Friday, March 24, 2017

When Banks Are Not Lending...

Getting loan is a discouraging process for business owners today, as such; many promising businesses have closed shops as there are no access capital to finance their business. Oftentimes, business owners with solid business ideas and opportunities do not have chance of getting a loan from a bank.  Even with the backing of a backing of collateral security, banks do not want to fund any loan that has unwarranted risk.  Instead, they would prefer to focus on a pristine deal with a long track record (two plus years in business), strong personal credit rating, and solid financials (cash-flow positive).

However, one can not blame the banks.  They are are highly regulated and have learned some painful lessons over the years hence businesses are left with their fate.

Enter the Alternative Lender Mode

Alternative Lender:  A non-bank lending institution that will often lend to business owners that can not get (or choose not to get) a loan through a more traditional bank.  An alternative lender are usually faster to fund. This is because alternative lenders are generally more aggressive than traditional lenders, they usually have processes and technology in place to fund more quickly.  In many cases, the entire underwriting process is automated through online technology platforms.

They do not rely as much on your personal credit rating:  Because banks are primarily focusing on the higher credit-worthy business owners, they have left a huge funding gap of lower-credit individuals and business owners that still need financing.  What alternative lenders have figured out is that a credit rating is not the only indicator of repayment.  Other key indicators of loan repayment include revenue, monthly cashflow, account receivables, business transactions (i.e. turnover), purchase orders and peer pressure.

They want to offer multiple loans:  Though the term of the loan is usually shorter, an alternative lender will want to provide as many loans as possible to the business owner (subject to payment history of course).  If the business owner shows a trend of regular on-time payments, the alternative lender will look to extend new loan options and will likely increase the amount of the new loan(s) which business owners do use for various expansion and marketing projects.

Alternative loan products are not for everyone.  As a business owner, your goal is to get the best financing product for your situation.  Do your homework to find the best rate and terms.  But, if you have gone to your commercial bank and been rejected, there are likely other options that can help you build your business and fuel your dream. Below are some of the Alternative Lenders in Nigeria:

1. Bank of Industry (BOI) Limited
Bank of Industry House
23 Marina Street, Lagos Island, Lagos

2. Youth Business Initiative
252 Herbert Macaulay Road,
Alagomeji B/Stop,
Yaba, Lagos

3. Divine Success Plc
Kitchen Tower (beside Big Treat)
Omole Junction,
Ikeja, Lagos
Contact: 08025792482, 08038145326

4. Loans and Jobs Nig Ltd
21 Oladunjoye Street,
Ikotun, Last B/Stop,
Lagos
Contact: 08085093573

5. Microfinance Banks

6. Thrift and Co-operative Scheme etc.

Contact Pro Logic Ideas Consulting (+2348077202074 | contactus@prologicideas.com) for more details.

Thursday, January 19, 2017

3 Essential Ks: Kaizen, Kaikaku, and Kakushin

For companies to remain profitable and competitive in today’s economy, it is essential for them to adopt and ingrain-in three important concepts of Kaizen (Change for Better), Kaikaku (Revolutionary Change), and Kakushin (Innovation). Organizations do benefit from these through continual improvement of their processes, transformation of their organizational culture, and becoming an innovative entity.

It was about 40 years ago when the philosophy of Kaizen entered the western culture via automotive industry. It basically pointed out the fact that by elimination of non-value added work (Muda / 7+1 types of waste) in the work processes, companies will become more efficient and as a result be more profitable and competitive. This great philosophy of Kaizen that encourages incremental continuous improvement, in the last decade, has spread out among other service oriented industries, i.e. Healthcare, IT, Retail, … , where the need for a more rapid and agile methodology was felt. It was realized as a necessity to be able to deliver products and services to the customer quicker, while maintaining the high quality and lower cost.

Meanwhile, Toyota Motor Corporation, who made Kaizen philosophy famous, has also started questioning how Kaizen could be improved upon to address the requirement of being able to implement changes more rapidly. And to respond to it, the concept of Kaikaku was born.

Kaikaku is Radical Change, where emphasis is on revolutionary change and big improvements. It allows organizations to reform and transform their culture and work habits into greatness via implementation of fundamental changes in the existing production systems. It is a large-scale and wide-ranging activity that is initiated and invested in by the executives and top management.

To clarify this more, let’s look at different scenarios in an automotive manufacturing plant. When we perform projects to reduce the production time, implement 5S, or redesign the assembly line, we are implementing Kaizen. On the other hand, when we introduce a new lighter material to be used for the vehicle’s body or install robots to weld, press, or paint the vehicle, we are applying Kaikaku.

So far you have explored making either small incremental improvement changes to better the production processes (Kaizen) or big revolutionary changes to reform existing production systems (Kaikaku). However, there are times that new revolutionary and breakthrough ideas, products, or services are desired and needed and thus we have to renew our way of thinking and doing and become innovative. This innovation and renewal is called Kakushin.

The concept of Kakushin was mentioned by former President of Toyota, Mr. Katsuaki Watanabe; during interviews with Wall Street Journal and Harvard Business Review in 2007 as a Radical Innovation. He elaborated this concept by saying that if we could make simplified cars by cutting the number of parts in half and design more flexible production lines to manufacture many different car models rapidly, then we had made a new revolutionary reform in our production system and that is Kakushin.

In conclusion, effectively applying these three essential concepts of Kaizen, Kaikaku, and Kakushin is the right solution for any organization who wants to deliver a sustainable high quality product or service and to ensure a steady growth in the global market.

Monday, September 26, 2016

National Assets, National Cake

“If we have to sell our national assets to fund the 2016 budget; then we have to sell our coat of arms, national flags and anthem to fund the 2017 budget; as for the 2018 budget, the nation move from recession to receivership ,then we auction the whole territorial land mass of our country to the Bourgeoisie class to raise cash; then we all live on tenancy. This is what our ‘lumpen capitalists’ want”. - Senator Shehu Sani


When Monetary policy and Fiscal policy Differs

In public finance, monetary policy and fiscal policy are regarded as the two most widely recognized "instruments" used to influence a nation's economic activity. Monetary policy is primarily concerned with the management of interest rates and the total supply of money in circulation and is generally carried out by central banks. Fiscal policy is the collective term for the taxing and spending actions of governments. In Nigeria, fiscal policy is determined by the Executive in conjunction with the Legislative arm of government.

Monetary Policy

Central banks have typically used monetary policy to either stimulate an economy into faster growth or slow down growth over fears of issues like inflation. The theory is that, by senticising individuals and businesses to borrow and spend, monetary policy will cause the economy to grow faster than normal. Conversely, by restricting spending and encouraging savings, the economy will grow less quickly than normal.

The Central Bank of Nigeria (CBN) like other Central Banks has frequently used three different policy tools to influence the economy: opening market operations, changing reserve requirements for banks and setting the "discount rate." Open market operations are carried out on a daily basis where the CBN buys and sells government bonds to either inject money into the economy or pull money out of circulation. By setting the reserve ratio, or the percentage of deposits that banks are required to hold and not lend back out, the CBN directly influences the amount of money created when banks make loans. The CBN can also target changes in the discount rate, or the interest rate charged by the CBN when making loans to financial institutions, which is intended to impact short-term interest rates across the entire economy.

Fiscal Policy

Fiscal policy tools are numerous and hotly debated among economists and political observers. Generally speaking, the aim of most government fiscal policies is to target the total level of spending, the total composition of spending, or both in an economy. The two most widely used means of affecting fiscal policy are changes in the role of government spending or in tax policy.

If a government believes there is not enough spending and business activity in an economy, it can increase the amount of money it spends, often referred to as "stimulus" spending. If there are not enough tax receipts to pay for the spending increases, governments borrow money by issuing debt securities and, in the process, accumulate debt, or "deficit" spending.

By increasing taxes, governments pull money out of the economy and slow business activity. Governments might instead lower taxes in an effort to encourage more activity, hoping to boost economic growth. When a government spends money or changes tax policy, it must choose where to spend or what to tax. In doing so, government policy can target specific communities, industries, investments or commodities to either favor or discourage. These considerations are often determined based on considerations that are not entirely economic.

Tuesday, September 13, 2016

Recession: FIRS Put the Lid

Some economists have jokingly defined a recession like this: If your neighbor gets laid off, it's a recession. If you get laid off, it's a depression.

Economists officially define a recession as two consecutive quarters of negative growth in gross domestic product (GDP). It is also regards as a significant decline in economic activity spread across the economy, lasting more than a few months" as the hallmark of a recession.

Some businesses may be affected only moderately, or not at all, if the recession is mild and brief. If the recession lingers and the downturn is widespread, all big businesses - firms publicly traded on Nigerian Stock Exchanges (NSE) - may ultimately be hurt.

For decades, the Nigerian government have been talking about diversification of our economy for oil which has perennially form the major source of our revenue.

Monday, August 29, 2016

Do as I do and not Do as I say

Leaders must be proactive about discovering the full potential in others, and equally in themselves, in order to define their leadership identity. People should begin to understand how their leadership identity influences the evolution of the business when they can articulate the unique ways they think, what gives their leadership distinction, the impact their presence creates and what it is they serve. A strong leadership identity can provide clarity and alignment throughout the organization even as it leverages the unique differences in people to see and seize opportunities previously unseen.
Most importantly, we must be such leaders who say 'do as I do' and not 'do as I say' only.

Sunday, August 14, 2016

Insight: Looking Inward

You have to find approaches for contemplating and probing at all times so as to catch sight of the flickerings of awareness, to see in what ways it streams out to know things. Be careful to catch sight of it both when its knowing is right and when it's wrong. Don't mix things up, taking wrong knowledge for right, or right knowledge for wrong. This is something extremely important for the practice, this question of right and wrong knowing, for these things can play tricks on you.

When you gain any new insights, don't go getting excited. You can't let yourself get excited by them at all, because it doesn't take long for your insight to change - to change right now, before your very eyes. It's not going to change at some other time or place. It's changing right now. You have to know how to observe, how to acquaint yourself with the deceits of knowledge. Even when it's correct knowledge, you can't latch onto it.

Even though we may have standards for judging what sort of knowledge is correct in the course of our practice, don't go latching onto correct knowledge - because correct knowledge is inconstant. It changes. It can turn into false knowledge, or into knowledge that is even more correct. You have to contemplate things very carefully - very, very carefully - so that you won't fall for your knowledge, thinking, "I've gained right insight; I know better than other people," so that you won't start assuming yourself to be special. The moment you assume yourself, your knowledge immediately turns wrong. Even if you don't let things show outwardly, the mere mental event in which the mind labels itself is a form of wrong knowing that obscures the mind from itself in an insidious way.

This is why meditators who tend not to contemplate things, who don't catch sight of the deceits of every form of knowledge - right and wrong, good and bad - tend to get bogged down in their knowledge. The knowledge that deceives them into thinking, "What I know is right," gives rise to strong pride and conceit within them, without their even realizing it.

This is because the defilements are always getting into the act without our realizing it. They're insidious, and in their insidious way they keep getting into the act as a matter of course, for the defilements and mental effluents are still there in our character. Our practice is basically a probing deep inside, from the outer levels of the mind to the inner ones. This is an approach that requires a great deal of subtlety and precision... The mind has to use its own mindfulness and discernment to dig everything out of itself, leaving just the mind in and of itself, the body in and of itself, and then keep watch of them.

The basic challenge in the practice is this one point and nothing else: this problem of how to look inward so that you see clear through. If the mind hasn't been trained to look inward, it tends to look outward, simply waiting to receive its objects from outside - and all it gets is the confusion of its sensations going in and out, in and out. And even though this confusion is one aspect of change and inconstancy, we don't see it that way. Instead, we see it as issues, good and bad, pertaining to the self. When this is the case, we're back right where we started, not knowing what's what. This is why the mind's sensations, when it isn't acquainted with itself, are so secretive and hard to perceive. If you want to find out about them by reading a lot of books, you end up piling more defilements onto the mind, making it even more thickly covered than before.

So when you turn to look inward, you shouldn't use concepts and labels to do your looking for you. If you use concepts and labels to do your looking, there will be nothing but concepts arising, changing, and disbanding. Everything will get all concocted into thoughts - and then how will you be able to watch in utter silence? The more you take what you've learned from books to look inside yourself, the less you'll see.

So whatever you've learned, when you come to the practice you have to put all the labels and concepts you've gained from your learning to one side. You have to make yourself an innocent beginner once more. Only then will you be able to penetrate in to read the truths within you. If you carry all the paraphernalia of the concepts and standards you've gained from your learning to gauge things inside you, you can search to your dying day and yet won't meet with any real truths at all. This is why you have to hold to only one theme in your practice. If the mind has lots of themes to concern itself with, it's still just wandering around - wandering around to know this and that, going out of bounds without realizing it and not really wanting to know itself. This is why those with a lot of learning like to teach others, to show off their level of understanding. And this is precisely how the desire to stand out keeps the mind obscured.

Think about this for a moment. Extinguishing suffering, gaining release from suffering: Aren't these subtle matters? Aren't they completely personal within us? If you question yourself in this way, you'll be on the right track. But even then you have to be careful. If you start taking sides with yourself, the mind will cover itself up with wrong insights and wrong opinions. If you don't observe really carefully, you can get carried off on a tangent - because the awareness with which the mind reads itself and actually sees through itself is something really extraordinary, really worth developing - and it really eliminates suffering and defilement. This is the real, honest truth, not a lot of propaganda or lies. It's something you really have to practice, and then you'll really have to see clearly in this way. When this is the case, how can you not want to practice?

If you examine yourself correctly in this way, you'll be able to know what's real. But you have to be careful to examine yourself correctly. If you start latching onto any sense of self, thinking that you're better than other people, then you've failed the examination. No matter how correct your knowledge, you have to keep humble and respectful above all else. You can't let there be any pride or conceit at all, or it will destroy everything.

This is why the awareness that eliminates the sense of self depends more than anything else on your powers of observation - to check and see if there's still anything in your knowledge or opinions that comes from the force of pride in any sense of self... You have to use the full power of your mindfulness and discernment to cut these things away. It's nothing you can play around at. If you gain a few insights or let go of things a bit, don't go thinking you're anything special. The defilements don't hold a truce with anyone. They keep coming right out as they like. So you have to be circumspect and examine things on all sides. Only then will you be able to benefit in ways that make your defilements and sufferings lighter and lighter.

When we probe in to find the instigator - the mind, or this property of consciousness - that's when we're on the right track, and our probing will keep getting results, will keep weakening the germs of craving and wiping them out. In whatever way craving streams out, for "being" or "having" in any way at all, we'll be able to catch sight of it every time. To catch hold and examine this "being" and "having" in this way, though, requires a lot of subtlety. If you aren't really mindful and discerning, you won't be able to catch sight of these things at all, because the mind is continually wanting to be and to have. The germs of defilement lie hidden deep in the seed of the mind, in this property of consciousness. Simply to be aware of them skillfully is no mean feat - so we shouldn't even think of trying to wipe them out with our mere opinions. We have to keep contemplating, probing on in, until things come together just right, in a single moment, and then it's like reaching the basic level of knowing that exists on its own, with no willing or intention at all.

This is something that requires careful observation: the difference between willed and unwilled knowing. Sometimes there's the intention to look and be aware within, but there come times when there's no intention to look within, and yet knowledge arises on its own. If you don't yet know, look at the intention to look inward: What is it like? What is it looking for? What does it see? This is a basic approach you have to hold to. This is a level you have to work at, and one in which you have to make use of intention - the intention to look inward in this way... But once you reach the basic level of knowing, then as soon as you happen to focus down and look within, the knowledge will occur on its own.

The Market of Hope

Oxford dictionary defined hope as a feeling of expectation and desire for a particular thing to happen. Another version called archaic put i...