Who doesn’t want a profitable business? There is a list of essential things that every entrepreneur must have and understand to start and scale their business successfully. These elements are critical to the growth of any business. Many have continued experimenting with various methods and strategies to achieve their goals and scale their businesses. There are numerous ways to accomplish this. One main path is hard work and consistency, while another is having all of your company’s legal documents in order. So, let’s discuss the various essential business needs that can help scale your business.
Business Incorporation
Incorporation is at the top of the list of what your business needs. While attracting new customers is important, keeping them is even more essential. For your business to thrive, you and your customers must trust each other. Incorporating your company is one way to gain people’s trust. Speaking of trust, a friend once told me about a customer who wanted to buy from her but changed her mind at the last minute. Why? Because she did not believe in the legitimacy of her business because she did not have a registered company or a business account.
It is essential to register your business, obtain your Certificate of Incorporation, and publicize it so that your customers know your company is legitimate. The significance of having a registered business can never be over-emphasized. Hence, Mintyn Online Bank has made a seamless approach such that you can register your business and even open a business account anywhere. You can also read about how Mintyn Online Bank is disrupting the banking industry with technology.
Cash Flow
You can never take away the credibility a business account gives your business. It simply removes ambiguity and gives your trade legitimacy. Many entrepreneurs have the desire to grow their trade. However, growing your business requires capital. Let’s talk about what “cash flow” means for your trade. When banks say, small businesses are not financially reliable enough to justify the extension of credit. In other words, such an enterprise lacks a record of its commercial operations because it receives payment for sales in a personal bank account rather than an active business (current) account.
If you’re wondering, does this mean I am on the right track to accessing capital to scale my business if I have a current account? The answer is YES! Would having a current account alone be enough? No, it is not enough, but it is the first step. Now that you know the importance of opening a current account for your business. So, what are other requirements you need to put in place? Let me introduce the next thing your business needs.
You can open a business account in less than three minutes with Mintyn Online Bank.
Tax Identification Number
What is TIN?
You are probably guessing what a tax identification number is. You might be right. A tax identification number is a unique number allocated and issued to identify a person, either an individual or an enterprise, as a duly registered taxpayer in Nigeria. TIN is an abbreviation for Tax Identification Number. As a Nigerian, you are taxable at 18, provided that you are earning a regular income.
If you receive Mintyn weekly Newsletter, you will know we discussed the essential things needed to scale up your business. We told you that the TIN is also as important as other things previously mentioned. The Tax Identification Number (TIN) is a legal and vital requirement for every entrepreneur in Nigeria. It is an identification number unique to your enterprise for majorly tax-paying purposes. Every commercial entity wants to scale its business as time passes, and you must ensure that you meet all legal requirements. One is having your TIN, but how do you obtain it?
The Corporate Affairs Commission has enabled incorporated companies to get their TIN when registering their organization. However, suppose you registered your trade before 2020. In that case, you have to apply for TIN at a FIRS company near you or the Joint Tax Board website online. All you need is your Certificate of Incorporation, utility bill, and valid Identity cards of directors.
Also, a sole proprietor that only registered their business names has to apply for the TIN at a FIRS company or the Joint Tax Board online. All that is required is your Utility bill, Valid ID card, and CAC document. You don’t have to worry about the process being technical. It is pretty straightforward and seamless. The good news is that Mintyn Online Bank can file your TIN and obtain it for you.
However, some public misconceptions about Taxes regarding banks and the Government exist. Some business owners believe that banks are mandated to collect taxes independently. Whereas banks do not have the mandate to collect Taxes on their own. Tax regulatory bodies will come to you. While some small business owners are hesitant to obtain their TIN and incorporate their business because they believe that tax deductions begin to accrue once registered but in an absolute sense, you only pay tax after two years of incorporation and when you have made a profit. Now that you know that getting your TIN is not as complicated as some say. Make a move today to file for yours if you haven’t.
Cut the Cost of Transfer
Another thing you need to start and scale a business is the awareness that every N1 matters in your finance. Therefore, you will agree that every entrepreneur or establishment needs to cut the cost of doing business.
Do you know there is a common enemy every finance has? Guess what it is? Well, this enemy is called Cost of Transfer (COT)
As an entrepreneur in Nigeria, the excessive bank charges, especially the Cost of Transfer on business accounts, have an overwhelming impact on both saving culture and business income.
The cost of transfer is simply the charges you are mandated to pay for every cumulative debit or withdrawal that transpires in your account.
As an entrepreneur, do you know the cost of transaction charges on your current account at your local bank? Most local banks charge you for every transaction in Nigeria. The current account maintenance fee (CAMF) applies to you as a corporate account owner. You’d have to pay for every withdrawal, data purchase, bill payment, airtime top-up, and e-transfers. It is also worthy of note that most local banks charge N1 per mile. In other words, for every one thousand in transfers above one million naira, you are charged N1. For instance, it will cost you 1,000 to transfer 1,000,000, and1,500 Naira to transfer 1,500,000, or N10,000 to transfer 10,000,000.
Many small-scale enterprises complain about outrageous charges after opening a corporate account. Some close such accounts due to the unbearable charges. As an entrepreneur, doing many daily transactions accumulates millions of naira annually, which are substantial costs. These imposed charges could go a long way to scale up your income. Imagine a situation where you don’t have to pay a dime to transact.
Mintyn Online Bank offers zero transaction costs or account maintenance fees. It puts you in charge at no charge as a starter in the entrepreneur world. So, I’d like you to Imagine a situation where you don’t have to pay a single kobo.
Key Take-Aways
- Having all the necessary legal documents for your company increases your chances of obtaining the credit you need to grow.
- Mintyn Online Bank can help you obtain what your business needs.
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