Fastest Way To Accumulate Wealth.

Building wealth may seem somewhat impossible, but it is actually quite simple. 

In fact, you don’t have to earn six figures to turn this dream into a reality. 

However, there are habits, behaviors, and “rules” essentially, that will allow you to get rich and grow wealth. 

No matter how old you are, you can amass wealth as long as you’re determined.

Keep in mind that building wealth is not an overnight process, its a journey.

There are potentially thousands of ways to earn income, and you need to find the most that you can do and get to work immediately. 

Below are a few things I believe you can do to get rich and grow your wealth — over time:

1. *Have multiple streams of income:*

You have multiple stream of expenses, isn’t it beneficial to own multiple stream of income too? 

*You cannot invest without saving money, and you can’t save money without a regular income*. 

It is only fair to yourself to agree that being financially self-sufficient is not something you can achieve by just only one stream. Therefore, You will need to build your retirement nest egg with other types of investments during your working years in order to generate an adequate income stream after you stop working.

2. *Put Your Money to Work For You*:

You need your money to work over time to grow wealth for you, not against you. 

Hence, it is important that you identify wealth building opportunities. 

You can put your money to work by having the appropriate asset allocations (a mix of Stocks, Bonds, Cash and other assets) to make reaching your wealth goals more realistic. So make the early decision to start setting aside some funds for investment.

3. *Keep Learning and growing:*

“Everyone has the ability to build a financial ark to survive and flourish in the future,” said Robert Kiyosaki, business magnate and author of Rich Dad, Poor Dad. “But you must invest time in your financial education to build an ark with a solid foundation.” 

As you make it a habit to find ways to better yourself, you’ll also find new potential ways to build wealth faster than ever.

Entrepreneurship is not just an act of building a business, its also an act of knowing the right investment package to build wealth by Awele Akunwa.

Acquiring Shares On Stock Exchange Market.

There are three (3) different kinds of shares in the stock market.

1. *Growth Stocks:*

As the name implies, growth companies by definition are those that have substantial potential for growth in the foreseeable future.

Every sector of the market has growth companies, but they are more prevalent in some areas, such as technology, alternative energy, and biotechnology. 

Most growth stocks tends to be newer companies with innovative products, that are expected to make a big impact on the market, in the future, though there are exceptions. For example; Amazon, when they started.

2. *Value Stock*

A value stock trades at a price below where it appears it should be, based on its financial status and technical trading indicators. It may have high dividend payout ratios or low financial ratios such as price-to-book or price-earnings ratios.

The stock price may also have dropped due to public perception regarding factors that have little to do with the company’s current operations.

For example, the stock price of a well-run, financially sound company may drop substantially for a short time period, if the company CEO becomes embroiled in a serious personal scandal. 

Smart investors know that this may be a good time to buy the stock, as there is a chance that the public will eventually forget about the incident and the price will possibly revert to its previous level.

3. *Income or Profit Stocks*

Investors look at income stocks to bolster their fixed-income portfolios with dividend yields that typically exceed those of guaranteed instruments, such as Treasury securities or CDs.

Although income stocks can be an attractive alternative for investors who are unwilling to risk their principal (funds), though their values can decline when interest rates rises.

*#Pause*

“Do you want a share of the *GROWTH*, or do you want a share of the *PROFIT?*”

This is one of the first questions I was asked by an advisor on the Stock Market. I was initially quite surprised because I did not know there was a difference!

“Think of it like this,” he explained. “Imagine you go to the Market where they sell live animals. You can buy a mature cow that will give you milk every day—that is what we call *DIVIDEND*, or you can buy a young calf that will increase in value as it grows—that is a *GROWTH Stock*..?”

He continued: “Dividend Stock is milk with no growth. It is for conservative types, and widows, but Growth Stock gives you a chance of making bigger money by selling the calf even as it grows up, and it can still produce many young, and milk later, but then again it can die on you, which is the risk.”

There is really no complication to these things, when you understand the underlying principles. 

Nigerian Stock Exchange operates on basically the same principles as our domestic Markets!

Now I am NOT going to tell you whether you should or should not invest on the Stock Market or which Stock you should pick. That is your job to do. 

Meanwhile, Mtn public shares openings are closing today, incase needs be for interested investors.

I am telling you this, just to equip you with financial education and the language of business. 

*As a serious #Entrepreneur, you must learn the language of business.

Planning The Year As An Entrepreneur.

Welcome to the second quarter of the year. How is the year so far?

This is the time of the year, when everyone has developed a goal, a plan, a dream and a vision, for the year, which is so wonderful.

But, because no one knows for sure what tomorrow will bring, you need to do everything you can to improve your ability to plan for the future while being prepared to handle any curveballs that get thrown your way.

Whether it’s preparing for big life milestones, such as starting a family, or navigating through difficult periods, when you face financial setbacks, such as no rent, car repairs, losing your job or poor health.

While you can’t predict most of these events, having a ‘plan B’ can take the worry off you.

Future-proofing your finances can help you feel more secure about what lies ahead, in this new year.

One of the effective ways to do so is by taking control of your money; from tracking spending to paying off debts and managing bills. 

I have designed some brief points to consider this year while taking the steps for financial management and wealth creation.

1. *Take stock of where you’re at right now financially*:

It’s time to take a deep dive into your financial status by assessing what’s coming in and going out. 

Most people saw a major impact to their incomes and finances because they were just spending and not taking stock. 

Sort your needs from your wants. What are the real essentials, and what can wait until later? Doing this will help create a realistic budget to help you move forward.

2. *Build up your Savings/Investments:*

It’s a good idea to have enough in a rainy-day fund to cover your household expenses for at least three to six months. 

starting the culture of saving early on,  in your business or career is the best way to ensure you’ll have sufficient funds to support your lifestyle in retirement or financial journey. 

3. *Don’t let debts pile up:*

It’s often better to clear any outstanding debts before you try to save.

Most people have some form of debt and that’s okay, but don’t let them get out of hand. Treat saving/Investing as another bill that has to be paid, rather than an optional extra.

A day will come when you’ll leave the workforce — either by choice or by necessity. When that day arrives, you may find you’ll have to rely on your own savings to keep up with your day-to-day living expenses. 

Make the smart choice to start saving & investing now.

Scaling Your Business Through A Merger.

Most SMEs (Small Businesses) don't consider a merger as part of business strategic models.

The question is; Would you consider merging your business with that of another entrepreneur?

A merger is when you combine your business with one created by another entrepreneur. 

Most people think that Mergers only happen between large businesses, but that is not true.

A lot of SMEs has done some really cool mergers in the past, and most  businesses would not be as big as it is, if they had not mastered the power of merging. 

Mergers have always given them an opportunity to make their businesses bigger, and faster.  Which is called *SCALE*.

You still need to understand the two key formulas of the entrepreneurial playbook: 

*INNOVATION PLUS MARKETING-COST=PROFIT*.

A business that has identified and reaches out and solves a human need, Scales as a result of the “3Ps”, and nothing else!

*Product.*

 *People.*

*Process.*

You might have a good *#Product* that solves a customer problem in an *#Innovative* way, but you don’t have the *#People* who can drive the other pieces, such as *Marketing*, *Process*, *Cost Management* and more.

This is when a merger comes in, to compliment the company with other elements that scales a business.

When you “merge” two companies, you are not looking for 1+1=2, but rather 1+1=4 or even 5!

There are seven (7) top questions to ask, when considering a merger.

1. *The Products*

2. *The Market* [customers] and the Marketing

3. *Innovations* going forward to create better and more *Products.

4. *The People*

(a) Who is going to be doing what, in the new company?

(b) What is their caliber?

(c) What is our ability to get access to the best people out there?

(d) Who are the top specialists that drive this business going forward?

(e) Leadership and management—Who will run it?

(f) How do you accommodate the founders, if they are still around?—Tough one!

(g) What about the board of directors?

5. *The Processes*

A bigger company requires more sophisticated management processes, from IT, to distribution, to HR, to financing!

6. *The Costs*

By combining the two companies, we must be more efficient. This means some people will probably have to leave, whilst new ones come on board.

7. *Finance*

This is a major *Skill*!

Many people don’t access money because they lack skills to raise capital, and it might be a good way to solve this problem by merging with someone else who has that skill.

*Conclusion*

In a merger there is usually no exchange of money. The owners of each company must agree on a valuation procedure to be followed. 

These are quite straightforward for a qualified Accountant to execute.

Let’s say business *A* is valued to be worth $25,000 and business *B* is worth 30,000, then business *C* the merged company is now worth $55,000.

The owners of *A* own 25/55=45%, and those of *B* own 30/55=55%, of the new company. 

The owners of the merged company must agree in advance who will be CEO, and who will be chairman of the board of directors.

This is captured in a proper agreement called a *Shareholders Agreement* (SHA)

Once signed, the courts will enforce that agreement, if there is a dispute between the parties. 

The new owners must agree in advance how the company will be organized after the merger, including who initially occupies key positions.

Mergers can be easily destroyed if the founders have big egos, as they require an acceptance that no one can now make decisions about the company on their own, this is usually the challenge of mergers.

The End.💓

By Awele Akunwa

How To Construct Employment Contract.

 What is an Employment contract? 

An employment contract is written to define the relationship between the employee and the employer legally. Both parties have to agree and sign a written agreement before the new hire can start working.

This document ensures employees follow the company as per rules and regulations. A well-defined contract sheds light on expectations and protects employers in resignation, termination, or salary disputes. 

An employment contract is essential because every action taken in an organisation should always be written and put on paper. An employer can use this document to prevent the employee from using confidential information during and after the employee ceases to work for the employer.

Need some help? Don’t worry; we have got you covered – once you’re done with this article crafting an employment contract can be as easy as a handshake.

Applicable Law

Employment and employment agreements are subject to Federal laws as issues relating to employment and labour matter in Nigeria are within the exclusive purview of the federal legislature.

An employer must give the employee a written contract within three (3) months of the commencement of the employment according to Section 7 of the Act. 

The Federal laws applicable to this agreement include:

Labour Act, 2004.

The Constitution of the Federal Republic of Nigeria, 199 (as amended).

Employees’ compensation Act, 2010.

Factories Act, 2004.

National Health Insurance Scheme Act, 2004.

Personal Income Tax (Amendment Act), 2011.

Trade Disputes Act, 2004.

A written contract of employment must contain the following:

Employer details – Name of the employer or group of employers

Employee details – Name and address of the employee, the date and place of his engagement

The nature of the employment (Internship, Full-time, Freelance, Part-time, Contract, etc) – Some of these details can even include the job description and the team or department with which the employee will work.

Performance expectation and requirements – This section would specifically mention the candidates’ employment role, title, responsibilities, and state clear expectations.

State the date the contract expires – If the contract is for a fixed term, the contract should clearly state timelines.

Probation period details – This section should cover probation period details and critical performance indicators – also terms on which the company will confirm the employee.

Performance reviews – This involves framing an overview of the employee’s performance, work, punctuality, and honest feedback from the senior employees.

The rate of wages/salaries and the manner and periodicity of payment of wages – This section should cover salary agreements and payment timelines – how much and when the employer will pay the agreed wages. It should include the hourly rate or annual salary information about raises, bonuses, or incentives offered to the employee.

Employee benefits – This section should explain what the compensation plan includes — dental, health insurance, quarterly bonus, etc. if offered by the employer.

Any terms and conditions relating to; hours of work; holiday and holiday pay; incapacity to work due to sickness, injury and provisions for a sick day if any and insurance, etc

Define Clear Protocols for Staff Leave, holidays, and exits – This section should contain rules that guide vacation and explain employee expectations regarding sick days, family emergencies, or paid/unpaid leave.

Termination – State the amount of notice each party is required to give to terminate employment. This notice can be based on employment periods or can be at will.

Non-Competition – This clause prohibits the employee from engaging in any activities that directly or indirectly compete with the employer’s business and other clauses based on the company’s work attributes.