Business Tips By Doctor Andrew

RealMen Initiative | Professional & Accredited Business Men & Women in Nigeria

Good morning all. For the next few weeks on this blog I will be sharing some of my personal business tips that took me many years to understand.

TIP 1- BUS your profit

B means business, U stands for YOU and S for savings. Lets use an example, supposing you make a profit of 10000 from your business. First is to remove your tithe 10% (N1000) for God. Then divide the remaining 90% into 3 equal parts i.e 30% (N3000) each. Now invest 30% into your business, pay yourself with the second and save the other 30%. Your 30% investment into your business increases your capital. Anyone who works should eat thus pay yourself, this helps you limit your expences to N3000 and do not touch your savings that is for your rent and emergencies.

Someone might ask, How can one BUS a profit of N50. Is it possible?

I will answer the question with this illustration. Let us assume that in the whole of Lagos there are ONLY 10000 children aged 0-12 months. Each of these children wear pampers. A pack of which is N400 and a unit price of each one is N50. Every child will use an average of 3 pampers everyday.

This means each child will use N150 per day multiplied by 10000 that is N1.5 million every day. This will give a total of 4.5 million naira in one month from Lagos alone on a N50 profit from pampers.

That N50 profit means a lot.. BUS IT

Please note that record keeping is very important to track your profit especially for petty business. When your unit cost is say N300 and you sell for N350, DO NOT BUS THE N350. BUS the N50. That is your profit. Also do not pay your tithe on the N350. Pay on the N50 that is your gross profit (salary). Tampering with the whole is tampering with your capital.

We will take the second part next week. Have a blessed weekend

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