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BECOMING AN ENTREPRENEUR BY JAMES KARUNDU
Book Review
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If I asked you to close your eyes and imagine an entrepreneur, it would go something like this; a middle-aged rich and fearless man or woman who is working hard to transform the world into his/her own imagination. It is the face we have seen in the media and brought to identify with when it comes to entrepreneurship.
Enter James Karundu, a Kenyan-born entrepreneur and mentorship coach who worked as a lecturer in his former years.
Instead, James believes anyone and
BY KIMANI PATRICK
everyone can be an entrepreneur. He purposefully left his job to forge his own path with the belief that a world can be better and that everyone can live the life they always wanted –without sacrificing their happiness and peace of mind.
Over the last couple of years, James has spent his time mentoring entrepreneurs and coaching authors while running several other businesses. Over and above these, he writes and sends a weekly newsletter dubbed Spotlight on Personal and Business Success to thousands of readers. It is from this that he decided to compile the best of his articles from the last 10 years into a book, Becoming an Entrepreneur.
Released in June 2020, the book is a business guide, wrapped in a self-help book for entrepreneurs at all levels. “This books will give the emerging or established entrepreneurs the roadmap they need to start, grow, or expand any venture, the icing on the cake being M.I.B (Money in the Bank).” He says.
At the heart of the book, in an inspiring way, James shares actionable ideas, advice and thoughts on overcoming fear, generating ideas, making decisions, managing finances, client services, and virtually every other aspect of building a business. In a nutshell, he provided the insights and practical steps you need to nurture and grow your entrepreneurship dream.
By reading the book, you will learn how to; - Avoid costly business mistakes - Take the first step in your entrepreneurial journey - Market your business with confidence - Attract and get high paying clients - Create a personal and business brand - Stay on course despite inevitable challenges - Grow your income
Whether you want to build a personal brand that brings you income or a brick and mortar business, this book provides the necessary tools to help you do exactly that.
Having read the book, I can confirm that Becoming an Entrepreneur book has the ingredients needed for anyone who has been thinking to outgrow themselves and build a brand that is poised for growth and success.
From harnessing your brilliance, overcoming fears to jumpstarting your idea, and staying on course, James has simplified the concept of entrepreneurship in this book. It is a book I recommend for anyone willing to build something out of the ordinary.
The book answers questions such as; In what area do you need to work on or practice more? Where are you not operating at your best? Where do you have a persistent challenge –is it time management, handling your finances, a relationship with someone, managing your emotions, or a weight issue? This book will answer these and much more questions of course.
Decluttering Excesses to Survive during COVID-19
BY CPA CAROLINE GATHII
The COVID-19 pandemic has presented unexpected challenges to businesses around the world. As business owners continue to manage and direct their businesses, they need to build a mindset of survival. There has been a lot of research conducted on the impact of the pandemic on businesses.
One key aspect affecting most businesses is the reduced demand for goods and services leading to shrinking financial resources. Organizations, therefore, need to learn and embrace financial management for resilience.
Businesses ought to conduct financial analysis during this period with the aim of identifying areas that require adjustment during this crisis. The key information that business should continuously generate and present for decision making include revenue, inventory turnover rate, accounts receivable turnover, current ratio and acid test ratios. This information will enhance dynamic decision making. It will assist the business owners to introduce new products, retire non-performing products at short notice.
The information will aid with quick decision making when new revenue streams are identified. We have certain supermarkets in the country that are making home deliveries and now have refined the supply chain logistics; being resilient and taking the pandemic head-on to keep sales streaming in.
One of the most important concepts in financial management in this pandemic is the breakeven point. Breakeven analysis is the concept that helps determine at what stage your company starts making a profit. It is a concept that helps you determine the number of units that you need to produce to become profitable. It is point zero at which you are neither making a profit nor a loss. Every business owner should have this number in mind, it is the magical number; it can be the make or break of any business.
During a pandemic such as this one, knowing the breakeven point for your business is useful for your survival. Based on this number, you can be able to determine how to deal with any other aspect of the business from potential sales volumes to expenses.
Liquidity is another key aspect of business survival. Liquidity measures the ability of the organization to cover immediate expenses. Expenses should be evaluated with the aspect of maintaining efficiency and saving on costs.
There are various decisions that can save the organization finances which can be spent on other pressing needs. The possibility of outsourcing certain business aspects while still achieving the same results but lowering costs f is important.
Such examples include outsourcing your marketing or accounting functions. The hiring of equipment instead of purchasing is another important business decision, we have Uber that owns a global business without owning any vehicle. Businesses can hire machine time to manufacture their products as opposed to purchasing equipment; hiring transport services without owning a fleet of vehicles. Businesses may eliminate or reduce rental space while still in business and achieve the same results. Businesses can hire production capacity to another entity while still maintaining similar production standards.
Cashflow management is a key aspect of business during this pandemic. Businesses need to understand their periodic cashflow requirements this will help facilitate better cashflow management. Businesses can request customers to pay a deposit prior to provision of service or purchase of goods; these assists the business to remain liquid.
Another aspect that businesses can adopt is to request their customers to pay faster or payment upon receipt of goods and or services, these reduce the time the cash is in circulation out of the business.
Businesses can also negotiate favorable payment terms with their suppliers, this way the business is able to pay when money is available. Business can also sell idle equipment that is not used, these can assist open up cash that would be required during this pandemic.
In the circumstances where the business has received purchase orders, these orders can be financed by financial institutions. The main aim is to ensure that the business does remain liquid while still transacting business.
Finally, businesses should invest time in scenario planning. Scenario planning is projecting the future and brainstorming on the possible future business environment. Businesses need to prepare for uncertainties that the environment presents and make plans on how to overcome those challenges while still remaining relevant. This will enable the business to continue even when such circumstances as the pandemic occur. This process will help the business perceive risks and opportunities as they plan for the future.
CPA Caroline Gathii, IRMCert, is an International Certified Risk Expert with FirstIdea Consulting Limited. Email her at cgathii@ firstideaconsulting.co.ke
