Month: August 2019

There are many strategies for generating profit and wealth in every industry. Your ability as an entrepreneur to create a profitable business where no business existed before is the key to your success. Entrepreneur need to change their practices to focus more on profit. What are the fastest ways to increase profits?

Change Operating Procedures; you need to generate more revenue while reducing expenses. To increase your revenue, try offering new services that complement your current offerings. Switch to a relationship based revenue model that gets customers coming back to you offering monthly or yearly service plans, at a discounted price. Another operational change that can increase profits is incentivizing new customers to try your services or products with specials deals, discounts, or short-term giveaways.  

Stay Visible and Connected; Accreditation, licenses, and certifications for your business or individual employees can set you apart from your competition. Take your reputation online, using social media, your website, and a blog to connect with clients and make strategic alliances. Use advertisement sharing with complementary businesses, find ways to leverage referral and take advantage of affiliate marketing tools to drive new customers to your site. Eliminate stale, ineffective alliances that may be dragging you down.

Streamline Management Costs; How efficient are your employees? How many customer leads do you get? How much are you owed in accounts receivable? Questions like these needs to be answered immediately, and to do so, you need to automate your business. Create a system for employees to access and add data, keep all information updated and synchronized. Automation will allow your business to run smoothly and will help a scaled down workforce accomplish more back office work.

Inspire your staff to do more; one way to boost your profits is to increase the output of your existing staff. No matter what type of business you are running, there is a good chance that your employees are not being as productive as they could be and that is not necessarily their fault. According to the Harvard Business Review, companies lose over 20% of their productive capacity to organizational drag; “the structures and processes that consume valuable time and prevent people from getting things done. As such, it is important that you evaluate your business processes to ensure that they are not slowing people down.

The key to creating profit has always been the same: It is to add value. In what different ways can you add value to your customers today? In what ways can you add value to your business today? One good idea to add value to your existing customers, or to new customers, can be enough to move you into the top 20 percent of businesses in your industry.

At Korsell Corporate Consult, we help Entrepreneurs transform their business ideas into a million dollar startup.  We can help you with your business strategy documents, business models, business diagnosis and other custom services.  Call:  055 391 9618 or Email: in**@*********************lt.com

A business plan is a very important business tool to have as an entrepreneur. Not only does it provide a clear path towards actualizing a business idea, it improves your chances of success and can communicate your idea to investors.  Business plan mistakes can result in anything from small setbacks to fatal errors for your business. Especially for businesses seeking funding, it’s crucial that your information is correct and none of your ideas are misrepresented. To help you avoid future stumbling blocks, here are critical business plan mistakes to be cautious of;

Detailed assumptions; the core of any good business plan is based on solid assumptions, which enable entrepreneurs to do accurate forecasting. An assumption is a premise that helps you forecast future results, and allows you to simulate how your business will perform. Entrepreneurs will typically need to make assumptions about three key areas when writing a business plan: Sales, variable costs and fixed costs. Detailing your assumptions and objectives will also help you establish specific marketing strategies and identify resources that are required to meet your objectives.

Never forget start-up requirements; a common mistake in business plans is omitting to outline start-up requirements. It’s imperative to clearly discuss the details required for the project than to state the amount needed, this shows the reader you have done your homework very well.

Have supporting information; Backing up your assumptions is also crucial when writing an effective business plan. Supporting information can include feasibility studies, surveys, market analyses, information about key competitors and industry overviews. The reader should see clear footnotes that point to your supporting documents. Information must be clear and concise.

Emphasize human resources management; Business owners often overlook human resources management in business plans, when it’s actually a major element to consider. In a shrinking labour market, human resource poses many challenges to entrepreneurs today, particularly when recruiting ,when preparing your business plan you have to show that you know precisely how you will attract skilled staff to operate your company. Business plans should include your organizational structure, as well as clear human resource requirements such as recruiting and outsourcing strategies.

Having a consultant revise your plan can help you make a stronger business case. It’s good to have that objective point of view. Sometimes it’s difficult to see weaknesses in your document and where you can improve it.

At Korsell Corporate Consult Limited, we help you with your business planning, strategy document and other custom services. Speak to us now 055 391 9618 or Email: in**@*********************lt.com

One  of  the  most  significant  developments  in  West  Africa  over  the  last  three decades  has  been  the  formation  of  Economic  Community  of  West  African  States  (ECOWAS)  in  1975.  The  main  objective  of  ECOWAS  was  to  create  an  economic  and  monetary  union  for  promoting  economic  growth  and  development  in  the  West  African  sub-region. These  included, the  elimination  of  tariffs  and  quotas  on  the  import  and  export  of  goods  between  member  countries,  the  establishment  of  a  common  external tariff, the abolition of obstacles to the free movement of people, services and capital between member states and the establishment of common policies for agriculture and transport.

This article   presents the importance of West African Monetary Institution to   the economic growth on member states. The importance of international monetary cooperation has been recognized for a long time in West Africa. A regional central monetary institution is envisaged to harmonize economic and monetary policies, liberalize trade in the region, supervise members’ balance of payments, provide members with better access to the resources  of  the  primary  international  institutions  and  also  offer  the  community  a  better  instrument  at  the  world’s  collective  bargaining  table.  A  special  function  of  such  an  institution  would  be  to  offer  advice  and  guidance  to  the  whole  region  on  monetary  matters  on  the  basis  of  the  study  of  the  special  conditions  and  needs  of  the  community. 

The Eco is the proposed name for the common currency that the West African Monetary Zone (WAMZ) plans to introduce in the framework of Economic Community of West African States (ECOWAS). For the Eco to be implemented, ten convergence criteria, set out by the West African Monetary Institute (WAMI), must be met. These criteria are divided into four primary and six secondary criteria. The four primary criteria to be achieved by each member country are: a single-digit inflation rate at the end of each year, a fiscal deficit of no more than 4% of the GDP, a central bank deficit-financing of no more than 10% of the previous year’s tax revenues and Gross external reserves that can give import cover for a minimum of three months.  The six secondary criteria to be achieved by each member country are: prohibition of new domestic default payments and liquidation of existing ones, tax revenue should be equal to or greater than 20 percent of the GDP, wage bill to tax revenue equal to or less than 35 percent, public investment to tax revenue equal to or greater than 20 percent, a stable real exchange rate and a positive real interest rate.

Similar to the euro in the EU, ECO currency will be shared by all the 15 member states nations of ECOWAS – Economic Community of West Africa States. It is expected to debut in January 2020. The single currency will facilitate trade, lower transaction costs and facilitate payments amongst Ecowas’ 385 million people.

The switch to the Eco is expected to provide a stimulus for bilateral trade between member states in WAMZ. One  factor  behind  the  bilateral  trade  expansion  is  the  elimination  of  transaction  costs  that  constitute  a  non-tariff barrier  to  foreign  trade.

At  a  time  when  trade  is  facing  incredible  headwinds  and  questions  are  being  raised  about  the  utility  of  regional  integration  processes,  the  Establishment  of  the  African  Continental  Free  Trade  Area  (AfCFTA),  is a welcome positive spot. By seeking to deepen economic integration of the African continent by creating a single continental market with free movement of business, people and investments, the AfCFTA is a evidence to the power of cooperation and a shared vision.

African leaders from 44 African nations gathered at the African Union Summit from March 17th to 21st 2018 in Kigali, Rwanda, and signed the Continental Free Trade Area (AfCFTA) treaty to create the world’s largest single market. The agreement will be the largest trade agreement in history since the creation of the World Trade Organization. 

The treaty aims to boost intra-African trade by making Africa a single market of 1.2 billion people and a cumulative GDP over $3.4 trillion. The UN Economic Commission for Africa (UNECA) estimates that the implementation of the agreement could increase intra-African trade by 52% by 2022 and double the share of intra-African trade (currently around 13% of Africa’s exports) by the start of the next decade.

Increasing intra-African trade, good news for Africa due to the nature of the goods typically traded within the continent. Many African economies rely heavily on exporting raw materials, and for three-quarters of African nations, commodities account for at least 70 percent of their exports. This hurts many African economies because raw materials are especially prone to frequent price fluctuations, so reliance on commodities risks economic volatility and unstable business environments. But there’s good news.  Increasing the trade of higher value manufacturing goods through the AfCFTA will help African nations diversify their exports and build more resilience to price fluctuations.  A more stable economy will attract investors and allow for the growth of more small and medium enterprises—since smaller businesses with less cash flow are the most vulnerable in a fluctuating economy. More manufacturing will help Africa’s economy prosper because the fastest-growing regions in the world are the ones that diversify their economies the most.

One of the key freedoms that integration agreements seek to establish is the ability of people to move freely between the countries that are parties to the integration. United Nations Economic Commission of Africa (UNECA) notes that ‘the free movement of people across borders has been high on the regional integration agenda, primarily because of the prospective trade gains that are associated with it. Free  movement  of  people  across  Africa  represents  a  powerful  boost  to  economic  growth  and  skills  development  when  people  can  travel  with  ease  for  business,  tourism  or  education. Everyone benefits from a country that opens up their borders as well as the country whose nation is on the move, as seen in the growth in remittances in recent years’.

The African business community is a key beneficiary of the agreement. Potential advantages to the private sector include increasing economies of scale and access to cheaper raw materials and intermediate inputs; better  conditions  for  regional  value  chains  and  integration  into  global  value  chains;  catalyzing  the  transformation  of  African  economies  towards  greater  utilization  of  technology  and  knowledge;  facilitating  both intra-African and external direct capital flows to African countries, and creating a labour market and a demand pull throughout the continent. To ensure that the private sector can benefit from the African Free Trade Area, it is important that business understands what the AfCFTA and future negotiations will cover. Business should ensure its voice is heard as governments craft and operationalize the agreement. In order to do that, they need to be fully aware of the issues, potential benefits and opportunities and, most importantly, the role they can play.

This  knowledge  will  enable  business  to  engage  effectively  in  advocacy  and  public-private  dialogue  mechanisms to support the negotiations and subsequent implementation of AfCFTA.

Preferably, every business’s success would be so simple that anyone could run it – even an untalented person. Unfortunately, though, many businesses cannot withstand the leadership of an unqualified or untalented person, and, if a business is lucky enough to achieve longevity, odds are that someone unqualified or untalented will run it eventually. But, how can you, as an investor, identify when a business is being run by one of those untalented people? More importantly, how can you spot when a business is being run by an untrustworthy person?  You can’t safety-proof your job. But be careful if you witness some or most of these things at your company they could be signals that it’s time to escape a sinking ship.

You Don’t Understand Your Company’s Strategy; great companies have a game plan for winning. A plan that is clear and simple to understand. They can show you their strategy on one piece of paper and can explain it in about thirty seconds. Poorly run companies either don’t have or can’t articulate their strategy. If you can’t explain what your company does, why you matter, and what makes you different, it’s mostly likely because your company does not have a strategy or your executives can not communicate it. Either way, it is a sign that you may be going over the handle bars.

Growing Slower than Your Industry; Successful companies grow faster than their market does. This means they are expanding sales while taking market-share from competitors. For instance if your industry is growing at seven   percentage and your company is growing at three percent you are losing market-share. Over time, this will catch up with you sending you flying into the unemployment line.

Frequently Missed Targets; most companies, especially in tough economies miss their targets from time-to-time. It signals bad planning, bad forecasting, bad sales management, bad expense controls, or a company being badly beaten by competitors. No matter what the cause, this is a sign of weak executive management. And weak executives can destroy a strong company quickly. So if this is happening at your company, make sure you solve it out.

Running Out Of Cash; Cash is the life blood of every company. The cash a company generates tells you a lot about its health. A company’s cash position is also one of the purest metrics to track. It’s not subject to interpretation the way revenue, expenses, and earnings are. So pay close attention to it. If there is more cash going out than coming in every quarter, the bike ride ends badly for employees.

Poor or No Communication from Executives; if your executives are not communicating effectively with you and your co-workers it’s a warning sign. In tough times incompetent executives go into hiding. If and when they do communicate they do it in dumb ways.

Great People Are Leaving & Dumb People Are Staying; great people build great companies. When you start to notice that more than a few great people are leaving, something is wrong. When a company’s best people start leaving, it sets off a chain reaction.

Repeated Layoffs; Many companies have done layoffs in this economy, but if your company is doing it regularly it is another sign of poor management. Most executive teams underestimate how much trouble they are in when things start going sideways. So when it comes time to cut expenses and people, they have often don’t go deep enough. Then, three to six months later they are forced to do another layoff. If this turns into a vicious cycle, you have incompetent management and probably an out of touch board of directors. Their ineptitude will cause more and more jobs losses. This will continue until your board-of-directors wakes up. So if your company is showing some of all of these seven signs it is time to get proactive.

Speak to us at Korsell Corporate Consult; let us assist you with your business planning and other custom service. Call now 055 391 9618 or Email: in**@*********************lt.com