and Don'ts in Starting Your Business
Do's
Save Money.
Stay in a field you love.
Know your business before you start (work for someone else in it).
Copycat the winners in your business.
Specialize, even to a single product.
Find a product or service that is:
Needed or desired
Thought by customers to have no close substitute
Not subject to price regulation
Set a cap on your liability.
Learn computer skills.
Learn communication skills.
Have a lawyer, accountant, and insurance agent before you start.
Prepare a business plan.
Prepare the site criteria model for your particular business.
Do "for and against" lists for major decisions.
Buy when everyone is selling (and vice versa).
Deal with those you like, trust and admire.
Learn accounting.
Create your own internal control plan.
Keep going to school in subjects important to you.
Give back to the community.
Don'ts
Never sign a lease without your lawyer's review.
Don't rush: there is no such thing as the last good deal.
Avoid a "commodity" business (one without pricing power).
Don't burn bridges of job security to start a business if you can help it.
Don't become a business zombie: take time off.
Don't compete with category killers (Wal-Mart or Toys-R-Us) unless you have a special niche.
Begin Your Long-Range Financial Planning
Before expanding your business you should consult with your lawyer, accountant and insurance agent to develop benefits for your future employees as well as for yourself. The goal is to provide benefits sufficient to recruit and maintain outstanding managers. Provisions can be considered for retirement plans, health insurance and vacation and holiday benefits. These costs should then be included in your budget.
[Back to top]
Common Business ProblemsTestimonial
Martin Ruiz
Gardener
"Anyone who has the desire to be their own boss should consider going into business."
Transcription - html
Now let's identify some of the common mistakes made when businesses begin to grow. These mistakes can be deadly, so benefit from the others who have gone before you!
Uncontrolled Cash Flow. People fail because they run out of money. When you run out of cash, you crash. So, prepare your cash flow projections for expansion very conservatively. Review "Cash Flow" in Session #7. In projections, be sure to:
Forecast income (sales) very low
Forecast expenses very high
Provide for unanticipated contingencies.
A drop in sales or insufficient sales. If this happens, your income and cash flow will be impacted. Immediately take the necessary remedial steps by ruthlessly cutting costs.
Higher costs. Can you increase volume of sales? Can you offset with higher prices?
New Competition. The reality of the entrepreneur's life! Can you learn from them? Can you neutralize their opening impact?
Business recessions. You will need to promptly cut costs to maintain earnings and cash flow.
Incompetent managers or employees. Act swiftly to rid yourself of them.
Dishonesty, theft. Study the ways your most successful competitor controls all forms of dishonesty that your business is exposed to including shrinkage (shoplifting) and employee dishonesty. Each business will be different.
A combination of any or all of the above.
Basic rules for Handling Serious Business Problems:
Identify and acknowledge your problems with brutal honesty.
Immediately reduce your losses by unemotionally cutting your costs to maintain a positive cash flow and profitability. This is the first and most important action to take.
Don't switch horses. Stay with the business you know unless its future is fatally defective.
Take the initiative to explain to your creditors what your problems are and why slow or smaller payments will be necessary. Never write post-dated checks or send late payments without an explanation.
Don't cut value or quality of your products or services. Make them even better.
Improve every aspect you can of your performance and image.
Look for opportunity in adversity. Sometimes there will be bargain opportunities during business slumps.
Remember that businesses have cycles. So, hang in there and ride out the adverse periods.
[Back to top]
Suggested Activities
Review case histories of the most successful businesses in your field.
Review the case histories of businesses you know that failed to determine the reasons they failed. Was it inadequate testing, planning and experience?
Identify a typical business problem in your intended business and plan a solution.
Identify a combination of problems in your business and plan a solution.
[Back to top]
Business Plan for Session 12: Expanding and Handling Problems
We heartily recommend that you download the individual business plan template for this session Business Plan Template Document 12 and complete it now.Section 12: Growth Program
MS Word
Instructions on filling in the business plan template:
Each box has a permanent title in CAPITAL LETTERS
Below each title is a sentence starting with an "Insert here…" sentence. This will suggest information to insert. The boxes will enlarge as you take up more room so use all the space you need.
After completing each box, delete the "Insert here" sentence, which will leave only the permanent title of the box and the information you have filled in.
We suggest that you fill in each section of the business plan
as you proceed through the course.
The template for all sessions 1-12 can also be downloaded into your computer as a single document:Section 1-12: All
MS Word
Include sufficient research findings and background materials. Make it interesting up by the use of background data, your biography, charts, demographics and research data. When your business plan is completed, print off and assemble the 12 sections.
Many other business plan formats are available in libraries, bookstores and software.
[Back to top]
SESSION 12 Quiz: Expanding and Handling ProblemsWhen you decide to expand your business, which of the following activities should not be delegated:
Writing checks
Signing checks
Training employees
Profit center responsibility
If you are using a commission plan to motivate an employee, you should be sure that:
The employee controls the pricing.
The employer (you) control the pricing.
The best place to find the most appropriate bonus (profit sharing) plan for your growing business is:
Your accountant
McDonald's
Your most successful competitor
The library
One of the most important skills in managing your own business is knowing what to do when you get into trouble. When your business experiences an unexpected drop in sales, what is the FIRST step to take:
Reduce your prices to regain sales volume.
Review and improve on the quality of your service or product.
Look for ways to begin trimming expenses now.
If you find yourself in the position of not being able to pay your rent on time, you should:
Rather than writing a check that isn't good, postdate it to when you think it will clear.
Wait until you have the funds and then send in the check even though it is late.
Call your landlord and explain that you will be late and why. Tell him when the check can be expected and keep to this promise.
You plan to start a chain of convenience markets. The best way to find out how this business controls shrinkage and employee theft is to:
Join the Convenience Market Association.
Take graduate courses in marketing management.
Go to work for your most successful competitor.
Based on your personal experience in the business, create business systems to control these losses.
The "cookie cutter" approach to expansion refers to:
Following the marketing method of your favorite cookie competitor.
Working out all the problems of a pilot operation until it is profitable and then expand it by "cookie cutter" duplication.
Try different shapes and sizes of "cookie" concepts to produce a variety of expansion formats.
If your cash flow projection indicates a negative cash flow six months down the line, the FIRST remedy would be to:
Attempt to sell the business.
Begin looking for alterative business opportunities.
Bring your cash flow projection back into "positive" by increasing sales, cutting costs and obtaining financing.
If you open a second store (you are now a chain!) and sign a five year lease for $3,000 per month, you will create an obligation to pay:
$3,000 per month
$180,000
$130,000
Good managers are most motivated by:
Incentive compensation based on the company earnings.
Promotion to officer and vice president of the compan
BUSINESS PLAN 2
BUSINESS SELECTION LISTS
Benefits: Those who are interested in starting a new business are often told that they should select a business that takes advantage of their skills and experience. But that often leaves them perplexed because they don't really know how to go about doing that. The attached file will clarify some of the confusion by allowing you to rate your interests and compare them to various business possibilities. Once you've completed the "test," you should be well on your way to choosing the business that's right for you.
File Description: The file contains a two-page document in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
Special Features: Included are the following:
a place for you to rank all of the business you're currently considering
an exercise for rating those various business ideas
a means for interpreting the results of the exercise and a method for selecting the business that's right for you or at least for narrowing your list
CHECKLIST FOR ASSESSING PERSONAL STRENGHTS AND WEAKNESSES
Benefits: The attached document will help you identify your strengths and weaknesses by asking you to rate yourself in several areas that are important to small business ownership. Knowing your strengths and weaknesses is important because (1) it can tell you whether you're ready to start a small business, (2) in choosing a new business, it can help you match your skills to the right business, and (3) it can tell you whether you need to consider adding a partner who can bring skills to the business that you lack.
File Description: The file contains a three-page document in rich text format (RTF). Since there is text that has been formatted as a table in Microsoft Word 6.0, you need Microsoft Word version 6.0 or above to use this form.
Special Features: Included are the following:
a chart listing the skills that are the most essential to starting and running a new business
a rating system for determining your strengths and weaknesses, as well as a scale for interpreting your answers, such as "you're ready to start a new business now" to "you should reconsider whether owning a business is right for you
CHECKLIST FOR STARTING A NEW BUSINES
Benefits: The attached file contains a checklist for all the steps you should take before you start a new business. It's a "to do" list for starting a new business in much the same way that a grocery list is a "to do" for grocery shopping.
It contains a general, high-level listing of the tasks you need to complete in starting your new business. So, for example, while it lists "prepare a business plan" as one of the tasks, it does not list every step you need to take to create a business plan.
File Description: The file contains a one-page document in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
Special Features: Included are the following:
a listing of all the background steps you need to take, including establishing business goals, determining the best location for your business, and assessing your financial situation
a listing of all the business transactions you need to take, such as hiring a lawyer, establishing a line of credit, and getting business insurance
a listing of all the pre-opening steps you need to take, including reviewing building codes, obtaining business licenses, and joining professional organizations
Benefits: Its always easier to write if you have a clear picture of what the finished product should look like. The attached files contain the component elements of sample business plans for three fictitious companies. Taken together, they illustrate the type of information that is essential to the creation of a high quality business plan. These documents are not complete plans; they are not templates into which you can cut and paste information about your business. Instead, these documents demonstrate how the nature of a business and the target audience for the plan affect the content. After looking over one or more of these business plans, a business owner should have a handle on what information his or her business plan needs to contain to make it the best possible plan.
File Description: There are five documents available for download:
Two files are in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
One file contains text formatted as tables in Microsoft Word 6.0. To use these forms, you need Microsoft Word version 6.0 or above.
Two files are Microsoft Excel spreadsheets suitable for use with Excel versions 4.0 and above.
Special Features:
The service provider's business plan contains both text and spreadsheet components that illustrate the type of information that a new start-up business should include in a business plan.
The manufacturer's business plan provides additional financial information to reflect its status as a going concern with a track record of financial results available.
The retailer's business plan combines financial and textual components in order to demonstrate how a plan document might be simplified based on its intended audience.
Taken together, the three plans provide insight into the differing concerns that must be addressed based upon the nature of the product or service that a business will provide.
Benefits: Those who are interested in starting a new business are often told that they should select a business that takes advantage of their skills and experience. But that often leaves them perplexed because they don't really know how to go about doing that. The attached file will clarify some of the confusion by allowing you to rate your interests and compare them to various business possibilities. Once you've completed the "test," you should be well on your way to choosing the business that's right for you.
File Description: The file contains a two-page document in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
Special Features: Included are the following:
a place for you to rank all of the business you're currently considering
an exercise for rating those various business ideas
a means for interpreting the results of the exercise and a method for selecting the business that's right for you or at least for narrowing your list
CHECKLIST FOR ASSESSING PERSONAL STRENGHTS AND WEAKNESSES
Benefits: The attached document will help you identify your strengths and weaknesses by asking you to rate yourself in several areas that are important to small business ownership. Knowing your strengths and weaknesses is important because (1) it can tell you whether you're ready to start a small business, (2) in choosing a new business, it can help you match your skills to the right business, and (3) it can tell you whether you need to consider adding a partner who can bring skills to the business that you lack.
File Description: The file contains a three-page document in rich text format (RTF). Since there is text that has been formatted as a table in Microsoft Word 6.0, you need Microsoft Word version 6.0 or above to use this form.
Special Features: Included are the following:
a chart listing the skills that are the most essential to starting and running a new business
a rating system for determining your strengths and weaknesses, as well as a scale for interpreting your answers, such as "you're ready to start a new business now" to "you should reconsider whether owning a business is right for you
CHECKLIST FOR STARTING A NEW BUSINES
Benefits: The attached file contains a checklist for all the steps you should take before you start a new business. It's a "to do" list for starting a new business in much the same way that a grocery list is a "to do" for grocery shopping.
It contains a general, high-level listing of the tasks you need to complete in starting your new business. So, for example, while it lists "prepare a business plan" as one of the tasks, it does not list every step you need to take to create a business plan.
File Description: The file contains a one-page document in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
Special Features: Included are the following:
a listing of all the background steps you need to take, including establishing business goals, determining the best location for your business, and assessing your financial situation
a listing of all the business transactions you need to take, such as hiring a lawyer, establishing a line of credit, and getting business insurance
a listing of all the pre-opening steps you need to take, including reviewing building codes, obtaining business licenses, and joining professional organizations
Benefits: Its always easier to write if you have a clear picture of what the finished product should look like. The attached files contain the component elements of sample business plans for three fictitious companies. Taken together, they illustrate the type of information that is essential to the creation of a high quality business plan. These documents are not complete plans; they are not templates into which you can cut and paste information about your business. Instead, these documents demonstrate how the nature of a business and the target audience for the plan affect the content. After looking over one or more of these business plans, a business owner should have a handle on what information his or her business plan needs to contain to make it the best possible plan.
File Description: There are five documents available for download:
Two files are in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.
One file contains text formatted as tables in Microsoft Word 6.0. To use these forms, you need Microsoft Word version 6.0 or above.
Two files are Microsoft Excel spreadsheets suitable for use with Excel versions 4.0 and above.
Special Features:
The service provider's business plan contains both text and spreadsheet components that illustrate the type of information that a new start-up business should include in a business plan.
The manufacturer's business plan provides additional financial information to reflect its status as a going concern with a track record of financial results available.
The retailer's business plan combines financial and textual components in order to demonstrate how a plan document might be simplified based on its intended audience.
Taken together, the three plans provide insight into the differing concerns that must be addressed based upon the nature of the product or service that a business will provide.
HO TO DEVELOP A GOOD BUSINESS PLANS1
COMMON STARTUP MISTAKES TO AVOID
For most people, starting a business is an exciting time during which they are invigorated by the possibility of success and the fun of tackling new challenges. It is also a time to make lots of mistakes!
Many of the mistakes entrepreneurs make during the start-up phase can be avoided. One of the best ways to steer clear of foibles is to talk to established business owners about what they learned during the process. Ask your attorney or accountant for referrals to business owners who have relevant experience and attend trade association meetings and talk to people in the industry you are entering.
No matter how much research and preparation you do, you will make mistakes when you start a business, but the common errors listed here may help you avoid a few.
Common mistakes include:
Incorporating too quickly
The first step for many people when they launch a business is to file with the state office of incorporation. While incorporating is an appropriate step for many businesses, it pays to wait until your business idea is well formed before taking the plunge. The reason: the concept of your business and therefore the name is likely to change during the first few months of operation.
Not researching the market
A frequently overlooked component of business start up is determining whether the target market for your product or service will buy from you. The best way to derive the answer to this question is to ask them. Arrange to speak to as many of your potential customers as possible. Questions to ask include: Would you buy my product or service? Where do you currently obtain this product or service? How much would you be willing to pay for it? What do you like/dislike about your current provider? Where would you look for this product or service when you need it?
Wanting to over-use an attorney
Attorneys' hourly fees add up extremely quickly and newly-minted business owners are often shocked by their first few legal bills. The temptation when you start is to involve your attorney in all aspects of your business for counsel and drafting of documents. Many business owners quickly learn that it pays to do your own research, draft your own documents, and call on the expertise of your attorney to refine your work.
Spending too much money on office space and decorations
A nice office and great computer equipment make many entrepreneurs feel as though their dream of entrepreneurism is coming true. While one of the pleasures of launching a business is setting up an office that you are proud of, expensive trappings have put many businesses out of business before they got off the ground.
EFFECTIVE COMPETITIVE ANALYSIS
For your small business to succeed, you need to know almost as much about your competitors as you do about your own company and customers. Unfortunately, many small business owners make the mistake of waiting until a competitor has opened up shop across the street and is cutting into profits to find out who and what they're up against.
A competitive analysis allows you to identify your competitors and evaluate their respective strengths and weaknesses. By knowing the actions of your competitors, you will have a better understanding of what products or services you should offer; how you can market them effectively; and how you can position your business.
Competitive analysis is an ongoing process. You should always be gathering information about your competitors. Look at their Web sites. Read their product literature and brochures. Get your hands on their products. See how they present themselves at trade shows. Read about them in your industry's trade publications. Talk to your customers to see how they feel about competitive products or services.
Click on the steps below to learn more about how to analyze your competitors:
Step 1: Identify your competition
Step 2: Analyze strengths and weaknesses
Step 3: Look at opportunities and threats
Step 4: Determine your position.
Step 1: Identify your competition
Every business has competitors, and you need to take the time to discern who your customers can approach to get a product or service that fills the same need as yours does. Even if your product or service is truly innovative, you need to look at what else your customers would purchase to accomplish this task. For example, you may be opening a Website that offers online Bingo. Your competition would be other Bingo sites, other Web gaming sites, the Bingo hall down the street, and any other businesses that are competing for the same leisure-time dollars.
Begin by looking at your primary competitors. These are the market leaders, the companies who currently dominate your market. They are probably the ones who you find yourself bumping up against in your search for new customers. If you're a florist, it would be other florists in your neighborhood. If you're a computer consultant, it would be other consultants with the same specialty.
Next, look for your secondary and indirect competitors. These are the businesses who may not go head-to-head with you, but who are targeting the same general market. Sticking with the florist example, it might be a small local roses-only store, a national floral delivery service, or the flower/plant department of your local supermarket or discount store..
Finally, look at potential competitors. These are companies who might be moving into your market and who you need to prepare to compete against. For example, you might have an independent frozen yogurt stand; you will need to prepare to compete against national frozen yogurt franchises, even if they are not yet in your market.
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Step 2: Analyze strengths and weaknesses
After you've figured out who your competitors are, determine their strengths and find out what their vulnerabilities are. Why do customers buy from them. Is it price? value? service? convenience? reputation? Focus as much on "perceived" strengths and weaknesses as you do on actual ones. This is because customer perception may actually be more important than reality.
It's a good idea to do this strengths/weaknesses analysis in table form. Write down the names of each of your competitors. Then set up columns listing every important category for your line of business (price, value, service, location, reputation, expertise, convenience, personnel, advertising/marketing, or whatever else is appropriate to your type of company). Once you have this table set, rate your competitors, and be sure to put in comments as to why you've given them that rating. You might even want to put strengths in red and weaknesses in blue, so you can tell at a glance where each competitor stands.
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Step 3: Look at opportunities and threats
Strengths and weaknesses are often factors that are under a company's control. But when you're looking at your competition, you also need to examine how well prepared they are to deal with factors outside their control. These are called opportunities and threats.
Opportunities and threats fall into a wide range of categories. It might be technological developments, regulatory or legal action, economic factors, or even a possible new competitor. For example, a photo developing store needs to know how well its competitors are prepared to deal with the advent of digital photography. Or a company that sells over the Web should analyze how its competitors are prepared to deal with online security issues.
Again, an effective way to do this is to create a table listing your competitors and the outside factors that will impact your industry. You will then be able to tell how they can deal with opportunities and threats.
Back to top
Step 4. Determine your position
Once you figure out what your competitors' strengths and weaknesses are, you need to determine where to position your company vis a vis the competition. Some of this may be obvious from the results of your analysis, but it also pays to take a hard look at how your business operates.
One of the most effective ways to do this is to create a strengths/weaknesses opportunities/threats analysis of your business. Rank your company in the same categories that you ranked your competitors. This will give you an even clearer picture of where your business fits in the competitive environment. It will also help you determine what areas you need to improve, and what characteristics of your business you should take advantage of to gain more customers.
The bottom line: look for ways to leverage your strengths and take advantage of your competitors' weaknesses.
HOW TO COME UP WITH WINNING BUSINESS IDEAS
Developing a business idea is a matter of creating a vision, leveraging your strengths and determining what the market needs. These three steps should get you started.
Create a vision
Determine what you're good at and what you like to do
Figure out what the market needs
Create a vision
Close your eyes for a few minutes and conjure up a detailed image of what you want your life to look like in 5 years. Be as specific as possible.
Where do you live?
How do you spend your days?
What kind of work do you do?
Do you work alone or with other people?
Who are you surrounded by?
What do you do when you aren't working?
Don't limit yourself to these questions; create a vivid vision of yourself, touching on things that are important to you. These are all personal issues that will impact the type of business you pursue - being a city or country person; wanting to travel or sit at your computer; liking to meet people or work on the phone. This activity will help you create a foundation for choosing a business, making business decisions, and setting clear goals.
It is best to do this exercise with someone else and share your vision. If you can't, write it down to make your vision more concrete.
[Back to top]
Determine what you're good at and what you like to do
It's often useful to look inside yourself to figure out what you like and dislike, and where your talents lie. It's one thing to come up with a winning business idea. It's another to come up with one that fits your skill set and interests you. Your business has to keep you excited so you can thrive over the long haul.
One of the best ways to do this is to make three separate lists:
List 1: What you're good at
Everyone is good at something and many skills can be the foundation for a business. You might be naturally organized or have a knack for fixing things. You may be so used to your skills that they don't immediately come to mind, so assemble this list by observing yourself for a few weeks with an eye out for your aptitudes and by asking people who know you well for their impressions of what you excel at.
List 2: Skills you've acquired over the years
Whether or not you've worked in a conventional environment, you no doubt have accumulated many. Write down all the work responsibilities you've had; think about the varied tasks you know how to complete. Make sure this list is complete -- there should be at least 10 distinct items.
List 3: Things you like to do
List the things you enjoy doing. This may not be as easy as it sounds. This list should be at least 10 items long. Stretch beyond your hobbies and interests that spring to mind immediately. If you're stymied, ask people who have known you for a long time -- particularly people who knew you as a kid -- what they have seen you doing when you're happiest.
Keep these three lists in an accessible place (for instance on your desk) for several weeks, and every time an idea comes to you, jot it down in the proper category. Ask people who know you well for their input or to help you jog your memory.
SETTING GOALS FOR YOUR BUSINESS
Goal-setting is crucial to the success of any business, but is particularly important for entrepreneurs who can become distracted without focus. Goals direct actions, give you something to aim for, and can serve as a yardstick for measuring your business' success.
The way you approach goal-setting will determine whether you are able to attain your goals. Most people agree that goals are important, but less than five percent of people write down goals or have action plans for attaining them. Fear is most often the culprit. People don't like to write goals down on paper (a crucial part of goal setting) because they are afraid to commit to them. If this is your problem, try to remember that a goal can be changed at any time after you write it down. Also keep in mind that goal-setting becomes easier the more times you undertake it. When you have set goals and attained them, the power of goal setting will compel you to set more.
If you avoid goal-setting, the tips and hints below should help.
Have short-term and long-term goals
You might want to set weekly goals, quarterly goals, annual goals, and even 3-year or 5-year goals. One way to generate short-term goals is to first consider your long-term goals. Is there a certain dollar amount you want to earn or a number of clients you need to sign up by a certain time? If nothing like that comes to mind immediately, take a few minutes and think about what professional goal you would like to attain. Once you have determined long-term goals, you can work backward. If your goal is to make $100,000 this year, you should make a list of what it would entail to make that money. If you encounter difficulty creating your list, ask peers or friends for help. When your list is complete, break those small steps down into goals.
Make your goals specific and measurable with a deadline
"Increase my sales" is a good goal, but it's so vague that it does not provide a means by which you can judge your success. Modify your goals by making them specific. All goals should be specific (Get new clients), measurable (Get three new clients), and have a time frame (Get three new clients by November).
Don't set yourself up for failure
Make sure your goals are attainable. If you aim too high, you're dooming yourself to defeat.
Don't be lazy
On the other hand, some entrepreneurs set goals that are too easily attained. If you tend in this direction, look for ways to challenge yourself. If you usually aim to add one new client every quarter, push yourself to shoot for two or three.
Be relevant
Goals should help you attain a specific aim. Look out for goals that are just going to keep you busy, but are not appropriate to the overall success of your business. If you don't believe your goals are worthwhile, you won't make the necessary effort to achieve them.
Be patient and persistent
It your system of setting goals does not seem to be working because you are not attaining much of what you write down, do not give up. Keep setting goals for several months and you will find that your goal setting skills improve.
Review your goals constantly
Keep your weekly or other short-term goals in plain view -- by your desk, or next to your computer, for example -- so you know what you need to attain. Look at your annual goals monthly to see if you're on track. If your business' focus changes, don't be afraid to alter your goals. Flexibility is a crucial component of goal-setting.
For most people, starting a business is an exciting time during which they are invigorated by the possibility of success and the fun of tackling new challenges. It is also a time to make lots of mistakes!
Many of the mistakes entrepreneurs make during the start-up phase can be avoided. One of the best ways to steer clear of foibles is to talk to established business owners about what they learned during the process. Ask your attorney or accountant for referrals to business owners who have relevant experience and attend trade association meetings and talk to people in the industry you are entering.
No matter how much research and preparation you do, you will make mistakes when you start a business, but the common errors listed here may help you avoid a few.
Common mistakes include:
Incorporating too quickly
The first step for many people when they launch a business is to file with the state office of incorporation. While incorporating is an appropriate step for many businesses, it pays to wait until your business idea is well formed before taking the plunge. The reason: the concept of your business and therefore the name is likely to change during the first few months of operation.
Not researching the market
A frequently overlooked component of business start up is determining whether the target market for your product or service will buy from you. The best way to derive the answer to this question is to ask them. Arrange to speak to as many of your potential customers as possible. Questions to ask include: Would you buy my product or service? Where do you currently obtain this product or service? How much would you be willing to pay for it? What do you like/dislike about your current provider? Where would you look for this product or service when you need it?
Wanting to over-use an attorney
Attorneys' hourly fees add up extremely quickly and newly-minted business owners are often shocked by their first few legal bills. The temptation when you start is to involve your attorney in all aspects of your business for counsel and drafting of documents. Many business owners quickly learn that it pays to do your own research, draft your own documents, and call on the expertise of your attorney to refine your work.
Spending too much money on office space and decorations
A nice office and great computer equipment make many entrepreneurs feel as though their dream of entrepreneurism is coming true. While one of the pleasures of launching a business is setting up an office that you are proud of, expensive trappings have put many businesses out of business before they got off the ground.
EFFECTIVE COMPETITIVE ANALYSIS
For your small business to succeed, you need to know almost as much about your competitors as you do about your own company and customers. Unfortunately, many small business owners make the mistake of waiting until a competitor has opened up shop across the street and is cutting into profits to find out who and what they're up against.
A competitive analysis allows you to identify your competitors and evaluate their respective strengths and weaknesses. By knowing the actions of your competitors, you will have a better understanding of what products or services you should offer; how you can market them effectively; and how you can position your business.
Competitive analysis is an ongoing process. You should always be gathering information about your competitors. Look at their Web sites. Read their product literature and brochures. Get your hands on their products. See how they present themselves at trade shows. Read about them in your industry's trade publications. Talk to your customers to see how they feel about competitive products or services.
Click on the steps below to learn more about how to analyze your competitors:
Step 1: Identify your competition
Step 2: Analyze strengths and weaknesses
Step 3: Look at opportunities and threats
Step 4: Determine your position.
Step 1: Identify your competition
Every business has competitors, and you need to take the time to discern who your customers can approach to get a product or service that fills the same need as yours does. Even if your product or service is truly innovative, you need to look at what else your customers would purchase to accomplish this task. For example, you may be opening a Website that offers online Bingo. Your competition would be other Bingo sites, other Web gaming sites, the Bingo hall down the street, and any other businesses that are competing for the same leisure-time dollars.
Begin by looking at your primary competitors. These are the market leaders, the companies who currently dominate your market. They are probably the ones who you find yourself bumping up against in your search for new customers. If you're a florist, it would be other florists in your neighborhood. If you're a computer consultant, it would be other consultants with the same specialty.
Next, look for your secondary and indirect competitors. These are the businesses who may not go head-to-head with you, but who are targeting the same general market. Sticking with the florist example, it might be a small local roses-only store, a national floral delivery service, or the flower/plant department of your local supermarket or discount store..
Finally, look at potential competitors. These are companies who might be moving into your market and who you need to prepare to compete against. For example, you might have an independent frozen yogurt stand; you will need to prepare to compete against national frozen yogurt franchises, even if they are not yet in your market.
Back to top
Step 2: Analyze strengths and weaknesses
After you've figured out who your competitors are, determine their strengths and find out what their vulnerabilities are. Why do customers buy from them. Is it price? value? service? convenience? reputation? Focus as much on "perceived" strengths and weaknesses as you do on actual ones. This is because customer perception may actually be more important than reality.
It's a good idea to do this strengths/weaknesses analysis in table form. Write down the names of each of your competitors. Then set up columns listing every important category for your line of business (price, value, service, location, reputation, expertise, convenience, personnel, advertising/marketing, or whatever else is appropriate to your type of company). Once you have this table set, rate your competitors, and be sure to put in comments as to why you've given them that rating. You might even want to put strengths in red and weaknesses in blue, so you can tell at a glance where each competitor stands.
Back to top
Step 3: Look at opportunities and threats
Strengths and weaknesses are often factors that are under a company's control. But when you're looking at your competition, you also need to examine how well prepared they are to deal with factors outside their control. These are called opportunities and threats.
Opportunities and threats fall into a wide range of categories. It might be technological developments, regulatory or legal action, economic factors, or even a possible new competitor. For example, a photo developing store needs to know how well its competitors are prepared to deal with the advent of digital photography. Or a company that sells over the Web should analyze how its competitors are prepared to deal with online security issues.
Again, an effective way to do this is to create a table listing your competitors and the outside factors that will impact your industry. You will then be able to tell how they can deal with opportunities and threats.
Back to top
Step 4. Determine your position
Once you figure out what your competitors' strengths and weaknesses are, you need to determine where to position your company vis a vis the competition. Some of this may be obvious from the results of your analysis, but it also pays to take a hard look at how your business operates.
One of the most effective ways to do this is to create a strengths/weaknesses opportunities/threats analysis of your business. Rank your company in the same categories that you ranked your competitors. This will give you an even clearer picture of where your business fits in the competitive environment. It will also help you determine what areas you need to improve, and what characteristics of your business you should take advantage of to gain more customers.
The bottom line: look for ways to leverage your strengths and take advantage of your competitors' weaknesses.
HOW TO COME UP WITH WINNING BUSINESS IDEAS
Developing a business idea is a matter of creating a vision, leveraging your strengths and determining what the market needs. These three steps should get you started.
Create a vision
Determine what you're good at and what you like to do
Figure out what the market needs
Create a vision
Close your eyes for a few minutes and conjure up a detailed image of what you want your life to look like in 5 years. Be as specific as possible.
Where do you live?
How do you spend your days?
What kind of work do you do?
Do you work alone or with other people?
Who are you surrounded by?
What do you do when you aren't working?
Don't limit yourself to these questions; create a vivid vision of yourself, touching on things that are important to you. These are all personal issues that will impact the type of business you pursue - being a city or country person; wanting to travel or sit at your computer; liking to meet people or work on the phone. This activity will help you create a foundation for choosing a business, making business decisions, and setting clear goals.
It is best to do this exercise with someone else and share your vision. If you can't, write it down to make your vision more concrete.
[Back to top]
Determine what you're good at and what you like to do
It's often useful to look inside yourself to figure out what you like and dislike, and where your talents lie. It's one thing to come up with a winning business idea. It's another to come up with one that fits your skill set and interests you. Your business has to keep you excited so you can thrive over the long haul.
One of the best ways to do this is to make three separate lists:
List 1: What you're good at
Everyone is good at something and many skills can be the foundation for a business. You might be naturally organized or have a knack for fixing things. You may be so used to your skills that they don't immediately come to mind, so assemble this list by observing yourself for a few weeks with an eye out for your aptitudes and by asking people who know you well for their impressions of what you excel at.
List 2: Skills you've acquired over the years
Whether or not you've worked in a conventional environment, you no doubt have accumulated many. Write down all the work responsibilities you've had; think about the varied tasks you know how to complete. Make sure this list is complete -- there should be at least 10 distinct items.
List 3: Things you like to do
List the things you enjoy doing. This may not be as easy as it sounds. This list should be at least 10 items long. Stretch beyond your hobbies and interests that spring to mind immediately. If you're stymied, ask people who have known you for a long time -- particularly people who knew you as a kid -- what they have seen you doing when you're happiest.
Keep these three lists in an accessible place (for instance on your desk) for several weeks, and every time an idea comes to you, jot it down in the proper category. Ask people who know you well for their input or to help you jog your memory.
SETTING GOALS FOR YOUR BUSINESS
Goal-setting is crucial to the success of any business, but is particularly important for entrepreneurs who can become distracted without focus. Goals direct actions, give you something to aim for, and can serve as a yardstick for measuring your business' success.
The way you approach goal-setting will determine whether you are able to attain your goals. Most people agree that goals are important, but less than five percent of people write down goals or have action plans for attaining them. Fear is most often the culprit. People don't like to write goals down on paper (a crucial part of goal setting) because they are afraid to commit to them. If this is your problem, try to remember that a goal can be changed at any time after you write it down. Also keep in mind that goal-setting becomes easier the more times you undertake it. When you have set goals and attained them, the power of goal setting will compel you to set more.
If you avoid goal-setting, the tips and hints below should help.
Have short-term and long-term goals
You might want to set weekly goals, quarterly goals, annual goals, and even 3-year or 5-year goals. One way to generate short-term goals is to first consider your long-term goals. Is there a certain dollar amount you want to earn or a number of clients you need to sign up by a certain time? If nothing like that comes to mind immediately, take a few minutes and think about what professional goal you would like to attain. Once you have determined long-term goals, you can work backward. If your goal is to make $100,000 this year, you should make a list of what it would entail to make that money. If you encounter difficulty creating your list, ask peers or friends for help. When your list is complete, break those small steps down into goals.
Make your goals specific and measurable with a deadline
"Increase my sales" is a good goal, but it's so vague that it does not provide a means by which you can judge your success. Modify your goals by making them specific. All goals should be specific (Get new clients), measurable (Get three new clients), and have a time frame (Get three new clients by November).
Don't set yourself up for failure
Make sure your goals are attainable. If you aim too high, you're dooming yourself to defeat.
Don't be lazy
On the other hand, some entrepreneurs set goals that are too easily attained. If you tend in this direction, look for ways to challenge yourself. If you usually aim to add one new client every quarter, push yourself to shoot for two or three.
Be relevant
Goals should help you attain a specific aim. Look out for goals that are just going to keep you busy, but are not appropriate to the overall success of your business. If you don't believe your goals are worthwhile, you won't make the necessary effort to achieve them.
Be patient and persistent
It your system of setting goals does not seem to be working because you are not attaining much of what you write down, do not give up. Keep setting goals for several months and you will find that your goal setting skills improve.
Review your goals constantly
Keep your weekly or other short-term goals in plain view -- by your desk, or next to your computer, for example -- so you know what you need to attain. Look at your annual goals monthly to see if you're on track. If your business' focus changes, don't be afraid to alter your goals. Flexibility is a crucial component of goal-setting.
VISIT ETHIOPIA
ETHIOPIA
As one of Africa’s most fascinating countries‚ Ethiopia offers a unique culture‚ a long history and astounding sceneries‚ rock hewn churches and ancient obelisks. Ethiopians are proud of their culture and civilization‚ which predate those of Europe.
HISTORICAL ETHIOPIA.
Ethiopia‚ the oldest independent nation in Africa‚ has a heritage dating back to the fist century AD. The world’s earliest known hominid ‘lucy’ ‘Dinkenesh’ lived more than three million years and her bones now lie at rest in the Ethiopian National Museum. The country’s rich tapestry of history is woven with fascinating facts and legends. The often-told tale of king Solomon and the Queen of Sheba; the journey of the Ark of the covenant‚ which is now said to rest in Axum; the growth of the ancient Axumite Kingdom and the birth of Christianity; the later rise of Islam; the story of king Lalibela who is reputed to have founded eleven rock hewn churches‚ still in existence to this day and considered among the wonders of the world; the fabled castles of Gondar. This ancient history blends with the modern to make Ethiopia the unique country it is.
NATURAL ETHIOPIA
The natural beauty of Ethiopia amazes‚ because it is a land unique and remarkable‚ the rift valley‚ a rare collection of birdlife‚ great escarpements and stunning vistas. There are 14 major wildlife reserves. The Blue Nile falls (Tis Islat Falls)‚ ranks as one of the greatest natural spectacles in Africa‚ today. Its misty deluge produces rainbows shimmering across the gorge. The river Nile stretches over‚ 800km in length within Ethiopia and it is the longest river in Africa. From its source; Lake Tana‚ it flows to meet the white Nile in Khartoum‚ to form the great river that gives life to Egypt and the Sudan.
WILD ETHIOPIA
Ethiopia has one of the most capturing natural environments in the whole of Africa. Little wonder‚ it is the epitome of the entire sub-Saharan ecosystem. From the high peaks of the siemen mountains to the deserts of arid lowlands. The country supports an amazing wealth of flora and fauna. Lions‚ giraffes‚ Zebras and many other rare indigenous animals roam the wilds. The rare walia ibex and the shy wild ass are among the 105 species of mammals‚ which have been recorded there.
CULTURAL ETHIOPIA
Ethiopia is a nation comprised of about 84 ethnic groups (a population of 67 million). From its earliest known inhabitants‚ Ethiopia has through the centuries attracted diverse peoples from all corners of Africa and the Middle East. Which has produced one of the most colorful populations to be found anywhere in the world. Each ethnic group preserves its own unique customs and traditions. The fine-featured Hararis women dressed in brightly colored trousers. Amharas‚ wearing the Ethiopian National dres he handsome Oromos‚ the Tigreans with their hair tied into thousands of tiny head-hugging plaits and many others. Ethiopia has about 70 languages and some 200 dialects. Traditions are proudly maintained‚ visible in the host of festivals and ceremonies. But for all their exotic variety‚ the people of Ethiopia are as one in their hospitality and friendliness.
As one of Africa’s most fascinating countries‚ Ethiopia offers a unique culture‚ a long history and astounding sceneries‚ rock hewn churches and ancient obelisks. Ethiopians are proud of their culture and civilization‚ which predate those of Europe.
HISTORICAL ETHIOPIA.
Ethiopia‚ the oldest independent nation in Africa‚ has a heritage dating back to the fist century AD. The world’s earliest known hominid ‘lucy’ ‘Dinkenesh’ lived more than three million years and her bones now lie at rest in the Ethiopian National Museum. The country’s rich tapestry of history is woven with fascinating facts and legends. The often-told tale of king Solomon and the Queen of Sheba; the journey of the Ark of the covenant‚ which is now said to rest in Axum; the growth of the ancient Axumite Kingdom and the birth of Christianity; the later rise of Islam; the story of king Lalibela who is reputed to have founded eleven rock hewn churches‚ still in existence to this day and considered among the wonders of the world; the fabled castles of Gondar. This ancient history blends with the modern to make Ethiopia the unique country it is.
NATURAL ETHIOPIA
The natural beauty of Ethiopia amazes‚ because it is a land unique and remarkable‚ the rift valley‚ a rare collection of birdlife‚ great escarpements and stunning vistas. There are 14 major wildlife reserves. The Blue Nile falls (Tis Islat Falls)‚ ranks as one of the greatest natural spectacles in Africa‚ today. Its misty deluge produces rainbows shimmering across the gorge. The river Nile stretches over‚ 800km in length within Ethiopia and it is the longest river in Africa. From its source; Lake Tana‚ it flows to meet the white Nile in Khartoum‚ to form the great river that gives life to Egypt and the Sudan.
WILD ETHIOPIA
Ethiopia has one of the most capturing natural environments in the whole of Africa. Little wonder‚ it is the epitome of the entire sub-Saharan ecosystem. From the high peaks of the siemen mountains to the deserts of arid lowlands. The country supports an amazing wealth of flora and fauna. Lions‚ giraffes‚ Zebras and many other rare indigenous animals roam the wilds. The rare walia ibex and the shy wild ass are among the 105 species of mammals‚ which have been recorded there.
CULTURAL ETHIOPIA
Ethiopia is a nation comprised of about 84 ethnic groups (a population of 67 million). From its earliest known inhabitants‚ Ethiopia has through the centuries attracted diverse peoples from all corners of Africa and the Middle East. Which has produced one of the most colorful populations to be found anywhere in the world. Each ethnic group preserves its own unique customs and traditions. The fine-featured Hararis women dressed in brightly colored trousers. Amharas‚ wearing the Ethiopian National dres he handsome Oromos‚ the Tigreans with their hair tied into thousands of tiny head-hugging plaits and many others. Ethiopia has about 70 languages and some 200 dialects. Traditions are proudly maintained‚ visible in the host of festivals and ceremonies. But for all their exotic variety‚ the people of Ethiopia are as one in their hospitality and friendliness.
VISIT EGYPT TODAY
CAIRO
The city of wonders with its civilization‚ culture and fascinating history is the largest capital in the Arab world. The world’s second longest river course through Egypt from South to North. Cairo is described as a vast open air museum‚ as imprints of each epoch with its splendor can be visibly seen all over‚ more than 600 monuments bear witness to the continuing history and development of the city.
TOURISTIC SITES
The Zoo‚ Cairo Towers‚ Opera House and Museums.
The Zoo is one of the largest and famous in the world set in a very pleasant environment‚ with a rich and rare variety of animals‚ plants and trees.
CAIRO TOWERS
Rising to a height of 187 meters‚ offers a unique panoramic view of Cairo.
OPERA HOUSE
The magnificent complex includes 3 theaters‚ large‚ small and an open theater‚ area for museum‚ exhibitions‚ music library‚ VIP lounge and offices.
MUSEUMS
There are 22 museums in the city of Cairo with rare collections and display of treasures‚ antiquities and artifacts dating back thousands of years‚ from ancient civilizations to the present day modern age.
ARCHAEOLOGICAL SITES
churches‚ synagogues and mosques. These places of historical value and importance date as far back as the 4 th century and the beginning of the 5 th century. A great number of them are famous for their magnificent and solid architectural design and intricate carving laced with Ivory.
GIZA - THE PYRAMIDS AND SPHINX.
The site where the only remaining one of the 7 wonders of the world still stand. The pyramids of cheops‚ Khephren and mykerenos. And the sphinx which is the historical guard of the pyramids. This site is the most treasured tourist site in Egypt.
EGYPTIAN MEDIA PRODUCTION CITY
Situated in the 6 th October City‚ this admirably sophisticated enterprises is known as the Hollywood of the Middle East. The media production city boasts a large number of film studios‚ state of the art technology and equipments‚ open air areas for filming‚ a conference center‚ several theaters‚ movie houses‚ a five star hotel‚ a large fairground‚ football pitch and magic land.
PHARAONIC VILLAGE
It depicts how the ancient Egyptians‚ the builders of the oldest civilization lived‚ worked and worshipped.
ALEXANDRIA
The ancient city of Alexandria is legendary. At a time‚ it was the commercial and cultural center of learning and invention of the world and its famous library attracted more people. It used to have a lighthouse that was considered one of the seven wonders of the ancient world‚ the tomb of Alexandria the great‚ the palace of Antony and Cleopatra which is said to be submerged in the Mediterranean. The Quait-bay Citadel built like a fortress is yet another monument that is historical and affords for a panoramic view of the Mediterranean. There is a coral museum with a variety of marine creature and the whole skeleton of a whale. The age-old Greek influence is still very visible the teeming Greek population.
But the rebuilt modern Alexandria library‚ officially called “Bibliotheca Alexandria” certainly aims to advance the greatness of the ancient city of Alexandria. Built in the form of a rising sun‚ on the edge of the Mediterranean‚ on the Eastern Harbor near the site where archaeologists believe the ancient library once stood‚ is structured in the tilted shape of a massive drum‚ with glass and aluminum roof. It’s a one of is kind. And can accommodate up to 8 million volumes‚ tucked into the building’s underground recesses. An internet archive with specialized libraries‚ 3 museum‚ research academic centers‚ lecture halls‚ planetarium‚ an Exploratorium‚ exhibition spaces and 5 Art galleries are amongst other features of the library.
To the Bibliotheca Alexandria‚ the same number of tourists and users‚ a thousand each‚ throng everyday. At present the library contains 400‚000 books that can be accessed from many other libraries. It’s an architectural masterpiece both beautiful and functional.
The city of wonders with its civilization‚ culture and fascinating history is the largest capital in the Arab world. The world’s second longest river course through Egypt from South to North. Cairo is described as a vast open air museum‚ as imprints of each epoch with its splendor can be visibly seen all over‚ more than 600 monuments bear witness to the continuing history and development of the city.
TOURISTIC SITES
The Zoo‚ Cairo Towers‚ Opera House and Museums.
The Zoo is one of the largest and famous in the world set in a very pleasant environment‚ with a rich and rare variety of animals‚ plants and trees.
CAIRO TOWERS
Rising to a height of 187 meters‚ offers a unique panoramic view of Cairo.
OPERA HOUSE
The magnificent complex includes 3 theaters‚ large‚ small and an open theater‚ area for museum‚ exhibitions‚ music library‚ VIP lounge and offices.
MUSEUMS
There are 22 museums in the city of Cairo with rare collections and display of treasures‚ antiquities and artifacts dating back thousands of years‚ from ancient civilizations to the present day modern age.
ARCHAEOLOGICAL SITES
churches‚ synagogues and mosques. These places of historical value and importance date as far back as the 4 th century and the beginning of the 5 th century. A great number of them are famous for their magnificent and solid architectural design and intricate carving laced with Ivory.
GIZA - THE PYRAMIDS AND SPHINX.
The site where the only remaining one of the 7 wonders of the world still stand. The pyramids of cheops‚ Khephren and mykerenos. And the sphinx which is the historical guard of the pyramids. This site is the most treasured tourist site in Egypt.
EGYPTIAN MEDIA PRODUCTION CITY
Situated in the 6 th October City‚ this admirably sophisticated enterprises is known as the Hollywood of the Middle East. The media production city boasts a large number of film studios‚ state of the art technology and equipments‚ open air areas for filming‚ a conference center‚ several theaters‚ movie houses‚ a five star hotel‚ a large fairground‚ football pitch and magic land.
PHARAONIC VILLAGE
It depicts how the ancient Egyptians‚ the builders of the oldest civilization lived‚ worked and worshipped.
ALEXANDRIA
The ancient city of Alexandria is legendary. At a time‚ it was the commercial and cultural center of learning and invention of the world and its famous library attracted more people. It used to have a lighthouse that was considered one of the seven wonders of the ancient world‚ the tomb of Alexandria the great‚ the palace of Antony and Cleopatra which is said to be submerged in the Mediterranean. The Quait-bay Citadel built like a fortress is yet another monument that is historical and affords for a panoramic view of the Mediterranean. There is a coral museum with a variety of marine creature and the whole skeleton of a whale. The age-old Greek influence is still very visible the teeming Greek population.
But the rebuilt modern Alexandria library‚ officially called “Bibliotheca Alexandria” certainly aims to advance the greatness of the ancient city of Alexandria. Built in the form of a rising sun‚ on the edge of the Mediterranean‚ on the Eastern Harbor near the site where archaeologists believe the ancient library once stood‚ is structured in the tilted shape of a massive drum‚ with glass and aluminum roof. It’s a one of is kind. And can accommodate up to 8 million volumes‚ tucked into the building’s underground recesses. An internet archive with specialized libraries‚ 3 museum‚ research academic centers‚ lecture halls‚ planetarium‚ an Exploratorium‚ exhibition spaces and 5 Art galleries are amongst other features of the library.
To the Bibliotheca Alexandria‚ the same number of tourists and users‚ a thousand each‚ throng everyday. At present the library contains 400‚000 books that can be accessed from many other libraries. It’s an architectural masterpiece both beautiful and functional.
Monday, June 18, 2007
KNOW MORE ABOUT THE GIANT OF AFRICA
NIGERIA
Country Profile, The Land and People
Fact File
Area:
923,766 sq.km.
Population:
150 million (estimate)
Capital:
Abuja
Government:
Three-tier structure - A Federal Government, 36 State Governments, 774 Local Government Administrations
Official Language:
English
Main Indigenous Languages:
Hausa, Igbo, Yoruba
Main Religions:
Christianity, Islam, Traditional
Main Commercial/Industrial Cities:
Lagos, Onitsha, Kano, Ibadan, Port Harcourt, Aba, Maiduguri, Jos, Kaduna, Warri, Benin,Nnewi
Major Industrial Complexes:
Refineries and Petro-Chemicals: Kaduna, Warri, Port Harcourt, Eleme. Iron and Steel: Ajaokuta, Warri, Oshogbo, Katsina, Jos. Fertilizer: Onne- Port Harcourt, Kaduna, Minna, Kano Liquified Natural Gas : Bonny Aluminium Smelter: Ikot Abasi, Port Harcourt
Main Ports:
Lagos (Apapa, Tin-can Island), Warri, Port Harcourt, Onne Deep Sea and Hub Port, Calabar (EPZ)
Main Airports:
Lagos, Kano, Port Harcourt, Abuja, Enugu, Kaduna, Maiduguri, Ilorin, Jos, Owerri, Calabar, Yola, Sokoto
Road Network:
Over 15,000 km of intercity all weather paved roads, including dual carriage express trunks.
Railways:
2 main lines (South-West to North-East; South-East to North-West) inter-linked and terminatory at Lagos, Port Harcourt, Kaura Namoda, Maiduguri and Nguru. Major junctions at Kaduna, Kafanchan, Zaria. Gauge: 1067mm; Total length 3505 route km.
Energy:
Hydro-electric: Kainji, Jebba, Shiroro. Thermal and Gas: Egbin (Lagos), Ughelli, Afam, Sapele, National grid for electricity distribution; National pipeline network with regional depots for petroleum products distribution; National network (pipeline) for distribution of gas (under construction)
Currency:
NAIRA and KOBO N1.00 = l00k (one naira = hundred kobo)
GEOGRAPHY
Nigeria is situated in the West African region and lies between longitudes 3 degrees and 14 degrees and latitudes 4 degrees and 140 degrees. It has a land mass of 923,768 sq.km.. It is bordered to the north by the Republics of Niger and Tchad. It shares borders to the west with the Republic of Benin, while the Republic of Cameroun shares the eastern borders right down to the shores of the Atlantic Ocean which forms the southern limits of Nigerian Territory. The about 800km of coastline confers on the country the potentials of a maritime power. Land is in abundance in Nigeria for agricultural, industrial and commercial activities.
CLIMATE
Temperatures across the country is relatively high with a very narrow variation in seasonal and diurnal ranges (22-36t). There are two basic seasons; wet season which lasts from April to October; and the dry season which lasts from November till March. The dry season commences with Harmattan, a dry chilly spell that lasts till February and is associated with lower temperatures, a dusty and hazy atmosphere brought about by the North-Easterly winds blowing from the Arabian peninsular across the Sahara; the second half of the dry season, February - March, is the hottest period of the year when temperatures range from 33 to 38 degrees centigrade. The extremes of the wet season are felt on the southeastern coast where annual rainfall might reach a high of 330cm; while the extremes of the dry season, in aridity and high temperatures, are felt in the north third of the country.
VEGETATION
In line with the rainfall distribution, a wetter south and a drier northern half, there are two broad vegetation types: Forests and Savanna. There are three variants of each, running as near parallel bands east to west across the country. Forests Savanna Saline water swamp Guinea Savanna Fresh water swamp Sudan Savanna Tropical (high) evergreen Sahel Savanna
Rainforest
There is also the mountain vegetation of the isolated high plateau regions on the far eastern extremes of the country (Jos, Mambilla, Obudu).
The savanna, especially Guinea and Sudan, are the major grains, grasses, tubers, vegetable and cotton growing regions.
The Tropical evergreen rain forest belt bears timber production and forest development, production of cassava; and plantation growing of fruit trees - citrus, oil palm, cocoa, rubber, among others.
POPULATION & LABOUR FORCE
Nigeria is famous for her huge population of about 120 million people - the largest national population on the African continent. This population is made up of about 374 pure ethnic stocks. Three of them, Hausa, Ibo and Yoruba are the major groups and constitute over 40 per cent of the population. In fact, about 10 ethnic linguistic groups constitute more than 80% of the population: the other large groups are Tiv, Ibibio, Ijaw, Kanuri, Nupe, Gwari, Igala, Jukun, Idoma, Fulani, Edo, Urhobo and Ijaw. The gender divide of Nigeria's population, as indicated by the last census in 1991, reflects an unusual inbalance in favour of male dominance; 51% male: 49% female.
However, the more critical population indices concern
* High growth rate - 3.2%; this is affected by decreased infant mortality and high fertility.
* High school age population - over 47% are 15 years and below
* High child dependency ratio - one dependant to one worker for the working age group 25-65.
* Large work force - working age group 15-59 is over 40 per cent of the population.
Due to a massive expansion in the education sector in the last two decades, the coloration and quality of the Nigerian work force has changed to include a large corps of highly trained personnel in mechanical, civil, electrical, electronics, chemical and petroleum engineering and biotechnics. There are at present over 30 Federal and State Universities, some of them specialist -Technology and Agriculture. In addition there are at least 20 Federal and State Polytechnics. Over 70,000 graduates in various disciplines from these institutions every year. Disciplines, apart from pure sciences, engineering and technologies, include social sciences, business studies (management, banking and finance), architecture, environment and urban management studies. Also, a sizeable Nigerian population has been and is being trained outside the country, in some of the best colleges in the United States, Canada, United Kingdom, Germany, France, Russia, Japan and China.
Every year, about 2,000 of these Nigerians return home to seek employment or accommodation within the economy.
For the less skilled and unskilled labour, the country depends on the primary and secondary school systems whose annual enrolments are over 3.5 million and 1.5 million, respectively.
RESOURCES: AGRICULTURAL, MINERAL AND MARINE
Nigeria, in addition to its huge population is endowed with significant agricultural, mineral, marine and forest resources. Its multiple vegetation zones, plentiful rain, surface water and underground water resources and moderate climatic extremes, allow for production of diverse food and cash crops. Over 60 per cent of the population is involved in the production of the food crops such as cassava, maize, rice, yams, various beans and legumes, soya, sorghum, ginger, onions, tomatoes, melons and vegetable. The main cash crops are cocoa, cotton, groundnuts, oil palm and rubber. Extractions from these for export and local industrial use include cocoa flour and butter, rubber crumb, vegetable oil, cotton fibre and yarn. The rain forests have been well exploited for timber and wood products of exotic and popular species.
Oil and Gas, by value, are the most important minerals. They are exploited and produced in the Niger Delta basin and off-shore on the continental shelf and in the deep-sea of the territorial waters. Nevertheless, there are significant non-oil mineral deposits on land many of which have been identified and evaluated: coal, iron ore, gypsum, kaolin, phosphates, lime -stone, marble, columbine, baryte and gold.
GOVERNMENT
The Federal Republic of Nigeria consists of thirty-six states, and the administrative headquarters and capital city is Abuja located in the Federal Capital Territory, which is geographically situated in the middle of the country.
Effective participation in governance by all adults is assured through the sharing of powers, revenue and responsibilities between the three tiers of government, i.e. the Federal Government, the State Governments and the various Local and Municipal Councils of the federation.
THE ECONOMY
With a population of over 120 million people, Nigeria is obviously the largest market in sub Saharan Africa with reasonably skilled and potential manpower for the efficient and effective management of investment projects within the country. It is well connected by a wide network of motorable all-season roads, railway tracks, inland waterways, maritime and air transportation.
Nigeria's economy could be aptly described as most promising. It is a mixed economy and accommodates all corners, individuals, corporate organisations and government agencies, to invest in almost all range of economic activities. Since 1995, the Government has introduced some bold economic measures, which have had a salutary effect on the economy by halting the declining growth in the productive sectors and putting a stop to galloping inflation; they have reduced the debt burden, stabilised the exchange rate of the Naira and corrected the balance of payments disequilibrium.
In the 1995 and 1996 budgets, Government put in place some fiscal measures, which addressed the exchange rate regime and the capital flight issue, which hitherto inhibited project planning and execution. The policy of expanded production through guided deregulation paid off in 1996 when the economy recorded a real growth of 3.2% of GDP The rate of inflation declined appreciably from the high seventies to the low twenties.
HEALTH
Prior to 1999, the major problem of the health sector in Nigeria was identified to be the mortality rate among women and children due to preventable diseases, undernourishment, communication of under five years, as well as inadequate and decaying health facilities. These problems were further compounded, over the years, by inadequate funding, due to competing needs of other sectors such as education, housing, agriculture etc.
However, the Obasanjo Administration rose to the occasion to stem the tide. The National Program on Immunization was established to take care of the high mortality rate among children, and eradicate communicable and vaccine-preventable diseases, and it has been highly successful. Specific days of the year have been set aside by the Government, during which health officials go from house to house to immunize children against major childhood diseases. Moreover, the immunizations are readily available at various hospitals and health centers, at no cost to parents. The Government is being assisted in this regard by many Non-Governmental Organizations and International Agencies. The Rotary International, for example has committed millions of dollars to the project known as “Kick Polio out of Africa” campaign, the positive result of which has been tremendous.
Other measures the Government has taken to enhance the quality of health of Nigerians are the establishment of the National Action Committee on Aids (NACA) to combat the HIV/AIDS scourge, the National Foods and Drugs Administration Commission (NAFDAC) which has brought international recognition to Nigeria. The Government has equally set up the National Health Insurance Scheme (NHIS) which is designed to make health-care affordable for all citizens by making everyone contribute to the healthcare system, instead of putting the whole burden on Government, as it is the case currently. The scheme will soon be operational.
To sustain improvements in health-care delivery, attention is being paid to the expansion and strengthening of the primary health care system throughout the country. Family and reproductive health services are being strengthened, with particular emphasis on fighting HIV/AIDS and other sexually-transmitted diseases, as well as malaria. Rehabilitation of strategic Teaching and Specialist Hospitals are also on-going.
MAIN THRUST OF NIGERIA'S TRADE AND INDUSTRIALISATION POLICY
Nigeria's current industrial policy thrust is anchored on a guided dc-regulation of the economy and Government's dis-engagement from activities which are private-sector oriented, leaving Government to play the role of facilitator, concentrating on the provision of incentives policy and infrastructure that are necessary to enhance the private sector's role as the engine of growth. The industrial policy is intended to:
* generate productive employment and raise productivity;
* increase export of locally manufactured goods;
* create a wider geographical dispersal of industries;
* improve the technological skills and capability available in the country;
* increase the local content of industrial output by looking inward for the supply of basic and intermediate inputs;
* attract direct foreign investment;
* increase private sector participation.
The Nigerian Enterprises Promotion Acts which hitherto regulated the extent and limits of foreign participation in diverse sectors of the economy were repealed in 1995. The principal laws regulating foreign investments now are, the Nigerian Investment Promotion Commission Decree and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Decree, both enacted in 1995.
Given the need to stabilize the banking and finance sectors, and promote confidence in these vital institutions, the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks decrees of 1994 were put in place. The Investment and Securities Decree was also promulgated to update and consolidate capital market laws and regulations into a single code.
Under the Privatisation and Commercialisation law of 1988, the government successfully sold its holdings in industrial enterprises and financial institutions, and such divestments were made by way of "Offers for Sale" on the floors of the Exchange, so that ultimate shareholdings in such enterprises could be widespread. However, government retained full control of the public utility service corporations.
The 1997 Budget proposed the repeal of all existing laws that inhibit competition in certain sectors of the Nigeria economy. Consequently, with the promulgation of the Public Enterprises Promotion and Commercialisation Decree in 1998, private sector investors (including non-Nigerians) will now be free to participate in and compete with government-owned public utility service corporations in the areas of telecommunications, electricity generation, exploration of petroleum, export refineries, coal and bitumen exploration, hotel and tourism.
As a policy objective, the liberalization and deregulation of the exchange control regime is designed to facilitate and enhance trading activities. Items on the import prohibition list have been drastically reduced, with government opting to utilise tariff structures to protect end-user product pricing of local industries and discourage frivolous imports. In 1998, the import prohibition list was reduced to 11 items namely: maize, sorghum, millet, wheat flour, vegetable oils (excluding linseed and castor oils used as industrial raw materials), barytes and bentonites, gypsum, mosquito repellent coils, domestic articles and wares made of plastic materials (excluding babies' feeding bottles), retreaded / used tyres, gaming machines.
Country Profile, The Land and People
Fact File
Area:
923,766 sq.km.
Population:
150 million (estimate)
Capital:
Abuja
Government:
Three-tier structure - A Federal Government, 36 State Governments, 774 Local Government Administrations
Official Language:
English
Main Indigenous Languages:
Hausa, Igbo, Yoruba
Main Religions:
Christianity, Islam, Traditional
Main Commercial/Industrial Cities:
Lagos, Onitsha, Kano, Ibadan, Port Harcourt, Aba, Maiduguri, Jos, Kaduna, Warri, Benin,Nnewi
Major Industrial Complexes:
Refineries and Petro-Chemicals: Kaduna, Warri, Port Harcourt, Eleme. Iron and Steel: Ajaokuta, Warri, Oshogbo, Katsina, Jos. Fertilizer: Onne- Port Harcourt, Kaduna, Minna, Kano Liquified Natural Gas : Bonny Aluminium Smelter: Ikot Abasi, Port Harcourt
Main Ports:
Lagos (Apapa, Tin-can Island), Warri, Port Harcourt, Onne Deep Sea and Hub Port, Calabar (EPZ)
Main Airports:
Lagos, Kano, Port Harcourt, Abuja, Enugu, Kaduna, Maiduguri, Ilorin, Jos, Owerri, Calabar, Yola, Sokoto
Road Network:
Over 15,000 km of intercity all weather paved roads, including dual carriage express trunks.
Railways:
2 main lines (South-West to North-East; South-East to North-West) inter-linked and terminatory at Lagos, Port Harcourt, Kaura Namoda, Maiduguri and Nguru. Major junctions at Kaduna, Kafanchan, Zaria. Gauge: 1067mm; Total length 3505 route km.
Energy:
Hydro-electric: Kainji, Jebba, Shiroro. Thermal and Gas: Egbin (Lagos), Ughelli, Afam, Sapele, National grid for electricity distribution; National pipeline network with regional depots for petroleum products distribution; National network (pipeline) for distribution of gas (under construction)
Currency:
NAIRA and KOBO N1.00 = l00k (one naira = hundred kobo)
GEOGRAPHY
Nigeria is situated in the West African region and lies between longitudes 3 degrees and 14 degrees and latitudes 4 degrees and 140 degrees. It has a land mass of 923,768 sq.km.. It is bordered to the north by the Republics of Niger and Tchad. It shares borders to the west with the Republic of Benin, while the Republic of Cameroun shares the eastern borders right down to the shores of the Atlantic Ocean which forms the southern limits of Nigerian Territory. The about 800km of coastline confers on the country the potentials of a maritime power. Land is in abundance in Nigeria for agricultural, industrial and commercial activities.
CLIMATE
Temperatures across the country is relatively high with a very narrow variation in seasonal and diurnal ranges (22-36t). There are two basic seasons; wet season which lasts from April to October; and the dry season which lasts from November till March. The dry season commences with Harmattan, a dry chilly spell that lasts till February and is associated with lower temperatures, a dusty and hazy atmosphere brought about by the North-Easterly winds blowing from the Arabian peninsular across the Sahara; the second half of the dry season, February - March, is the hottest period of the year when temperatures range from 33 to 38 degrees centigrade. The extremes of the wet season are felt on the southeastern coast where annual rainfall might reach a high of 330cm; while the extremes of the dry season, in aridity and high temperatures, are felt in the north third of the country.
VEGETATION
In line with the rainfall distribution, a wetter south and a drier northern half, there are two broad vegetation types: Forests and Savanna. There are three variants of each, running as near parallel bands east to west across the country. Forests Savanna Saline water swamp Guinea Savanna Fresh water swamp Sudan Savanna Tropical (high) evergreen Sahel Savanna
Rainforest
There is also the mountain vegetation of the isolated high plateau regions on the far eastern extremes of the country (Jos, Mambilla, Obudu).
The savanna, especially Guinea and Sudan, are the major grains, grasses, tubers, vegetable and cotton growing regions.
The Tropical evergreen rain forest belt bears timber production and forest development, production of cassava; and plantation growing of fruit trees - citrus, oil palm, cocoa, rubber, among others.
POPULATION & LABOUR FORCE
Nigeria is famous for her huge population of about 120 million people - the largest national population on the African continent. This population is made up of about 374 pure ethnic stocks. Three of them, Hausa, Ibo and Yoruba are the major groups and constitute over 40 per cent of the population. In fact, about 10 ethnic linguistic groups constitute more than 80% of the population: the other large groups are Tiv, Ibibio, Ijaw, Kanuri, Nupe, Gwari, Igala, Jukun, Idoma, Fulani, Edo, Urhobo and Ijaw. The gender divide of Nigeria's population, as indicated by the last census in 1991, reflects an unusual inbalance in favour of male dominance; 51% male: 49% female.
However, the more critical population indices concern
* High growth rate - 3.2%; this is affected by decreased infant mortality and high fertility.
* High school age population - over 47% are 15 years and below
* High child dependency ratio - one dependant to one worker for the working age group 25-65.
* Large work force - working age group 15-59 is over 40 per cent of the population.
Due to a massive expansion in the education sector in the last two decades, the coloration and quality of the Nigerian work force has changed to include a large corps of highly trained personnel in mechanical, civil, electrical, electronics, chemical and petroleum engineering and biotechnics. There are at present over 30 Federal and State Universities, some of them specialist -Technology and Agriculture. In addition there are at least 20 Federal and State Polytechnics. Over 70,000 graduates in various disciplines from these institutions every year. Disciplines, apart from pure sciences, engineering and technologies, include social sciences, business studies (management, banking and finance), architecture, environment and urban management studies. Also, a sizeable Nigerian population has been and is being trained outside the country, in some of the best colleges in the United States, Canada, United Kingdom, Germany, France, Russia, Japan and China.
Every year, about 2,000 of these Nigerians return home to seek employment or accommodation within the economy.
For the less skilled and unskilled labour, the country depends on the primary and secondary school systems whose annual enrolments are over 3.5 million and 1.5 million, respectively.
RESOURCES: AGRICULTURAL, MINERAL AND MARINE
Nigeria, in addition to its huge population is endowed with significant agricultural, mineral, marine and forest resources. Its multiple vegetation zones, plentiful rain, surface water and underground water resources and moderate climatic extremes, allow for production of diverse food and cash crops. Over 60 per cent of the population is involved in the production of the food crops such as cassava, maize, rice, yams, various beans and legumes, soya, sorghum, ginger, onions, tomatoes, melons and vegetable. The main cash crops are cocoa, cotton, groundnuts, oil palm and rubber. Extractions from these for export and local industrial use include cocoa flour and butter, rubber crumb, vegetable oil, cotton fibre and yarn. The rain forests have been well exploited for timber and wood products of exotic and popular species.
Oil and Gas, by value, are the most important minerals. They are exploited and produced in the Niger Delta basin and off-shore on the continental shelf and in the deep-sea of the territorial waters. Nevertheless, there are significant non-oil mineral deposits on land many of which have been identified and evaluated: coal, iron ore, gypsum, kaolin, phosphates, lime -stone, marble, columbine, baryte and gold.
GOVERNMENT
The Federal Republic of Nigeria consists of thirty-six states, and the administrative headquarters and capital city is Abuja located in the Federal Capital Territory, which is geographically situated in the middle of the country.
Effective participation in governance by all adults is assured through the sharing of powers, revenue and responsibilities between the three tiers of government, i.e. the Federal Government, the State Governments and the various Local and Municipal Councils of the federation.
THE ECONOMY
With a population of over 120 million people, Nigeria is obviously the largest market in sub Saharan Africa with reasonably skilled and potential manpower for the efficient and effective management of investment projects within the country. It is well connected by a wide network of motorable all-season roads, railway tracks, inland waterways, maritime and air transportation.
Nigeria's economy could be aptly described as most promising. It is a mixed economy and accommodates all corners, individuals, corporate organisations and government agencies, to invest in almost all range of economic activities. Since 1995, the Government has introduced some bold economic measures, which have had a salutary effect on the economy by halting the declining growth in the productive sectors and putting a stop to galloping inflation; they have reduced the debt burden, stabilised the exchange rate of the Naira and corrected the balance of payments disequilibrium.
In the 1995 and 1996 budgets, Government put in place some fiscal measures, which addressed the exchange rate regime and the capital flight issue, which hitherto inhibited project planning and execution. The policy of expanded production through guided deregulation paid off in 1996 when the economy recorded a real growth of 3.2% of GDP The rate of inflation declined appreciably from the high seventies to the low twenties.
HEALTH
Prior to 1999, the major problem of the health sector in Nigeria was identified to be the mortality rate among women and children due to preventable diseases, undernourishment, communication of under five years, as well as inadequate and decaying health facilities. These problems were further compounded, over the years, by inadequate funding, due to competing needs of other sectors such as education, housing, agriculture etc.
However, the Obasanjo Administration rose to the occasion to stem the tide. The National Program on Immunization was established to take care of the high mortality rate among children, and eradicate communicable and vaccine-preventable diseases, and it has been highly successful. Specific days of the year have been set aside by the Government, during which health officials go from house to house to immunize children against major childhood diseases. Moreover, the immunizations are readily available at various hospitals and health centers, at no cost to parents. The Government is being assisted in this regard by many Non-Governmental Organizations and International Agencies. The Rotary International, for example has committed millions of dollars to the project known as “Kick Polio out of Africa” campaign, the positive result of which has been tremendous.
Other measures the Government has taken to enhance the quality of health of Nigerians are the establishment of the National Action Committee on Aids (NACA) to combat the HIV/AIDS scourge, the National Foods and Drugs Administration Commission (NAFDAC) which has brought international recognition to Nigeria. The Government has equally set up the National Health Insurance Scheme (NHIS) which is designed to make health-care affordable for all citizens by making everyone contribute to the healthcare system, instead of putting the whole burden on Government, as it is the case currently. The scheme will soon be operational.
To sustain improvements in health-care delivery, attention is being paid to the expansion and strengthening of the primary health care system throughout the country. Family and reproductive health services are being strengthened, with particular emphasis on fighting HIV/AIDS and other sexually-transmitted diseases, as well as malaria. Rehabilitation of strategic Teaching and Specialist Hospitals are also on-going.
MAIN THRUST OF NIGERIA'S TRADE AND INDUSTRIALISATION POLICY
Nigeria's current industrial policy thrust is anchored on a guided dc-regulation of the economy and Government's dis-engagement from activities which are private-sector oriented, leaving Government to play the role of facilitator, concentrating on the provision of incentives policy and infrastructure that are necessary to enhance the private sector's role as the engine of growth. The industrial policy is intended to:
* generate productive employment and raise productivity;
* increase export of locally manufactured goods;
* create a wider geographical dispersal of industries;
* improve the technological skills and capability available in the country;
* increase the local content of industrial output by looking inward for the supply of basic and intermediate inputs;
* attract direct foreign investment;
* increase private sector participation.
The Nigerian Enterprises Promotion Acts which hitherto regulated the extent and limits of foreign participation in diverse sectors of the economy were repealed in 1995. The principal laws regulating foreign investments now are, the Nigerian Investment Promotion Commission Decree and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Decree, both enacted in 1995.
Given the need to stabilize the banking and finance sectors, and promote confidence in these vital institutions, the Failed Banks (Recovery of Debts) and Financial Malpractices in Banks decrees of 1994 were put in place. The Investment and Securities Decree was also promulgated to update and consolidate capital market laws and regulations into a single code.
Under the Privatisation and Commercialisation law of 1988, the government successfully sold its holdings in industrial enterprises and financial institutions, and such divestments were made by way of "Offers for Sale" on the floors of the Exchange, so that ultimate shareholdings in such enterprises could be widespread. However, government retained full control of the public utility service corporations.
The 1997 Budget proposed the repeal of all existing laws that inhibit competition in certain sectors of the Nigeria economy. Consequently, with the promulgation of the Public Enterprises Promotion and Commercialisation Decree in 1998, private sector investors (including non-Nigerians) will now be free to participate in and compete with government-owned public utility service corporations in the areas of telecommunications, electricity generation, exploration of petroleum, export refineries, coal and bitumen exploration, hotel and tourism.
As a policy objective, the liberalization and deregulation of the exchange control regime is designed to facilitate and enhance trading activities. Items on the import prohibition list have been drastically reduced, with government opting to utilise tariff structures to protect end-user product pricing of local industries and discourage frivolous imports. In 1998, the import prohibition list was reduced to 11 items namely: maize, sorghum, millet, wheat flour, vegetable oils (excluding linseed and castor oils used as industrial raw materials), barytes and bentonites, gypsum, mosquito repellent coils, domestic articles and wares made of plastic materials (excluding babies' feeding bottles), retreaded / used tyres, gaming machines.
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