Finance

A worker is likely to gain experience, become more efficient and faster as they carry out a repeated performance of a job task. Human beings improve skills, gain experience, exposure and specialize as they repeat the performance of a particular task. This is known as the learning curve effect. A worker with the no previous experience and knowledge is untried the first time they perform a new operation. As the worker repeats the operation and becomes more familiar with it, their labor efficiency increases and their labor cost per unit decreases. After the passage of time, the regular rate of decline in cost per unit is established and used as a basis to predict future labor cost.. The learning process begins at the point the first unit comes off from the production line. And each time cumulative production is doubled, the average taken to produce a unit of cumulative production is a percentage of the average time of the previous cumulative production. What is the learning curve theory? ...

  Currency redesign by the Central Bank of Nigeria and its complementary withdrawal limits have come to stay. The recent news from the Central Bank of Nigeria (CBN) is an indication of the near irreversibility of the policy implementation. The news claimed that volume of currency in circulation, not in vaults of banks has dropped by at least 5 percent in just one month. So withdrawal limits are going to be enforced to the letter but Nigerians may not have the luxury of time (Senate is urging CBN to set June 30, 2023 as the new deadline).  In the event of no deadline extension beyond January 31st, 2023, how're Nigerians going to make urgent purchases above weekly withdrawal limits? Or even make long term arrangements? Financial transactions are often done on two bases, cash and credit. In many economies, where individuals take their creditworthiness serious, most financial transactions are done on credit basis. In Nigeria, it's mostly on cash basis and soon, this is no longer g...

  Having a great business idea without a startup capital is like wandering a vast desert in search of an oasis. You are literally going to leap in when you see one. Then gulp down the water with all the impurities. It’s wise to understand what capital gearing is before you decide to borrow or not to borrow to start your business. What is capital gearing? It’s a financial ratio that shows the amount of debt of a company to it’s equity. It’s a measure of financial risk. This risk increases toward volatility as the ratio of debt to equity gets higher. The higher the gearing ratio, the more the interest payable on debt and the lower the earnings on equity. You may end up borrowing to service debt commitments. The risk doesn’t end with sinking deeper into more debts, your control of the company could also be threatened. Your creditors may want to teach you best ways to run your business profitably. This may come in the form of business partnership and so called, “business support”. In m...

  It’s very difficult to achieve financial prosperity without puting the concept of opportunity cost to use in your spending. It’s normal to have many wants competing for your money, which may not be enough to get all of them for you.  So, to get the best out of your spending, you must understand the value attached to the best alternative foregone.  This is opportunity cost.   Understanding ande applying the concept of opportunity of cost to your personal finance, are going to help you achieve the following seven personal financial goals; 1.Spending  Within Budgetary Provision: A good budget should be a financial plan that accommodates absolutely necessary expected spending within expected income.  Obviously, a good budget is not possible in the absence of opportunity cost as you wouldn’t be to put in the budget, only things which enhance personal financial health.   So after the budget has been set up with the help of opportunity cost, ...

  "The leaders who work most effectively, it seems to me, never say "I." And that's not because they have trained themselves not to say "I." They don't think "I." They think "we"; they think "team." They understand their job to be to make the team function. They accept responsibility and don't sidestep it, but "we" gets the credit. This is what creates trust, what enables you to get the task done." Peter Drucker

 To survive and succeed in life, you must take risks. To manage many risks in life, you need insurance coverage. What Is Insurance Coverage? Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services.  With an insurance cover, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely and pay out when there’s a claim. It is not enough to take out an insurance policy, you must know the important considerations to make when you negotiate insurance covearge and after you haven taken out a cover. These considerations are fundamental to making a successful insurance claim. What are these considerations? 1. Get a full description in writing of every documentation the insurer will require should you have any claim to make, 2. Do a comparative analysis of claims filing procedures of different insurers offering the insura...

 "Data from the Bureau of Labor Statistics (BLS) shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more. These statistics haven't changed much over time, and have been fairly consistent since the 1990s.Though the odds are better than the commonly held belief, there are still many businesses that are closing down every year in the United States." For a startup to grow a going concern that outlives the founder, attention must be paid to little details, after all God is in the details. What are these details? They are! 1. Ideas, 2. Cash flow, 3.Salesmanship.. What have successful entrepreneurs said about ideas? 1. Capital isn’t that important in business. Experience isn’t that important. You can get both of these things. What is important is ideas. – Harvey S. Firestone. 2. Get a good idea and stay with it. Dog it,...