Top Insurance Companies in Nigeria [2023 Updated List]

One of the reasons Nigerians buy insurance is to protect themselves in addition to their properties against unforeseen circumstances.

These events can take up a large chunk of their finances, and they’d want to avoid that. Hence, the need for buying insurance.

Insurance helps individuals and companies safeguard their investments and properties against potential risks that could make them lose everything.

There are top insurance companies in Nigeria that help individuals looking to secure their future from such misfortune. However, you have to know what you are looking for, how the insurance agency works and pick the right one. In order to do that, there are factors to take into consideration before choosing an insurance company.
These factors are necessary to avoid being swayed by -for instance- fancy branding.

Factors to Consider Before Choosing an Insurer

1. The Company’s Image

You should surf the internet for reviews and top news about the brand. This is because the company’s track record should give you an idea about their strengths and capabilities.

2. Legal Accreditation

The insurance company you decided to go with must be legally accredited and certified by the Nigerian government.

3. The Coverage

This is a vital and necessary factor in selecting an insurance company. Select the coverage that best suits your needs. For instance, if the insurance company does not cover certain circumstances like business ideas you’d require, that’s a sign to take your business elsewhere.

4. Financial Strength and Price Factor

It’s important to find out how the insurance company fares during a bad economy and how that can affect you. Go through stock ratings and business resources to get the information you are searching for.

You may also want to consider the price factor when searching and eventually choosing your insurance company. In other words, if the price is affordable, go for it. If it’s not, go elsewhere.

1. AIICO Insurance Plc

AIICO Insurance Plc is an insurance, pensions management, and asset management Group established in 1963. It is of the top insurance companies in the country its key focus on, General insurance and special risks, Life assurance and annuity, Health insurance, Asset management, and Pension management.

They offer the following policies:

· Income investment plan

· Three payment plan

· Travel insurance

· corporate saving plan

· Education investment plan

· Flexible endowment plan

· Term assurance plan

· Electronics equipment policy plan

2. Lead Way Assurance company

LEADWAY offers services in both Life and Pensions and

LEADWAY Assurance (founded in 1970) offers insurance services in General business insurance and Life & Pensions. The Company also offers allied financial services such as Secured Credit, Bond, Miscellaneous financial losses and Portfolio management.

They are very active online, across various social media channels and have computerised most of their operations to boost effectiveness.

They offer the following policies:

· Family Benefit plan

· Lead way saving plan

· Term assurance plan

· Money policy plan.

· Educational saving plan

· Personal saving plan

· Deferred annuity plan

3. Custodian and Allied Insurance

Custodian and Allied insurance company provide a wide range of insurance plans to choose from. Each plan is tailored to the needs of their clients.

They offer the following policies:

· Investment plus plan

· Immediate annuity plan

· Tuition protection plan

· Auto insurance plan

· Travel insurance plan

· Capital plan

4. Cornerstone Insurance Plc

Cornerstone Insurance company was incorporated as a private limited liability company on July 26, 1991. Eventually, it became a Public Limited Liability and was quoted on the Nigerian Stock Exchange(NSE) in 1997.

Since its inception, Cornerstone Insurance has remained dedicated, putting their client first and creating solutions that meet their needs.

It is licensed by NAICOM -the National Insurance Commission – to do both Life and General business insurance.

They offer the following policies:

· Motor insurance plan

· Gadget protection plan

· Investment plan

· Halal Takaful plan

· School fee guarantee plan

· Goods in transit plan

· Home insurance plan

· Life insurance plan

· Annuity plan

· Marine insurance plan

· Travel insurance plan

5. AXA Mansard Insurance

AXA Mansard is a member of the AXA Group. AXA Group is a top player in insurance as well as asset management. The group of companies serves 107 million clients in over 60 countries.

The Company provides life insurance as well as on-life insurance solutions to individuals and organisations in the country.

They offer the following policies:

· Student protection plan

· Autoflex plan

· Equity income plan

· Auto classic plan

· Money market plan

· Easy care plan

· Life savings plan

· Instant plan

· Health plan

· Retirement savings plan

· General ( business/ tourism) protection plan

6. African Alliance Insurance Plc

African Alliance Insurance plc., was incorporated on May 6, 1960. The insurance Plc company has a reputation for being efficiencies and trustworthy in Life Assurance. In addition, they personalise their insurance products tailored for each stage of their clients’ lives.

They offer the following policies:

· Annuity assurance plan

· Group life assurance plan

· Esusu plan

· Direct debit form plan

· Individual assurance plan

· Investment assurance plan

7. Goldlink Insurance Plc

This insurance company was incorporated as a Private Limited Liability Company on April 15, 1992, It later converted to a Public Liability Company on May 11, 2007, and was listed on the NSE by an introduction on February 12 2008.

Goldlink Insurance Plc is licensed to do both Life and General Businesses. These include plans such as Motor Insurance, Fire and Special Perils, Oil & Gas, Life & Pension, and Travel Insurance.

The insurance policies they offer include:

· Group Life Insurance plan

· School Safety plan

· Compulsory Insurance plan

· Oil & Gas plan

· Engineering Insurance

· General Accident plan

· Individual Life Insurance plan

· Reinsurance plan

· Liability Policies plan

· Marine & Aviation plan

· Motor Insurance plan

8. Continental Insurance

Continental Insurance is the private sector leader of the pan-African insurance industry. The Company provides life and non-life insurance solutions to its clients across the continent.

They offer the following policies:

· Business Insurance plan

· Insurance plan

· Auto Insurance plan

· Home Insurance plan

· Pet Insurance plan

9. Industrial and General Insurance Plc

The insurance company was incorporated as a private limited liability company on October 31, 1991. The Company got registered as a public limited liability company in 2007. After that, they commenced operations in Life and General insurance, in addition to Pensions and Special Risks in January 1992.

Industrial and General Insurance Plc offer tailor-made insurance solutions to match their client’s unique needs.

The policies they offer are:

· Group Life Products plan

· Mobile Phone Insurance Plan

· Aviation Insurance plan

· Engineering Insurance plan

· General Business Insurance plan

· Health Insurance Plan

· Marine Insurance plan

· Oil & Energy

10. Lasaco Assurance Plc

Lasaco Assurance Plc was incorporated on December 20, 1979, under the Companies Decree of 1968.
At that time, the Company, was called Lagos State Assurance Company Limited. Eventually, they got License as an Insurer on July 7, 1980, and commenced operations on August 1 1980.

The insurance policies they offer include:

· Motor insurance plan

· Aviation insurance plan

· Marine insurance plan

· Professional indemnity insurance

· Fire and Special insurance plan

· Personal accident plan

· Bond insurance plan

· Money insurance

· Householder’s Insurance plan

The companies mentioned above are some of the top insurance companies in Nigeria in no particular order. In other words, you can go with any of these companies, knowing you’re in safe hands. Some others worthy of mention include: Allianz Nigeria Insurance.

Frequently Asked Questions

What is the name of the first insurance company in Nigeria?

Royal Exchange Assurance Agency created in 1918 was the first insurance company in the history of insurance in Nigeria. However, the oldest indigenous insurance company in Nigeria was called African Insurance Company Limited. It started providing services in 1958.

What are the types of insurance companies?

They include standard lines, excess lines, captives, direct sellers, domestic, alien, mutual companies, stock companies, Lloyds of London and more.

How did insurance begin?

Insurance began in the 17th century as a coffeehouse patronized by merchants, bankers, and insurance underwriters.

Is there health insurance in Nigeria?

There are free health care provided. This is provided through a special health insurance scheme for government employees as well as private firms entering contracts with private health care providers.

What is NHIS in Nigeria?

This is an acronym for National Health Insurance Scheme. It is a body established under Act 35 of the 1999 constitution by the Federal Government of Nigeria to subsidize health care for Nigerians.

When did NHIS enter Nigeria?

It was launched on the 6th of June, 2005 . Till date, the scheme has issued 4 million identity cards, registered and accredited 62 HMOs.

How can I register NHIS in Nigeria?

You can register online. Go to nhisonline.com.ng and click on ‘Register’. However, details such as surname, NHIS number and date of birth are required in order to register online. That way, you will be able to manage your account and see the information of your dependants.

What is the role of NHIS?

It protects families from the financial hardships of huge medical bills, limits the rise in the cost of health care services, and ensures equitable distribution of health care costs among different income groups.

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4 Ways that Poor Cash Flow Can Damage your Business

If you are among those who selling on credit and never get paid back or you are cash strapped and unable to pay taxes, rents and staffs salaries. All these challenge can ruin your cash flow if not identified or response to promptly in the financial management of your company and addressed adequately, may lead to liquidation of the business. 

The inability to manage the financial aspect of business has led to failure of some small enterprise and entrepreneurs. Many companies do not have the record of the account receivables, expenditure and income return, other records that do not correspond with cash at hand. Women in business are guiltier of not keeping enough adequate record of their business operations and often use their personal account for business which is very wrong. 

Businesses that are unable to manage their cash flow may not be able to access funds or attract investor and make investment when the need arises. Most entrepreneurs are not aware that they need to acquire financial management skills that would help them overcome risks. Some development financing institution in most country emphasis that business manager seeking funding should acquire training from its accredited entrepreneurship development centres to equip themselves with requisite for good financial management.

What is cash flow management

Cash flow is the revenue or expense stream that changes a cash account over a given period of time. Cash flow usually arise from one of three activities which are financing, operations or investing. Although this can occur as a result of donations or gifts made in the form of personal finance. It is important for business manager to track their revenue and income streams weekly, monthly or yearly. A positive cash flow can arise when accrued revenue from sales and accounts receivable exceeds the cash outflow from accounts payable, overhead expenses, salaries, taxes thereby leaving a wide profit margin. On the other hand, negative cash flow ensue when the cash inflow is lower than negative outflow and in a well-managed cash flow account will show the signs of declining profit before it is too late to remedy.

Essentials of financial management

A fair understanding of accounting, bookkeeping and finance can help change the fortune of your business. Every business owner must have at the click of an eyes his company key financial data such as values of receivable, current inventory level, monthly revenue, monthly profitability and business asset and balance sheet. If you are a business and can not provide these data about your company in minutes then you have a very serious work to do. If you decide to employ an accountant or outsource the finance function, it is still important for you as business owner to have a fair knowledge of finance. It will really help you. 

You must find way to earn more

Earning more as well as reducing overhead cost can make business transactions easier as long as the delivery is satisfactory, money will keep flowing in and the hearts of more clients will be won. To achieve this, you need to strategize on other possible ways of raking more income. Taking time to think critically on how to leverage the existing clients base offer other service can also prove valuable. Spending more time to develop a new product or service in line with the present business and the launching them will also prove more profitable.

Manage your company debt effectively

Starting a business with a loan or funds from venture capitalist has been discouraged by business consultants the plan of most entrepreneurs is to start big and this prompts them to seek funds with attendant interest without having an understanding of the business structure or terrain and the risk associated with it. Businesses that have to purchase expensive capital equipment or make commercial mortgage payment should have equity stake and then seek long term loan with single digit interest rates. Before committing to a loan examine the ability of your business to repay the loan and the interest on it within the stated number of months or years. Assess your debts on a regular basis. Look at repayment costs and see whether you need to reduce or increase your debt funding.

Get your pricing right

Companies that experiencing cash flow management problems may have to under-priced their products and services to satisfy their customers. Increasing your price may lower your sales volume slightly but will enable the business manager to make up for decreased volume with higher profit margin. Lowering your price can as well increase profits because the level of patronages will increase significantly. Market response to higher prices should be tested by changing price in the targeted area. You should also consider price review on an annual basis. 

Starting Out In The Equity Market

Investing in the stock market is a great way to plan for your long-term goals. Trading in stocks is a good long term investment but you must first understand how to invest to avoid losing your hard earned money. When it comes to investing, experts often mention stock’s as an option. Unfortunately, for many people the idea of investing in stocks is like an attempt to become a professor of mathematics and they don’t think they can comprehend it. Although the process is pretty straightforward and with the right approach, tale of success and not woes will be the outcome.

The option of investing in stocks is often put on the table because not only can it be profitable but it is easy. If you are ready to invest in stocks, it is important to understand the basic of how stock market works for you to maximize the profit. One of the thing you need to understand as an individual before investing in stocks is to save enough money. Without money to spare, there will be nothing to invest. Experts stress that it is important for people to ensure that they have built up some form of savings and have stable sources of income before they start investing in stocks. This is because investment in the capital market is best viewed from a long term perspective and not as a short term or get rich quick perspective. It will be unwise for anyone to invest in stocks with the intention of pulling out the investment after just a month or few.

Get enough information

Information is important, there are many people who have invested in stocks without having a clue on what the stock market is all about and what risk they must take to achieve success. They don’t have any prior knowledge to stock market terminology and when they get information which ordinarily should be very useful to them they can’t make sense of it and sometimes they don’t even bother to seek clarification from the professionals.

Understand the investment purpose

The first you need to do when investing in stock market is to think about why you decide to investing. Some want something that will generate an average dividend for them on constant basis. They are some people who actually invest for the future. After you might have decide why you choose to invest, it is important to determine if there are sectors in which you have preferences. 

Get a professional help

A professional help is vital when investing in stock market, while the process of investing may be simple, there are technical aspects that an investor may not understand and need not be bothered with. This is where the professional comes in. you need to invest with someone that can properly guide you through the process.

The process of investing

Once you have decided the purpose for the investment, what sector you want to invest in and save money for the investment, you need to approach the stock broking firm. The firm will then guide through and open a stockbroking account for you and an account with the Central Security Clearing System. When that account is opened, just like a normal banking account, you will need to make a deposit with the stockbroking firm and then you agree with them on what to buy. When all that is in place, they go ahead and buy shares for you and after about three or four days, the stocks would have reflected in your account after which you will get a CSCS statement and also the contract note for the transaction. Whenever you want to buy again, all you need to do is to deposit the amount you want to use to buy stocks and then you specific the stock you want for them; if you don’t want them to make a choice for you.

Diversify your portfolio

This is to help the investor reduce the risk, to diversify your portfolio, it is important to note the preference you have for a particular sector. If there is no preference for a particular sector, it is always better to diversify the sectors. This doesn’t mean buying the shares of different companies. You don’t just buy the shares of different banks and think you have diversify your portfolio. You need to look into each of the sectors and pick the best from those sector at least you can still remain afloat as you have reduced your risk. As much as you are buying into established companies, there are those that are just coming up and you can also put your money there but make sure to make right decisions first.

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How To Earn Your First Money With Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards a certain percentage of commission for each product bought by the customers who are brought by the affiliate's own marketing efforts.  It shouldn't be a surprise to you that affiliate marketing is one of the best ways to earn a reasonable income online. In this post I felt like sharing with you the easiest method to make money with affiliate marketing whether you are a beginner or pro in the business.

Mind you that this content is going to be kind of long and I promised you it going to worth your time but anyway, if you don't read long content you can bypass this one. So, to start with affiliate marketing, you need to look for affiliate network to join. And don't forget that you're promoting digital products here. For the purpose of this post, I’m using Warrioplus as an affiliate network. And make sure you follow this simple guide if you really want to get good result. 

Register With Warrioplus: Warrioplus is one of the largest affiliate products marketplace outside Clickbank. And even if you're a complete newbie you can start with Warrioplus, so if you want to go into affiliate marketing Warrioplus can be the best place for you to start with. The reason while I personally recommend Warrioplus is because most of the products sold on Warrioplus are digital products such as books, video courses, software among others. And for you to start earning from the platform or to start as an affiliate, you first need to have a Warrioplus account.

Registration is 100% completely free of charge, all you need is a functional email address, Your name and if possible PayPal account, But notwithstanding, you can also receive your commission from Warrioplus directly into your bank account. Once you are done with the registration, then chose to promote based on your niche of interest, and not only that, promoting products that you have a passion for can give you less stress. It is also important to promote a product you've a passion for so that they can motivate you to keep on pushing it.

Get a Domain Name For Your Business.

The mistake a lot of people are still making when it comes to affiliate marketing is, not taking building a blog serious. To succeed with affiliate marketing you must need a blog, "IT IS A MUST" whether you like it or not. So, the next thing is to set up your blog.

Because to be successful in affiliate marketing you need to present yourself as an authority figure in your niche. The people who view your products should have confidence in you on what you do because the first step to earning the trust of your target customers is having a blog of your own. And there are many web hosting providers that are even cheap that you can start with, I personally recommend Namecheap because it's very affordable and it the cheapest web hosting services. You can go ahead to purchase a domain from them at as low as $8 per year.

Once you have your domain set up and your blog goes live. Then it time to begin to join many other affiliate program and write about them on your blog with your affiliate tracking link paste on the body of your content. Get Free Stock Images from pexels, I see a lot of people written good content on their blog without a single image. I'll prefer not to post content on my blog if I'll not add image to it. The secret to selling anything online still lies in the images, yes. You need quality images that clearly depict a product you're writing about or the content. And there are many sources of images. 

In fact they're so many reliable source for free images which l recommended earlier like pexels. You can get free images from that website for free on any niche you can think about. All you need to do is to signup and start using the available free images and you're good to go. You can use the images to design your blog, design your adverts, use for your blog content and other purposes. Remember a picture speaks 1000 words. If you cannot explain yourself in words, try using high-quality images on your content.

Promote With Free Traffic

Well, if you don't have money to build a blog of your own you can also promote with free traffic. You can simply advertise or promote using classified ads at adlandpro, Classfiedads. Now for you to start promoting the product you requested to promote from Warrioplus and make some cash. You need to advertise your classified ads at adlandpro or Classfiedads, It's actually the best place to post classified ads for beginners. And the good thing is that you can post classified ads absolutely free of charge. And you've the option of customizing your target audience based on the products you're promoting and it is important also to narrow your target audience to a specific countries.

However, you can also use the paid classifieds to increase your sales if you want fast result. But, if you're going the way of building your blog, once your blog is set up and everything is in order, it is your duty to keep on creating content on your blog. And if you decide to also use social media sites for your promotion, it is also important to treat all your social media platforms as marketing tools to keep on increasing sales and building relationships with your audience.

If you can follow all that I just shared with you here I can assure you of making your first commission from Warrioplus or any other affiliate network you decide to promote as an affiliate marketer. 

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5 Simple Ways to Save More Money and Grow Your Savings

There are various ways to grow your savings account to achieve your targets. Many of us struggle with keeping cash. Our savings account is not different from our normal wallets or purses. We deposit money in today and tomorrow we take it out. Many of us are forced to act this way due to economic challenges. We however, do not make any efforts to improve our savings. Withdraw money regularly from the account should number one thing to avoid if we intend to grow our savings account. It is not a bad idea to take money from your savings account especially you created the account for an emergency. The problem however, is when the withdrawing is outside the purposes for which the accounts were created. Below are steps to take to help improve your saving habits and growing your account.

Keep your savings out of reach

Once you have developed a saving habit and consequently you now have a saving. You need to learn to stop dipping your hands into the account for purpose other than that which you opened the account. This is one of the challenge many people have when it comes growing their saving account. They make their savings account very easy to access and are therefore tempted to withdraw funds from the account. You should try your best to ensure that you do not take money out of the account randomly. It is advisable to just forget that you have money somewhere. Because as long as your reminded that you have money somewhere and it is accessible, you are likely to spend the money. 

Watch your expenditure

In order for you to save, you need to watch how you spend your money, learn to spend less than you earn. Similarly, to grow your savings you need to spend less than you are spending at the moment. There are various tools online that can be used to help you keep your expenditure in check. All you have to do is to ensure you document all your expenses, lets say for example: weekly, monthly or yearly, depending on how regular your income is. At the end of the period you can always review the expenditure to determine what you spend your money on and expenditure you can reduce to cut costs. To keep your expenses in check, budgeting is a must and you cannot do without it. It is not about drafting a budget and dumping it somewhere, you must stick to it. Failure to do this might see your expenses rise instead as you will be prone to spontaneous shopping.

Make your savings automatic

Sustaining s savings habit can be a very huge challenge for many people. It is common to see people save regularly for months only to stop abruptly for a longer period some people are consistent while other are inconsistent in terms of savings, some end up blaming it economic challenge. For you to overcome this challenge, you should adopt automatic savings approach. This will ensure that part of your income is automatically saved. Many banks offer products that allows for such arrangement. Such arrangement would ensure that instead of you receiving your salary and the later battling with yourself to push part of it into savings account, a part of will be deducted automatically and kept in your savings account while the rest will be paid to you. This sound great right! Just as you are able to cope with your tax and pension deduction you should also be able to cope with the deduction for your savings account. It is also a great way to avoid making your savings too accessible.

Monitor your account balance

It might sound weird but some people have never demanded an account statement from their bank before. While some who received the statements hardly bother to even look at them. Such people are likely to be shocked to see someone in a banking hall demanding to see the bank manager because a certain amount was deducted from their accounts. It is important to take note of your account balance and always strive to understand the implication of new financial regulation on your accounts and savings. In order for you to grow your savings accounts, you need to understand what the interest on your savings is and that it has been or is been paid into your accounts. You also need to understand the fees you will have to pay for any transaction you will carry out on your accounts and ensure that not more than the stated amount is deducted from your accounts. 

Choosing the eight savings account

The basic services offered by banks are inter-related, the interest rate they offer and the charges for their services differ from bank to bank. It is important you choose the right kind of savings account or else it would be difficult to get the desired benefits from your savings. When choosing a savings account it is important you consider; the interest rate, account charges, minimum and maximum balance and the cost of withdrawals. Always find out first so you don’t end up losing excess money to the banks.

Although there are no magic tricks to make you an instant millionaire, there are a few things you can learn to help you reach your goals. No matter how much debt you have or how little income you make, with a right attitude toward money you can figure out how to make your money grow in a saving account with the right financial plan. If your goal is to make millions so you can buy your dream house, travel the world, buy new cars, pay children school fees or even to help other people, then these seven steps will help you get there in no time.

Making a budget is not difficult, but it can seem daunting if your personal finances need a big overhaul and you are desperately trying to build wealth. A helpful budget app may get you on the right path, but the most important thing to remember here is to make your budget realistic! When you are trying to decide what to cut off from your current spending, look for things you know you can live comfortably without. That’s mean getting rid of some of your monthly subscriptions like: phone, magazines, trips to nail salon or anything you know that is more of a want than a need.

After you have made those cuts, divide your income into three piles like this below lists:

1. One for your saving account

2. One to pay your bills and basic necessities with

3. And the left over extra cash just for fun or other minor emergencies.

Too strict of a budget will drive you crazy, and the best way to maintain good financial habits is by rewarding yourself even if it is just with a new outfit from time to time.

· How to build money by setting goals

Even if you make the most amazing financial plan in the world, without setting a specific saving goal in mind, the chances of you actually sticking to your budget are pretty slim. Do you want to save up to buy a home? Create an emergency fund? Whatever your goals are, assign price tags and deadlines to give your budget purpose and to keep you motivated while saving money.

· How to build saving quickly set it and forget it

The great thing about online banking today is that for almost everything, you can set it and forget. If you want to allocate 15 per cent of your monthly income for retirement saving and five per cent for your down payment fund, set up transfers for every pay cheque so that money goes exactly where it needs to automatically. This will help you build your saving habit by reinforcing the habit of paying yourself first, and will save your time and effort as well.

· How to maximise saving by avoiding credit purchases

Today many people are wary of using credit cards since this can lead to hefty debts if not used wisely and responsibly. But not only are they generally more secure to use than debit cards; they can also make you money that you can put directly into your saving. Depending on the cash back credit card you get, for every Maura you spend, you will get money back either directly onto your card or in cheque form. Now that is just easy money right! As an added bonus using credit cards responsibly will help raise your credit score by lower your interest rates and save you money down the road.

· How to build your money by knowing your worth

Although sometimes you might just be thankful to have a job, it is also important to know your worth and be paid accordingly. Do some research to see if you are being paid the median salary for your current role, and if not, it might be time to ask for a raise or look for a new job that pays better while still working! Remember don’t leave your current job until you find one that pays more. And the more money you make, the more money you can put into a saving account.

· How to make money grow in a saving account by getting a side gig

Many people these days have second job called side hustles to supplement their full-time income, and it is a great way to accelerate your savings, too. Are you natural at crafts? Maybe you should consider selling some of your crafts. Do you enjoy concerts and sporting events but don’t want to pay for them? why not find a part-time job at night working at the stadium to maximise your savings.

· How to maximise saving by investing

Putting extra money into saving is important. But to make sure that money grows or even just maintains its worth over the years with inflation, you need to start investing with a good investment strategy. The more you save, you need to make sure that big chuck of change is put to good use, and that might mean putting it into investments, bonds, stocks, shares, mutual funds or other investments in the money market, or consider venture into small business.

· How to build your money by making sacrifices

Above anything else, the oldest trick in the book to build up your savings account is to make some sacrifices with products and services. That might mean cutting back on eating out or participating in social activities. No matter what, at the end of the day, all of those sacrifices will be more than worth it. Not only will you be a heck of a lot richer for doing it, but you will never have to waste another night losing sleep worrying about money.

You don’t need a financial adviser to learn how to build your money. If you are really serious about getting on the right track financially and build wealth, these seven tips provided will help you to make money grow in your saving account. Regardless of your age or current financial situation, now is the right time to start curbing those bad spending habits and planning for a richer and more fulfilled future. Do you have a suggestion or contribution? Please leave a comment below and share your thought with us.

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Advantages of incorporating small business in Nigeria

Although incorporating a small business requires a considerable amount of paperwork and can seem confusing to new entrepreneurs, forming a corporation can hold a number of benefits for profitable small businesses, experts say. Small business owners often feel the taxman’s pinch when reporting earnings, as the tax bill on a small venture can quickly climb into double-digit percentages. This high tax rate on unincorporated businesses comes from a combination of federal income taxes on the business earnings and an additional self-employment tax depending on the location and country. Different states in Nigeria usually have their various tax requirements, but it is important that you incorporate your small business if you have the wherewithal to do so. Experts note that incorporating a small business/ venture pays and has its way of impacting positively on one’s business. You can visit the Corporate Affair Commission for more details on how to incorporate a firm.

Liability

Small business entrepreneurs who do not incorporate typically bear full liability for the business’ obligations. If the business amasses debt that it cannot pay, creditors may take a legal action against the business owner to secure repayment. Similarly, customers or employees who become injured on the business property may pursue claims against the business owner’s personal estate. When a business incorporates, the incorporation becomes a separate and distinct legal entity. This entity, rather than the business owner, assumes liability for the business’ obligations. For this reason, many business owners who incur significant debt or who operate in high-risk industries tend to incorporate as a way of shielding personal assets from liability. 

Funding

Most businesses require some kind of outside funding to get off the ground, and incorporation can help to improve the business’ fundraising capabilities. A corporate structure lends a measure of credibility to the business in the eyes of some investor, as the business owner must register the business with state authorities and complete certain procedures during the incorporation process. In addition, some investors feel more comfortable funding a corporation, as the business’ status as a separate legal entity allows investors to recoup assets from failed ventures. Because owners who incorporate may also be able to raise funds and even attract top talents by issuing stocks, an option that is not available to unincorporated organisation.

Consideration It is important you make adequate considerations and checks before incorporating your small business. Meet with qualified attorneys and know what is required of you before going ahead with the process of incorporation. Although the corporate structure offers a number of benefits to small business owners, entrepreneurs should keep some considerations in mind before incorporating. Many states require corporations a file paperwork and complete various verification procedures as part of the incorporation process, and many states charge corporations to file mandatory annual reports. Finally, corporate officers may still bear personal liability for corporate debts and lawsuits; so, business owners should consult a qualified corporate attorney before beginning the incorporation process.

6 Factors to Consider Before You Decide to Sell Your Business

Not all business owners have the intention to sell at the beginning of their business, as the business grows and conditions like retirement or liquidation set in, many entrepreneur consider selling their business. Before you decide to sell your business, several decisions have to be made to get good returns from it. Selling a business requires a critical thinking process and an adequate planning because decision on the appropriate timing to sell is important for profit making. You also need to consider the reasons for selling your business, the structure and strength of the business.

Although the process could be challenging, complex and emotional due to years of hard work and creative input, you still need to be prepared, most business owners actually fail to make profit from the sale of the businesses, the key to having a profitable sale is to enlist the services of a broker, an accountant and an attorney earlier on to ensure that the businesses are adequately prepared before presentation for sale. You need to convince the buyer that they are making the best choice by buying your business. What you are offering them should be the solution they need and should guarantee the right results. Experts have pointed out some things that you should consider to ensure that your business is properly prepared and eventually sold to the right person at a good price.

Prepare for the sale

Most entrepreneurs sell their business due to constant losses, illness, retirement or partnership dispute, this should not be the main reason because every potential buyer takes precautionary measures and check for signs that the business is not profitable. Therefore, consider your business appeal to potential buyers, its readiness and your timing. Your business must have strong customer base, consistent income figure, a high profit margin, evidence of successful executed contracts and landmarks of growth. Early preparation is important because the fact that the business is valuable does not mean it will attract buyers immediately, its need to be properly groomed to sell at a profitable price. The grooming will help to improve your financial records, business structure and customer base to make the business more profitable. These improvements will also ease the transition for the buyer and keep the business running smoothly years after sale.

Reflect on your potential buyers

Before you put your business up for sale, you need to consider who is likely to show an interest in it. Will it be competitor, a foreigner or someone working with a similar customer base? The reality is that each buyer will be looking for something different so start thinking about attractive attributes of a thriving business at an early stage as it is likely to pay dividends. It is certain that any price that they are willing to pay is driven by what they believe the business can achieve in the future. This is why the presentation of your growth of your growth opportunities is so important. 

Get the services of a broker

However, in other circumstances, an experienced broker who can sacrifice the time for you to keep the business up and running, keep the sale quite and get the highest price because the broker will want to maximise his or her commission will be better. A broker will help you with the complicated planning you will require to do before you put the company up for sale. Discuss your expectations and advertisements with the broker and maintain constant communication.

Make a business valuation

Consultation with experts is critical to reap the fruit of your years of labour. Accept divestment advice to avoid taking unnecessary risk. The next step is to determine the worth of your business to ensure a high asking price is fixed for it. The appraiser will draw up a detailed explanation of the business worth which could be presented as evidence to the buyer. The document which should also contain a list of equipment being sold with the business will bring credibility to the asking price and can serve as a measure for your listing price.

Prepare the important documents

There are number of documents that you should prepare, both before you pursue a sale and after. Create a list of contacts related to sales transactions and suppliers and dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified potential buyers. You should gather all financial statements and tax returns dating back three to four years, depreciation deductions, contributions, interest expense and income and any other items of income or expenses that are important to the business and review them with an accountant.

Effective negotiation

Negotiation tactics will get you the best business deal. A deep understanding of the buyer’s need will clarify the negotiation tactics to use. You should be able to understand the purchaser’s motives and needs then align yourself with them. Once an overlapping interest has been identified, take advantage of it immediately and build on it. Your tactics should neither be resistive nor combative but should reinforce the linkage, shaping an agreement. Emphasise the strength of the business you are putting up for sale. Act in a self-assured manner and don’t be defensive rather be persuasive. Expressed feeling are irrefutable. A statement like ‘your price is not fair’ will provoke attack. It rejects the seller’s notion of worth. However, statements like, ‘I don’t feel the price is fair enough’ relate your feelings better in a polite manner. Stay calm and be firm in your decisions. Do not be aggressive or emotional because it is a sign of desperation to the buyer.

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