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How To Set Up An Emergency Fund For Your Small Business

 

An emergency fund is an amount of money set aside in preparation for unexpected occurrences. Emergency fundraising is a saving habit that individuals, businesses, and governments enact for sudden unforeseen incidents like:

  • Accidents
  • Illnesses
  • Natural Disasters
  • Recession
  • Repairing and replacement of equipments
  • Sudden unemployment and displacement

Just like any other entity, as a small business owner, you need to develop the habit of emergency fundraising for the rainy days. These rainy days include:

  • Low sales
  • Repairing and replacement of equipment
  • Sudden liquidation of your company
  • Legal problems
  • And any other possibilities.

Emergency funds can also be used in the placement of a loan. They will save you from taking unplanned loans with high-interest rates, and keep your business from falling off balance. Check out this article by The Balance to know how much you can put aside as an emergency fund.

 

3 Steps for Emergency Fundraising

As a small business owner, If you haven’t developed this habit yet, you can follow the steps listed below to set up an emergency fund for your business.

 

1. Separate your business savings account from your personal savings account.

Recall that the emergency fund we are referring to and trying to set up is for your business’ emergency needs not your personal emergency needs.

And since it is very common and easy for small business owners to mix their business activities with their personal life, I will recommend and emphasize that you create special savings account for your business.
Create savings account for your business no matter how small the business may be. And try to not meet your personal needs from there.

 

READ THIS: How To Make Money On Instagram Without Followers

2. Deliberate on a specific amount you want to set aside.

It is vital to acknowledge that, in as much as none of us pray for evil to occur, we can’t be certain of what the future holds. Thus, I will not advise you to have a specific amount of money you want to regard as an emergency fund for your business.

But if you want to walk with a target rather than walk blindly, here is an estimation for you. Consider saving up at least enough funds that can cater to the regular running of your business expenses for three to six months.

Nevertheless, I will advise that you don’t put an end to the building up of your emergency fund. Set a goal and aim to exceed it.

READ THIS: 5 Ways To Make Money With Pinterest

3. Save a little amount of money away gradually.

The amount of money you are to be putting away here depends on your monthly or weekly income. After all expenses, decide a specific percentage of the money you want to set apart for your emergency fund account and religiously do this.
Like I said before, even though you achieve enough money that can run your business in a year or more don’t stop saving away.

Plus, you can also increase the lump sum of your emergency fund by adding every extra or unexpected extra balances to it.
For instance, if you have a specific sales target for every week or month, and you have extra sales (it happens often), after all expenses it’s best you put such money aside.

So if you happen to be short of sales the following month, you can meet up for the expenses of that month with the excess you put away in the previous month.

 

ALSO READ: How To Create A Professional Blog & Start Making Money From Blogging

 

Where to put or save your Emergency Fund?

You need to decide the form you want your emergency fund to take and where you want to safeguard it. Your emergency fund can be in the form of cash, liquid money, or insurance policies.
Similarly, you can decide to put your emergency fund away as cash in a specific place (not advisable), in an account (preferably a savings account ), or as an investment in an insurance company.

Normally, all that matters is how safe it is from your personal needs and all possibilities; and at the same time how quickly you can access it once the need arises.
Emergency funds are lifesavers. They will save you unplanned loans with high-interest rates, and keep your business from falling off balance. It is something you can’t do without as a business as a small business. If you can, set one up as soon as possible.

 

Tutorial on how to do Mini Importation Business in Nigeria

 

Complete Tutorial on how to do Mini Importation Business in Nigeria, the ebook, secrets and Websites.

 

Mini Importation Business is a very good business that you can start with a low capital and recover huge interest if done correctly. As far as I am concerned, you can 200-500% interest if you follow the right path.

 

In Nigeria as an example, many people prefer imported goods than locally made goods and that’s why the business always open for more people.

You really needs to focus on “hot products” or “winning products” to be successful in this mini Importation business and you are already a winner if you can brings in any hot products.

There are many countries where you can import goods from but with no doubt, China is the best.

FinanceNaija really get your back so don’t let us waist more times, let’s go straight to the business.

 

Requirements for Mini Importation

  • Valid and active email address
  • Valid home address (place to receive your ordered items)
  • Mobile phone or laptop with internet access
  • MasterCard or Visa debit card (ATM card)
  • PayPal account
  • A capital (at least N10,000)

 

CHECK ALSO: 8 Best Online Jobs For Students To Earn Money In 2020

 

You will need to do a little research on hot cake goods around at the moment before you go online or you look around for more products online before you select.

One of the crucial part of mini Importation is to decide on what on what to buy. You will just need to familiar with the local norms in Nigeria of today.

Below are the list of moving items for now and you can choose any products among the list

  • Waist trainer
  • Clothing
  • Bags
  • Shoes
  • Wrist watches
  • Slim tea
  • Power banks
  • Human hair
  • Body shapers
  • Super bright Led Torch light
  • Smart bracelet wireless headset
  • Warm and cooling cup holder
  • Wireless Earpod
  • Bluetooth speakers
  • Wireless phone charger
  • iPhone and Samsung phone accessories and lots more

 

All the above items and many more can be found in many China online stores. You can also find them in other countries but China is the best place to  get cheap items. However, there are lots of China based website to cheap items but I can recommend;

 

ALSO CHECK: How To Create WhatsApp TV And Earn At Least N20k Per Week

 

How to buy goods online

Just go straight to any of the above websites then register or sign up for an account and confirm the registration. Next thing is to walk around the website and familiarize yourself with it. Look around the site for the cheap products you can buy and sell in Nigeria.

Make sure you check the reviews of each product you want to buy to know what previous customers says about the particular product. Check the product description and delivery method of each product before you order.

The most crutial part of mini Importation is ‘who to buy from‘. Just make sure you look for reliable supplier and buy from them only because if you buy from unreliable supplier, what you will receive might different from what you order or may not complete.

Reliable suppliers are those who have stayed long in the business and can find them with high rating stars.

 

How to make payment for your order

 

After you found and select your items, its time to place your order and make payments. Most suppliers prefer payment with PayPal or direct payment from Visa or MasterCard.

I know what you are thinking right now but just know that you need to take risk in life to succeed. Don’t be scared, those websites are always at your services. Buyers Protection or “Escrow” cover you with your payment and there’s another one named “Dispute Form”. This form comes to action if you receive items different from what ordered for. You will need to fill the form to be refunded.

However, there’s another way to make payments for your order and it’s what many mini Importer in Nigeria prefer to use. This method is more reliable and easy and it makes mini Importation from China to Nigeria very easy, called “Logistics route”.

 

What is Logistics route in mini Importation business?

 

Logistics route in mini importation business is a process which allow you select your on in China website then make payment and receive your order with another company here in Nigeria.

Logistics route serves as Mini Importation agents in Nigeria. With this method, you will need to create account with both China online store and a logistics company in Nigeria. However, the logistics company will get their commission according to orders.

 

How Logistics route or Agents works?

 

  1. You select your order on China store
  2. Copy the link of the page that asking you to place your order
  3. Go to your logistics website and paste the copied link to provided box then place your order through your logistics website
  4. The logistics company will track and receive your order
  5. And you will get your order from your logistics company

 

SEE ALSO: Complete List Of Nigerian Banks USSD Codes For Mobile Banking

 

There are many logistics company in Nigeria and below are the most reliable I know in Lagos

  • Dellyman
  • Sharp delivery logistics
  • GIG Logistics
  • GAT Logistics limited
  • Khome Global logistics

 

You can search for any logistics company close to your area through Google. Just on the location of your phone then type “Logistics company near me” on Google search.

 

Delivery Methods

 

Free delivery/shipment: This method is very slow and it can take up to 40 days before your order get delivered and it might not up to that. You can easily go for this method if you are not in hurry and if you want to save some money. It might be long but your goods will be definitely delivered.

The service company to deliver your order can be Hong Kong mail services or China Mail Air Post. Just make sure your phone number is always available because your order will be delivered to nearest post office to your address.

 

Premium service (Air service) : This service is very reliable because your order will be delivered to your doorstep within 2-5 days. You can also track your goods with this method. DHL, FedEx or EMS can be used to deliver your goods.

You can tell the supplier to remove the packages from the goods to reduce the shipment cost.

 

ALSO SEE: Top 6 Online Working Capital Loan Lenders To SMEs

 

Conclusion

With all above Mini Importation training and guides, your order is already arrived and you are good to go to market your order and start making money. You can market your goods on WhatsApp status, Social Media, at your area or face to face market.

With imported goods, you have great chance to market your goids on Jumia and still make extra money on referral for your own product. Tutorial on how to market your products on Jumia, Konga is coming soon.

 

Thanks for reading and don’t hesitate to drop your comment below and ask any question. I reply all the comment.

List Of Best Insurance Companies In Nigeria (2020)

There are many people out there who is ready to buy any of insurance services but don’t know the reliable insurance company in Nigeria.

 

If you ready to buy or thinking you will need insurance product one day but don’t know the trusted and best insurance company in Nigeria. Don’t worry yourself, this post is really meant for you and you are at the right place.

FinanceNaija have done a deep research on trusted insurance company in Nigeria this 2020. Make sure you read this post till end so that you will able to choose the best Insurance that suits your needs.

 

 

This is the 2020 list of best Insurance Company In Nigeria.

  1. AIICO Insurance Plc
  2. Acen Insurance Company Plc
  3. A&G Insurance
  4. Lead Way Assurance Company
  5. Cornerstone Insurance
  6. African Alliance Insurance Plc
  7. Custodian and Allied Insurance Limited
  8. Industrial and General Insurance Plc

 

We can’t deny the fact that there are many insurance companies in the country but not of them are reliable are trustworthy. In this year 2020, we can assure you the trustworthy and reliability of the above list. Let’s go deep and straight into the business.

 

AIICO INSURANCE PLC

AIICO Insurance is one of the best Insurance Company in Nigeria. AIICO Insurance Plc as a leading life insurer provides life and health insurance.

Investment management, general insurance and pension management services as a means to create and protect wealth for individuals, families and corporate customers.

However, AIICO is a subsidiary of American International Group (AIG) and the company were registered in Nigeria as American Life Insurance Company (ALICO).

American International Insurance Company Limited (AIICO) is the market leader in the life insurance and retirement services and among top 3 market leader in Non-Life Insurance in Nigeria.

 

AIICO Insurance PLC Products

This Insurance Company has some products like;

  • Travel Insurance
  • Children Education plan
  • Auto Insurance
  • Fire & Burglary plan
  • Personal accident plan
  • Life celebration plan

 

 

ACEN Insurance Company PLC

Acen Insurance is also one of the best Insurance Company in Nigeria. This insurance company provides fire policy Insurance in the properties, plant/machinery, office furniture and other contents, stock households, goods, personal effects with coverage extended to rent (payable/receivable) against damage by fire, lightning, explosions and natural perils.

Acen Insurance also provides retirement scheme in regular income in form of annuities. As well as benefice attributable to retirement or to his dependants.

 

 

A&G Insurance PLC

A&G Insurance PLC is another big insurance company in Nigeria that feel it is important to connect to the needs and wants of their clients and offer unique solutions that fit the individual needs of each and every client.

A&G (Agins) are poised to providing top notch services to their customers. They handle all issues from documentation to policy purchase to claims and to settlement professionally ensuring that their clients knows all they need to know.

 

A&G Insurance Products

They offer their customers Life policies and Non life policies.

 

Lead Way Assurance Company

Lead Way Assurance array of personal Insurance products are designed to ensure nothing gets in the way of their client’s happiness.

LeadWay business Insurance products provide a cover for businesses, their staff and their proprietors from losses due to event that may occur during the normal course of business.

 

LeadWay Assurance Products

This insurance company offer the products like;

  • LeadWay saving plan
  • Personal Insurance
  • Business Insurance
  • Asset management
  • Money policy plan
  • Family benefit plan
  • Term assurance
  • Educational saving plan
  • Deferred Annuity

 

 

Cornerstone Insurance PLC

Cornerstone Insurance is a licensed and re-certified Insurance Company in Nigeria that has ability to do both general & life business and the classes of Insurance business.

Cornerstone Insurance PLC is the first Insurance Company in Nigeria to provide customers with an online platform for insurance transactions. Their services are technology driven by cutting edge Insurance applications. These services are accessible with ease through the internet and/or mobile technology.

 

Cornerstone Insurance PLC products

They offer the kind products like;

  • Travel Insurance
  • Motor Insurance
  • Home Insurance
  • Life Insurance
  • Marine Insurance
  • Annuity
  • Gadget protection plan
  • Investment plans
  • School fees guarantee
  • Halal Takaful
  • Drone Insurance

 

 

African Alliance Insurance PLC

African Alliance Insurance is one of the reputable and best Insurance Company in Nigeria. African Alliance is widely recognized as the most esperienced and strongest specialist Life assurance office in Nigeria. This company serves thousands of customers with personalised Insurance products tailored for each stage of their lives.

 

African Alliance Insurance PLC products

  • Children Education
  • Mortgage protection
  • Smart kid plan
  • Investment plus
  • Money appreciation
  • Takaful

 

 

Custodian and Allied Insurance Limited

Custodian investment PLC is an investment company with significant holding in Companies and brands including Custodian and Allied Insurance Limited, Custodian life Assurance Limited, Custodian Trustees and Crusader Sterling Pensions Limited.

However, Custodian and Allied Insurance is among trusted Insurance Company in Nigeria. This company provide a wide range of Insurance plans to choose from.

 

Custodian And Allied Insurance PLC Products

  • Life Insurance
  • Safety plus
  • Auto insurance
  • Travel insurance
  • Home Insurance
  • Wealth management
  • General Insurance
  • Pensions

 

 

Industrial And General Insurance PLC

Industrial And General Insurance is another reliable Insurance Company in Nigeria. This company is backed by a strong capital base, first-class professionals and and deployment of modern technology.

Industrial And General Insurance quickly established a reputation for exceptional competence and become the preferred Insurer for individual and corporate clients seeking premium Insurance and related financial services.

 

Industrial And General Insurance PLC Products

This insurance company offer some products like;

  • Mobile phone Insurance plan
  • Group life products plan
  • Engineering Insurance
  • Aviation Insurance
  • General Business Insurance
  • Health Insurance
  • Marine Insurance
  • Oil & Energy Insurance plan.

 

 

Conclusion

In Nigeria, we still have many people that the effective of Insurance in ones life but that’s another topic for another day. We have a lots of Insurance Companies in this country but not all of them can be trusted.

Finance Naija will welcome your direct message if you have any complain about this list of best insurance company in Nigeria.

 

ALSO CHECK: 

 

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