HOW TO GROW YOUR MONEY WITH THE RIGHT INVESTMENTS : Mutual Fund Investment

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  ALL YOU NEED TO KNOW ABOUT DOLLAR AND MONEY MARKET MUTUAL FUND INVESTMENT After our recent seminar on investment, a lot of participants have contacted me to write on the subject for easy reference. Thus, today we'll be focusing on money market and dollar mutual fund investments. Money market investments are short-term, highly liquid assets that provide a safe place to park cash. Dollar mutual funds, on the other hand, invest in a variety of short-term debt securities issued by the U.S. government, corporations, and municipalities. WHYSHOULD YOU CONSIDER INVESTING YOUR FUNDS? Investing your funds can potentially offer several benefits. Firstly, it allows your money to grow over time through the power of compounding. By putting your money into various investment vehicles like stocks, bonds, or real estate, you have the opportunity to earn returns that exceed traditional savings account interest rates. Secondly, investing helps you hedge against inflation. Over time, the purch...

What You Should Know About Family-Owned Businesses.

                 WHAT YOU NEED TO KNOW ABOUT FAMILY BUSINESS


“I had a long talk with my old man yesterday” Uche mentioned
“Oh…really, what about?” his bestie; Adaku enquired.
“You know the young guy isn’t getting any younger, so he was telling me that it’s time I joined the family business” Uche paused and before he could find his voice again, Adaku interrupted--
“Uche, tell me you aren’t considering it—what happens to your dream of being an oil worker?” Adaku asked him dismayed.
                                                            fortONE.com
Uche stared into space for a while and as if something eventually hit me…he blurted
“I studied petrochemical engineering, I’m sure you know that and I’ve been looking for a job in the oil sector now for years. True, my family is into manufacturing, but I believe I can fit in somehow and effect the change I want” Uche concluded- - even though he wasn’t too certain about what laid ahead of him.

Undoubtedly, there are people who would rather stay jobless than join their family in building any kind of business. This may be understood especially when issues of mismanagement of funds, lack of structuring, over-familiarity etc rocks the family business.
That said; there are a couple of things you may want to ponder on when it comes to family-owned businesses that have thrived.

Why You Should Consider Building a FamilyBusiness



Joining the family business isn’t all bloom and gloom-- considering multinationals such as Nike, Volkswagen, Samsung electronics, Foxconn, and Wal-mart that are family-owned but have weathered the storm and doing great for themselves.
Also, it may surprise you to know that the Chinese economy that is usually in the news as one of the most improved economy—and have posed a major threat to the US over the years thrive on businesses that are family-owned. According to Chinese official statistics, the country has 40million private businesses— of which most are owned by family; and it accounts for 60% of China’s GDP; which is a whopping 2/3rd of China’s total output.
Interesting right? However, here are a couple of things you should know before making a decision on whether venturing into family business is something that’s meant for you or not.



                                                                                     bigtree

Pros and Cons of Family-owned BusinessesCons of family-owned BusinessesSuccession Issue

The Harvard Business Review states that 70% of family-owned businesses fail or are acquired before it is succeeded by the next generation. This is easy to believe considering that the major threat to China’s economy right now isn’t the US or any other world power but “succession”.  
This is the major challenge facing family-owned business—it’s possible that after committing so much into building a multi-national, your kids may grow up and show a lack of interest in furthering your legacy. When a challenge like this occur, in other to keep the business running, outsiders are employed to oversee the management—which often times, may not produce the same result that a family would generate.

But this could be curbed, by starting early to incorporate your kids into the business, making them see the vision you have and how they could fit into it. Overtime, even when they want to venture into other things, they know they are saddled with the responsibility of promoting the family’s legacy.

Lack of Structure

Most family-owned businesses suffer from lack of structuring and sometimes, even when there’s one in place, it’s often difficult to implement without creating life-long enemies. Imagine if you have to give instruction to an uncle or aunt —and they feel insulted; bad blood could be brewing.

Also, a lot of excesses are overlooked—simply because the bond of family is always considered before the business; forgetting that if stiff sanctions aren’t put in place for misbehaviours, a business can hardly survive.

Every measure taken at enacting a policy would always culminate into village meetings— and in a bid to avoid having a family member as an enemy for life, condoning excesses becomes the order of the day. This could be really frustrating to any business
.
However, having a strict policy of separating business from family is one way family-owned businesses can rise above this challenge. It should be resounded that the policy of the organization binds on everyone—including the CEO; this way they know you mean business.
No excesses should be pardoned, hence it becomes a norm. Everyone should be conformed to obeying and taking instructions from superiors with strict sanctions on insubordination. Over time, aunties and uncles will know that this isn’t business as usual and will have no choice but fall in line.

In conclusion



There are enormous benefits in building a family-owned business: working with people who have the same vision of longevity, job security, minimal conflicts- seeing that you already understand the personalities of most of your colleagues, secures your kids future, etc.
Any family-owned business that can curb the issue of in-subordination, lack of structure, over-familiarity, and mismanagement is actually on its way to succeed.

So before you say a “No” to joining your family build their business, you may want to consider the benefits you stand to enjoy in the long run—if the right structures are put in place.
Helping someone else build his own business may devoid you of job security; plus not accord your kids a place to work in the future—sure they have their lives; but how about making them have options? Unless you are building your own business, helping build your family business certainly accords you more advantages than running around as an employee—just saying.

Nigeria as an economy can thrive like China, if more people begin to consider building family businesses. The public sector has too few jobs to offer our vast populace. Family’s coming together to build businesses may just be the way out of this quagmire we find ourselves as a nation.



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