Wednesday, 8 May 2013

Business Idea: Your Own Home Micro Business



Micro lending is proving to be the hottest trend in financial market today. Micro lending involves unsecured lending between unrelated individuals. The concept has been adopted successfully by both profit and non-profit organizations, especially cooperatives. Millions of people have benefited from access to the loans provided by micro lending companies.

Micro lending has caught on even with banks and other financial institutions that previously thought it was not feasible. It turned out that most of the small time borrowers were also good payers, and since the interest rates were higher than the usual mark-up of banks or financing companies, the practice became attractive to the large lenders.

Home micro finance is a very simple, yet lucrative business model anyone in PNG can use to grow their personal wealth. Someone will say, “Yeh I know that’. Cool. I say. But let me ask you “Did your Home Micro Business survive? Maybe a possible reason why it didn’t survive was because you didn’t thought of it as a business. If so, now is the time to think of it as a business. AND I MEAN SERIOUS BUSINESS.

Listen to this: NO WILL BE SERIOUS WITH YOU UNLESS YOU ARE SERIOUS WITH YOURSELF.
      Let suggest few things;· 

  •  Register a business name, e.i. John Home Micro
  • Open a business account using John Home Micro as your account name
  • Keep good records of your cash inflow and outflow
  • Create a simple website

Few things you need to know.  Bank of Papua is the authority that regulates all lending and borrowing of money in PNG. In terms of banking license, you don’t need a license if you are the one lending your money out to others for profit. That is you lend your money to others at your own risk. If you collect deposits from the public and invest for interest than you will be required to have a banking license from Bank of Papua New Guinea.

Hey, don’t be fancy. Keep it simple. Start small and build up. 

Keep good record of your cash inflow and our flow. Your financial statements will help you obtain more money from banks and other lenders to grow your business so make it you serious business to keep good financial records.












Good luck.

No comments:

Post a Comment

Related Blogs