4.1 Understanding the times

What is the time we are talking about? It is a season, an epoch, and an episode in a lifetime. The time we are technically and practically in recession. So what are the characteristics of the season of recession?

• income reduces and spending increases
• unemployment increase because business may not be able to cope
• debtors may not be able to meet up with liability when they fall due
• rising prices of items because business must survive
• suppliers may fail with product
• government projects may slow down or deteriorate
• debtors may promise and fail to pay –its not spiritual
• money velocity becomes very slow or halt
• people spend only on necessities
• there is usually short comings of expectations

Now, that you have an understanding of what this season portends then you need a positive attitude to it. Instead of weeping, walling, gnashing your teeth or even engaging in criminalities, you need to get certain facts and forge ahead because what lie ahead you is greater than what lies behind.

4.2 Maximum in Minimum

I intend by this section to show you good businesses that will yield maximum profit. Am not saying quit your job or current business add one or two from these

• agriculture
• restaurant
• pastries
• transportation
• education
• kiosk and corner shops

If you venture productively into any of the above event, it will help you to live above abroad. After all, they don’t require heavy capital to start up.

One important lesson in recession is to get multiple streams of income and spend wisely. Normally, after recession comes a boom but don’t let the boom change your spending pattern rather become more investment conscious, establish more and bigger businesses and engage in productive wealth creation. Make wealth creation a lifetime goal for the sake of posterity. If our fathers did it right we wouldn’t know what recession is and if we continue with the reckless spending something more terrible may happen.

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Steps to effecting strategic changes a as an individual, organization or government

1. Where are we now
2. Where would we ideally likely to be in future
3. How did we get to where we are today what did we do right what would we do differently what have been our biggest success so far, and why did they occur what have we failed at, and what were the reasons for to
4. What do we do now to get from where we are to where we want to go based on our expertise what should we be doing more of, less of what should we start doing that we are not doing today what should we stop doing altogether

People say the only permanent thing in life is change but change is necessitated because of process or operational excellence. There is  always a yearn to do better, get better results, outer form mothers and gain leadership in all we do that is why change becomes eminent. But change must be done methodically, procedurally and systematically as absolute change possess a high risk of absolute collapse of existing system

Therefore the following process of change will effectively deliver the result anticipated

• Why is the change needed
• What change are needed
• There should be formal plan of making these change
• Planning the change processes ought to involve the people affected
• Good and ethical management and leadership
• Commitment to change
• Proper coordination

I will like to dedicate few section to a critical analysis of the Nigerian economy so you can understand why recession cam

3.1 How We Got Here

Nigeria and Nigerians are not people or country to envy right now because stories of hardship, economic recession ravaging the nation but there cannot be smoke without fire.

What is recession simply put recession means a drop in revenue. If you earn 100,000 a month and now you earn 60,000 are in a recession simply because you may not be able to shoulder all your expenses again but there are two ways of handling recession

• Spend in recession
• Save in recession

Now, how did Nigeria get into this?

1. A monolithic economy: we depended largely on oil. In the 1980s the risk was low because we were few countries who had it but now many nations have discovered they have crude oil in large quantity. So, excess supply will reduce demand more competitors who may be willing to offer lower prices that the market standards
2. Unstructured economy: without structure you will rupture. The economy was not properly harnessed especially in manufacturing we were selling what we produce and buying what we consume. You take crude oil at very ridiculous price and import the range of products at very high prices. This principle of value chain cuts across agriculture, solid minerals, manufacturing, education etc. it if value that drive price. The higher the value the higher the price.

Let’s even consider our almighty oil, no government agency can tell you for sure how many barrels of oil is reduced per day or even exported and we pay many agencies in the name of regulators in the oil and gas sector-Are we serious?

The tax system is loose, the country keeps loosing revenue yet we were at ease because the bread and butter oil will cover up. The case of Nigeria was like that of a man who rides a cockroach as though he rides a horse.

The sates were not economically viable, agriculture was relegated, solid minerals exploitation was seen as time wasting. As a matter of fact all these lead to a social value decay.

In spite the fact that, we had the population that makes our market hub for Africa and unarguably the entire. At least about 1000 million Nigerians are between 18-65 years –isn’t that good news.

3. No strategic plan: since independence in 1960 were never had a well spelt out vision for the Nigerian project but when we landed in recession they quickly came up with economic growth and recovery plan(EGRP)-that’s even better that none. Though our annual budget is a financial pan but it was seen as a national cake sharing formula. I don’t envy Mr. President and failure is just inevitable because Nigerians was tactically going nowhere.
4. Excessive government expenditure: a Ghanaian once said, god so love Nigeria that he gave them oil. As a financial expert, I believe if the three factors mentioned were in place and you control spending then there may be a save lading but our leaders engage in notorious sad prodigal spending. Unnecessary structure in governance, running incremental budget annually without matching it will increased income. As a result of this we couldn’t save. Paradoxically, god forward Nigerians like the biblical story in Egypt, the nation experienced a boom in revenue notably between 20111 and 2015 then late 2015 the wind of recession started blowing o  the nation. Am not categorically a fan of the approach of the present day government but at least we are cutting spending. Most of the policies are feeding bottle palliatives
5. Undeveloped private sector: in advanced economies, business poles do very well to the admiration of public servants so you see people resign government appointments to start their businesses but the reverse is the case in Nigeria. Our public sector is more robust and economically viable than the private sector. Let me also lend my voice to the sayings that government cannot employ us all. A large chunk would have to own and run enterprises.

But when I look at the 2017 budget, it’s the same 70% recurrent and 30% capital expenditures. It’s important to note that the same capital component of the budget that will involve the private sector and remaining 70% recurrent expenditure will just be servicing the appetite of the people in government in public sector-is that good for business.

So, an entrepreneur would starve of fund at the expense of a director bourgeois lifestyle.

Let us revisit the approaches I enumerated previously

1. Save your way out of recession
2. Spend your way of recession

Now I see this government blending both approaches. Saving will entails cutting cost an d al  that while spending means sourcing revenue either through loans or sale of asset an injecting it for productive economic venture- that s thumb up

3.2 Why We Remained Here

The answer is simple we were enjoying ourselves. We were enjoying ourselves because there was  free oil money, corruption and feeding bottle king of federalism that was servicing our laziness. I must acknowledge that Nigerians are very hard working but very poor in thinking

Now that all that has finished then everybody is crying impeach the president, Buhari has failed Nigerians, APC cannot move Nigeria forward not minding the irresponsibility of our past and present leaders. When you consume all imported goods, go abroad for treatment, import equipment’s and even have to send our workforce abroad for treatment and they travel and see how other parts of the world handle their economy yet due to selfish ambition and all that they neglect national development for were strive for power and they want the president to do the magic.

Truth be told Buhari thought came up with many unfriendly common thought policies that aggravated the situation but the foundation was faulty ever since.; this recession is good. You may ask why we can start all over again building a solid foundation for a great tomorrow

3.3 How We Can Get Out of Recession

It is interesting to know that most solutions is always lengthier than the question but in the end it is with it.

The following steps will help

• Diversification of the economy: diversification does not only entail many different sources of revenue but improving in the processes to add value. Why will you export crude very cheap but import petroleum products very expensive?
• Structure the economy: the economy should be structured. that’s why a applaud the federal government for the political will to implement the Treasury Single Account(TSA), Government Integrated Financial Management Systems (GIFMS) and Integrated payroll and personal information systems(IPPIS) as instrument of the war against corruption
• We must adhere to short, medium and long term planning
• Control on government expenditure:
• We musts develop, the private sector

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 2.1 What Resources You Need For The Journey

Life is a journey divided into years

• recognize the importance of embracing Gods plan for youe life
• understand the importance of personal preparation
• beware of procrastination
• `diligence is a necessary ingredient
• Locate wisdom everyday
• Utilize the tool of prayer
• Utilize the power of fellowship/relationship
• Discipline will improved your result
• Develop a positive attitude to life
• Develop a positive work habit
• Determine the sacrifice you need to pay and keep paying it
• Locate a coach/mentor

2.2 Personal, Corporate, Public And Global Economy

Personal and corporate world is private which public (government) and global is public. However there are many correlation and interrelationship between them. What we do as individual affect businesses the government and all that affect the world around us.

In all these financial buoyancy, cash flow and financial ability is key. They all have income, expense to foot and resources to sustain basically. Now, if you dint run your life on the basis of financial accountability, you may not do well no matter the level of income.

Personal Finance

I have discovered that people are taught different levels of finance except personal finance its shocking because its individuals that makes up the society. Similarly, all the undoing in business and government is highly perpetuated in people and home-poor record keeping, no streamlined expenses, poor budgeting or no budget at all etc. so I will help you to be a personal accountant.

1. Poor record keeping: people can hardly tell for certain how much they earn or spend per week and you don’t expect your finance to fail. There are even software that help you keep tap with all the records. Record everything, recharge card, gifts, food, transport even interest on savings and investment. I mean everything.
2. No budgeting: You should be able to plan and come up with a budget that itemizes your income, expenses, capital purchases, and kitchen budgeting. You see, running a home is real business, you need to segment and departmentalize your home and run appropriate administration technique with this everybody in your home will develop and learn with etiquette right from home.
3. No strategic plan for yourself and home: if ask many people what they want to be in twenty years even five years they begin to look at you in amazement. Ok, what is the picture of your soon in five years nothings cogent. I believe that’s why real success is scare here

They earn it all and append it all and they are broke. Accounting practice must permeate all sphere of your life. If you have an accountant fine if not hire one. The reason, you have live is because records and statements are not enough they must be analyzed and prosperity interpreted for appropriate decision making.

4. No expense limit: people only put a knife on their throat when they notice a sharp fall in their rescue. Thus ought not to be so, it actually suppose to be the first thing the dwelling reserve can be averted. You should have a threshold on spending both on capital projects and normal personal and domestic expense.
5. Please, always have a plan before spending. Also never spend your income but the proceed of the investment of your earnings. This may be difficult to do especially in Africa where you holda moral obligation to provide for close family member and friends.

Corporate finance

The major challenge business face even the most structured is slim resource as against big dreams. The missing factor is called ideas. Ideas rule the world. Fundamental to creativity and accomplishment is idea. Every empire is built on idea. It is not absence of money but lack of ideas. If you have all the money but no idea you will lose it to the man with ideas. An idea can make a lot difference in your business adventure. You can start a zero capital business and grow it into multinational venture with ideas.

But idea alone is not it. Ideas can give you a good start but adherence principles of growth or call it management etiquette –financial, human, equipment; that will make you grow and put you on the path of growth.

Below are 8 keys to attaining corporate success:

1. Customer and satisfaction focus

• Understanding and satisfying customer or service-user need
• Aligning all part of an organization ti these need

2. Effective leadership and strategy

• Providing ethical and strategic leadership focused on sustainable value chain creation
• Facilitating key performance drive including strong corporate value, ethical culture and organizational and processes

3. Innovation and adaptability

• Innovation process and products to improve reputation and performance
• Adapting the organization to changing circumstances

4. Financial management

• Ensuring financial leadership and string support sustainable value creation
• Implementing good practices in arrears such as tax and treasury, cost and productivity improvement and working capital management

5. Integrated governance, risk and control

• Deploying effective governance structure and processes with integrated risk management and internal control
• Balancing performance and conformance in governance

6. People and talent management

• Enabling people and talent management as a strategic function
• Applying talent management to the finance function so it better service the need of the wider organization

7. Operational excellence effective and transparent communication

• Aligning resources allocation with strategic objectives and the other drivers of shareholders and stakeholders value
• Supporting decision making with timely and insightful performance analysis

8. Effective and transparent communication

• Engaging stakeholders effectively to ensure that they receive relevant communication
• Preparing high quality business reporting to support stakeholders understanding and decision making

Public/governance economy and finance

The public sector refers to all organization which are not privately owned and operated but which are established run, and financed by government on behalf of the people

Public sector finance is defined as a process of recording, communicating, summarizing, analyzing and interpreting government financial statements and statistics in aggregate and details; it is concerned with receipts, custody and disbursement and rendering of stewardships on public funds entrusted

Sources of government revenue:

• Taxation
• Fees
• Fines
• Grants
• Foreign investments
• Public debt or borrowing
• Sale of national assets

The entire economy private or public is controlled by the government

Global economy

The international economy is a aggregate of what is happening in all nations of the world. The drive for growth and wellbeing of all nation of the world still required so that there can be mutual competiveness. Though porter’s five forces model enumerated five factors that can ameliorate the competitiveness of a strategic business unit (SBU) you still find a useful tool for government at all levels. These forces are

• Existing competitive and the rivalry between existing competitions
• The thereafter form and new entrants to the market
• The bargaining power of suppliers
• The bargaining power of customers
• The threats from substitute products

2.3 The workings of money

The main issue is not money; it’s what to do to attract money. What do you have that people will be willing to part with their resources for? So, the first question is what are your commodities? It may be a product I good, services (both professional and talent) because people will apply if it pays off, then we look at packaging. Many have what people want but cannot give it the right image that will enable them to get paid on return. So, identify the market need and tailor your product to meet that need. It has always been argued that the main essence of business is not profit making but meeting stakeholders need. As you meet their need then you get paid.

If you are not rendering services or actively involved in the manufacturing value chain then, you can’t get money. So rather than day dreaming, wishing or hoping you get to win a lottery, get to work.

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Personality Analysis

Personality is generally defined as the whole persons outstanding characteristics, his abilities, his emotional and social traits, his interest and attitude as defined by lovle K (1973)

Factors affecting personality development

1. the home
2. the school
3. personal experiences
4. cultural influences
5. the peer group
6. the child’s need and motives
7. emotional stability
8. extraversion
9. openness to experience
10. agreeableness
11. conscientiousness

Person-Situation Interaction

This refers to how events of life affect the personality of an individual.

Development of personality

The psychoanalytic theory of development

Psychoanalysis is the method of interviewing a person with the purpose of retracing and reliving his emotional life from early infancy

There are three levels of consciousness- the conscious, the preconscious, the unconscious mind.

Personality theory asserts that the mind is composed of three parts namely- the ID, the ego, the superego.

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