Social Media: The Future of Customer Service?
It’s 6 am on a Tuesday and your alarm goes off for work. You leisurely roll over to grab your phone to stop the bothersome ringing. Yawn, stretch, scroll through your social media feed. Sounds about right? Our daily lives are deeply intertwined with technology, from the moment we wake up, to the time we go to sleep. The average daily time spent on social media is a whopping 116 minutes! That’s almost 2 hours a day! It’s no surprise then, that for brands and businesses, social media has naturally evolved from being a platform for marketing, sharing content and driving sales to also an avenue for meeting customer service needs. Don’t believe me? Let’s take a look at some stats real quick: 67% of consumers have engaged a brand’s social media for customer service needs 43% of consumers between the ages of 18-29 years old are more likely to use a brand’s social media sites for customer service interactions 56% of consumers reported they would never use a company again after a poor customer service experience 32% of consumers expect a response on social media within 30 minutes Customers who engage with companies over social media spend up to 40% more money with those companies than other customers Customers regard brands’ social media accounts as actual customer service channels, so it is imperative that brands view themselves in the same light. I’ve quickly come to the discovery that when I need a quick resolution to an issue from a business, my best bet is to tweet at them. No phone calls, no emails, not even a physical visit. Those 240 characters always do the trick! Social media is a double-edged sword for brands. It’s a public, transparent forum where happy customers go to sing your praises but also the same platform in which irate customers go to unabashedly ‘drag’ you. [bctt tweet=”Consumers are quickly realizing that smart brands who value their image- as they should- are quicker to resolve their complaints and issues when aired on social media. ” username=”SheLeadsAfrica”] Utilizing social channels for customer service purposes is no easy feat, but here are some steps in which to manage it effectively: Utilize Social Media Listening Tools There are various social media listening tools out there in which a simple google search will reveal, but my personal favorites are Hootsuite and Google alerts. Hootsuite is one of the most widely used social media monitoring tools which allows you to track and monitor certain words, phrases, terms and accounts across various social media platforms while Google alerts can be considered to be a free alternative which allows you to do the same, just across the web. Contain Issues Before They Escalate Businesses must be proactive in ensuring they utilize other servicing channels such as phones and email to resolve the issues of aggrieved customers before they take to twitter, facebook, Instagram or even snapchat to complain. In the event a business isn’t quick enough to rectify issues, damage control is important when customers take to social media to vent and share negative experiences they may have encountered with your brand. You know what they say, prevention is better than cure! Respond Quickly! I like to call us millennials “the microwave generation”. From ordering meals to hailing cabs and even keeping up to date with the latest news and gossip, we’re so used to utilizing technology to satisfy our ‘instant everything’ needs. We want what we want when we want it. Chatbots are an effective tool for small business owners who don’t necessarily have the resources to respond live to client inquiries or complaints 24/7. Also, they can be programmed to respond to frequently asked questions on platforms such as WhatsApp, Facebook, websites and more. This reduces the need for business owners to be available at all hours of the day. Take It Off The Timeline In the event, irate customers go directly to social channels, as a business owner, you must pacify the customer publicly and take the conversation off the timeline as quickly as possible. This is particularly important when the issues are complex or you require the customer’s personal information such as a phone number, date of birth or address to resolve the issue. In situations where the issue is quick and easy to resolve, it’s a great idea to engage the customer politely and efficiently right there on the timeline for all to see! This not only reinforces the trust within existing customers but also showcases your brand in a great light to potential clients. [bctt tweet=”As a business owner, you must position yourself as one step ahead of your client – @TheBrandingP” username=”SheLeadsAfrica”] It’s no secret that companies don’t want their dirty laundry aired for current and prospective customers to see, and rightfully so! As a business owner, you must position yourself as one step ahead of your client. Ensure your products and services deliver on your brand promise; and in the inevitable event where client dissatisfaction occurs, establish processes and procedures to manage these situations effectively. Interested in contributing for She Leads Africa? Click here.
What you need to know about Business Marketing
Let’s talk about Business Marketing. Developing a proper strategy for marketing in business allows you to capture and reach the right audience for your product/service. If you are an entrepreneur trying to market your products/service on a shoestring budget, developing a good marketing strategy is a good place to start. This way, you are able to manage the resources you have, allocated to marketing efficiently and getting the most of it. [bctt tweet=”If you are an entrepreneur trying to market your products/service on a shoestring budget, developing a good marketing strategy is a good place to start.” username=”SheLeadsAfrica”] Here are the overall steps to developing a good marketing strategy for your business: 1. Analyze your marketing environment The external marketing environment include the micro and macro environment The micro-environment – These are forces in the external marketing environment that are distinct and individual to a particular business; such as suppliers, distributors, customers, competition and the general public. The macro environment – These are forces in the external marketing environment that affect businesses in general such as demographics, natural factors, technology, political factors, legal factors, social factors, cultural factors 2. Identify your competitive advantage Analyze competition. What are your competitors doing, what have they done successfully, what have they failed at? Analyze the internal resources of your company to determine what can be used to create an advantage. Identify and build up your competitive advantage. 3. Segment your market This involves breaking down broad markets into smaller homogeneous groups of customers. Broad markets are broken down based on certain traits. This makes it easier to understand, focus and connect with potential customers who are likely to buy your product/service; thus making marketing efforts more efficient. Market segmentation can be done based on different factors such as demographics, lifestyle, geographical locations e.t.c. It is however important that markets are segmented based on factors that are relevant to individuals within each of the groups. 4. Select your target market From the market segments you have been able to create, you can test to determine your main target audience, test, select and decide to focus on customers your company can best satisfy. 5. Identify core benefits your company can offer to its customers (your target market) It’s important to understand what value means to your customers. 6. Position your business Write a positioning statement to consciously position your brand in the minds of your customers/clients. Your positioning statement should determine how you present your business to customers/clients, it should show what you are known for. Elements of a strong positioning statement include your core value proposition, the unique value you offer customers/clients in relation to your top competitors, target audience and finally benefits your products/services offer the target audience. There are various formats for writing positioning statements, here are 2 practical ones you can use: Your core value proposition: for your target audience who are in need of the benefits your business offers as well as its unique value. For target market description who target market need, how your business offering meets the need, unlike the key competition, its most distinguishing feature. 7. The marketing mix ( the 4Ps) Product – What product will be sold and what differentiates this products from that of the competition? Are the products on offer relevant to the (target) customers? Are there related products that can be marketed with the initial products? Price – This refers to how much a customer is willing to pay for a product /service. Three factors to be considered when determining the price of a product include the “cost price of the product, what the competitors are selling for and value added”. Place – Where your product is sold matters. How accessible are your products to potential customers? Consider the type of product to determine where to sell or distribute your products. Promotion – This involves the way you tell customers about your products/services. Activities involved include adverts, personal selling, PR efforts, and sales promotion. Overall here are tips that can make your marketing strategy better. Marketing strategies should be flexible Define the right marketing message to determine the right marketing method. Think of your brand in terms of your customers’ needs and how you intend to satisfy them. Selling is not marketing and marketing is not selling. Don’t always use pricing as a basis for competing; especially when you don’t know the depth of the pockets of your competitors so you don’t end up pricing yourself out of the market. I hope this helps you market your products services better… Interested in contributing for She Leads Africa? Click here.
5 ways to escape uncontrolled consumerism
We are human beings and living as such requires us to consume things, even those of us interested in living a minimalist life. A minimalist is someone who operates a moderate or conservative approach when it comes to material things. I am from a polygamous home and boy do we own a lot and still try to consume a lot but personally, I have worked hard to escape uncontrolled consumerism as it becomes excessive when it extends beyond what is really needed. [bctt tweet=”Learn how to live a minimalist lifestyle by escaping uncontrolled consumerism with these 5 steps” username=”SheLeadsAfrica”] We tend to mix up our wants and needs and forget or overlook how much space, time, strength and money we lose on things that are not paramount in our lives. Once we start consuming more than what’s needed, the boundaries set are removed, instantly. Our desires get reshaped and it happens so fast, we get used to consuming easily. A lot of people get overly trendy overnight, getting things that tickle our fancy, wanting to show up ‘right’ and live up ‘right’ and be in debt or be materialistically possessive. Now don’t get me wrong. There’s absolutely nothing wrong in wanting to be trendy and leveling up, living up to standard, but are we going about it the right way? Because going about it the excessive way consumes our limited resources. It’s about time we escape that cycle and embrace the minimal. Minimalism in this regard is living simply and subtly and the mantra is “less is more”. Living with the utmost intentionality and not deprivation, as the misconception people tend to have. Living a minimalist life seeks only to buy and keep the essentials, remove the frivolous items and keep the significant ones and in doing so, values intentional endeavors. Here are 5 practical benefits of escaping uncontrolled consumerism: Reduce debts This had to come first as our finances are very important. Being in any kind of debt isn’t fun and that causes a load of stress in our lives. It takes a toll on our health and mentally, we’re just not up for any vibe, whatsoever. But what if you could reduce your debts? What if plans to pay back your debts turn up positive? What if you could put your feet down and say no to debts? Your life would be stress-free. Resist the desire to live beyond your means The internet is double-faced. Its good and can be not so good at times. As a woman, I see my mates riding a 2018 Mercedes Benz GLA, in a fancy color, say hot red and I start comparing myself to that and then start calculating the amount I’ve got in my bank account or try to save up for it so I can post it up too and live a digital age life. The car is mouthwatering, yes. But that only invites lifestyle envy into our lives and the internet promoting the lifestyle of the rich as superior or enviable. This is where the intentionality of living a minimalist life comes to play. Only with an intentional rejection can one silence this constant yelling of uncontrolled consumerism. Have more contentment Many people believe if they reach a level of contentment, their desire for excessive consumption will diminish. But the truth is the intentional rejection of excessive consumption paves way for contentment in our lives. Pursuing minimalism realigns our lives around our greatest passions and results in a far better contentment with life than before. Remember what matters to you in the world Have we been too busy seeking happiness in the wrong places? Have we valued worldly things over family, relationships, religion? It’s time to realize what means important to us and make a priority list because true life and true happiness is found in the invisible things of life. Resist the need to keep up with evolving trends Change is a constant thing and as regards fashion and lifestyle, trends evolve. We are in the modern world and we can’t keep wearing style from the 90’s but that doesn’t mean we need to always change our wardrobe as trends come up. That’s our ‘want’ knocking our ‘need’ over. As a wise man once said, “Every generation laughs at the old fashions, but religiously follows the new”. The wisdom imbibed in this sentence strikes me as it relates and applies to fashion, decoration, lifestyle or design. Why don’t we remove ourselves from the pursuit altogether? Escaping uncontrolled consumerism isn’t as easy as ABC, it isn’t a walk in the park so is minimalism. But once you make up your mind and find that ‘intentional’ drive, you can do it. If you’d like to get featured on our Facebook page, click here to share your startup story with us.
Christine Sesay: Make the right financial choices, choices that you can live with
When Christine Sesay decided to study mathematics, her parents were not enthused, as they believed she would never find a job in Africa in this career field. Christine however did not want to part with her love for Mathematics so she convinced her parents to allow her pursue a career in Accounting and Finance which was an easy sell as they were very supportive of her decision. Upon attaining a Masters in Finance, Christine went on to work with a construction /maintenance company in Dublin as an Account Assistant, then an accountancy practice where she progressed from the Real Estate accountant to the Financial Controller over a 4-year period. At this time, she wanted to move back to Africa but there were not many jobs available so she had to take an Assistant financial controller role with an Irish Organization in Niamey. Within 4 months, she was working in the capacity of the Financial Controller managing €5 million projects then progressed to take charge of all operations within a year. While working on a nutrition and livelihoods project in Niger, Christine was shocked by the abject poverty that people lived and her desire was to change the situation. But as there was a security situation in Niger, she had to move back to her birth country Sierra Leone where she started Africa’s Moneypreneur to bring about financial freedom to all Africans. She believes that individuals would be more interested in talking money and finances when it is made easy and fun. As a determined and driven leader who is passionate about wealth management, she wanted to make sure that her African brothers and sisters started taking money seriously. When she started the financial literacy blog, she hosted a few events for women but no one attended as they were not interested. To overcome that challenge, she moved on to open a facebook page where she featured different women and hosted 12-days of Christmas challenge. These different pieces created traction and landed her some features on a few publications addressing the different areas of finance, a workshop on business finance tips for teenage mothers at the Aberdeen Women’s Center, teamed up with SheVestor for their training materials and wrote several articles in magazines mostly locally in Sierra Leone. Christine hopes to teach others how to implement effective financial strategies that support the lifestyle they aspire and deserve. [bctt tweet=”Christine Sesay’s “@AMoneypreneur” seeks to challenge Africa’s views about money & Poverty, and help individuals enjoy life” username=”SheLeadsAfrica”] What are your views about Africa and money? Do you believe our way of thinking has forced us into poverty? Like most things in life, if we are not educated, we will tend to misuse it. Financial education is a major part of life in the western world as people are aware that until they make conscious decisions about what they want for their lives and start early, it will be difficult to live fulfilled lives. For example, it’s almost second nature to see that after a man has worked for many years, he could have nothing saved up a pension for retirement. Instead of enjoying old age, they are forced to work for longer and sometimes end up dying miserably. There are also choices that are being made in terms of choosing to make the right choice now, with the future in mind. Personally, I started early! While studying finance, I learned how the multiplier effect works on finance saved over long periods. I made conscious efforts to have pension funds and also started a college fund for my kids (nope they are not here yet!). How can we become financially free? Would you say being financially educated is the first step to financial freedom? There are quite a number of areas that could be covered when we talk about financial freedom. I think even before we get educated, there is the need to have a shift in mindset. The way we think about our finances. People consciously paint a picture of how they want to currently lead their lives and what the future needs to look like. Charting the course of your life, like anything else helps you decide what decisions you may need to make now. Once that picture is clear, then seek financial education. Make the right choices, choices that you can live with. Avoid looking at what others have done and try to emulate those choices. Your risk appetites and pocket sizes may differ. Why do you believe Africa needs a platform to challenge our views about money and poverty levels? I find that at the moment we are comfortable. People are happy to continue working, spend without the future in mind and hope that a family member will eventually foot their bills. Things are changing and as we are emulating the behaviors of others cultures we also need to develop our own culture when it comes to financial planning. At Africa’s Moneypreneur, we want to be at the forefront of those changes. We currently use our platform to: Provide financial advice for youth, start-ups and Women-owned business in Africa Developing communities for youth and women to engage them in making informed financial choices Sharing success stories relating to women in finance and in business Discussing personal stories relating to work-life balance and family, travel etc. to give a personal touch Introducing current events relating to the brand areas, like finance and pop culture events, Lifestyle etc. Embracing African roots and culture as it relates to finance management With these efforts, we hope that the next generations of African families can help pull Africa out of poverty. [bctt tweet=”Knowing exactly what you spend your money on is important to have a solid financial plan and a healthy attitude towards your finances – Christine Sesay” username=”SheLeadsAfrica”] How do you intend to make discussing money and finance fun? What are you currently working on? I think the first thing we need
Stress what??? Here are 4 ways to practice Self-Care
“Wake up, hustle and grind. The hustle never stops. I’ll sleep when I’m dead.” Few words make me tremble like the ones above. Back when I was a Bachelors’ student in university, I had colleagues who spoke that way. Every time I hear such words, I would panic. Surely, if others were ready to put off sleep until when they died, I didn’t want it bad enough. I definitely was not willing or able to sacrifice my sleep for my academic success? This was bad. Fast forward four years later, and I am thinking about these words, as I write this article on self-care. What comes to mind is this: Self-care should come before anything else. How can one produce the best of themselves, if they are tired, both emotionally and physically The world around us seems to frown upon downtime. We need to go and go fast, in everything we do. It is our duty, however, not to forget our health and well-being. Here are a few ways to do so. Sleep Sleep is not laziness. It is one of the most important and basic acts to take care of one’s self. Any attempt to simply dismiss sleep as laziness feels like a statement that seems to say, I am putting well-being second and success (whatever that may be) first. Society hasn’t always taught us how to take care of ourselves, but you gotta start now! Accept your emotions Back in 2015, during one of the heights of my frustrations and social anxiety, I started practicing yoga. Yoga with Adrienne, on YouTube, to be precise. If I learned anything, it is this: Let yourself be. What we often do, when we are sad, overwhelmed, tired, angry, is judge ourselves about feeling a certain way, thus adding an extra layer of discomfort and unhappiness without even realizing it. Self-care is letting yourself be. Self-care is being gentle with yourself, feeling an emotion, and not judging yourself for feeling a certain way. In a Supersoul Conversation with Oprah, Caroline Myss, American writer, added that a critical step to finding a purpose was letting go of the judgment we hold of our lives. Do what you need to do to preserve your peace While Instagram and social media are highly criticized in general, it has some amazing uses, one of which is finding your self-care/uplifting girl gang! That’s how I discovered Alex Elle. Through her “Hey, girl!” podcast and Instagram posts, author and storyteller, Alex Elle encourages us to take care of ourselves first. On several occasions, I felt like she was talking directly to me, giving me a piece of advice I needed to conquer the day. This week the message was this one: [bctt tweet=”Loving yourself fully may require loving people from a distance – Alex Elle” username=”SheLeadsAfrica”] Do what is necessary to take care of yourself first. Throughout her exchanges with us, Alex asks an important question: What does self-care look like to you? What does it look like to YOU? Be full of yourself – its okay! Yes, my beautiful ladies, Oprah reminds us that it’s not a bad thing to be full of yourself! She says “I’m full, I’m flowing, my cup runneth over” with love, for herself. It is important here to note that loving yourself is a self-care ritual that doesn’t happen overnight. It is also one of the hardest and worthiest of causes. If not the worthiest. Self-care can also be, learning to love yourself every single day, flaws and all, and forgiving yourself when things don’t go according to “plan”. What does self-care look like to you? Asking for help? Taking a bath? Sleep? Super Soul Conversations? Therapy? Blogging? For me, it is a combination of many things, one of which is therapy, as I maneuver around being a socially anxious black girl. Bisous xx If you’d like to get featured on our Facebook page, click here to share your story with us.
Before you quit your 9-5 for full time study – Read this
Are you thinking about resigning from your job to pursue a postgraduate degree? The decision to leave the security of full time employment is a huge one. So, you should not make it without thinking it through thoroughly. Here are some things that you will have to consider before you hand in that resignation letter. First of all think about why you want to leave your job, are you leaving because you are unhappy with the job that you are doing or you want to change careers. If you are simply unhappy at your current job, would your decision change if you were offered work somewhere else? Now, If this is the case then why not simply find another job where you will be happier? Also, if feel that you need to study towards a certain degree to secure a promotion at your current job then discuss this with your manager and find out for sure that you need the degree for the promotion. If there is another way to get the promotion other than leaving to study further may not be the solution that you are looking for. [bctt tweet=”Before you quit your 9-5 for school, think about why you want to resign from your job and study full time rather than studying part time” username=”SheLeadsAfrica”] But if you are looking to pursue a different career or a career in research or academia, then you definitely need a post graduate degree. Find out exactly what you need to secure that job, I mean if you are going to risk this much, then you may as well be super prepared. Also think about why you want to resign from your job and study full time rather than studying part time. Is this really necessary? Some ladies have been able to work 9-5 and work on a side hustle at the same time. Resigning means that you do not have an income, so think about this: How will you pay for your studies? How long is your degree? Reality is that studying can be expensive. What happens if you do not get a job straight after you finish studies? If you have been saving for it then GREAT but if you are thinking of getting a loan, then how will you pay it back? You really need to plan for it. There is also the issue of maintaining your current lifestyle, truth be told sister… shopping for you may be a thing of the past without an income. And yes….it could also be goodbye to ladies night drinks with the girls. So be ready to cut down on some of your favorite past time activities. Be REALISTIC with yourself about what this means for you. If you plan on job hunting after you graduate, it will not hurt to volunteer where you would like to work on a part time bases while you study, this will increase your chances of getting a job there when you graduate. Quitting a 9-5 job to study will not work for everyone. But this being said, you should not be discouraged if you are sure that this is what you want to do. Just be prepared for what this will mean for you. Now go out there and get it done, hun! If you’d like to get featured on our Facebook page, click here to share your startup story with us.
JESSICA NAA ADJELEY KONNEY: I TURNED MY BOREDOM INTO PASSION FOR FASHION BLOGGING
Jessica Naa Adjeley Konney found living alone quite boring so she chose to stay on campus after lectures to while away time. As spending time on campus meant more time on the internet, she discovered blogging and entertainment blogs in Ghana like Ameyaw Debrah. This led to her decision to turn her boredom into a passion to keep her busy after school hours. Even though she knew nothing about blogging, she took a bold step and her experience in journalism/writing to set up a blog called Fashion 101 which later turned to Trendsnblendsgh as she saw the need to rebrand once her blog began to grow. She chose fashion blogging because there was no platform specifically dedicated to fashion in Ghana especially Ghanaian fashion. Over time, her blog has grown to become one of the best in Ghana and the Harper’s Bazaar of Africa called Trendsnblendsgh the go-to online hub for everything African Fashion starting with Ghana. Jessica now covers fashion events, features fashion entrepreneurs, offers style tips, offers professional advice to young fashion brands etc. Describe how you first got into blogging Blogging for me started as a hobby to while away time during my days at the Ghana Institute of Journalism. I used to spend so much time on campus after school back in the day because I had nowhere to go as I lived alone, so being at home was quite boring. While on campus, I surfed the internet a lot and that was when I realized that there were entertainment websites like Ameyaw Debrah, Ghana gist blogging about entertainment and there were fewer blogs on fashion so that was the moment I decided to turn my boredom into a passion to keep me busy after school hours. Interestingly, I had no clue about blogging whatsoever but I took the bold step to set up my blog using blogger.com and called it Fashion 101. With no direction whatsoever I set out to start fashion blogging. I thought to myself that once I had experience in journalism and writing I could definitely put together some content for this blog and I guess I did. How do you keep your social media pages lit and drive traffic to your blog? I see myself as a fashion journalist because I’m always on the lookout for contents that will make the news. After every post, I made sure to share the link to my blog on all my social media platforms (back then it was just Facebook and Twitter) and I consistently kept sharing. I also attended fashion events and introduced myself as a fashion blogger because it was the most common term people could understand. This wasn’t easy initially because it was new to event organizers but consistency and relevant content got me where I am today. With regards to keeping the social media pages lit, we take a lot of time to curate images from different sources. We are always looking out for the best photos that will not only engage our audience but keep our timeline clean as well. We sometimes collaborate with photographers for some of the stunning images but quite often we source these photos from other pages or brands. How do you get clients and generate revenue/income? For a long time, I felt the numbers or traffic wasn’t enough for me to monetize so I explored other ways to raise revenue or income. I started offering digital marketing services to clients for as low as about 100Ghc back then. Then, I also charged brands who promoted their lookbooks on my blog and platforms and that’s basically been how I make money. Trendsnblendsgh has gone into brand consultation services and helping young brands establish themselves all at a small fee. Monetization is however on our to-do list for the year. [bctt tweet=”People don’t see your dream as big as you do so don’t rely on them for validation – @dje_djelyn ” username=”SheLeadsAfrica”] Would you say fashion blogging is a great financial plan? Do you see a future with this career path? To be honest it’s not a great financial plan unless you’re determined to make it one. It’s new and fresh to people, especially in Ghana. Fashion entrepreneurs here don’t understand why you need to be paid for your services and it’s quite difficult and frustrating trying to get them to understand. I’d say have a financial backing, extra sources of income so it sustains the passion. At this point, I see it as a great career path for me. To be an editor-in-chief of one of Africa’s most renowned fashion website and some more career opportunities in this same field. Did you encounter any challenges when you started Trendsandblendgh? What did you learn from it? Always waiting for approval or validation/support. When I started trendsandblendsgh, I wasn’t so confident as an individual and also in what I was doing. I was seeking validation from others to tell me if this post was good enough or this idea was great. What this did was to slow me down entirely because until I had gotten approval or even support from someone I wouldn’t move. It’s one thing I have learned to fight and rise from. People don’t see your dream as big as you do so if you want to rely on them for validation, approval or support you might as well not start anything at all. Other than you, which 3 fashion bloggers are your absolute favorite and why? For style bloggers I love Irony of Ashi, her style is simply elegant. I dote on Afua Rida, I love her uniqueness in styling. I also love my friend Nuel Bans of debonair Afrik, I love his creative issues and admire his passion. Who is your number one fashion inspiration, favorite fashion magazine, and designer? With the rise of style influencers, it’s becoming extremely difficult to stick to one fashion icon or style icon. I tend to
Oluwatosin Olaseinde: Time is your biggest leverage in investing
I started my 1st job 10 years ago when I turned 21. And I had no savings culture or investment plan. This lingered for the 1st 5 years of my career. I went from zero salaries to over one hundred thousand per month and my expenses surprisingly grew at the same pace. Interestingly, over the years as I got an increase in salary, the same pattern occurred, I acquired a new taste and my expenses grew at the same pace as my income. Then I realized that in fact, it isn’t how much you earn but instead what you do with what you earn. I had lost 5 years of an opportunity to invest. I had lost 5 years to make my money work for me. A portion that could have been invested had gone unaccounted for. Where do I start from? Let me introduce you to our benchmark – Inflation. So inflation measures sustained the increase in prices of goods and services in an economy over a period of time. In other words, inflation signifies the time value of money. Tracking inflation from an investment angle ensures that what I can buy with N1,000 in 2018, I can still buy it in the future with the N1,000 plus the interest I earn on the N1,000 capital. Whenever you’re investing, look for opportunities that give you a return that is at the minimum equal to the inflation rate. That way, the value of money is preserved. [bctt tweet=”Whenever you’re investing, look for opportunities that give you a return that is at the minimum equal to the inflation rate – @tosinolaseinde ” username=”SheLeadsAfrica”] What are your options? 1. Savings/Fixed Deposit account This asset class offers an average of 5% per annum. While fixed deposit offers an average of 10%. Nigeria’s current inflation rate is higher than this, as a result, the returns on a savings account isn’t a good return for the money you worked hard for as it is not high enough to beat inflation. 2. Treasury Bills/Government Bond The government issues T-bills and Government Bonds when it needs to borrow money via the Central Bank of Nigeria. T–Bill is short-term in nature while Govt bond is long term. The key differentiating factors between T-Bills and Government Bonds are timing of interest payment and interest rate nature. For T-bills, the interest is paid in advance. For instance, if you plan to invest N100,000 in T-bills for a year at an interest rate of 11%. You will pay N89,000 to invest in the T-bill (the interest rate is paid in advance). Then recoup the capital of N100,000 at the end of the term. On the other hand, Government bond interest is paid quarterly, the interest rate is not fixed like that of Treasury bill, it is floating. Always compare the rates on T-bills and Bonds to the inflation rate. [bctt tweet=”Before you invest, compare the rates on Treasury bills and Bonds to the inflation rate – @tosinolaseinde” username=”SheLeadsAfrica”] 3. Mutual Fund This is an investment vehicle made up of a pool of money collected from several investors for investing in securities such as T-bills, Bonds, equities, commercial papers or even real estate. There are several types such as – Money market fund. Your capital is relatively safe due to the nature of the instruments it invests in. (T-bills, Government bonds, and commercial papers). You can start an investment with as little as N5,000. The investor can also compound by contributing regularly to an existing mutual fund account and re-investing the interest accrued. 4. Equity The value of a company after all liabilities have been deducted. A share a is a smaller unit of a company which measures the financial performance over time and provides an opportunity for investors to buy into it. As an asset class, a share offers value in two ways: Capital Appreciation: This is a growth in the value of the shares. E.g if you buy UBA’s share at N4 and after 2 years, it is worth N8. Dividend Payment: This is the profit distribution to shareholders. It is declared on an annual basis per unit of shares. 5. Real Estate This is the investment in properties. The properties range from virgin lands, commercial buildings to residential buildings etc. Real Estate generates return via capital appreciation, due to increase in the value of the property, and through rental income. In a country like Nigeria, a bulk of real estate growth comes from the appreciation of the property. Real estate return depends on the type of real estate asset. Location and purpose of property plays a critical role in value addition 6. Personal Development This is my favorite class of investment. You are your greatest investment. Unlike of all the other options, you are immune to inflation rates, currency devaluation or value erosion. Take that course to take you to the next level, take up new challenges, prepare for new opportunities, read those books. Ensure you are deliberate about improving yourself. It is one to know all the investment options available, it is another to take the right step. Time is a great currency here and the earlier you start the better. It is much easier to start now than trying to play catch up 10 years to retirement. You owe it to yourself to pay yourself first which means investing now. Oluwatosin Olaseinde is a chartered accountant with 10 years of experience in accounting, corporate finance, auditing, and taxation. She has worked with several multinationals – Bloomberg TV, CNBC Africa, BAT She currently runs Money Africa, a personal finance platform that teaches people to build healthy financial habits, cut down on unnecessary expenses and generate multiple income streams.
6 Ways to Harness and Monetize your Many Passions
Asides the obvious fact that the recent economic downturn has forced several young people to have multiple sources of income, it is quite the norm these days to meet people who have a full-time job and are running small businesses on the side. They are also known as “side hustles”, and even full-fledged companies complete with all the bells and whistles. Sincerely, it is now a reality that a single income cannot sustain a comfortable lifestyle and this has pushed the average young Nigerian to get creative and take a dip in the entrepreneurship pool. Here are six ways to convert your many interests to money in the bank: [bctt tweet=”Take on practices that will not only push you out of your comfort zone but also work on improving your weaknesses – @tolanithomas ” username=”SheLeadsAfrica”] Leave your comfort zone Starting and running a business is not for the fainthearted, it will constantly push you out of your comfort zone. For example, if you have a fear of speaking to strangers, you will have to overcome that when networking and marketing your services to potential customers. Take on practices that will not only push you out of your comfort zone but also work on improving your weaknesses. You don’t have to be an expert, just be comfortable enough to deliver value that people want and need. You need more than passion It’s great to be passionate about your business ideas, but don’t let your enthusiasm blind you from reality. Be honest with yourself! Ensure there is a market to tap into and you are ready to put in the work. Get honest feedback from people around you; even friends and family by offering your services to them. You have to be truly good at what you do. Your passion could be making people’s faces up, but are you skilled enough to train others? Also bear in mind that as a business owner, you’ll be responsible for reporting taxes, marketing your business and sorting out your finances. Are you ready for all the responsibility? Offer Real Value What void can you fill in the market? For example, if you are a makeup artist and there is no makeup studio around you, that could be a viable business opportunity. The goal is to take advantage of the gaps in the market, that way you stand out and enjoy greater returns before the copycats join you in that space. Ask yourself how you can make the industry better? Is this the business that keeps your entrepreneurial juices flowing? Let’s say your passion is making furniture. Why are you better than your competitors? Is it because your materials are sourced locally? Or your products are unique and one of a kind? That would be more appealing to customers as opposed to buying generic mass-produced furniture. When I started my consulting company, I had used several competitors. I knew what made them great, but I also knew what I wanted that they didn’t offer. I knew how to better the services. I started it and here we are! [bctt tweet=”Six ways to convert your many interests to money in the bank: 1. Leave your comfort zone… ” username=”SheLeadsAfrica”] Convert your Passion to Cash There are several ways to make money off your passions: Selling an actual product such as clothing, beauty products online or in a store. Sharing your knowledge about your passion by blogging, writing books or making videos. Between sponsorships, subscribers and selling your own products, you can make a decent living. For example, Arese Ugwu turned her passion for financial literacy into a book – The Smart Money Woman – into a book that is being sold in several countries in Africa and the UK. Offering consulting services by giving advice on anything from law to skincare. Investing in an idea you are willing to financially support. Creating a software or gadget that makes life easier for people. For example, if you were a makeup artist, you could create an app that helps people find the right makeup products for their skin tones. Start an event around your passion, such as a regular meetup, seminar or a festival. Make Fun a Priority Maintaining your passion when starting a legitimate business can be difficult. Some people even forget exactly why they started a business in the first place. To prevent that from happening, always make fun and passion a priority. Your passion should reflect on your company policies, your passion should be communicated to your employees when you are hiring and they have to be equally passionate about your business as well. [bctt tweet=”Don’t wait till you master the craft before you start your business. You can learn as you go – @tolanithomas ” username=”SheLeadsAfrica”] Improve Your Skills It would be great if you have a lot of experience, however, don’t be too hard on yourself, there’s always room for growth and learning. For example, a furniture maker may be great are creating unique tables, but not so good at creating sofas. You can learn as you go along your journey, don’t wait till you master the craft before you start your business. Malcolm Gladwell says it takes 10,000 hours to become an expert in any field. Nonetheless, don’t let the perceived amount of time it would take you to be the best at what you do deter you from moving ahead with your plan. It may not take you that long to master your craft, as you long as you keep looking for ways to improve your skills. Always ask for feedback and track your progress. If you’d like to get featured on our Facebook page, click here to share your story with us.
Quick Maths (4): How to build up an emergency fund for yourself with FSDH Asset Management
Save for the rainy day… it might take a little longer for the sun to shine! Welcome to the final part of our Quick Maths series by FSDH Asset Management, where we’re giving you simple personal finance tips you can master, to achieve your financial goals. In the last three series, we showed you how to generate income to start your business, how to diversify your income and how to get the best out of your net income and now we want to teach you how to save for the rainy day. What do you have saved for the rainy day? Nothing? We can plan for a lot of things in life, but sometimes, the unexpected just happens. These are the times you face bigger-than-expected bills, but having an emergency fund can make it easier. An emergency fund is money kept aside in case there are emergencies or problems in the future. Now, listen! An emergency fund isn’t for your everyday needs or special wants, so leave your sinful indulgences out of it, and no! flash sales are not emergencies either. We partnered with FSDH Asset Management Ltd to bring you this guide to help you understand why you need to have an emergency fund and how to start building up your emergency fund(s). [bctt tweet=”Having an emergency fund prepares you for the unexpected expenses yet to come – @fsdhcoralfunds” username=”SheLeadsAfrica”] Topics this guide will cover: What is an emergency fund? How much money should you have in an emergency fund? The difference between emergency funds and investments Ways to set aside emergency funds After reading this guide, you would be one step closer to achieving your financial goals. If you want to keep slaying in your finances, be sure to read up on our previous quick maths series, you’ll be glad you did! FSDH ASSET MANAGEMENT LTD – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm. FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel. Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive. Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered. Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide. This is the final part of our series but you can get all three series here. By joining our community, you also get to enjoy our AWESOME weekly content as well.