The fourth business advice- acquire capital

Your ambition is to start business. This is very obvious. Infact, you have written it in your jotter as an objective you want to achieve. You may have shared the ambition with your family and friends. It is possible that you have even been day dreaming about establishing a business. 

What you want to establish, is not bad. It is not illegal to start a business. There is no country in the world that prohibits the establishment of business. Instead the establishment of it, is encouraged. Even the government's of some countries establish business.

Business is beneficial. Due to its benefit, you are encouraged to start it. After all why should you start a business if it is not Beneficial? Due to the benefits of business, many have embraced it and encouraged others to do so. 

Since business formation is your dream, you surely would want to fulfill it. You would not want your dream to go unfulfilled. Unfulfillment often lead to disappointment of expectations, something no one wants to thirst. Whoever dreams usually wants to achieve his dream. 

                    ILLUSTRATION 

  Business formation closely resembles house formation, or better put building. A man who conceives the desire to build a house, has requirements to fulfil. Building requires land, on which he would build. It requires materials like; cement, wood, tiles, roofing zincs, windows, blocks, paint etc. With those materials, he would build a house. Without them, he cannot be able to build a house. 

Likewise business establishment has its own requirement and processes. One of those which is established by authorities is capital. It is defined as the total money that is used to start a business.

 The processes differs, depending on the business niche and environment. But they generally include; land, business planning, raw material purchase, equipment purchase, building of company or office, registration etc. 

All of those requires money to fulfill. You would buy land with money. If you want to register with the government you would pay for fees with money. If you want to purchase raw materials and equipment, you would pay for them with money. Without money, you can never fulfil those requirements. Money makes their attainment possible and easy. The essentiality of capital therefore makes it an intrinsic formation requirement. Infact it is a business formation necessity. No man ever started a business without capital. All of them engineered their business with money. 

                    AN INSTANCE 

Fredrick a certain American was desiring to be rich. From his research business is one of the most efficacious ways to achieve his objective. The prospect of making money through the selling of products appealed to him, and seemed to him to have the capacity to be a cash-Cow.

The selling of products required building a company which would always produce. He was determined to do just that. He needed to take steps.

The first thing he did was to buy a jotter from a grocery store, in which he would write his business plan. After purchase, he began by defining the company he wanted to establish; what exactly the company would produce, it's size etc. Defining business is like a building plan. One has to first define a business so that he would plan on how to achieve the specific business he targets to establish.

After defining, He made a thorough investigation on the requirements for building a company. When he learn the requirements, he began to plan. The plan consisted of the budget. He also wrote down how he intended to raise the capital on the book. In fact every aspect of business planning. According to his research one of the requirements for building a company is land. He needed land on which he would build on. 

After planning, he decided to buy land. Jacks secured his ownership of the land with money. Afterwards contracted a construction company to build a company for him. It cost him while lots of Dollars to achieve, but he wasn't moved by his expenditures, he considered the rewards he would derive from the business to be able to compensate for the deduction his account. After the construction he purchased production equipments and had them installed in the company. This was succeeded by registration. In his country registration isn't very expensive. The fees were cheap, but never free. Once he did that he secured personnel and began production activities.

Fredrick engaged in the formation process of his business. Every requirement involved expenditures. He spent money after money, trying to fulfil every expectations. His case illustrates that the fulfilment of business formation requirements, requires capital. Capital makes their fulfilment possible, and easy, without which it cannot.

                       EXAMPLE 

Many years before now, in Nigeria, Dangote wanted to start a business; importation of rice and sugar from Thailand and Brazil and the selling of those in Nigeria. The accomplishment of that required money. He needed to pay importation duties or fees. He needed to pay for shipping of them into the country. He needed to secure a shop where he would sell with money. He obviously needed to obtain permits and license from government which required money. Achievement of all of those payments was done with the #500,000 that he secured from his uncle. 

The question is this, why didn't he engage himself, in the establishment of his business without money? Could he have? The fact that he secured money from his uncle for starting business, implies that he was convinced that establishing the business required money. He indicated that he engineered the formation of his business with the money. 

His story not only serves to illustrate that establishment of business requires capital, but is an evidence that it does.

         MORAL FOR BUSINESS MAN

You cannot succeed in establishing business without capital. You should believe this not simply because the illustration we came up with supports it. Infact scholastic assertions holds this to be true. Capital is defined as money used to start business, implying that business establishment requires money.

Human experience shows that all those who started business accomplished it with capital. Where there is capital business formation can take place, but where there is no capital business formation cannot take place. Traditionally the capital are used to fund business requirements. Having known this, what would you now do? You have no choice but to secure capital, as it is pertinent to the achievement of your goal. If you have not secured capital, you are not yet qualified to start a business. You should be motivated by the fact that it is a necessity to, want to acquire capital.