You were so keen on making more money; you started your own small business. You’ve been doing so well but it suddenly seems like out of nowhere your business is on the brink of collapsing and you’re wondering what could have possibly gone wrong.
The worst part of the situation is that you didn’t see it coming. In real sense, small businesses are the most vulnerable within the first three to five years of their existence. While most will hurriedly attribute their failure to the vulnerability of small businesses, some major problems could easily be avoided. Any of the following reasons could be responsible for putting your business on the edge.
- You lack business know-how; simply knowing how to do math does not automatically make you a business guru. Business needs business acumen. There are some decisions you would have made differently if your knowledge of the business was more advanced. While general business knowledge is great, having specific knowledge about the line of business you ventured into is even better. Imagine starting a poultry farm when you have no idea how long it takes an egg to hatch or which feed to give to which bird. That’s simply a recipe for disaster.
- Poor time management; if there’s one asset you have that can never be replaced, its time. This is why you have to make time management priority for your business. Your business is hanging on the balance now probably because of your tendencies to misplace priorities. Make the most of your time. It’s a valuable asset.
- You chose the wrong team; most small business owners make the mistake of employing staff out of charity (when they employ a family member, neighbor or friend just to help them out even when they are not qualified for the post) or out of micromanagement. people go out of their way to employ inexperienced staff simply to cut cost what they don’t know is that it will come back to bite them.
- You underestimated the competition; of course Nigerian Breweries will always be in competition with Guinness just as Indomie will always be in competition with Chikki Chikki but it will be very hard to hear of one running the other out of the market. This is not the case for small businesses though. When you fail to properly gauge the strengths of your competition they might drive you to close shop before you’re even aware of it.
- In-house conflicts; at this initial stage in your business, in-house conflicts could prove to be disastrous. Given that your staffs are but a few people, a small number out of the few will most likely hold important positions. a conflict might cause one of these people to quit leading to chaos and possibly shut-down of the business (even if temporary). Even bigger companies have dissolved due to such conflicts.
- Personal interference; you probably already figured out that this is your major problem. Dipping into the business proceeds for personal matters could be weighing your business down. It has never been good mixing business with pleasure (in this context – personal/private matters). Keep your private life separate from your business if you don’t want your business to suffer.
- Poor accounting records; the reason your business is about to collapse could be because you are keeping track of your money. Most business owners are only interested in the money coming in and not the one going out. Stay on top of your accounting records and be sure to closely monitor cash flow.
If your boat hasn’t fully tipped over yet, there might still be enough time for you to turn the tide. Get to work right now and adjust the way you’ve been running your business.
AGSMEIS: CBN expands beneficiaries to 14,638
The CBN has extended the number of beneficiaries under the AGSMEIS to 14,638 applicants.
The Central Bank of Nigeria has extended the number of beneficiaries under the Agri-Business Small and Medium Enterprise Investment Scheme (AGSMEIS) Loans to 14,638 applicants.
This information is contained in a communique from the last MPC report of CBN verified by Nairametrics. The communique also revealed that 250 SME businesses, predominantly the youths, have also benefited from the Creative Industry Financing Initiative.
In addition to these initiatives, the CBN is set to contribute over N1.8 trillion of the total sum of N2.30 trillion needed for the Federal Government’s 1-year Economic Sustainability Plan (ESP), through its various financing interventions using the channels of Participating Financial Institutions (PFIs).
A few months ago, the CBN announced that it has unveiled a framework that will integrate a non-interest window in all its intervention programmes aimed at supporting businesses and households that have been impacted negatively by the COVID-19 pandemic. Nairametrics had earlier reported on how to access the AGSMEIS fund.
Why it matters
Given the impact and accompanying harsh consequences of the pandemic, coupled with the present regime’s focus on diversification of the economy, this intervention is therefore aimed at achieving the diversification goal, reflating the economy, creating more jobs and income, managing inflation, and setting the economy on the path of recovery.
CBN in the latest communique of its last MPC meetings also revealed that it has disbursed a total of N3.5 trillion in interventions in the wake of the COVID-19 pandemic as of September 22, 2020. The breakdown of the disbursement includes:
- Real Sector Funds: N216.87 billion
- Targeted Credit Facility: N73.69 billion
- AGSMEIS: N54.66 billion
- Pharmaceutical and Health Care Support Fund: N44.47 billion
- Creative Industry Financing Initiative: N2.93 billion
In terms of project distribution, a total of 128 projects that comprises 87 real sector funds project and 41 health-related projects have been funded. In like manner, about 120,074 have received funding under the Targeted Credit Facility.
N75 billion Nigerian Youth Investment Fund to be rolled out before end of October – Minister
Youths are expected to come up with brilliant ideas that will enable them to access between N250,000 and N50 million each.
The N75 billion worth Nigerian Youth Investment Fund (NYIF) will be rolled out before the end of October 2020. This was disclosed by the Minister of Youth and Sports Development, Mr Sunday Dare, in a statement on Wednesday, according to NAN.
The statement, which was issued by the Minister’s Assistant Chief Information Officer, Olatunji John, explained that the ministry challenged youths to come up with brilliant ideas that would enable them to access between N250,000 and N50 million of the N75 billion Nigerian Youth Investment Fund for sustainability.
He stated, “The programme is about to be rolled out before the end of this month. President Muhammadu Buhari approved N75 billion in three years because he believes in the dream of youths, aimed at lifting 10 million Nigerians, including youths out of poverty before 2023.”
What you must possess
While urging the youths to take advantage of the opportunity, Dare stated that prospective applicants must show clearly that they have the market, resources and manpower to access the fund.
“The process for accessing the fund would be fair to all youths aged 18 to 35, regardless of their ethnicity or social status,” he added.
According to him, the move became imperative “because building a youthful population that is empowered and successful, is one of the cardinal objectives of this administration.
“For the first time, this country is investing directly in youths. So, government is taking a good risk on our youths, which it hopes will awaken their creative and genius innovative ideas.”
The Minister recalled that apart from the Federal Government investment fund, the ministry had initiated other youth-centered opportunities such as the Digital Literacy, Entrepreneurship, Employability and Leadership Skills (D.E.E.L) and Work Experience Programme (W.E.P).
Others, he said, included the Digital Youth Nigeria (DY.ng) and Nigeria Online Youth Assembly (NOYA) programme, all carefully crafted to address unemployment and employability of youths.
Back story: On October 1, 2020, Nairametrics reported that the Central Bank of Nigeria (CBN) announced that the NYIF would soon be disbursed.
The apex bank made the announcement via its Twitter handle on Thursday, while the nation marked its 60th Independence anniversary.
FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours
174,574 persons have successfully registered for schemes under the Nigeria Economic Sustainability Plan.
The Federal Government has disclosed that a total of 174,574 persons successfully registered for the N75bn National MSME Survival Fund and the Guaranteed Off-take Stimulus schemes under the Nigeria Economic Sustainability Plan, within 48 hours.
The disclosure was made by the Minister of Industry, Trade and Investment, Ambassador Mariam Katagum, during a media briefing on the update of the schemes, on Thursday, September 24, 2020.
Mariam Katagum, in her statement, said: “As at 8.30 am this (Thursday) morning, total successful registrations stood at 174,574 with the following states having the highest applications as follows: Kano, 19,895; Kaduna, 13,575; Lagos, 13,640; Katsina: 8,383; Federal Capital Territory, 8,085.”
She stated that the registration for the MSME Survival Fund commenced on September 21, 2020, at 11 pm, and within 24 hours, approximately 138,000 individuals had logged on, created profiles and completed the first stage of registration with Kano, Kaduna and Lagos as lead states.
Going further, Katagum said, “All successful applicants received SMS and email verification with a list of requirements for the second stage of application which would commence on October 1, 2020. Applicants will be required to upload details supporting their applications which will be verified and if successful, approved for disbursements.”
The minister further disclosed the states that recorded the highest numbers of applications within the first 24 hours of registration; these are Kano, which recorded 16,880: Kaduna, 11,438; Lagos, 10, 530; Katsina, 7,354; and Bauchi, 6,622.
Explore the Nairametrics Research Website for Economic and Financial Data
She also stated that registration for other tracks would start next with the hospitality industry coming on September 25, 2020, by 10 am; payroll support (others), September 28, 2020, 10 am; while artisan/transport grants would start on October 1, 2020.
Nairametrics had two days ago reported the opening of the portal for its N75 billion Micro, Small and Medium (MSMEs) Survival Fund and Guaranteed Off-take schemes with effect from 10 pm on Monday, September 21, 2020.
These two MSMEs initiatives namely MSMEs Survival Fund with payroll support track and the Guaranteed Offtake Scheme which are at the core of FG’s N2.3 stimulus package in the Economic Sustainability Plan, were introduced by it as part of the efforts to help businesses overcome challenges posed by the Covid-19 pandemic.
Hon. Minister of State (@TradeInvestNG ),Amb. Mariam Yalwaji Katagum briefed members of the Media on update of the N75 billion National MSMEs Survival Fund (@SurvivalFund_ng ) and the Guaranteed Off-take Schemes under the Nigeria Economic Sustainability Plan (NESP) today. pic.twitter.com/r6qiFu79Gj
— FMITI Nigeria (@TradeInvestNG) September 24, 2020