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Friday letters are usually dedicated to taking questions from our community. Do you have a question for us? Please feel free to
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Please, can you address the issue of personal debt and how best to come out of it?
Personal debt or debt in general is a topic that nobody likes to talk about and it can be a difficult position to be in, but not to worry, here are some tips you can practice to come out of debt and work towards financial stability:
- Assess your debt: Start by gathering all your financial statements and make a list of all your debts, like loans from the bank, loans from family and friends and any other outstanding balances. Note down the interest rates, minimum payments, and due dates for each debt.
- Create a budget: Establish a realistic budget to track your income and expenses. Identify areas where you can reduce optional expenses like your wants and allocate more funds towards debt repayment. Consider using budgeting tools or apps to help you stay organised and monitor your progress.
- Prioritise debts: Determine which debts have the highest interest rates or the largest outstanding balances. Focus on paying off these debts first, as they are costing you the most in interest charges. Make minimum payments on all debts while allocating extra funds towards the highest-priority debt.
- Increase your income: I know it can sound insensitive to say this, especially in the type of economy we live in, assuming that you live in Nigeria. Nevertheless, there are lots of opportunities everywhere; we just have to dig deep. What are the ways you think you can increase your income? Are you able to take up a part-time job? Do that! Do you have skills that you think people will pay for? Monetise it! Or better still, sell valuable things that are lying idle around your house, instead hoarding them! The additional income can be directly applied towards debt repayment, accelerating the process of becoming debt-free.
- Cut expenses: This is the most difficult step because you’re already used to your lifestyle. However, the truth is that there are lots of things that you can live without, at least until you’ve paid off your debt. Review your expenses and identify areas where you can cut back. This might involve reducing spending on your wants, renegotiating utility bills, finding more affordable alternatives for services, or downgrading certain lifestyle expenses temporarily.
- Stay motivated and track progress: Paying off debt takes time, so it's important to stay motivated along the way. Celebrate milestones and track your progress regularly. Seeing the debt balances decrease can be encouraging and reinforce your commitment to financial freedom. I’m rooting for you!
I have a retail store for foodstuffs and provisions, but it's not growing. What should l do to grow the business?
Let’s discuss some strategies you can start effecting to help boost sales and then in the long run see significant profit!
- Analyse your target market: This is where a lot of Nigerian businesses tend to miss it. You have to first know who your target market is. Are you selling to families? Are you trying to attract the attention of children in particular? I know it’s a provision store but who exactly are you selling to? When you are able to answer that, you can then move on to understand your target customers and their preferences. This will help you tailor your offerings and marketing efforts to better attract and retain customers.
- Enhance your product selection: Don’t make your stalls boring; introduce new products every now and then. For example, if a customer comes asking for a product and you don’t have it, take note of that product and buy a vast variety of that product and alternatives to that product as well. Review your inventory and consider expanding your product range to offer a wider variety of foodstuffs and provisions.
- Improve your store layout and visual merchandising: Ensure that your store is visually appealing and easy to navigate. Even if it’s just a kiosk, make sure it’s eye-catching and shows that you’ve paid attention to details. A well-designed store can enhance the overall shopping experience and encourage increased sales.
- Develop an online presence: In today's digital age, having an online presence is crucial. Create a page on any social media platform of your choice where customers can browse your products, place orders, and find information about your store. Utilise social media platforms to engage with your audience, share updates, and run targeted marketing campaigns.
- Seek customer feedback: Actively seek feedback from your customers to identify areas for improvement and understand their evolving needs. You can talk to them when they come into your store or you can even set up polls on your social media pages to gather feedback and make necessary adjustments. Address any complaints promptly and proactively to show your commitment to customer satisfaction.
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