Connect with us

Advice

10 Bad Investment Mistakes Nigerians Make All The Time

Published

on

investment mistakes-entorm.com

Investing is one of the best way to build a good financial foundation for your future and it is also one of the most advisable thing to do when you have money. It’s one of the most secure insurance you can give yourself and your family.

However it would be disastrous for you if you went about investing the wrong way. There are many avoidable mistakes that people make when investing, and these mistakes turn out to cost them all the money they put in.

We have made a list of the top 10 investment mistakes people make. Do well to avoid them.

  1. Not Researching

Lots of people are guilty of this. And this is because many people hear about an opportunity from a friend or read about it online and then they just dive into it with all the money they can get. That is a wrong thing to do and is sadly one of the biggest mistake investors make.

Before putting your money anywhere, it is advisable to do you research well. Find out about this opportunity or model, read everything you can find about it so that you will know for sure if it is doable or not. If it’s a crypto currency then study about crypto currencies until you know everything there is to know about them. If it is an agricultural venture then dig in and study all about it too!

  1. Not Considering Reputation of the Business/Company

It is very important to check out what the reputation of the company you want to invest in is like. Find out what people who have done business with them is saying about them. Dig up past reviews about the company and read them.

If people talk good about them, then it should be safe to do business with them.

READ ALSO: 5 BEST INVESTMENT  OF THE 21ST CENTURY

  1. Not Checking Out Past Financial Records

If you are considering buying shares from a company then it is important for you to check out how financially buoyant they are. This is important because some companies might be approaching bankruptcy and want to grab people’s money just before they close up and run. Be sure you won’t be a victim of such circumstance.

  1. Believing You Can Operate Outside The Law

Many people think they can put the law aside and break all the rules they want to all because they want to make an investment. This is so wrong. If you want to make it big then you have to know that you will put yourself in the limelight. Being in the limelight implies that while many people admire you and wish to be like you, the government’s agencies would also look harder into your files to be sure you are on the right track with the law. It would be devastating if you would suddenly have to fall back to the grass all because you broke one too many laws on your way up.

  1. Leaving Your Brain Behind

This may seem like a funny point but it is indeed true. Many people tend to switch off their brains when faced with opportunities, particularly ones that involve the prospect of making lots of money. And this is also one of the investment mistakes people make without even knowing they are making it.

If you want your investment to yield, make every single decision with your brain active. Think every action through and be sure they are the best choices you could have made.

  1. Taking on Too Much

It is true that with investments it is always the bigger you put in the bigger you bring out. Nevertheless it is advisable for you to not take on too much risk. Don’t put in more than you can spare at the time.

And do not risk more than you can bear to lose. be cautious.

  1. Not Being Patient

There is no valid shortcut to success. If by all accounts you made the right investments in the best possible ways then you should be patient enough to wait until it yields you something significant.

Don’t get unnecessarily worked up and pull out your investment when it could turn in something good for you.

  1. Diving in the Wrong Field

It is important to stick to what you know best when investing. If your forte is agriculture, stick to it. If your known field is crypto currency don’t go running off to invest in real estate. Investing in the wrong field because you feel there is not much you don’t know about that particular field is one of the gravest investment mistakes people make and later on regret.

This is important because this areas have certain dynamics that are known to only the persons that are experienced in them. Stick to the fields you have been conversant with, it naturally gives you an edge.

READ ALSO: WHY YOU SHOULD/SHOULD NOT INVEST IN BITCOIN

  1. Not Making it Official

People usually make this mistake when they are investing with a known friend or associate. You may feel because this is your friend all the formalities can be brushed aside. Well if you don’t sign the required legal documents and take the recommended steps by the law then you are setting yourself up to be duped by whomever you are doing business with.

I am not saying your friends are not trustworthy, i am just saying legalizing and making things official will make it easier for you to recover your money if things go wrong.

Besides, the person may fall victim to any circumstance like death or an incapacitating accident that would make him unavailable, how then would you prove you have money in the investment if you did not sign the required documents?

  1. Not Keeping Records.

This is one of the most common investment mistakes you can avoid by simply making it a habit to always keep a record of everything you do for the investment.

Be sure to always record every penny you put in. This way you would have a credible record of whether or not you are running at loss yet. This should be one of the most easily avoidable investment mistakes.

 

Comments

comments

Advice

A Brief Analysis Of The Nigerian Paint Industry

Published

on

For decades, Paint manufacturing companies have long been in operation in Nigeria, mostly as subsidiaries of foreign paint companies. As time passed, however, indigenous paint industries sprung up and completely bought over the shares of these foreign firms and continued to expand with every passing year. Several technological advancements have been witnessed since then, with the Nigerian paints industry contributing a significant quota to Nigeria’s economy and employment scheme.

The existence of paint manufacturing companies in Nigeria dates back to as early as the nineteen sixties. Recently, there has been a high demand for paint due to the increase in construction of buildings for private and commercial purposes. This factors thus makes the paint industry a profitable one to invest in.

An Analysis of the Nigerian paints industry

A Brief Analysis Of The Nigerian Paint Industry

A Brief Analysis Of The Nigerian Paint Industry

It has been estimated that the about 128 million litres of paints are consumed in Nigeria within a year. In the year 2012 alone, the Nigerian paints and coatings industry was estimated to be worth about $200m. this grew to about $218m by 2013, signifying an estimated 9.01% growth rate.

There are two major components of the Nigerian paints market. Lack of sufficient access to funds and technical imbalances needed for the production and management of industrial coatings constitutes a major yardstick for distinguishing between the industry players. The first sector is the organized sector which comprises of companies possessing sufficient capital and efficient distribution system.

The second sector is the decorative paint sector, which houses both the organized and unorganized players. This component does not need advanced technological inputs. With a good governmental backing, it is quite easy for new entrants into the Nigerian paint market to thrive in the system.

This sector is dominated by about 5 key companies, each of which’s annual revenue is estimated to exceed $7m, with several other small and medium-scale companies scattered across the country.

So, as it stands, the decorative sector of the Nigerian paints industry accounts for about 60% of the total sales volume and/or value. The industrial coatings segment of the market, on the other hand, is said to constitute about 40% of the total sales volume and 29% of total production volume.

As Frost & Sullivan report, in 2012, the decorative paints & coatings sector of the Nigerian paints industry was said to possess a significant synergy with the real estate industry and estimated at 71% of the overall volume of coatings and pains in the country.

Nigerian paint industry Regulatory Bodies and Associations

The regulatory body for the paint industry in Nigeria is the standard organization of Nigeria (SON).

They are entrusted with the responsibility of ensuring that all manufacturing industries in Nigeria are duly certified, their products are safe and guarantee maximum consumer satisfaction through compliance with government policies.

SON encourages healthy competition amongst manufacturers and also give room for continuous improvement on quality of manufactured products.

Paint Industry Manufacturers Association of Nigeria (PMA)

Asides SON, another regulatory body in the paint industry is the PMA. PMA caters to the welfare of the Nigerian paint industry. It is headed by a chairman and serves as a voice as well as a monitoring body for paint manufacturers in Nigeria.

PMA caters generally for issues bothering on productivity and development of the industry. In 2016, an exhibition was commenced which now holds yearly.

The exhibition which is centered on annual raw materials, equipment and painting show held on the 23rd of October and was tagged “PMA Nigeria Coating Show”.

The event had exhibitors from the United Kingdom, Germany, Greece, Turkey, South Africa and India in attendance. The major aim of the exhibition is to develop strategies on how to handle the issue of high cost and scarcity of raw materials for local production which is a major challenge faced in the industry and to promote paint Technology by sourcing for local contents.

PMA (Paints manufacturers association of Nigeria) functions collectively with SON (standard Organization of Nigeria) to guarantee an acceptable global quality standard for manufactured products.

Challenges and Prospects of the Nigerian Paint Industry

These include:

1)     NEGLECT BY THE GOVERNMENT

The paint industry is one of the most neglected in Nigeria. There are no incentives provided and routine checks are not always carried out. This, in turn, puts a restriction on the percentage of the paint industry’s contribution to the gross domestic product of the country.

Also, the lack of an efficient regulatory system increases the emergence of new industries which lead to a decline in the standard of products manufactured.

2)     ACCESS TO FACILITIES

This can be said to be a major limitation for investors in the industry. These facilities include: constant power supply, access to funding, unavailability of raw materials, lack of proper facilities for certification and test purposes.

Prospects of the Nigerian Paint industry.

These include:

1)     QUALITY CONTROL

Due to the effort of the Paint Manufacturers Association of Nigeria and the standard organization of Nigeria, the quality of paint produced has improved tremendously.

2)     HIGH DEMAND

The increase in demand for paints is as a result of the increase in building construction in the country which has also helped the sustenance of the industry.

LIST OF PAINT INDUSTRIES IN NIGERIA

Paint industries in Nigeria include:

  1. Premium paints,
  2. Dulux Paints,
  3. Meyer paints, Berger paints,
  4. IPWA,
  5. Nigerian German Chemicals,
  6. African Paints
  7. CAP Plc.

I hope we have made your search complete.

Comments

comments

Continue Reading

Advice

How to Pitch Your Idea to Investors in Nigeria

Published

on

Are you an entrepreneur in Nigeria with a business idea that you want to pitch to investors? But you don’t have the finance to invest in the business and the only option left is to look for investors in Nigeria who would love to invest? Read this simplified guide to learn how to pitch your idea to investors in Nigeria in a professional way.

You see, Nigeria is a country with many people with money that don’t know what to do with it. A large chunk of these people will be very happy to invest their money in places that will bring them maximum profits or a good return on their investment. Having the opportunity to meet this class of people (i.e., angel investors) to share your business idea with is one problem.

Here’s what you should know…

You see, it is one thing to have a good business idea, but a completely different thing to know how to pitch it to potential investors. You need the skills of how to convince potential investors within minutes to invest in you, because if you don’t know how to do it professionally, investors won’t be able to understand what you’re trying to relate with them or how best to help you.

The importance of rehearsing your pitch is one thing I can’t stress enough in pitching potential investors in Nigeria. As an entrepreneur, you might think that you know your business in and out, and that when it comes to pitching it to investors, it will be easy just like singing the National anthem (is that even easy?). Well, this is not always the case most times. Cases abound where entrepreneurs freeze in front of investors while pitching, and ramble on and on. Many entrepreneurs don’t put the same effort they used in preparing their business plan to pitching their plan to investors. As such, you should take the time to acquire the needed skills of business idea pitching to pitch your business idea to investors in Nigeria with ease.

How to Pitch Your Idea to Investors in Nigeria

How to Pitch Your Idea to Investors in Nigeria

How to Pitch your Idea to Investors in Nigeria.

1. Start with a story, end with your solution

If you can relate your story to the problem you are solving in the market place, then do it. Nothing engages people better than a good captivating story. Start your pitch with a story that will catch your audience or investor’s attention, the complaint and address it to how your business idea will be the solution to the problem in your story.

So, don’t just keep talking about the problems all day, pitch your idea by showing potential investors how your product or service will solve the hungry market’s problem. Make it easy for the investor to understand how you plan to execute the solution with your idea.

2. Niche down to the exact market you are targeting.

Every product, service or business idea has a specific market it is made for. Don’t lie to investors saying that your product or services is for everybody on earth. It is too broad. Everybody is no market. Tell your investors the market needs your idea is meeting.

3. Analyze Your competitors

A quick analyses of your potential competitors is very important as every business has a competitor even if the competitor is located far away in another continent. Tell the investors how different your business model or approach to solving the problem is from that of your competitors and how much market share you are likely to take if your idea comes to the limelight through their support.

4. State the exact amount you need

Don’t beat around the bush about the exact amount of money you need to fund this idea. Tell investors the exact amount of money that will be required to fund the business idea to success, as well as how much have been invested (if any). Also, give a detailed breakdown of why you need the exact amount you have stated and the intended outcome of the money too. You can do this using slides, charts, tables, diagrams, etc.

These are few tips to know on how you can pitch a business idea to investors in Nigeria. I hope with this  information, you have gained clarity on how you can pitch your idea to investors in Nigeria. Go ahead and put it into practice.

If you have any questions on this topic or a related on, let me know in the comments box below.

Comments

comments

Continue Reading

Advice

5 Ways to Spot Exceptional Employees in Nigeria

Published

on

The Nigerian labor market is very flexible with a skilled, low labor cost, highly motivated, and productive workforce. High level of education and efficiency are common factors for spotting exceptional employees. Besides, exceptional employees are easily self-motivated and self-managed.

Another important factor used for distinguishing an exceptional employee is the personality of the employee. This informs why some people are more successful at work than others? Travis Bradberry of Forbes magazine stated that following a research done around 2016, it was concluded that the key to exceptional performance is in the personality of the employee. Bradbery (2016) stated that the results indicate that “78% of leaders consider that personality distinguishes great employees, much more than cultural adjustment with 53% and even the skills of an employee (39%)”.

However, the qualities that the leaders pointed out as part of the personality are those of emotional intelligence. Unlike personality (which never changes), emotional intelligence can be transformed and improved. So executives don’t need to look for employees who have these skills. His duty, and also that of the company, is to help the entire team to enhance their emotional intelligence to become exceptional.

In essence, a typical team does all of its planning to achieve goals, with minimal intervention from management. Exceptional employees are also known to be healthily self-critical, with a willingness to learn and a commitment to making improvements both in production and performance.

It is clear, therefore, that the key indicators of exceptional employee are high level of education, efficiency at work, self-motivation, self-management, great personality, and emotional intelligence.

However, how can we see these playing out to determine how exceptional an employee? How does one spot the level of education, efficiency at work, self-motivation, self-management, great personality, or emotional intelligence of an employee? It is by observing if the employee has the following characteristics before and after employment.

Exceptional Employees in Nigeria

Spotting Exceptional Employees in Nigeria

5 Ways To Spot An Exceptional Employee.

 Exceptional employees may be spotted using the 5 indicators below:

(1) The Employee Is Willing To Delay Gratification.

Exceptional employees work outside the range of job descriptions. Rather than expect recognition or compensation to come first, they move forward in their work, confident that they will be rewarded later, but they don’t worry if they aren’t.

(2) Exceptional Employees Tolerate Conflict.

While exceptional employees don’t seek conflict, they don’t run from it either. They can maintain their composure while presenting their positions calmly and logically.

(3) Exceptional Employees Are Focused.

Exceptional employees are not distracted by grumpy customers or disputes in the office. Rather, they know how to detect the important issues and that is why they stay focused on what matters.

(4) An Exceptional Employee Is Judiciously Brave but Courteous

An exceptional employee is willing to speak up, ask a difficult embarrassing question, or challenge an executive decision. Besides, an exceptional employee chooses the best time to do act and thinks before speaking.

(5) Exceptional Employees Control Their Ego

While the ego is part of an exceptional employee’s drive to constantly improve, they never overdo it. An exceptional employee admits when he/she is wrong and agrees to do things differently with or without correction.

Becoming an exceptional employee is a skill, an art that can be learned and practiced to efficiency. One of the ways to become an exceptional employee is to establishing open and trustworthy lines of communication with the management and co-workers.

Besides, the Human Resources (HR) department has a role to play in the building of an average employee into an exceptional employee. Rather than dismiss below average or average employees, the Human Resources (HR) team can deploy technology to improve their integration with the entity’s values. In this sense, e-learning, for example, can have great value in developing courses that convey to that person what it means to work in that company and what it contributes to society.

Another mechanism that may be used to is improve an employee’s performance is proper mentoring, that is, involving some of the people with the best reputation and knowledge within the organization to protect and accompany the toxic worker, giving them advice and offering advice whenever they need it. In this way, individual attitudes can change, although care should be taken so that it does not in any way cloud the relationship between the company and the staff.

Comments

comments

Continue Reading

Trending