Skip to main content

Building a financial stronghold and raising business capital- a clue for young men.


Someone once said that in business you do not need big money but big ideas. This is very true. How big an idea is is dependent on how the conceiver proves it to be. On the other hand one cannot rule out the fact that in some cases you need money to carry out your ideas. The money you may be considering may be big to you. Many ‘big’ business ideas have not been implemented due to the lack of financing.

In this piece you will read about how to build a financial stronghold. Young men will also be given a clue as to how to secure their finances for the future.
A financial stronghold is a stock of reliable financial resources.
 Everyone wants to have enough money to do what they want to do. Some fall sick as a result of worrying about how to get money; others cowardly kill themselves simply because they do not know how to find money. Some too wickedly commit crime. But you can secure your finances gradually by building a stronghold.

One way to build a stronghold is to avoid extravagance.

 Many a people simply need their daily bread. Others simply need money for medical bills. However others have enough for food, medical bills and other basic necessities of life, and only seek to have a lot more for the fun of it or for ostentatious purchases. Ostentation is mostly needless. If you are yet to build a stronghold, then you should not be extravagant.  You do not become financially sound simply because you drive the latest car or wear the most expensive clothing or jewelleries. As a builder, extravagance erodes the sand you use for building. Even when you have built a stronghold, extravagance will bring it down. Bear in mind that many rich people have become poor before. Moderation and modesty are virtues that sustain wealth.

Another way to build a financial stronghold is to be disciplined.
Being disciplined means making the right purchasing decisions. Always ask yourself what benefit this spending will bring to you after ‘now’. Do not make buying decisions simply on impulse or in the spur of the moment. People who do not demonstrate discipline in spending get poor quickly or remain poor for long. Avoid spending that does not benefit the future.

Also, it is important to ‘sow’.

Just like the farmer keep some ‘seed’ for sowing. Sowing means investing in some venture that brings future benefits and sustains your ‘financial stronghold’. Being financially sound is not enough. There has to be a reliable source or sources of sustenance. The seed should be sown in fertile soil and should be viable. You may need some expect advice if you have to invest so much money at once. Be sure too that the necessary conditions exist for germination.

Raising capital for business hasn’t been easy for many an entrepreneurs. Many young people today are privileged to have regular and fat remittances from parents and guardians. It is also common these days to find them spending profligately. I believe the youth ought to realise that finding a job is no longer so simple and the easier way to make money is to create your own business since the available ones are not able to employ us all. Saving part of these remittances and building a financial stronghold is one sure way of raising business capital with ease. It must start now while you have your guardians comfortably remitting you.

Get some accounting, financial and business advice on www.alibomaaccounting.getafricaonline.com

Comments

Post a Comment

Popular posts from this blog

Increasing revenue from transport business in Ghana- looking at taxis

For some time now I have been wondering why taxi drivers would take same fare for a distance and half the distance.  Why should one have to pay 60p from Legon to Madina and same fare from ‘’Trinity’’ to Madina? Or why they charge 60p from the Legon police station to the campus and same from the police station to Okponglo junction. People who are price responsive and consciously match their utility to price like me may have wondered same. I have finally realised that it is in their own interest to charge according to distance covered rather than keep a flat rate for all distances. Think of the utility maximisation theory where a person equates utility to price, and will be willing to pay less for successive units of the commodity than for the earlier units.  Under this theory a consumer’s aim is to maximise utility. The consumer’s utility is maximised when the satisfaction they derive from consuming the commodity is equal to the price or cost they pay for it. ...
6 comments
Read more

Labour wastages in the public sector of Ghana

The inefficiency observed in the public and civil service in Ghana is often lamented by people in the fields of administration and economics. Let us expand this observation, the causes and some possible solutions. The government has the largest wage bill in the country, yet if the productivity of governmental organisations are measured and juxtaposed to those of the private sector, it will be revealed that the government is not getting what it should from the wages it pays. This should be a source of concern to the tax payer since this is an inefficient use of the taxes we pay from our hard earned incomes. If these inefficiencies are not removed the taxpayer would be slaving for a longer time before they get the desired benefits for which they pay taxes. The number of people in the public and civil service are too many in some departments and organisations and are too few in others. For this reason, one will often notice duplications in the roles played by many a civil servant. ...
3 comments
Read more

What is happening to the Ghanaian banking sector? Part 2

In this second part I propose a rough guide to determine where to take your deposits or savings. It won’t make you an expert but it would be a fine starting point. I stated e arlier  that banks lend to businesses who in turn pay interest. The stock exchange is a market where companies sell shares. That market reflects (or it is expected to reflect) what is happening to businesses in general. You have to watch that market as an investor even if you don’t hold any shares (the Composite Index). On a daily bases, the stock exchange reports the performance of the firms listed on the exchange. You should look out for the overall performance of the stock exchange as a signal of what kind of interest you should expect to receive on your deposit. The Ghana stock exchange rarely crosses 30% (per annum). This means that the guys who actually do “real work” don’t even get more than 30% in 12months. So if the bank or savings and loans company or pyramid scheme tells you they can pay you 3...
3 comments
Read more