Quail Farming For Quick Cash

By Arinze Onebunne

For the chief Executive officer, Jovana Farms, Prince Arinze Onebunne, raising Quail, grasscutter, rabbit, Snail, guinea pig and antelope has became second nature. He said the production of these animals especially quails gives small holder farmers a big chance to increase their income, health and offers an alternative means of livelihood to urban and rural farmers in addressing poverty. It is for these that Onebunne launched an initiative to promote quail farming as a suitable occupation that can contribute to food security, wealth, health and employment creation. As the Cattle which could have been another major source of protein, is being drained by desert encroachment, pest attacks and other factors.

According to him, quail farming is emerging as a productive enterprise since it can be reared in small floor space and lays an egg per day. Quails are very poor feeders but good layers and all one needs is maintaining clean environment around them. In terms of nutritional value addition, he said quail meat and egg is tastier than chicken and has less fat and cholesterol content.

Rabbit Farming For Health And Wealth

In Africa, Nigeria is the largest importer of frozen fish (FDF, 2002) and requires approximately 1.5million tons of fish and meat annually to meet demand.

  Currently, domestic supply is about 0.5 million tons (Over 30% of demand) including massive importation which gulps over N20 billion annually. Preliminary market analysis according to IFC suggests that an additional 25,000 tons or 100% increase in current production can be easily absorbed.

Cattle which could have been another major source of protein, is being drained by desert encroachment, pest attacks and other factors.

Mini-Livestock production like grasscutter, guinea pig, Porcupine, snail and rabbit is thus placed on the spotlight as the best option for food security in the country today.

Rabbit farming is a profitable business with high probability of recouping original investment. Consequently, expansion in rabbit farming will not only generate jobs and income for farmers, but will also create small-scale business for market mammies and restaurants.

The rabbit-farming business is adaptable to any location. Many owners use shed, backyard, and old barns as sites for rabbit hutch. With the Red-Meat situation what it is and the economy in a turmoil, now is a good time to consider the rabbit business. The best way I know to put good food on the table and a few naira in your pocket without a large investment, is raising rabbits. The Profits can come in many ways: you can sell your rabbit or the urine for laboratory use, the manure for fertilizer to horticulturist or for worm growing, even the hide and fur for expensive leather works. The white-meat, however, is by far the most important product.

Grow Grasscutter And Grow Rich

For the few Nigerians who have realized that self-employment is the quick solution to the problem of unemployment in the country, they have started creating jobs for themselves through animal farming without waiting for the government of the day to provide one for them, even when they could not get assess to N200 billion agric loan. Many started with personal savings. Prince Arinze Onebunne is one of the few Nigerians who launched into grasscutter farming in order to make a living. He solicits that government should provide enabling environment for the jobless youths and students even retirees to go into grasscutter farming and by so doing reduce unemployment rate in Nigeria which is the root cause of political, economical, social and religious instability in the country. Prince Arinze Onebunne is the Managing Consultant/CEO of Jovana Farms.

When I discovered that somebody can make a living from grasscutter farming I launched into it many years ago and today I’m not regretting it. Most importantly I can’t suffer unemployment. Agriculture seems to be the antidote of the Nigeria’s economic challenges if government provide enduring environment. That is what we need.

Grasscutter farming does not require millions of naira before you cultivate it. With N50,000 anybody can start it. All you need is some practical trainings on how to handle them and you start reaping from it. A family of a grasscutter comprises one male and four females which is referred to as a colony or breeding stock. Each colony is sold for between N35,000-N45,000 depending on the species and age. So, because they are reared in cages you can get a cage at the rate of N5000 from the roadside carpenters who construct them. The cages can occupy any available space in the house. It is advisable to buy them at tender age like four months old, that is breeding stock stage. If you buy them and rear for four months, they will start having babies at eight months and you start making profit. It is more economical because you do not buy food for them unlike you do in fish, poultry and pig farming etc, reason is that they feed on grass. One female grasscutter can give birth to five or ten litters (babies) at a period. If at the end of the day the four female give you five litters each, you are having 20 litters. Grasscutters are easy and very cheap to rear and their excreta does not carry odour.

4 Essentials for Happiness by Brian Tracy

Over the course of your lifetime you may have a thousand different goals. Think about it. How many goals have you made for yourself in the past year?

All of these goals will fall into one of four basic categories. Everything you do is an attempt to enhance the quality of your life in one or more of these areas.

The Key to Happiness

The first category is your desire for happy relationships. You want to love and be loved by others. You want to have a happy, harmonious home life. You want to get along well with the people around you, and you want to earn the respect of the people you respect. Your involvement in social and community affairs results from your desire to have happy interactions with others and to make a contribution to the society you live in.

Enjoy Your Work

The second category is your desire for interesting and challenging work. You want to make a good living, of course, but more than that, you want to really enjoy your occupation or profession. The very best times of your life are when you are completely absorbed in your work.

Become Financially Independent

The third category is your desire for financial independence. You want to be free from worries about money. You want to have enough money in the bank so that you can make decisions without counting your pennies. You want to achieve a certain financial state so that you can retire in comfort and never have to be concerned about whether or not you have enough money to support your lifestyle. Financial independence frees you from poverty and a need to depend upon others for your livelihood. If you save and invest regularly throughout your working life, you will eventually reach the point where you will never have to work again.

5 Rules of Entrepreneurship by Brian Tracy

Entrepreneurship is the art of finding profitable solutions to problems. Every successful entrepreneur or business person has been able to identify a problem and come up with a solution to it before someone else did. Here are the five rules for success.

Nigeria’s young entrepreneurs, a look into what made them tick

Written by  Ruth Olurounbi

When the Forbes was going to introduce them, it wrote: “the 30 young African entrepreneurs, disruptors and innovators featured on this list are impatient to change Africa. Together, they represent the entrepreneurial, innovative and intellectual best of their generation.” Now, a round of applause for Africa’s 30 Under 30 – the continent’s best young entrepreneurs, today’s disruptors and tomorrow’s brightest stars and they are… Opeyemi Awoyemi, Olalekan Olude and Ayodeji Adewunmi, Red Media’s Chude Jideonwo and Adebola Williams.

These young CEOs and founders of Jobberman, Nairaland, Flying Doctors and Red Media are among the listed 30 under 30 Best Young Entrepreneurs in Africa by Forbes and according to Forbes, these young entrepreneurs are changing the face of Africa, making the most dramatic impact across the continent, Forbes said.  Now, let’s take a peep into what these young entrepreneurs do:

Are you an Entrepreneur? Here’s what can break or make you

Written by  Ruth Olurounbi

Some people have always dreamt of being entrepreneurs and when they finally got the nerve to start their own business, the feeling of accomplishment can be quite exhilarating. But business owners have said that the very thing that led to their success could also lead to their downfall. John Patrick Pullen, a writer who covers for publications such as Fortune, Men’s Journal, and Boston Magazine identified three traits that can make or break an entrepreneur. He listed them as: passion, confidence and representativeness. Balancing these three, Harvard Business School professor and author of The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup, Noam Wasserman, said “is the critical art for founders to have,” Pullen wrote for Entrepreneur.

To be an Entrepreneur, don’t depend on your certificate

‘Don’t depend on your certificate’

 BY ADEMOLA ALAWIYE 

Mobola Adekunle-Pearse

Mobola Adekunle-Pearse is the owner of Peers Events. She tells ADEMOLA ALAWIYE why she went into the business and the challenges she faces

Why did you choose to go into business and not apply for a white-collar job?

After my masters’ degree programme, I tried getting a white-collar job but when I could not get one, I opted for business.

How long have you been in this business?

Peers Events is five years old. I started as an event planner for social and corporate gatherings, later I started having demand for accessories such as costumes, jewellery and so on. Initially, I was outsourcing these to professionals in that field but later, I thought I could do it if I got trained as well. So I decided to get the training and become empowered in that area. There’s consultancy for what to wear and use; how to wear and use it; also how to get what to wear and use for a complete event.

I began to map out costume and make jewellery embedded with beads and wire works, including bead bags and shoes.

How do you manage all these businesses?

The Nigerian Oil Barons by Segun Adeniyi

The Nigerian Oil Barons
By Olusegun Adeniyi

For now, for the benefit of those interested in who owns what and from where, below are the facts about indigenous companies operating in the upstream sector of our oil and gas industry:

Alfred James Petroleum, granted OPL 302 for ten years on June 26, 1991 has as directors Adewunmi Sijuade, Goke Sijuade, Adedeji Sijuade, Olayinka Sijuade, Adeyemi Osiyemi and Femisola Awosika with A. O. Adeyinka as chairman. Solgas Nigeria Limited, granted OPL 226 for five years on February 27, 1991 has as directors Oscar P. Udoji, P.E Udoji, E.E. Nwosu with J.O. Udoji as chairman. NorthEast Petroleum, granted OPL 215, 840 and 902 on October 21, 1991 for ten years has as directors Kommer Complex Limited, Nwokema,  Ngozi Mbu, Abubakar Jubril and Ashiru B. Aliu, A. Ayankoya with Saleh Jambo as chairman.

Optimum Petroleum granted OPL 310 for ten years on February 3, 1992 has as directors R.D. Adelu, Yusuf N’jie and O.A. Aremu with Ibrahim Bunu as chairman. Sunlink Petroleum, granted OPL 238 for five years and OPL 311 for ten years both on January 21, 1993 has as directors Olaniyi Olumide, Hayford Alile, Samuel Bolarinde, Richard Adelu, Martin Olisa, John Brunner and Emmanuel Ojei. Express Petroleum, granted OPL 108 and 227 for 20 years on November 1, 1995, has as directors Ahmadu Rufai Dantata, Tajudeen Dantata, Dalhatu Gwarzo, Lawan Omar with Aminu Alhassan Dantata as chairman. Dubri Oil Co. Nig Ltd, granted OPL 96 for 20 years on August 6, 1987 has as directors  B.N. Itsueli, C.A Itsueli, O.O. Itsueli, A.E. Ihuegbu with U.J Itsueli as chairman.

Amni International Petroleum, granted OPL 112 and 117 for 20 years on February 2, 1998 and August 2, 1999 respectively, has as directors E.C. Edozien, Tunde Afolabi with Sani Bello as chairman. Atlas Petroleum International Nigeria Limited, granted OPL 109 for 20 years on May 25, 1996 has as directors Umaru Ndanusa, Ikechukwu Joseph, Mohammadu Murtala with Arthur Eze as chairman. Consolidated Oil, granted OPL 103 on June 2, 1993 for 20 years and OPL 458 and 136 for five years in 1998 and 2006 respectively, has as directors O. Adenuga and Ebi Omatsola with Mike Adenuga as chairman. Oriental Energy Resources granted OPL 115 for 20 years on May 5, 1999, has as directors Usman Danburan, Jubrilla Mohammed Indimi with the senior Mohammed Indimi as chairman.

Cavendish Petroleum Nigeria Limited granted OPL 110 for 20 years on August 7, 1996, has as director Gambo Gubio with Mai Deribe as chairman. Allied Energy Resources Nigeria Limited granted OPL 120 and 121 on February 27, 2001 has Mickey Lawal as a director with Kase Lawal as chairman. Peak Petr granted OPL 122 on May 17, 2001 for 20 years, has as directors Adekunle Olumide, W. Bolaji, Florence D. Oluokun and Ayodeji Oluokun with M. A. Oluokun as chairman. Summit Oil Nigeria Limited granted OPL 205 and 206 on September 2, 1990 for 20 years, has as directors L.K.O Abiola and Radio Communications Nig Ltd with M.K.O Abiola as chairman. Crownwell Petr Limited granted OPL 305 and 306 in August 1993 for 10 years has S. K Adejumo as director with Sagir Kumashi as chairman. Famfa Oil Limited granted OPL 216 (OML 127) for ten years in August 1993 has as director Folorunsho Alakija with Modupe Alakija as chairman.

MoniPulo ganted OPL 114, 239, 234 and 231 for 20 years in 1999, 2008, 2008 and 2007 respectively has as Director F.A. Agama with O. B. Lulu-Briggs as chairman. Yinka Folawiyo Petroleum Company, granted OPL 113 for 20 years on June 11, 1998, has as directors S. T. Folawiyo, T.B Folawiyo with W. I. Folawiyo as chairman. Zebbra Energy Limited granted OPL 248 for 20 years on April 4, 2004 has as directors S.A. Okolo, Boni Madubunyi, Zimako O. Zimako with A.B.C. Orijako as chairman. Oil and Gas Limited granted OPL 249 and 140 for 10 years on May 5, 2003 and 2006 respectively has as director M.O Idrisu with Reggie Uduhim as chairman.

Continental Oil and Gas Limited granted OPL 59 for 30 years on June 6, 1998, has as directors Agbolade Paddy, Subair Shefiu with Mike Adenuga as chairman. Emerald Energy Resources Limited granted OML 141 on August 10, 2001 for five years has as directors J.O Amaefule, P. L. Caldwell, A.C Uzoigwe, Amos NUR, C. N. Chieri, Femi Akingbe, F. A, Njoku with Emmanuel Egbogah as chairman. OrantoPetr Limited granted OPL 320 March 2002 for 10 years has Arthur Eze as chairman. Dajo Oil Limited granted OPL 320 for 20 years on March 23, 2004, has as directors R.B. Domingo, M.O Domingo, UR. Domingo with Domingo Obande as chairman. Malabu, granted OPL 245 has Dan Etete as chairman. Orient Energy granted OPL 915 and 916 has N. Nwawka as director and Emeka Anyaoku as chairman. Sahara Energy Exploration granted OPL 284, 228 and 332 in 2005 and 2006 has Buba Lawal, Cole Tonye and Odunsi Ade as directors. Enageed Resources Limited granted OPL 274 in 2007 has Buba Lawal, Cole Tonye and Odunsi Ade as directors.

Seplat granted OPL 4, 38and 41 in 2010 with ABC Orjiako and Austin Avuru as directors. Ekcrest E &P Limited was granted OPL 40 in 2012 with Emeka Offor as chairman. First Hydrocarbon was granted OPL 26 in 2011 with O. A. Azazi as chairman. Neconde was granted OPL 42 in 2011 with Amesi Azudialu, John Umeh and Nnnena Obiejesi as directors. Niger Delta Western was granted OPL 34 in 2012 with Olayiwola Fatona, David Richards, P.O. Balogun and T. Omisore as directors. Newcross Petroleum granted OPL 276 with Prince Sijuade and Bolaji Ogundare as directors. Transcorp granted OPL 281 in 2011 with Jim Ovia, Tony Elumelu, Femi Otedola, Funso Lawal, Jacob Ajekigbe, Tony Ezenna, Ndi Onyiuke Okereke, Fola Adeola and Nicholas Okoye as directors. Starcrest, Cross River Energy and NPDC granted OPL 242 in 2011 with Emeka Offor and Chris Garuba as directors. Starcrest granted OPL 291 with Emeka Offor, Gidado Idris and Yzoni Yaw as directors. South Atlantic (SAPETRO) granted OPL 246 (130) for 20 years on February 22, 1998 has Miguel Guerrero, Joy Ikiebe and Guerrrero as directors with T.Y. Danjuma as chairman.

OANDO granted OPL 278/236 in 2005and 2006 has Magoro, J. A Tinubu, O. Boyo, M.O Osunsanya, O. Adeyemo, O. Akpata, Oba Gbadebo, A. Peppe and Appiah Korang as directors. Ashbert granted OPL 325 has Albert Esiri and Ifeoma Esiri as directors.

Oil World granted OPL 241 in 2007 has Gbenga Olawepo, Adekunle Akintola, Ibukun Olawepo and Rachael Akintola as directors. Pan Ocean granted OPL 98/275 in 1976 and 2007 has F. A Fadeyi, M.D. Yusuf and S.D Adebiyi as directors. Cleanwater Consortium granted OPL 289 in 2007 with Arumeni-Ikhide Joseph, Okey Nzenwa and Abu Ibrahim as directors. Afren Global Energy Resources granted OPL 907/917 I 2005and 2008 with Rilwan Lukman, Osmah Shahenshah, Evert Jan Mulder, Peter Bingham, Guy Pass, Bet Cooper, Constantine and Egbert Imomoh as directors. Centrica/CCC/All Bright Consortium granted OPL 276 and 283 in 2005 and 2006 has Jake Mirica and John Sheers as directors.

Gas Transmission and Power Limited granted OPL 905 in 2005 has Ahmed Joda, Babangida Hassan Katsina, Makoji Aduku and Abubakar Joda as directors. Global Energy Company Limited granted OPL 135 in 2005 and 2010 has S.A Onabiyi, M.A Koshoni, T.T Anyasho and J.N Obiago as directors. New Nigeria Development Company granted OPL 733, 809, 810 and 722 has Northern States Governors as directors. Tenoil Petroleum Energy Services Limited granted OPL 2008 in 2007 has Jim Ovia, Tony Elumelu, Femi Otedola, Jacob Ajekigbe, Tony Ezenna, Ndi Okereke Onyiuke, Fola Adela, Funso Lawal and Nicholas Okoye as directors with Tony Elumelu as chairman.

Before I throw in a few words on the foregoing, it is important to reveal also who the License Shareholders in our Marginal fields are: Niger Delta company was granted the Ogbele field (OML 54) in 1999 with Aret Adams, Uduimo Itsueli, Sammy Olagbaju, David Richard, Udi Ibru and Fatona Layi as shareholders. Prime Petroleum Limited and Suffolk Petroleum Limited (in ratio 51/49) have Asaramaroru field (OML 11) granted in 2003 with MacPepple Henry, Macpepple Joy, Macpepple Emmanuel, Macpepple Elfrida and Macpepple Victoria as shareholders. Oriental Energy has Owok field (OML 67) granted in 2006 with Alhaji Indimi and Usman Danburran as shareholders. The same company also has Ebok field awarded in 2007. Universal Energy has Stubb Creek field (OML 13/14) with Amana Nkoyo, Mianaekere Nelson, Abubakar Hayatu, Mboho Emmanuel, Ekpo Akpan, Inyang Etim (Akwa Ibom govt) awarded in 2003.

Uerafric Energy Limited has Dawes Island field (OML 54), granted in 2003 with Onoh Anthony, Onoh Christiana, Onoh Ngozi, George Udoekong and Nwauche Erastus as shareholders. Pillar Oil Limited has Umusati/Igbuku field (OMOL 56) since 2003 with Onosode G. O., Fadahunsi O., Amakiri J. Hassan-Katsina Usman, Tonwe Basife, Obaseki Godwin, Akpoyomare Ambrose, Fisher Abayomi, Anaekwena Anthony, Avuru Spencer, Onosode Spencer and Hassan-Katsina Babangida as shareholders. Bayelsa Oil Company Limited has Atala field (OML 46) with Bayelsa Government, Brigidi David, Alamieyesheiga Anitonbrapa, Ifimain Ekine, Jonathan Selereipre, Enddeley Francis, Chitwetelu Chris, Williams E. J and Aliyu Abubakar as shareholders. Movideo E & P has Ekeh field (OML 88) with Idau Sadiq, Jacobs Kayode, Enahoro Victor, Mohammed Aishatu, Tuggar Yusuf, Okwuaive Iyabo, and Sadare Roymand as shareholders.

Bicta Energy has Ogedeh field (OML 90) with Adesemowo G. A, Bashir MM, Onumodu Soye, Akinro C. A, Malherbe T and Umejei T as shareholders. Guarantee Petroleum and Owena Oil and Gas have Ororo field, (OML 95) in ratio 55/45 with Rufus Giwa, Ayodele Johnson, Fayose Abiodun, Unuigbe Odion, Omobomi Samuel, Rotimi Luyi, Adefarati Tunde, Duyie Korede, Ojo Segun, Ogedengbe Dele, Aidi Abass, Adegbonmire Wunmi, Amoye Mofiso, Ebiseni Sola, Oladunni Solomon, Agoi-George Segun, Akinruntan F.E, Hassan AlGazali, Eburajolo Victor and S.A Ajayi as shareholders. Platform Petroleum Limited has Egboma field (OML 38) with Edmund Daukoru, Avuru Austin, Amachi Moshe, Adegoke Oluwafeyisola, Addo-Bayero Nasir and Ewendu Chidi as shareholders.

Sogenal Limited has Akepo field (OML 90) with Funso Lawal, Joda Abubakar, Harriman Hope, Odu Bunmi, Edohoeket Samuel, Yahaya Mohammed, Dada Nicholas and Yelllowe Kenneth as shareholders. Chorus Energy has Amoji field (OML 56) with Akerele Chris, Mamman Samaila, Ihetu G. S. Braide Kombo, Banks Nigel, Clubb James, Uhuegbulem Ben and Baba Gana Abba as shareholders. Millennium Oil and Gas has Oza field (OML 11) with Alli Chris, Maseli John, Karra Sastry, Shama Yogi, Igweze Emeka and Bashir Farouk as shareholders. Brittania U-Nigeria has Ajapa field (OML 90) with Ifejika Uju, Ifejika Emmanuel, Omu Paul, Otiji Igwe, Ikpeme Ita, Cardoso Tokie, Okonkwo Annie, Inua Mogaji, Mbanefo Louis, Ombu AVM, Horsfall A. K, Ukpong Uche, Ogoro Emomena, Ifejika E.I., Umar Alhaji and Ikpele A. O.

Network E & P has Qua Ibo field (OML 13) with Ajose Adeogun Ladi, Adesomoju Akin, Alex-Duduyemi Oyekunle, Adewusi Adebowale, Ifode Yeletide, Gusau Ismaila Musa, John Etop and Olagbede Olufemi as shareholders. Waltersmith Petroman and Morris Petroleum have Ibigwe field (OML 16) in ratio 70/30 with Isa Abdulrasak, Saleh Danjuma, Utomvie Nyingi, Ita Princess, Okoli Ndubuisi, Kakpovie Anthony, Okpala Eugene, Idrisu Mammudu, Idrisu Lawal, Isokrari Ombo, Nzeakor Nick, Abdulsalami Abdul and Nwabudo Ignatius as shareholders. Midwesterm Oil and Gas and Suntrust Oil Company have the Umsadege field (OML 56) in ratio 70/30 with Igbokwe Ken, Afejuku Anthony, Daultry Akpeki, Sagoe Kweku-Mensah, Gambo Lawan, Oshevire William, Mordi Sylvanus, Maidoh Daniel, Fatayi-Williams Babatunde, Mohammed Waziri, Emerhor Otega, Dublin-Green Winston, Mohammed Abubakar, Oduah Stella, Okafor Ugo and Baba-Ahmed Mouftah as directors.

Independent Energy Limited has Ofa field (OML 30) with Ikelionwu Emeka, Ohunmwangho Steve, Yar’Adua Murtala, Okudu Anthony, Bello Shamsudeen, Obaoye Michael and Monanuma Said as shareholders. Del Sigma has KE field (OML 55) with Amachree Sokeiprim, Ungbuku K.D., Bakut J.I and Chaff Kabiru as shareholders. Associated Oil and Gas and Dansaki Petroleum Unlimited have Tom Shot Bank field (OML 14) in ratio 51/49 with Machunga Laraba, Gwadah Bitrus, Balat Isaiah, Uzor Azuka, Ibok Udo, Uzoechi Isaac, Kadiri Samuel, Afolabi Aderenle and Aina Yinka as shareholders. Frontier Oil Limited has Uquo field (OML 13) with Dada Thomas, Lolomari Odoliyi, Kolade Victor, Yisa Solomon, Nwasikeobi, Alechenu Emmanuel and Bello Falalu as shareholders.

Energia Limited and Oando Production and Development Limited have Ebendo/Obodeti field (OML 56) in ratio 55/45 with Horsfall A. U, Aribeana Stephen, Shawley Coker, Bello Lawal, Ene Emeka, Afolabi Ade, Coker Sam, Esiri Albert, Dibiaezue Ifeoma, Hammed Charles, Macgregor Olushola and OANDO as shareholders. Goland Petroleum Development Company has Oriri field (OML 88) with Kingsley Ngelale, Mogaji Gambo, Slako Johnson and Anthony Dotimi as shareholders. Excel Exploration and Production has Eremor field (OML 46) with Abiodun Awosika as shareholder. Sahara Energy and African Oil and Gas Limited have Tsekelewu field (OML 40) in ratio 70/30 with Baba Lawal, Cole Tonye, Odunsi Ade, Adeniji Titi, Akinla Ladipo, Bentley John, Ciroma Musa, Odili Obi F. and Du-Frayer Trevor as shareholders. Green Energy International Limited has Otakikpo field with A. A. Olojede as shareholder while All Grace Energy granted Ubima field (OML 46) has Adeola Adenikinju and Sola Alabi as shareholders.


It is noteworthy that some players register different companies for different acreages, sometimes also with different sets of shareholders. But in terms of operations, it stands to reason that some of these licenses may have expired, been cancelled or are even never operated at all. Also, it is obvious that some of the listed shareholders of these companies are now deceased. Beside all these, that someone is chairman of a company doesn’t make him the biggest shareholder. The case of AMNI credited to former Kano military governor of Kano State, Col. Sani Bello (rtd), is a case in point. “The fact that I am the chairman does not mean I own AMNI. I don’t even have up to 20 percent in the company”, he said.


Now, before anybody accuses me of leaving out some big players let us not forget Atiku Abubakar, whose stakes in INTELs rake in substantial returns for him; Jide Omokore’s multimillion Dollar Atlantic Energy’s “Strategic Alliance Agreement” and Phillip Iheanacho’s Seven Energy etc. These fall within a different category of those who may not be direct field owners yet make stupendous money from the sector.

Source: www.thisdaylive.com

How Entrepreneurs can get Access to Funds

Start-ups should target family, friends for funds

BY GODWIN EHIGIAMUSOE 

Godwin Ehigiamusoe

The Managing Director, Lapo Microfinance Bank, Mr. Godwin Ehigiamusoe, tells SIMON EJEMBI how entrepreneurs can get access to funds

 Reasons for low rate of access to funds

There are different reasons for low rate of access to funds. The first is the fact that access to funds in the commercial banks can be very challenging.0nly a few companies, especially among the small and medium enterprises, are able to meet the conditions that are usually put forward by commercial banks for credit facilities. The second reason, probably, is the fact that most companies have not really decided to access public funds through the capital market.

 Getting funds to convert great ideas to thriving businesses

It is quite challenging, but I think there is a way out. The first step  is to be very clear about your ideas; convert them into a very clear business plan for people, especially those who have funds, to be interested. The second step – and that is my advice for most young people with business ideas – is to try as much as possible to start with little funds that can be primarily mobilised from own savings, friends and family members. It is not advisable for beginners to access loans for implementation of an idea.  In summary, my advice is, come up with very bright idea, clarify your ideas, and put them in a manner that people can understand in the form of a business plan. Secondly, begin fund mobilisation by targeting family and friends.

 Why small businesses should avoid loans

Start-ups usually are quite vulnerable and in that case, can easily fail. At this point viability has not been assured. No matter how good your business plan is, when you are beginning a business, which is  more or less an adventure, there are possibilities things could go wrong. It is therefore not advisable for a beginner  to borrow money with interest and all the conditions to begin a business. The wisdom is that you start small, and mobilise your funds from sources that tend to be a bit cheaper. (So) when the business has started, gradually, demonstrating  viability and that one can access credit facilities for the purpose of scaling up.

 What to consider when taking loans

The first factor  is to ensure that you are looking for an amount that you really need – not just an amount you think that you want. Second, is to ensure that you have a very clear utilisation plan for the fund. If you do not have a plan, there could be a possibility of misapplication (of the fund). And the third factor, is to make sure that you have a clear business plan that would guide the growth of the business. In addition, one should be careful on the terms such as  interest rates, other charges, repayment schedule and tenor.

Those factors must be considered in a manner that they are, first of all, affordable and the repayment structure or schedule must be sensitive to the cash flow pattern of the funded  business.

 Alternative sources of funds

Pay Yourself Salary from Your Business

Business planning and strategy: Pay yourself!

BY OLA EMMANUEL

Ola Emmanuel

Debby started her business about five years ago; trading in consumer goods. When she started back then, she believed the business needed to be nurtured very well for it to perform better so she had no option than to resign from her well-paying job to fully concentrate on her own business idea. Her decision was based on the little sparks the business was showing in customer patronage despite the fact that she had not really given her full capacity to the business. She was only pumping her monthly salary into the business to grow it with the belief that if the two ladies she had employed can give their best, it shouldn’t be a problem for her to resign in about a year down the line to take over the management of the business. However at a time, it was clear to Debby she had to resign her employment earlier than she planned due to the fact that the business, instead of improving in performance, had started incurring higher overheads with dwindling sales. She took this action about three years ago; throwing her life into the business.

Well located in one of the highbrow areas of Lagos, Debby assumed full control of her business with the mind of delaying her own gratification for a while. She would not earn any pay at least for some time since her husband had promised to support her personal finances. However, due to some unexplained circumstances, Debby had not been able to take the decision to start receiving regular pay from her business. She realised after paying other bills incurred by the business, she could not afford to load further costs into the business. She had resigned herself to this condition with the belief that tomorrow will be better and she should continue to put in more efforts, working harder and putting more work hours into the business.

Turning your passion into profit

Turning your passion into profit

Mr. Usiere Uko is the author of ‘Practical Steps to Financial Freedom’ and also the Organisational Capability Coordinator with Chevron Nigeria. In this article, he talks about how people can achieve financial freedom while following their passion.

Having been brought up to go to a good school, get good grades and get a good job, it may be a challenge to believe we can do what they really love, and make money doing it. We generally think in terms of getting a good job and making a good living. More often than not, what we are passionate about may not fit into our description of the best jobs in town. They are typically in the oil and gas industry, telecoms and once upon a time, the banking industry. Some jobs are attractive not for the base pay, but the perks and fringe benefits that go with them, both official and unofficial. We tend to go where the money is rather than where our passions lie and where we can make our unique contribution to society and the world at large. We start thinking about passion when the pain of job dissatisfaction finally gets to us. Passion becomes something we indulge in after work or after retirement.

Making money following your passion

Making money by building student hostels

 BY ABIODUN DOHERTY

Abiodun Doherty

One of the ways of making money in real estate in Nigeria is by building student hostels. Nigeria, with an estimated population of 170 million, has the largest population in Africa and still counting. The educational sector has been consistently underfunded and the infrastructural deficit is alarming. Apart from the lack of adequate, quality and modern equipments, books and sufficient number of qualified manpower, there is also lack of adequate infrastructures such as student hostels in most of our higher institutions. Only few higher institutions, both public and private, can boast of sufficient accommodation for all the students willing to live on campus. This gap has created opportunities that have made some investors rich.

Customer service skills for entrepreneurs

BY KEMI MSHELIA

For some time now the “customer is always right” mantra has been heralded by a good number of organisations claiming to be intensely customer-focused. You often see it written on plaques hanging in conspicuous places within business reception areas or placed in a more strategic light within company mission statements. However in recent times, it has not just been bright-eyed seller-organizations singing this tune.

Now, the demanding buying-public (here to referred to as the “customer”) has also taken up the chant, annoyingly so – on occasion – for the customer service executives having to deal with often discourteous (perhaps even foul-mouthed) clients throwing tantrums for the sake of said mantra. Conceivably, this situation contributes immensely to the bad tempers of often unpleasant customer service representatives.

Most of us have been on the receiving end of appalling customer service treatment. Still most of us have witnessed a customer bullying service personnel. It is quite clear that client-rep relationships can be rather tricky.

So what exactly is the strategy behind this assertion?

Six ways to enhance your credibility

BY AGENCY REPORTER

You won’t succeed in business if nobody believes in you. Here’s how to make certain they do.

• Be genuine about who you really are.

The days are long gone when customers were impressed by an illustrious corporate name or a fancy job title. Customers are more likely to respect you if you present yourself as an individual rather than a plug-and-play “representative.” The moment you pretend to be more (or other) than you really are, your credibility flies out the window. Be authentic, even if all you bring to the table is your enthusiasm.

•Know the legitimate value of what you provide.

When you know–truly know–what you’re products and services are worth, you’re unafraid to communicate both the strengths and the limitations of your offering.  You’ll refuse to cave to unreasonable customer demands. You’ll stick to your firm’s policies and procedures, and explain to the customer why they make sense. You’ll be strong and confident about what you can contribute, thereby creating credibility.

•Have insights based on research and analysis.

Adding insights to a conversation automatically creates credibility. Insight comes from learning about a firm, the role it plays in the industry, and the customers that it serves. Insight is strengthened when you develop multiple contacts (and thus different perspectives) within the customer’s firm. Remember: even the smartest CEO doesn’t know everything, and as an outsider, you can bring a fresh perspective to old problems.

•Listen actively, consider carefully, and respond succinctly.

People who have credibility don’t feel the need to “prove it” all the time. Nothing says “I’m insecure and insincere” spouting pat answers to questions that haven’t been asked. Therefore, when a customer speaks, listen with all your concentration, take a few seconds to consider what was said, and only then make a remark, ask another question, or tell a brief story to move the conversation along.

Richard Branson's Tips for Growing Your Small Business

By Richard Branson

Over the years we’ve started many Virgin businesses out of frustration at the way things were done in established sectors. Whether it was airlines, mobile telephones or financial services, we’ve stood out by focusing on ways to improve people’s lives through better service, innovation and value.

Sometimes a small detail, such as more transparent pricing or a friendlier staff, gave us our edge. Our humor and tone also helped attract and keep customers. I try to keep bureaucracy to a minimum and remind my teams that business, as well as life, should be fun.

When you’re starting out with a small business and an enthusiastic team, it’s relatively easy to keep the focus on details and high-quality service, with a light touch. But how can you retain the passion and attention to detail after your business becomes established, successful and larger?

My Best Tips To Grow Your Small Business On A Budget

9 Of My Best Tips To Grow Your Small Business On A Budget

By Ken Varga

The following 9 ideas have helped me and will help you grow your business on a limited budget when you apply them.

1. If you don’t have a journal, I would suggest that you purchase one at your local Staples.  If not grab a sheet of paper.  It doesn’t matter what your business is, write down this question at the top of a sheet: ”How can I personally make my clients’ lives better?” 
   This is a very powerful question.  Think about it.   How many companies you know of, both offline or online, apply this model?
   Most of them are out to get the sale and then move on to the next “prospect.”  Can you imagine how effective they could be if they actually considered how they could help your life be better.
   For instance, I spend a lot on educational material for my grandchildren, and I never hear from the businesses after I make my purchases.  If they remembered the above quote and thought about how they could help me and my grandchildren have a better life, they would realize that they could offer me products to help us, and probably offer them on a monthly basis.
   I’m sure you’ve experienced this at some point in your life.  Think about how this applies to your business and what you can do.
   
   
   

To succeed, entrepreneurs must be lion-hearted

To succeed, entrepreneurs must be lion-hearted – Oshinowo

BY OLUSEGUN OSHINOWO

Olusegun Oshinowo

Mr. Olusegun Oshinowo is the Director-General, Nigeria Employers’ Consultative Association. In this interview with Okechukwu Nnodim, he says it is a Herculean task to set up a business in the country and make a success of it due to too many variables

Is it easy to start a small business in Nigeria?

In looking at this, I think we’ve got to be comparative because Nigeria is not an island on its own. We have other countries that are interested in promoting entrepreneurship among their citizens and for us to come to a conclusion as to whether it is easy or not, we’ve got to compare our situation with other countries. In doing this, we should not confine ourselves to the African continent alone. I think we should be looking in the direction of emerging economies; we should be looking in the direction of countries like China, Brazil, and Indonesia, to see how easy it is in those climes to set up businesses compared with Nigeria.

Now by reason of the fact that Nigeria is a developing economy, opportunities actually abound in this economy for entrepreneurship. And entrepreneurship starts from opportunities, which is when somebody is able to define the needs of the society and launches himself into the process of wealth creation in order to meet those needs. But the success of any business, whether in Nigeria, Europe or Asia, is a function of quite a number of factors or variables. One of which is what I have mentioned: the availability of opportunities. Then you need to identify the other factors and all of them have to work together to ensure that whoever has embraced entrepreneurship actually makes success of it.

So what are those other factors that we need to look at?

Tips to help grow your small business 

BY KAREN E. SPAEDER & OKECHUKWU NNODIM 

Entrepreneurs, who have survived start-up and build successful small businesses, need to take further steps to expand their ventures. Okechukwu Nnodim outlines practical steps to help grow your business beyond its current status

It’s no doubt that many entrepreneurs carry out series of research before starting up their businesses. As a small business owner, you may have sought help from advisors, gotten information from books, magazines and other readily available sources and invested a lot of funds, time and sweat to get your business off the ground.

However, after all these strides, what next? If you have survived the hurdles of starting up and building a thriving business, you may be wondering how to take the next step and grow your business beyond its current status.

Small business consultants and owners of notable firms say there are many possibilities or ways on how to grow your business. According to them, the apt application of a particular procedure will determine the extent which an entrepreneur may go. They note that choosing the proper one or ones for your business will depend on the type of business you own, your available resources, and how much money, time and sweat you are willing to invest all over again. The Chief Executive, Solomon Hunt Limited, a business strategy and consulting firm, Mr. Tobenna Okoli, says an astute entrepreneur must have clarity of thought when it comes to growing his business.

He says, “An entrepreneur must be adept at discerning what is important, and what is not, in today’s mad world of information overload. Clarity of thought sets a successful entrepreneur above his peers by helping avoid distractions while distilling the key areas of focus.” He notes that when you have been able to decipher what to invest and how to go about your business expansion shrewdly, implementation should be done meticulously. Okoli calls for humility while trying to grow your business after recording success as a small business entrepreneur. He says, “Another trait is humility. Pride and business do not mix as oil and water. An astute entrepreneur must show humility in seeking out advice, in accepting failure and in relationship management. The world of business is filled with tough lessons and only a humble heart is suited for its vagaries.” Below are other useful tips to help you grow your small business to greater heights, according to experts:

Business Ownership Structure: Why 10% may be better than 100%

Why 10% may be better than 100%

BY OLA EMMANUEL 

Ola Emmanuel

No entrepreneur is happy if his or her business is not doing well. Failure of a business to perform as expected may give its owner sleepless nights and long hours of thinking and rethinking on what next to do to make the business perform better.

Who would not want to be happy seeing his or her efforts yielding good fruits? In the latest published result of a research on the top happiest countries of the world, it is explained in part by the researchers that “happiness means having opportunity – to get an education, to be an entrepreneur.

What’s more satisfying than having a big idea and turning it into a thriving business, knowing all the way that the harder you work, the more reward you can expect?” In the outcome of the research, which has Norway, Denmark, Sweden, Australia, New Zealand, Canada, Finland, Netherlands, Switzerland and Ireland as the top ten happiest countries, the researchers noted that what contributed more to the state of the countries include being small in size.

“Being small also seems to help. Big countries with heterogeneous populations are more unwieldy; disparate groups make it harder for a society to build social cohesion and trust.”

The gist I am picking for this page from the happiest country report is: how can a Nigerian business owner enjoy doing business or what can he or she further do to reap maximum profit; i.e. working smarter for higher rewards and better quality of living?

Not a few Nigerian entrepreneurs have seen their business ideas messed up because they chose inappropriate form of business to run it with.

The quest to own a business alone yet without adequate wherewithal to make it a success had made many businesses to wither few months after they are set up.

A lot of the businesses that have spent years are daily gasping for breath. Wonderful business ideas with capacity to become multinationals and first class global brands are struggling to get foothold just because their promoters want to hold on to the businesses as sole owners.

The end result is that they are proud owners of businesses that are fighting hard to survive.

What to do in times of financial crises

BY SIMON EJEMBI

What to do in times of financial crises

In times of financial crises, experts say many people lose faith in themselves, thereby making worse a bad situation. In this report, SIMON EJEMBI writes on the steps you can take at such a period

Considering the low level of financial literacy among millions of people and the economic situation in the country, it is not unusual for people to get caught up in financial crisis.

According to experts, financial crisis can affect everyone. They add that sometimes, financial responsibility may not be enough to protect you from crisis, especially during economic recession.

So, when caught in financial crisis, experts say rather than conclude that ‘you are finished’, you need to have faith in yourself, knowing you can deal with it – just as many others have done through the years. They stress that as challenging as financial crisis is, if you approach the situation the right way, not only will you get through it, you will learn a lot which in turn will get you better prepared for the future and its financial challenges.

In dealing with financial crisis, a director in Kakawa Asset Management Limited, Mrs. Modupe Mujota, says self-belief is important.

“Dealing with financial crisis can be challenging, but each investor has to believe that they can overcome the obstacles they face,” she adds. In her view, the following steps are crucial.

Do not panic

It is important to remain as calm as possible otherwise the situation may be made worse. In most cases, when individuals’ panic decisions are poorly made because analysis that may have been objective will be compromised by fear and/or anxiety.

 Appraise assets and liabilities

There is need to appraise all existing assets and liabilities so as to determine the impact of financial crisis on your portfolio and to put things in their proper perspective. Basically, there is need to”take stock” (pardon the pun). Only when this has been done can the true extent of the financial crisis be known and necessary action taken on how to rectify the situation.

 Access information

The individual needs to access as much information as possible (market information, new and/or changing policies, investment situation and so on). Available information may be discussed with individual(s) who possess competence in financial investments in order to have better understanding of not only the present situation but also the short to medium term outlook.

 Create a plan

A detailed and documented Action Plan has to be prepared and followed in order to salvage your portfolio. The individual may seek the assistance of a financial planner/adviser who will be able to assist with crafting a wholistic strategy and executing the daily tactical plan. The individual may be advised to start off by cutting back on daily expenses. Some of the wants that may easily have been indulged in the past may now be classified as luxuries or treats under the present circumstance. For example – regularly eating out, cinema visits, shopping sprees and so on. There should also be some sort of revised savings plan which may be steadily built up to act as a future buffer for the portfolio. If the individual has a loan, then a loan repayment plan should also be included in the Action Plan in a bid to gradually free the person from debt or revise the terms thereof.

 Execute the plan

It is important to note that the steps created in the Action Plan must be adhered to and periodically reviewed. It may be challenging initially but with a strong will to overcome the situation as well as the discipline to execute the plans, the individual is well on the way to once again becoming financially secure.

 Learn the valuable lessons

Booms and bursts will happen, it is only a matter of time and the wise discern the times.

 Mind your greed

Profit made must be earned. Learn when to exit a market. Plan your exit, set your exit triggers and act on them!

Apart from the steps explained above by Mujota, experts also recommend that you protect your credit standing.

To achieve this, you have to strategically pay off debts. As you try to resolve the crisis, they say you will need a lot of help, hence the need for you to make efforts to pay off high interest debt. They say many people make the mistake of trying to pay off low interest debts instead. This, they insist will only worsen their financial woes as debt will multiply via interests.

 Reduce expenses

While many people know that they have to cut down on expenses in times of crisis, they find it hard to do. But experts warn that without reducing expenses, you will find it near-impossible to deal with financial crisis. To cut down expenses they suggest that you:

•Review your budget – If you do not make expenses based on a budget, you will need to start to use one. And if you do, it is advised that you strike out such things as cable subscriptions or go for less expensive packages that offer you the basic channels. If you host parties quite often or eat out a lot, you will have to cut down on both. Experts say as fun as eating out may seem to many people, it is an expensive habit in times of financial crisis.

•Rent out/sublet unused houses/rooms – For people who own more than a house with a second being used as a guest house or those whose houses have BQs that are empty, renting out the second room or BQ, may provide some needed cash. Though many landlords are opposed to the idea of a tenant subletting parts of their houses, some do not mind. Experts say this might be an avenue to raise cash and to cut down on the expenses that you will need to make in maintaining the home all by yourself.

•Review your shopping habits – In times of financial crisis, spontaneous shopping can prove costly. Apart from checking loose spending, experts advise that you avoid very expensive retail items. Rather, they say you should consider shopping at smaller stores that offer similar items for less. They say you can also take advantage of online platforms which offer similar items at a discount.

Source: Punchng.com

Entrepreneurs need to take e-commerce seriously

BY SIMON EJEMBI

Omiete Charles-Davies
| credits: Simon Ejembi

The Chief Executive Officer, Hormo Labs Limited, the parent company of online retail website, www.computervillage.me, Mr. Omiete Charles-Davies, tells SIMON EJEMBI why business owners should take advantage of the Internet to grow their companies

Benefits of e-commerce

E-commerce is about doing business on the Internet; that is buying and selling or offering a service on the Internet and it involves the exchange of money. Entrepreneurs should be interested in it because there are so many benefits. For instance, the amount of money you spend renting a shop will get you a fully functional website. Also, you don’t have to do a lot of monitoring because many of the Internet sites are built with accounting applications that can tell you the progress made. In addition, you don’t need so many workers because, especially when you are running a small business – all you need is your supply and delivery systems. With Nigeria having power problems e-commerce is also good because it protects your business from power outages. Your website basically is not hosted in Nigeria, so you won’t have the site going off when power is down. Another benefit is that you can access your business from anywhere; if you are out of town, all you have to do is just log on to your computer and you can manage your business. E-commerce is also financially rewarding (beyond sale of goods and services). There are things we call web adverts; once a lot of people visit your website, you can start advertising on your website and people will have to pay to be able to have their adverts displayed on your website. So, there are a lot of gains when it comes to e-commerce.

Getting started

The first thing is to have an idea, one you have properly thought about and consulted the relevant authorities in that field. You also have to weigh how functional or effective your idea is and how people are going to respond to it. Then set up a website; employ a web designer, graphic artist and a few workers.

The amount of workers you need to employ depends on how big your business is or your line of business. For example, if you doing a business, which requires that you ship products, you can have contracts with different companies – courier services, suppliers, etc.; all you will require then will be workers to handle customer care and logistics – you may not need up to 20 direct members of staff. But if it is small scale, with five workers you can do well.

You also have to control the content of your website – make it attractive – then make your offers as they are and be sincere about them – that is the most important fact because Nigerians are beginning to trust the Internet a lot. So, if you can keep up with the trust, the industry welcomes everybody that can offer reliable services.

Publicising your website

If you are a small business, the first thing is to start with your friends and family; let them patronise you – word-of-mouth is the most effective. On the other hand, if you are a big business, you need to run web adverts; Google and Facebook run advertisements on their sites and they are the two most visited sites in Nigeria. So, if you pay for adverts, they will take your brand and your site to the Internet community; Nigeria currently has 42.3 million active Internet users. Also, Facebook and Google only charge you for adverts only if people click on the adverts. So, if people don’t go to your site, they will not charge you. In addition, the advert rates are very affordable.

Affordability

Getting started in e-commerce is affordable. If you are doing an information website, you can get one for N20, 000. But if you are going to do one that involves transactions and all that it will cost you in hundreds of thousands, but rarely up to a million naira.

Safety of online transactions

E-commerce or online transactions are safe. However, buyers are advised to look at the sites, their reputation or track record and if their websites are secure – because some of them collect private information from you. Now, they are certificates you have to look out for on Internet sites; what we call the SSL certification. Some companies offer such certification on their sites to make it hacker proof or to prevent it from being accessed unauthorised.  So, if you check the website – usually at the bottom – you will see the seal, which says certified by this or that company. Things like people sending you spam mails asking for your pin and all that are likely to happen, but this are general things that are not peculiar to e-commerce.

For the seller it is safe because you don’t get to have theft from people on the desk and you can monitor money that comes in and what goes out. So, it is safe in every aspect.

Overcoming challenges

Problems of e-commerce include gaining the trust of the Internet community because a lot of people are still sceptical about the how genuine Internet businesses are. A way of breaking that barrier is to ensure that you are sincere; don’t advertise things you cannot deliver – stick to the things you can deliver. If you offer ‘next-day’ delivery, make sure you make the delivery as stated. That way, you can overcome the trust barrier.

Another challenge is finance, in the sense that you need capital, and the banks may not be willing to give you loans. So getting the funds to start can be a challenge. So most times you start with family and friends who believe that e-commerce is the new hope for business in Nigeria.

When it comes to distribution, the quality of your idea in the first place; you have to makes sure the idea is profitable. For example, we deliver computers and phones; the profit margin of selling a computer will be more than a book. So many times we can deliver computers and still make profit. But for people that offer items that cost less, the advice is to make your clients pay for delivery. If they trust you they will pay anyway. So if delivery is N1, 000, indicate that on your website. So, you can beat the challenge of delivery by indicating a delivery fee.

Regulatory policies

E-commerce in Nigeria is regulated. There are agencies such as the Consumer Protection Council that monitor such businesses. However, because going as a scam is very difficult for online businesses, you don’t get into problems with the regulatory agencies. The most important thing is tax. The government is serious about tax, so ensure you pay your tax. As with every company, you are registered with the Federal Internal Revenue Service, and as with other companies you have to pay tax. In fact, the banks won’t open an account for you if you are not registered with the FIRS. So as with any company, if you want to build a website, you should have a parent company that is registered with the Corporate Affairs Commission. There is also the cash-less policy of the Central Bank of Nigeria, so it is advisable that you make your business independent of cash. So, if you are opening a business where people can buy things you have to register with Interswitch or a payment provider to give you a platform where people can offer payment using their debit card.

Source: Punchng.com

Finance and romance: About love, money

BY ‘NIMI AKINKUGBE

Nimi Akinkugbe

Whether you are in a serious relationship, just recently married, or have been married for several years, money matters can be controversial if not handled carefully. When two people become a couple they confront a myriad of financial choices and decisions. Are you engaged? How much do you know about your fiancé’s financial situation? After the excitement of the wedding ceremonies, it will be time to face your financial future together.

Navigating this somewhat sensitive issue is important because financial problems can strain relationships to breaking point and have been cited as a major cause of divorce yet most couples go into marriage without ever broaching this subject. It may not be romantic, but it is important. Here are some of the money issues that you should discuss with your significant other.

Attitudes to money are formed very early on in life and usually develop over many years. You may not even realise the full effect of your childhood experiences, circumstances, and your parent’s attitude towards money; indeed many people simply assume the savings and money management habits of their parents. Were they very frugal, disciplined savers, or were they spendthrifts?

In relationships there may be different goals and priorities. One may be averse to debt whilst for the other debt is a way of life. He might want a flash car, whilst she feels more secure with money in the bank. She might spend all the housekeeping money on jewellery, shoes and bags whilst his priority is to give the children a sound education. He may view the new home cinema as their greatest new asset, whilst her priority is to make a down payment on their own home. If the differences are fundamental this will be a source of conflict. At the same time, be conscious of the fact that it shouldn’t be all about scrimping and saving towards the future; enjoy yourselves as well.

Who will manage the family finances? Women often enter marriage assuming that their spouse will handle all money issues and thus delegate almost total responsibility and sit on the sidelines without being involved. Determine who is best able to manage the routine everyday financial matters. Teamwork is essential and shared duties work well for some families, but even if one party is more involved, both should have a general overview of the total picture. Periodic meetings are important so you know where you stand financially and can see whether you are actually moving closer towards your family goals.

How much debt are you bringing to the marriage? Many people do not discover the full extent of their spouse’s financial obligations until they are married. Debt brought into marriage can be a major source of strife if not well handled. Each partner should know the debt load the other one carries, as once you are married that debt load is shared. Whilst you are not legally responsible for the loans opened in your spouse’s name, it could certainly affect your eligibility for joint loans such as a mortgage. It should be a priority to try to deal with it together and bring it under control.

How do you feel about budgeting? It is surprising how many married couples get by without a budget. Through budgeting you have a better idea of what is coming in and how much can be spent. You should both know how much you pay for your rent or mortgage, utility bills, insurance, and so on. Budgeting responsibilities should be shared such that neither partner should feel that they have to shoulder the entire responsibility. Periodic meetings are useful to review bank balances, any outstanding debt, routine expenses as well as any major expenses that need to be carefully planned for.

Who pays for what? Something as basic as the handling of everyday household expenses is a source of friction in many families. How will you handle routine household expenses? You both earn but how much should each person contribute? Are you both doing your “share”? Should it be equal amounts no matter what each person earns, or a certain percentage? If you earn significantly more or less than your spouse, it seems only fair to contribute amounts in proportion to your respective incomes to reflect this imbalance.

Some couples assign expenses – you pay the rent and school fees, whilst I’ll pay for groceries, utility bills, and so on. Others couples use one partner’s income for all expenses and apply the other income to build up savings and investments.

There has been extensive debate over single and joint accounts. Some argue that joint accounts create a sense of unity that is vital to any relationship. If money is separated do you weaken the bond that is the essence of any long-term relationship? On the other hand, separate accounts allow each the ability to retain some independence; this it is suggested could actually strengthen a relationship.

Will you have separate or joint accounts or a combination of the two? Having a joint account combined with individual accounts for personal expenses is a good compromise as each partner takes some responsibility for the household budget, yet is still able to retain some autonomy. Partners contribute a certain amount of their monthly salary into the joint account to cover routine household expenses such as food, utility bills and so on. Some couples decide to pay their salaries into the joint account and then pay themselves a monthly allowance.

If you had a fairly independent existence before this relationship and managed your own finances and made your own investment decisions, it may be more difficult to give up that control to another person. Yet if you were not particularly structured about your finances you might be more able to opt for a joint account.

It is important to remember that parties to a joint account have a right to withdraw all the money in the account. It is for this reason that the use of joint accounts is usually limited to people who have built a solid level of trust. Look critically at the options and try to come to a compromise that will suit your relationship.

Will you set spending limits? Do you have to account for everything you spend to your spouse? If you show up with an expensive new TV or a car, could this be a cause of tension? Everyone needs some personal spending money that doesn’t have to be accounted for. The amount will vary depending on the couples resources and lifestyle. Some couples set spending limits on how much either can spend without consulting each other.

 With careful planning, clear communication and compromise, many frustrating conversations can be avoided and conflicts resolved. There is no one size fits all when it comes to relationships and finances; even the best system may not always be appropriate so be prepared to modify your system as your relationship and financial situation evolve. Try to find the right balance that works for your situation; if one option doesn’t work, try another.

Source: Punchng.com