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When to Go For Funding In Your Business and Why

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In this article, I discuss with you the right time to seek funds for your business and why you should seek funds at that time. But before that, let’s take a quick recap on what business funding is – its advantages, and challenges.

What is a Business Fund?

A business fund is money an entrepreneur raises or which is provided to an entrepreneur by the government, an organization, friends, or family to start or grow his business. Business funding is the act of providing funds to support a business.

Advantages of Funding Your Business.

The advantages of funding your business are countless but I have a few to share with you today. First, funding your business will increase your capital. Business funding gives you chance to advertise your brand the more and make your products more unique and sophisticated. It helps to increase your profits margin. With business funds, you become more dominant in the market space.

The Challenges In Acquiring Business Funds.

Like is often said, whatever has an advantage does not come easy. Most of the time, some challenges go with it but your capacity to surmount these challenges make you the hero. There are many challenges you might face in trying to get funding for your business For instance, if you self-fund your business and the business fails, you will be left with nothing as you have invested virtually all your money into the business.

Another challenge is that if you receive the fund from your family members or friends, it might affect your relationship with them as some of them might brag or show off to others about the help you got from them, which you may not like. On the other hand, if you receive the fund from a bank or any credit institution and you failed to pay it, the bank will not end it well with you.

By now I think you have a basic knowledge of what business funding is – its advantages and the challenges that come with it. So let’s start our main discussion!

Funding is very essential to a business. But when is the right time to go for funding in your business and why should you fund your business at such time? Find the answers to these now in this detailed article.

Funding is very essential to a business. But when is the right time to go for funding in your business and why should you fund your business at such time?

When is the Right Time to Fund Your Business and Why Should You Fund Your Business at Such Time?

Funding your business at the right time will make it boost while funding it at the wrong time will cause your failure. Before telling you the right time to fund your business, here are a few tips to help you decide if it’s the right time to fund your business or not.

  • At what stage is your business right now?
  • What type of fund are you trying to get?
  • What are the available means of getting funds?
  • Are you going for angel funding or Venture Capital (VC) funding?
  • What is your conscience telling you?

If you ask yourself these questions and you feel that you are fit to fund your business, here are the best times to do so and why you should do so:

(1) When Starting Your Business.

After settling on what business you want to venture into, getting some funds to kick-start it won’t be a bad idea. Although most entrepreneurs self-fund themselves at this stage, you can still seek funds from family and friends to support it.

Why you should fund your business at this stage?

Funding your business at this stage will help you to make a good startup at the foundational stage of the business. With self-funding capital, you will start a well-established business and even if the customers do not show up as you expected at the initial stage of the business, you and your business will not go under pressure for fear of lack of money to pay back to creditors if you loaned or borrowed the startup capital.

(2) When Your Stock is Low.

Once you notice that your shop is getting empty and you don’t have money to buy products and restock, you should seek funds from family, friends, or the banks.

Why you should seek a loan at this time?

Well, you simply don’t have enough savings to take care of this, that’s why! If you had, you wouldn’t reach out for help. So, you should seek a loan at this time because your business is on the verge of failing! Yeah, since your stocks are down and you don’t have enough capital to buy new ones, your shop will be empty, and hey! Customers don’t like empty shops; they want to see your shop full of products.

(3) When there’s Competition in the Market.

This is a highly crucial time to fund your business! When everyone is perfecting their brands, making their business unique, and doing a trendy advert, you can’t stand there looking at them. You too must join the moving train and beat the competition to its game! Therefore, get some funds and boost your business. It’s very necessary to do so at this point.

Why You Should Fund Your Business At This Time?

Well, if you fail to fund your business at this time, you’ll be out of fashion and I guess you know what this means for your business. You know, your competitors are doing all that they can to make sales. Join them too!

Do adverts from Pay Per Click (PPC) Ads, TV commercials, banners, posters to social media advertisements. Do promos if possible and don’t forget to improve the quality of your products. In short, do everything that will make you to stand out from the crowd! To do this, you need money!

(4) When You Want To Expand.

If you have been thinking of how to expand your business and reach more clients, then funding it for expansion is what you should consider doing. For example, Mr. A sells men’s wears with a single shop in Port Harcourt. As time goes his business grows and he wants to open another branch in Lagos, he will surely need some money to do this. He’ll need money to rent or buy a shop, buy products, hire an apprentice, and gets a manager; you know he can’t be in two places at the same time. If he calculates it, he might see that opening that shop in Lagos can affect the one in Port Harcourt. Therefore, to prevent failures, Mr. A can go for a loan if his savings won’t meet his business expansion needs.

Why you should fund your business at that time?

Failure to expand your business at the right time might reduce your motivation. Another thing is that People like buying from big businesses; if they see that you have different branches in different places, they see you as a big brand and tend to patronize you over others. In fact, they can refer others to you because they trust your products and services.

(5) When The Market Is Not Favorable.

This is happening at this time, after the COVID-19 lockdown, the market has been unfavorable to many businesses across the country and the world at large. Many people used their business capital to cater to themselves during the lockdown and the inflation rate is high now.

As such, many people have/are thinking of abandoning their businesses but this is not the right option! The right option is to seek funds or liquidate your assets. To liquidate your asset means to sell off physical assets and convert them to money (liquid).

Why you should seek a loan at this time?

As a business owner, if you think you are not doing well, you should think of how situations will be if you abandon your business. At a time when the market is favorable, what you should do is to seek more funds, improve your business, and be patient. Remember, the patient dog eats the fattest bone.

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Full Biography And Net Worth Of Tunde Ednut

Chijindu De-wigwe

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biography of Tunde Ednut

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All You Need To Know About Hotel Management in Nigeria

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What is the secret to success in Nigeria’s hotel management industry? The key to success for an investor in the real estate market especially in the hospitality industry in Nigeria has been the same as what it has for the last 100 years and that is the location of the hotel. To win the game however, you need a number of things including successful marketing, good planning, wonderful architects and engineers, and professionals who can help you along the way. Sometimes, you may need a bit of luck to break through.

That being said, what is the outlook for hotel management in Nigeria? What is Nigeria’ potential to offer hotel services which are truly a home away from home? This article covers these and provides use tips in the Nigeria’s property trade specifically in hotel management industry.

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Time, patience and consistency in quality are essential to the success of hotel management in Nigeria from design to construction and subsequent management of the hotel. It might interest you to know that Lagos state, Nigeria is the most preferred destination of choice when it comes to investing in the hospitality industry in Nigeria. This is so because the state is home to major International Airport in Nigeria and Africa, has a huge number of airlines flying in both international and domestic, a large number of Companies and their subsidiaries, a large population and the availability of a large pool of basic and social amenities. So, it is inevitable that the highest volume of demand for quality hotel accommodation is in Lagos. This attracts a lot of local and international investors to develop and/or manage hotels in this part of the country.

But there is a little problem…

The tourism sector in Africa is said to be one of the fastest growing in the world. Visitors are attracted to the rich cultural heritage and natural beauty of Africa. However, while the South African market continues to see a rise in the number of international visitors flooding in, Nigeria has not done as well as expected over the past three years. The outlook remains bleak as the real estate sector sits in a recession.

What could be responsible for this?

The reason is not far-fetched. The hotel industry relies on the many other sectors of the economy especially the oil and gas industry for its demand, for its hotel rooms. Following what’s happened since 2014 with the plunging prices of oil and in 2015 the plunging output, things have since taken a downward turn for the hospitality industry in Nigeria. When the oil and gas industry/economy in Nigeria is not thriving, the hotel industry also catches a cold. But this isn’t stopping savvy investors from coming into the market. Lagos, for example, has seen an increase in the number of luxury hospitality brands springing up.

This background is necessary to give you an idea of what the hospitality industry in Nigeria and how to go about hotel management in Nigeria as an investor or as a job seeker.

Hotel Management in Nigeria for Investors (Local and International)

So, if you want to invest in hotel management in Nigeria, these are the things to do:

  1. Have A Vision For The Niche You Want To Play In

The first thing is for you to decide on the particular niche of hospitality industry you want to key into, the kind of hotel you want to build. You need to decide on the quality of staff and management you want to implement in your ideal hotel. This is where it starts for an investor.

  1. Get The Consultants To Help You Make The Vision A Reality

Once you decide on the vision for your hotel, you have to then gather the consultants who are able and capable in that those areas and in those levels. Then, you pass on the vision to them and see to it that they implement everything according to the plan.

The Challenges…

There are a number of roadblocks that you are likely to face in putting up and managing a hotel in Nigeria and these are discussed below.

  1. Trade Problems

First and foremost, there is generally difficulty in getting people who can deliver to the standard you want. Another trade problem is compliance problems. Sometimes, it is difficult to get a consultant to stretch themselves to meet the specification and standard. This may warrant having to repeat a process over and again to get the quality and standard that you desire.

  1. Governmental, Equity, and Management Problems.

In Nigeria, there is the usual problem of governmental authorities who come to demand one thing or the other and sometimes delay or request that the job be stopped for whatever reason. Besides, there is the issue of finance. The interest rates are very high and you are to have a lot of equity; your own equity and then the actual management of your hotel. It is not easy to deliver first-class service, five star hotel services in Nigeria. Sometimes, the management team has to be trained and retrained and followed-up to get the desired result.

Employment Opportunities in Hotel Management in Nigeria

Due to the complexity of the hospitality industry and the variegated needs of people, there is a huge demand for different skilled workforce in the hospitality industry. As it applies elsewhere, so does it apply to Nigeria. That is why today there are various hotel management job openings in the hospitality industry such as

  1. A hotel manager job
  2. A PR manager job
  3. A restaurant manager job
  4. A hotel administrator job
  5. A catering manager job

How to Become A Hotel Manager in Nigeria

To become hotel manager in Nigeria, you have to be trained and certified. In Nigeria, there are several companies that train and certify people as hotel managers in Nigeria. Some of them are:

  1. Alpha Partners.
  2. Hospitality and Tourism Management Association of Nigeria or simply HATMAN.
  3. Legend Hospitality Managers Limited.
  4. National Institute for Hospitality and Tourism or simply NIHOTOUR.
  5. Hospitality Legend Limited.
  6. Passionview Solutions Limited.
  7. And many others.

Salary of Hospitality Manager in Nigeria

The average salary of a hotel manager in Nigeria as of 2019 was about N500,000 per month. Roughly, it is between N375,000 per month to N650,000 per month. This must have increased or decreased by now. How much you earn depends on several factors like the volume of remuneration earned by the hotel you work at. This also depends on the location, the number of outlets and the volume of investments done by the hotel administration. Another factors that might influence how much you are paid as a hotel manager in Nigeria is the your experience and professionalism in the hospitality industry as well as the possession of other unique skillsets.

Hotel management in Nigeria whether seen from the angle of investment of a job is a lucrative industry to play in. It offers a lot of potential to anyone interested in it to learn, earn and grow at the same time. Now that you know what hotel management in Nigeria entails, the question is, “would you like to come in? if not, why?” Let me have your response in the comments box below. Thank you and have a blessed day ahead.

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How to Set up Your PayPal Account Without Stress

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In this article, I’m going to walk you through the step-by-step process on how to set up PayPal account right now. To access the PayPal homepage, go to https://www.paypal.com/.

Now, the first thing that you need to decide is whether you’re going to go with a personal PayPal account or a business PayPal account. The vast majority of people go with the personal account now. The personal PayPal account is great for buying goods and services online. Also, it enables you to transfer funds between your own PayPal account and friends and family at no fee charge to you. You may want to link your Credit Card or Debit Card to your PayPal account as well as a bank account to give you different options for paying for things online.

That is to say that you can also transfer funds around between those accounts linked with your Credit Card or Debit Card and your bank account. So, a personal account is great by itself and the majority of people go with it. You may want to go with a business PayPal account if you’re selling goods and services with this PayPal account or if you’re going to be accepting donations. These are the situations where you probably want to go with that business PayPal.

Also Read: Venture Capitalist Firms in Nigeria You Should Trust

How to set up your PayPal account without stress

How to set up your PayPal account without stress

Steps to Set Up Paypal Account without Stress

There are four (4) simple steps to set up Paypal account without stress and they are

  1. Begin Sign-up Process
  2. Provide Your Biometric Information
  3. Link Card/Bank Account
  4. Registration Complete!

Step 1: Begin Sign-up Process

Visit https://www.paypal.com/ and on the homepage, click “Sign Up For Free”. You will be taken to a new page, the sign-up page. On this page what you need to do is type in your legal first name, your legal last name as well as the email that you want associated with your PayPal account. Also, you will provide a password and you need to confirm that password and then click “Next”.

Step 2: Provide Your Biometric Information

Once you’ve complete all the steps above, you will be taken to the next page. On this new page you’re going to type in your personal address, the city, the state, the zip code, and a phone number whether it is your home phone number or mobile phone number. If you care, you may go through the e-communication delivery policy, the user agreement and privacy statement. If you’d not like to do that, check the tiny box below to agree to the terms and privacy policy. Then, go ahead and click, “Agree and Create Account”.

Step 3: Link Card/Bank Account

After you’ve completed the above, you will be taken to the next screen and on this page you will be offered the option to link a debit/debit card or link a bank account instead. It’s up to decide what you want to do here.

Also Read: Best Locations for Fintech Companies in Nigeria

Linking a Debit/Credit Card

Let’s say you decide to link a debit card. So, what you are going to enter in is your card information namely the debit card number, the expiration date and the CVC. Once you’ve done that, the billing address is going to automatically fill in with whatever you filled in as your address earlier on in this process. If your billing address is different from your home address that you used in the earlier portion of this application, you can change that in this area.

But as soon as you’ve entered in that information you can go ahead and click link card.

Step 4: Registration Complete!

Once you’ve linked your Debit/Credit card or bank account, it will take you to the last page with an icy green checkmark showing that your registration was successful, your card is completely linked and that everything is set up ready for use.

You may now proceed to use your PayPal account for shopping, sending money, transfers, and a ton of different things that you can use your PayPal account for. So, scroll down to the bottom and click on “Go To Your Account” and this will officially take you to your brand-new PayPal account page and that’s exactly how to set up PayPal account without stress.

N/B: not all countries are allowed to receive money using PayPal and the restricted countries are Angola, Anguilla, Armenia, Aruba, Azerbaijan Republic, Belarus, Benin, Bhutan, Bolivia, British Virgin Islands, Brunei, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Chad, Comoros, Congo, Democratic Republic of Congo, Republic of Cook Islands, Côte d’Ivoire, Djibouti, Eritrea, Ethiopia, Falkland Islands, Gabon Republic, Gambia,Guinea,Guinea-Bissau,Guyana,Kiribati,Kyrgyzstan,Laos,Macedonia,Madagascar,Maldives,Mali,Marshall Islands, Mauritania, Mayotte, Micronesia, Federated States of Mongolia, Montenegro, Montserrat, Namibia, Nauru, Nepal, Netherlands Antilles, Niger, Nigeria, Niue, Norfolk Island, Papua New Guinea, Paraguay, Pitcairn Islands, Rwanda, Saint Helena, Saint Pierre and Miquelon, Saint Vincent and the Grenadines, Samoa, Sao Tome and Principe, Sierra Leone, Solomon Islands, Somalia, Sri Lanka, Suriname, Svalbard and Jan Mayen,Swaziland,Tajikistan,Tanzania,Togo,Tonga,Tunisia,Turkmenistan,Tuvalu,Uganda,Ukraine,Vanuatu,Wallis and Futuna Islands, Yemen, Zambia, and Zimbabwe

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