Setting up a business

Source :tbn3.gastic.com

Setting up a  business 

So you want to start a business?

To Increase your chances of success with our checklist.
Case Study: What I wish I knew Not what you're looking for.

Starting Your Business Right workshop to step you through the process of starting a business, help you get set up right the first time and connect you to a range of government resources and free mentoring.
Our infographic explains the steps to start a business and what support and resources we offer.

Is running a business for you?
There are many benefits to having your own business: independence, flexibility, satisfaction in nurturing your own idea and possibly building an asset that you can leave to your children.
But it's a lot of hard work. You'll need to put in long hours to get your business started. There is also financial risk. You'll be leaving behind a secure pay packet and company benefits such as superannuation and paid leave. Your personal assets might also be at risk. Before launching your own venture, ask yourself these key questions.

Checklist: Are you ready to start a business?
Personal skills
Before starting a business it is important to see whether or not you have the required skills. Ask yourself:
1. if you have the discipline and motivation to keep going when times are tough
2. if you have experience in the industry
3. if you either have a solid understanding of how to do your own books or can afford an accountant
4. if you are an effective and clear communicator
5. if you are good at problem-solving, particularly under pressure
Planning

It is important to plan your new business venture properly, so you should ask yourself:
1. if you have done thorough research into the state of the market, the type of customers you need to target and competitors
2. if there is a proven market for your business, either filling a gap, entering a market where demand is greater than supply or providing a point of difference
3. if you have sufficient funds to cover the start-up costs and the first couple of years when cash flow might not be steady
4. if you have a business plan for the first 12 months, including a marketing plan ,
cash flow and projected costs
If you've answered 'Yes' to all of these questions, it's likely that you're ready. If you've answered 'No', it's important to find the right support before you go any further.
Where to find help
Existing research
To find out more about your industry, seek out existing market research and do your own. IBISWorld has independent research reports and analysis on more than 500 industries.

Get a mentor
Mentors can advise on how to run a business and offer specific industry insights. Small Business Mentoring Service can connect you to someone with experience in your industry.
Speak to a business adviser
For financial help, speak to someone who's professionally accredited. Accountants, registered with the Institute of Chartered Accountants , help with taxation and financial statements.
Financial Planners, registered with the Financial Planning Association of Australia , can set up short and long term financial goals, including investment advice and estate planning, and prepare a financial plan.
See if it's right for you
A good option is to work in the industry while keeping a salaried job. If you're thinking of buying a cafe, for instance, take a job as an employee in a cafe first to see if it's the right fit for you.
Ways to get started: new, existing or franchise
Your personality and experience can help direct you to the type of business that suits you best.

Starting a new business from scratch
It's the riskiest way to start a business, but it can also be the most rewarding. Legal requirements, pricing, marketing, stock and staff are just a few of the things you'll need to make decisions about.

Buying an existing business
Buying an existing business offers you a proven track record. You're buying the physical assets, as well as crucial contacts - the customers or clients. It's essential that you check the financials carefully. Use our checklist to help determine is buying an existing business is the right move for you.

Buying a franchise
Franchises are established ventures with a successful business model. This takes away some of the risk for the owner. A solid franchise has a proven track record, an established market and provides support for marketing and operational aspects of the business. You buy the rights to an existing one or pay to set up a new one. Franchises are costly investments, and as such our checklist on buying a franchise will help you to decide if buying one's right for you.

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What Business is all about

Source :thebusiness1.tk

What is a 'Business'

A business is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transactsbusiness activities through the production of a good, offering of a service or retailing of already manufactured products. A business can be a for-profit entity or a nonprofit organization that operates to fulfill a charitable mission

BREAKING DOWN 'Business'

A business most often forms after the development of a business plan. This plan outlines the strategic intentions and logistics in making those intentions occur. A business name must be registered with the state, and this name is often referred to as the "doing business as" or DBA name. A business can operate with its own tax identification number and tax liabilities, so one of the pivotal steps in forming a business is determining the legal structure of the business and associated taxation implications. Different businesses require various permits and licenses to operate legally. Finally, a business has legal obligations in regard to treatment of employees and the conditions in which the employees work. These legal obligations of a business include properly assessing payroll taxes on employees as well as the business itself.

Business Structures

The most basic business structure is a sole proprietorship. The owner of the business is the sole individual who takes ownership of assets and debt obligations. Alternatively, multiple individuals with shared duties can operate a business, and this business structure is a partnership. A business may operate as a corporation. Incorporating a business releases owners of financial liability of business obligations; however, a corporation has unfavorable taxation rules for the owners of the business. For this reason, a fourth business structure, called a limited liability company, is available, which combines the benefits of a partnership and corporation.

READ:How to get loan from bank

Business Sizes

Businesses include everything from a small owner-operated company, such as a family restaurant, to a multinational conglomerate, such as General Electric. Larger businesses may issue corporate stock to finance operations. In this case, the company is publicly traded and has reporting and operating restrictions. Alternatively, smaller businesses may operate more independently of regulators.

Industries

A company may describe its business by communicating the industry in which it operates. For example, the real estate business, advertising business or mattress production business are industries in which a business can exist. Because the term “business” can be interchanged with day-to-day operations as well as the overall formation of a company, the term is often used to indicate transactions regarding an underlying product or service. For example, Exxon Mobil transacts business in providing oil.

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How to get loan from bank

Borrowing money can help you do things, but the process can be complicated. Mistakes can be expensive, and they can cause your loan request to be rejected. If you need to get a loan, learn what to expect and what you can do ahead of time.

What Kind of Loan?

The first step is to figure out what you need. The type of loan you get will depend on what you plan to do with the money. Some common loan types include:

In some cases, you won’t have much choice - it’s not likely that anybody will lend you enough to buy a home unless you use a loan designed for that purpose. Using a loan that matches your need will improve your chances of getting approved and will keep your costs low.

Decide Where to Borrow

Shop around. Again, your choices may be limited based on the kind of loan you want: some places don’t offer business loans or student loans. Start your search at the institutions best known for making affordable loans (for example, go through your school’s Student Aid office for an education loan before you go to the bank for a private student loan).

Banks and credit unions are a good place to shop for most loans. Check with several institutions and compare interest rates and costs. Peer -to- peer loans and other sources of marketplace lending should also be on your list. There are also several websites with access to multiple lenders. Borrowing online is perfectly safe as long as you stick to reputable sites.

Some people borrow from private lenders such as friends or family. While that can make approval easier and keep costs low, it can also cause problems. Make sure you put everything in writing so everybody’s on the same page - money can ruin relationships, even if the dollar amounts are small. Avoid high-cost loans and predatory lenders. It’s tempting to take whatever you can get when you’ve been turned down repeatedly and don’t know how else to get a loan. However, it’s not worth it - they’ll lend you money, but you’ll find yourself in a hole that’s difficult or impossible to get out of.

Payday loans and rent-to-own programs tend to be the most expensive options, and loan sharks can be outright dangerous.

Understand Your Credit

You generally need “credit” to get a loan. This means you’ve got a history of borrowing and repaying loans. How do you get a loan if you don’t have credit? You have to start somewhere, and that generally means borrowing less and paying more. Once you develop a strong credit history, lenders will lend you more and offer better rates.

If you know that you have bad credit, see How to Get a Loan With Bad Credit You can view your credit for free - you get one free report per year from every credit reporting agency.

Take a look through your credit history to understand what lenders will see when you ask for a loan. Do you look like an attractive borrower? If there’s not much in there, you may need to build credit by gradually adding loans to your history. Be sure to fix any mistakes in your credit files, as they’ll hurt your chances of getting a good loan.

Understand the Loan

Before you get a loan, take a look at

how the loan works. How will you repay it - monthly or all at once? What are the interest costs? Do you have to repay a certain way (perhaps the lender requires you to pay electronically through your bank account)? Make sure you understand what you’re getting into and how everything will work before you borrow.

It’s a good idea to run loan calculations before getting a loan. This allows you to see how much you’ll pay for the loan, and how a different loan amount (or

interest rate) might save you money.

There are plenty of online tools out there to help you calculate loans. It's also wise to view an amortization table (whether you build it yourself or let a computer do it for you) so that you can see how the loan will get paid off over time.

Get a loan that you can really handle - one that you can comfortably repay and that won’t prevent you from doing other important things (like saving for retirement or having a little fun). Figure out how much of your income will go towards loan repayment - lenders call this a debt to income ratio - and borrow less if you don’t like what you see. Lenders often want to see a ratio below 30% or so.

Apply for the Loan

You’re ready to get your loan once you’ve:

At this point, you can go to your lender and apply. The process is easy to start: simply tell the lender you want to borrow money, and tell them what you’re going to do with the funds (if required). They will explain the next steps and how long the process will take.

When filling out an application, you'll provide information about yourself and your finances. For example, you'll need to bring identification, provide an address and Social Security Number (or equivalent), and supply information about your income.

Go Through Underwriting

After you submit your application, the lender will evaluate you as a potential borrower. This process may be instant, or it may take a few weeks. For example, home loans take longer than credit card offers because there’s more at stake. Mortgage loans require extensive documentation, such as bank statements and pay stubs to prove that you have the ability to repay. You can make the process easier on yourself by getting everything in order several months before you apply.

During underwriting, lenders will pull your credit (or just use a credit score) and review your application. They may call you occasionally and ask you to clarify or prove something - that’s generally a good sign. When lenders ask for details, it means they're taking underwriting seriously and are more likely to offer competitive rates.

How to Get Loans for Business

Business loans are similar to any other kind of loan. Lenders look for the same basic things. However, new businesses don’t have a long borrowing history (or credit). Nnew enterprises and service businesses typically don't own assets that can be pledged as collateral, so they have to work a little harder to get loans.

In most cases, and individual - such as the business owner - has to use their personal credit and income to qualify for the loan. They may also have to pledge personal assets as collateral to get loans. This is often the only way to get loans in the early years, but you should try to build business credit so you can eventually borrow without risking personal assets.

If You Can’t Get a Loan

You might not get approved on your first try. Lenders can deny applications for almost any reason, but they should be able to tell you why you weren’t approved. In most cases, they don’t believe you have sufficient income or the credit history to justify the loan you’ve applied for. You may have to figure out another solution, or you can try to borrow with the help of a co -signer.

These are the General requirement for getting  loan from the bank :

1.  A clear statement of the amount of the loan required.
2.  A clear statement of the purpose of the loan
3.  The period or term of the loan
4. Your feasibility report
5.  Your management background and competence
6.  Your repayment arrangements,
7.  Any securities you want to pledge.

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TURNING YOUR IDEAS INTO REALITY

Image Source: Forbes.com

    Turning ideas into reality Is a team sport. Whether your idea is a product, a book, a business, or a service, you need the help of other people to make it happen. A vital key to creative success is the practice of building on your strength and integrating your talent with the unique abilities of others. A creative network is one of the most powerful engines for driving social and economical progress.
      Be the kind of person that people can come with their dreams, ideas, and visions. Creative people often don't need to be managed, they need to be inspired with a lofty vision. Rarely does one person have the "whole best idea." whether it is a problem or an opportunity that we are dealing with, we must integrate the fractions of ideas from many people to come up with the best end result. Never double that a small group of thoughtful, courageous, creative people can change the world.
Individuals say "I, teams say " We." A team is much more than a group of individuals. Shared values are the unifying force of a team. Team pride elevates creative thought. Team spirit is a competitive advantage. Teamwork is basically cooperation and mutual respect. Be the kind of team member that would be missed.

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CREATIVE TRAIBLAZERS
Pioneers and creative thinkers have common traits:

• They have a dream.
• They believe that the future can be different, and better.
• They make a commitment to shape portion of that tomorrow.
• They look at risk in terms of opportunity and potential gains.
• They work hard as part of a team that builds on strengths.
• They make total investments in their goals.
• They are minorities that create a better future for the majority.

Some motivational quotes from motivational speaker are listed below to guide you :

• Don't let your dream or vison die because of a lack of sustained effort.
• The strong urge to accomplish somethingnotable is the mainspring of nearly all creative endeavors.
• Create an "idea-safe environment" for thinking.
• Creativity is mobile. You either carry it with you or you don't have it..

The key question is not "what can we create? " or even "what do we want to create?" Rather for all of us it is "what are we called to create?"

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How to make gbegiri in Yoruba land:A popular yoruba soup

Yoruba foods are just as popular as foods by other Nigerian ethnic groups. Yoruba is one of the three major Nigerian ethnic groups aside Hausa and Igbo. Most yoruba foods are usually a blend of different colorful food elements, it is always a pleasant sight to behold’, that’s the way the Yorubas like to eat, they like a combination of soups/stew/ assorted meat plus eba or pounded yam. If you have’t tried it yet, please do. What you find below is a typical yoruba food, a combination of gbegiri, ewedu and stew; served with fufu.

Source :allnigerianfoods.com 

Yoruba Foods If you are an African/American but married to a Yoruba person, you will find this page interesting. Most Nigerians eat almost the same set of foods. Take jollof rice or porridge yam for instance, they are all the same across all Nigerian states except the slim difference in the style of preparation and ingredients used; especially for the soups. So any Yoruba person can accept virtually all the regular Nigerian foods but if you are looking to surprise him with a special treat then you might wanna try some of the Yoruba recipes on this page. This is all about the foods eaten by the Yorubas, a very popular Nigerian major ethnic group. Some of them are easy to prepare while a whole lot of them would require some traditional cooking utensils, don’t worry, I will be here with you every step of the way. 

Here are the names of Yoruba Soups/foods.
 Ewedu
 Gbegiri
 Efo Riro
 Amala
 Iyan – Pounded yam.

 There are over a hundred different foods eaten by the Yorubas so we are going to take them one after the other. I want to talk about the very popular ewedu soup here and then a little bit on how to make gbegiri, I just learned about this recipe a few days back, it is a delicious Yoruba delicasy.

Yoruba Ewedu Soup Ewedu Soup 

This green soup is likely the most popular Yoruba soup from what I have seen during most Yoruba parties but I noticed that it is never served alone, wondering if I have tasted ewedu soup? Of course I have or how else do you think I learned to prepare this delicacy.

This green soup is likely the most popular Yoruba soup from what I have seen during most Yoruba parties but I noticed that it is never served alone, wondering if I have tasted ewedu soup? Of course I have or how else do you think I learned to prepare this delicacy.

This page is entirely about the foods eaten by the Yorubas and here you are going to learn about making gbegiri soup; a very popular Yoruba food  “

Ingredients for making gbegiri soup.

1 cup of Beans (white or brown)
Potash
Onions (2 balls)
Pepper
Palm oil
Seasoning (knorr cube, salt etc)
900g fish/meat – optional

Preparation

Step 1

We start by removing the seed coat; just transfer a cup of beans to a bowl, sprinkle a handful of water and start robbing and squeezing hard, as you progress the outer coat starts wearing off. This is actually the easiest beans de-coating method. Add water, wash and strain (leaving the white split cotyledons). you should be done with this in about 10 minutes.

Then pour into a pot and start cooking with just water and about half teaspoon of powdered potash, the potash act as a catalyst, most people use potash to hasten the cooking process while others avoid it for health or personal reasons.

Step 2
Cook for twenty to fifty minutes until it is very soft and ready for mashing. After that use a short strong neat broom to mash it till soft (there is often a broom kept for this purpose, the same that is used for ewedu soup). The reason for this is just to ground the already cooked beans to a seedless soft pudding.

There are different methods to making Yoruba foods, the gbegiri soup is not an exception. Some Yoruba uses a strong spoon and a plastic sifter for this purpose. They achieve the same end by pressing the soft seeds against the sieve with a spoon, it is that simple for most Yoruba foods. Alternatively, use an electric blender! 😀

Set the mashed beans apart in a clean bowl.

Step 3
At this point most people just transfer into a pot then add the the already cooked meat/fish, onions, seasoning (1 knorr cube), pepper, salt, 100ml palm oil and allow it to steam for 10 minutes then a delicious pot of gbegiri soup is made, or you can follow.

Step 3B
After following step 2 to a T, set your cooking pot on the burner, use about 10 to 15cl of palm oil, allow to heat then add sliced onions, mashed beans, pepper, other seasoning of choice (a cube of knorr or maggi), iru (locust bean), salt to taste, allow to cook for five minutes and you just made a delicious pot of gbegiri soup, one of my favorite Yoruba soup.

You can serve gbegiri with amala, fufu or eba.

 Credit :Allnigerianfoods.com

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Learn How to Determine a Product Cost in Managerial Accounting?

Product costs in managerial accounting are those that are necessary to manufacture a product. Product costs equal the sum of your direct materials costs, direct labor costs and manufacturing overhead costs. Using the actual costing method, you can determine your small business’s overall product costs and product costs per unit based on the actual costs you incurred during a period. Knowing your product costs can help you price your products and budget your small business's money.

READ ALSO :toughest interview questions and answers 

Direct Materials

Direct materials are the materials your small business uses to manufacture a product that you can trace directly to the product, such as the bicycle tires on a specific bicycle. Add together the costs of the direct materials you used over a particular period, such as one month, to determine your total direct materials costs. For example, assume you make bicycles. If you used $10,000 in bicycle tires and $5,000 in other bicycle parts during a month, add $10,000 to $5,000 to get $15,000 in total direct materials costs.

Direct Labor

Direct labor costs are the total costs you incur to employ the workers that directly assemble or manufacture your products. These costs include wages, payroll taxes, pension contributions and contributions for life, health and worker’s compensation insurance. Add together these costs you incurred for the month to determine your total direct labor costs. For example, if you paid $2,000 in wages, $200 in payroll taxes and $1,000 toward pensions and insurance, add together $2,000, $200 and $1,000 to get $3,200 in total direct labor costs.

Manufacturing Overhead

Manufacturing overhead costs are those necessary to making a product, but that you cannot trace directly to a specific product. Examples include indirect materials, such as masking tape, and indirect labor costs, such as the costs to employ a maintenance worker. Examples of other overhead costs are property taxes, rent and utilities. Add together each manufacturing overhead cost you incurred during the month to determine total manufacturing overhead costs. For example, assume your small business had $5,000 in total manufacturing overhead costs during the month.

Product Cost and Product Cost per Unit

Add together your total direct materials costs, your total direct labor costs and your total manufacturing overhead costs that you incurred during the period to determine your total product costs. Divide your result by the number of products you manufactured during the period to determine your product cost per unit. Using the numbers from the previous examples, add together $15,000, $3,200 and $5,000 to get $23,200 in total product costs. Assume you manufactured 200 bicycles during the same period. Divide $23,200 by $200 to get a product cost per unit of $116.

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