Setting financial business goals and then achieving them are two very different things, whether it’s setting a marketing budget, investing in a mastermind course, or setting a sales target for your product or service, the best place to start is with a plan.

1. Make a Plan

Your chances of increasing your financial goals are much higher when they are written, this should be the first step when developing a plan and it is much better to start with an annual goal.
The next step should involve developing your plan into actionable steps, you should take time to drill down and figure out what needs to get done and how to get it done. This means calculating how many products you need to sell over a period of time or how many clients you need to take on, to reach that annual goal.

The more specific you are with your goals, the more likely you will be to make them a reality. Set goals that are measurable, achievable, and have an end in sight. You can further break down the annual goal into quarterly financial goals.

The more specific you are with your goals, the more likely you will be to make them a reality. Set goals that are measurable, achievable, and have an end in sight. You can further break down the annual goal into quarterly financial goals

2. Start budgeting: 

Another important thing to do to achieve your financial goals is to budget. You might make so much money but might still be financially unstable before the end of a month due to bad money management.

This is probably because you don’t budget and this should change. Plan your finances by creating a budget and sticking to it each month in the new year.
This would help you manage your finances well and control your spending better.

3.  Increase Your Knowledge of Finance

If finances aren’t your forte, learning it should be a priority for you, this your knowledge of finances should include learning how to develop simple and actionable goals that would help you become more familiar with how finances work. And that knowledge can go a long way. For example, what are some expenses that your business faces each month? Utilities, merchandise, payroll, rent?

Set a goal to find out what they are and develop a way to decrease their cost over time. It’s an easy goal to set, easier still to measure, and gives very clear results.
These sort of goals highlight challenges and provide a plan to improve upon them. And even if you’re not well-versed in financial theory, you’re using your finances to improve your business.

4. Strategize Your Efforts

The financial goal for your business should be to find a way to increase your revenue, or decrease your expenses, to pay off the outstanding debt. Turn your attention to developing better money habits for your business, invest in your business wisely, build up cash reserves for emergencies and being aware of exactly how you are spending money each month.
Another way to improve your profits, without increasing sales, is to improve your profit margins. You can do this by reducing your cost of production or raising the price of your product or services.

5. Find an Accountability Partner

No matter how big the financial goal is or how daunting it may seem to reach it, don’t do it alone. Sharing your financial goals and your timeline with a friend, business partner, or a financial advisor creates accountability.
Try to check in at least monthly with your partner. This person can help you achieve your goals faster by keeping you motivated and even referring some of your products or services. Think of business goals as steps toward achieving larger (long-term) goals.

Every long-term goal should have smaller goals or steps along the way. As an example, if your long-term goal is to make a million Naira in the next five years with your business that translates to N200K annually. Further broken down, N50k each quarter. What steps do you need to take for your business to make N50k per quarter?

Your accountability partner can provide you great advices, so you work towards these smaller steps.

Smart money habits can go a lot farther than meeting that initial financial goal. They can help you increase your sales by keeping you on a timeline to finish what you have documented or keep pace with your production of a new product. Ultimately, having financial goals sets your business up for success.

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The Nigerian market is ever ripe with opportunities and with a market for almost everything.  However in the course of starting a business, running it or/and expanding it, financial issues may come to play.

Knowing the economic situation in the country, it can be difficult for you as a business owner to get the funds you need. Nonetheless, business has to go on and there are different streams from which you can get financing for your business. They include those listed below, this list is not exhaustive as there are other ways to get money for your business.

1. Angel investors

Angel investors are one of the best sources for attracting funding for your business ideas. An angel investor is someone who has enough money and is willing to invest in your business idea. Look around you and you’re likely to find one. For example, older uncles and aunties that have disposable income, friends of your parents, mentors you look up to etc. Approach them with your idea and its potential earnings or a business plan.

You should make sure you find the right investors who’re interested in the industry /area of business you’re working in. This enables a more relatable and beneficial working relationship.

The angel investors are not just there to give you funds; they’re giving you money in exchange for some ownership equity or shares in your business. In other words, they get to own a part of your business.

So if you come across angel investors in your quest for funding, you’ll want to make sure that you protect yourself and your business. Make sure that your terms are clearly spelt out and understood by all. If you are not willing to part with some equity, let it be clearly known and include your terms of repayment. Consult with your lawyers before taking any step.

2. Short term finance / Business loans

A number of financial bodies are looking to support businesses because of the important roles they play in the growth of the Nigerian economy. You may approach a financial institution for business financing and if they have the liquidity to satisfy your requirements, they will grant you the funds you’ve requested for.

Things that are of concern to them include your ability to make profit and repay the loan with interest.As well as whether you’re a low risk customer/business.

Afterwards, it is up to you to ensure your business activities are performing.

3. Business grants

Grants are non-repayable funds given by grant givers, regularly by government, associations or trust, to a beneficiary. Unlike business loans, you don’t need to repay grants, so there’s no worry over interest rates or refinancing. You just need to be qualified for it.

Most businesses which qualify are those who are able to show convincing proof that they are viable. You should have an exceptional business plan showing ways of making profit, addressing youth unemployment and capacity building.

Getting finance for business involves careful planning. A well thought-out business plan is more likely to attract funding than one that’s not. When you eventually get funding, you can’t afford to disappoint people who have invested in you. You have to continue growing and thriving to make profit and for your business to work for them and yourself too.

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Knowing this, there could be some fears concerning the future for your business. Hence, you would want to ensure that you have a business sustenance plan. One that ensures your business continues to flourish whether you’re around or not.

As a business owner, it’s quite likely that most of your wealth–and your family’s source of income -is tied up in your business. When you are no more, the sustenance of your family and loved ones is tied to the business, and if you fail to make adequate plans for your business to transcend to capable hands or a new management, you will have failed your loved ones. What better way to look out for your family than providing them a full-running enterprise.

If you plan properly, invest time and energy, your businesses can go on for generations. As a business owner, you should look through options like business planning and estate planning goals. For example, God is Good Motors was founded by late Edwin Ajaere who passed on in March 2009. As with many businesses, one would have thought that will be the end of his transport business, but no. His wife and children took over the leadership and management of the business. They went on to introduce newer models which makes the business even more profitable than it used to be. The family carried on with their father’s commitment to the business.

Another approach to ease business succession is to put your children or a capable board to the test. Once they have shown a level of interest in your business, you have to show them the ropes. Let them start learning from the bottom so that when the time comes for you to retire, or the unplanned happens, you’re rest assured your business will continue to thrive. When you have objectively assessed the capabilities of your intended successor(s) and you’re satisfied that they understand the rights and responsibility that come with their various role, you’ll then want to indicate how ownership and the running of your business will be distributed amongst your family in your Will.

Alternatively, you can set up a business trust and appoint Trustees to look after your business. As well as make decisions to the best interest of the company. Trustees ensure smooth process and transaction for all parties in a business transaction. They also help you to plan the future for your generations because with a trust in place, you can easily and seamlessly transfer wealth to your coming generations. Trustees also have a fiduciary responsibility, meaning, they are required to put aside personal goals and initiatives to do what’s best for the trust. Failure to include a successor in your Will or to set up a business trust will only put your business at stake. We bet you don’t want that.

If you’re going to be successful at whatever business you’re into, you must overcome your fears. You should be ready to begin planning sooner than later. A well-crafted succession plan aims to benefit everybody; you, the business, your family and other loved ones. To know more about estate planning service, send us a message here or call 01 – 2801420

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It is definitely not wise to neglect the significance of financial management at any situation. Most especially with the times we’re facing in our dear country, Nigeria. With proper financial planning you have a base on which you can build your personal wealth. We bet you’re ready to start building yours; see below 3 reasons why you need to start taking financial management seriously :

To create wealth.

Start with a clear plan; set your financial goals and also show a clear path to their attainment. To create wealth you need to be generating income, some people generate income and still end up broke. With wealth generation, comes the need to know the basics of wealth management. Choose an income generation avenue that works well for you. If you like to sew dresses, design websites for businesses, offer personalised services or whatever it is you like.

There’s a saying – ‘The ocean never dries up because water comes in from different sources’. Think of this quote as enlightening you to the possibilities of multiple streams of income to grow your financial capacity. As you begin to receive more income, savings should be a top priority. It does not matter, whether you are an entrepreneur or office worker. At the end, it is the savings you’ve been able to gather from your total income that sets you towards the path of wealth. This same principle works for companies and even for countries. The more you’re able to keep costs and spending low and savings on a high, you’re well on your way towards a wealthier future.

Asides from savings, you can create wealth from a number of investment options like stocks, shares, partnerships, trust funds etc.  To ensure that this wealth you’re building doesn’t just fall into undeserving hands irrespective of what happens to you, you need to state your wishes and structure your finances in a way that will be accessed peacefully by your loved ones, should the unexpected happen. You can do this through estate planning.

The important thing in creating wealth is to have a strategy or plan that carefully addresses the above mentioned and still allows you to build a financial fortress.

To learn more about cash flow and budgeting

Your knowledge here doesn’t even have to be great. All you need to know how to do is the basics. Be able to work out how much money comes to you on a monthly basis, how much you spend on bills, how much to put away in your savings, how much debt you’re in etc.

Take some time to prepare a budget statement which should guide all your spending, take into account all your needs for the month and pen them in this statement. Don’t forget the little things, for they count. Knowing about cash flow and budgeting makes it possible for you to free up some cash from so many places thus making it easier to reach your financial goals. Failure to do this means you’re on a spending spree and you could have all of your income gone before you even know it.

When your spending is in compliance with your stated needs your wealth building journey can be enjoyed quicker. All these may not be easy for you, but it’s definitely worth its while.

 To plan for rainy days

It’s important to budget your personal finances so that you have savings that you can live on when times are low, or for emergency/critical expenses.  You rainy day plan can be a 5 – 20% of your monthly income that you set aside. These funds will help you pay for things that suddenly come up and are not included in your personal budget.

Being able to manage your finances is a good habit. Now more than ever, it is essential to know these little things and to take charge of your future. If you’re still clueless, you can even enlist the help of a wealth manager or consultant to set you on the right path. Always remember, you are responsible for your life and your financial future. Commit to finalcial management today!

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