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Thursday, 10 November 2011

UNDERSTANDING THE EFFECTS OF FUEL SUBSIDY REMOVAL IN NIGERIA THROUGH GENERAL EQUILIBRIUM: THE THOUGHTS OF A YOUNG ECONOMIST 1

The controversy surrounding the plan to
remove oil subsidy has continued to gain
ground, particularly among the governors.
The myopic thought of some of governors
is that, only the removal of the oil subsidy
could bring more revenue for them from
the Federation Account, as a saving grace
to bail them out of the increasing overhead
burden brought about by the new
minimum wage. To them, the N18,000
minimum wage cannot be paid unless their
share of the national cake is substantially
increased through removal of oil subsidy.
It is therefore an economic blunder for any
government in Nigeria of today, to remove
the so-called subsidy on petroleum
products. This is not the best of time to
think in that way. Such resolve would only
lead Nigeria to economic suicide, which
would neither favour all levels of
governments, the private sector, which
clamours for subsidy removal, or the
common man, who is bound to bear the
burden for the following reasons:-
1. Prices of goods produced in the country
would automatically increase.
2. Transportation fares would sky rocket to
the extent that the common man would be
forced to make most of his trips around his
vicinity on foot.
3. Health care delivery would also be
affected adversely since the common man
may find it difficult to raise money to treat
himself.
4. The notion that the money accruing from
subsidy removal would be used to provide
infrastructure to accelerate economic
development would be a mirage.
5. It is the common man, whose interest,
the government is claiming to protect that
would suffer most.
6. In the final analysis, the federal
government would realise that removal of
oil subsidy would be counter-productive as
it would not be the best option to improve
our economy.
The best panacea to all our petroleum
problems is the provision of indigenous
mini-refineries.
It is unfortunate that the main issue that
has occupied the Federal Government’s
agenda since the era of Obasanjo, is the so-
called removal of subsidy from petroleum
products. Nigerians expected Obasanjo
Government, since May 29, 2003 to have
brought economic succour and prosperity
to them. In his second coming, three square
meals were expected to be on the table of
Nigerians, employment opportunities for
the jobless, integration and development of
rural areas, and make life more abundant
for all-apology to the great sage, Oyeniyi
Obafemi Awolowo. But these expectations
were dashed. After he took over the
mantle of leadership on May 29, 1999, he
increased the pump price of petroleum
products eleven times throughout his 8-
year tenure, leading to nationwide strike
on six occasions. This means that
something is wrong somewhere,
particularly when Nigeria could not produce
adequate refined petroleum products for
domestic consumption. It had to resort to
heavy dependence on importation of the
products. The idea of mini-refinery was first
mooted some years ago to complement
the output of bigger refineries in the
country, but was quickly swept under the
carpet by the president because it would
obstruct importation of petroleum products,
thereby putting some cronies of the
government, who imported the products
out of their lucrative business. So, the
selfish interest of certain individuals in
government was allowed to prevail over
national interest.
That is why this cartel makes sure our
refineries are not maintained properly so
that they could continue to import
petroleum products permanently for their
own gains. When government talks of
removing subsidy from petroleum
products, is it not to shore up the gains of
this same cartel in charge of importation of
the petroleum products which we could
easily produce at home at cheaper price, if
the four refineries were made to function
at optimum capacity? The same cartel is
behind the illegal bunkering and smuggling,
which results in government losing more
than $3.5 billion every year according to
Central Bank Report.
PERMANENT SOLUTION TO REMOVAL OF OIL
SUBSIDY
The Federal Government has the solution
at its finger tips. It is not jacking up prices of
oil products every time, or mass
importation of the oil products, which has
turned to be a soft landing pad for
emergency millionaires, as being done at
present, it is not by removing the so-called
subsidy in order to have what our
president called “marginal gain”. But by re-
ordering our system of local production of
the petroleum products. In doing this, we
have to be in-ward looking. It should be by
establishing mini-refineries in the 6 geo-
political zones of the country to start with,
preferably near cement manufacturing
centres, which will make use of most of
the by-products of the petroleum products.
Nigeria has the manpower with adequate
technical know-how to design, construct,
fabricate and construct mini-refineries. The
little inputs from the foreign experts can be
readily made available by Malaysia,
Indonesia, India or any other developing
country that depends mainly on mini-
refineries for the energy supply of their
domestic needs. Malaysia alone has about
28 mini-refineries as at 2000 to provide for
the required energy supply for
transportation and manufacturing
industries. Most of the developing countries
don’t depend solely on the type of gigantic
refineries that we have in Nigeria and
which are difficult to maintain. They have
failed to provide adequate premium gas
for our domestic needs because of lack of
effective turn around maintenance (TAM).
It is a tragedy that for the better part of
our existence as an independent nation,
particularly since the military rule of
Ibrahim Babangida, Nigerians have been
facing one form of fuel scarcity or the
other. The situation refuses to abate.
Instead, it continues to linger due to poor
maintenance of the four refineries.
In the words of Larry King, “Nigerians
import what they have and export what
they don’t have.” What a parody!
Nigeria can solve this problem, which has
become seemingly intractable. During the
military era, the junta preferred to import
fuel for local consumption in order that
their immediate families and cronies could
largely benefit. Therefore, they preferred
importation to the maintenance of these
refineries. When the civilians took over,
they continued to import the needed
premium gas as temporary measure,
thinking that, as soon as the ‘Turn-Around
Maintenance’ (TAM) of the refineries was
carried out, importation of the petroleum
products would stop. But this was not to be.
Two weeks after the TAM was carried out
on Kaduna refinery, it was gutted by a
mysterious fire, the cause of which has not
been discovered up till today. Because of
one problem or the other, the four
refineries could not be adequately
maintained. The civilian government of
Obasanjo and Umaru Yar’Adua has no
alternative but to continue to import.
WHY THE REFINERIES COULD NOT BE
MAINTAINED
The terms on maintenance were not
sufficient enough to keep the refineries in
good shape for a longer period before
breaking down.
Whenever the TAM is to be carried out
periodically, foreign experts are brought
into the country but they have to wait
endlessly to do the work, whereas our local
experts in this field have not been
adequately trained to effectively take
over the TAM from the foreign experts
who installed the refineries.
It follows that there should have been local
workshops where the needed spare parts
for TAM should be fabricated and
manufactured, instead of waiting endlessly
for the arrival of such imported
components for repairs. Such workshop
would have provided more jobs for our
jobless technicians and engineers in that
field;
The authorities of these refineries have
failed to make use of certain government
parastatals, such as: Scientific Equipment
Development Centre, Enugu which was
responsible for the fabrication and
production of some essential components
for the refinery in Port Harcourt in the past
and Engineering Material Development
Centre, Akure. These two Federal
Government parastatals, under the aegis of
National Agency for Science and
Engineering Infrastructure (NASENI), have
the capacity and technical know-how to
produce needed spare parts and
complementary expert support to
contribute to TAM of the refineries;
Whereas, if a good maintenance culture
had been put in place, it would have led to
massive job creation with small and
medium enterprises, springing up
everywhere, paving way for jobless youths
who are roaming aimlessly on our streets,
looking for jobs that are not there. Naira
will naturally appreciate in value. Our
external reserves are definitely going to
increase, leading to real stability and
increase in the value of our local currency,
which at present, is nothing to write home
about. If we were to consider the volume
of our trade in crude oil, high inflationary
trend will be checkmated and Nigerians will
have value for money in their hands.
NEED FOR ESTABLISHMENT OF INDIGENOUS
MINI-REFINERIES
The better alternative to importation of
petroleum products is to establish mini-
refineries all over the country. In October
2000, when the report of the special
committee on review of Petroleum
Products Supply and Distribution was
released, the opinion of NASENI was sought.
The Agency came up with very beautiful
recommendations, which we are sure the
Presidency has not seen up till now.
An aspect of that recommendation deals
with establishment of mini-refineries across
the length and breath of the country as the
best panacea to checkmate the incessant
fuel scarcity in the country.
SOLUTION THEREFORE IS INDIGENOUS MINI-
REFINERIES
Nigeria could escape the vicious cycle of
fuel scarcity and jacking up the prices of
petroleum products and there will be no
talk about the removal of the so-called fuel
subsidy. There is an urgent need to ensure
the internal development of delivery
system for oil refining and pipe line
technologies to be developed along side
the existing imported ones. It is therefore
recommended that:-
i. Government should adopt a policy of
home-grown development of refining of
crude oil and processing of petroleum
products and by-products;
ii. To this end, government should
commission the conceptualisation, design,
manufacture and installation and test-
running of a prototype mini-refinery within
a specified period of time, to be fully
funded and the right manpower deployed
to ensure its success;
iii. Government should ensure the
proliferation of mini-refineries across the
length and breath of the country, and
preferably around cement plant locations in
the first instance, which needs certain by-
products of petroleum in the manufacture
of cement, based on the developed
technology.
iv. In the mean time, government should
ensure that all future TAM contracts of the
nation’s refineries and pipeline must have a
clause which requires the foreign
contractors to establish workshops locally
for the manufacture of certain percentage
of the spare parts and components to be
used in the maintenance contract:
v. All these should be tied to the NASENI
mandate as part of its programmes
already approved by the government. We
assure the government that by the grace
of Jehovah, it will be able to actualise this
fit within 6 months of its existence through
NASENI, which has the capacity to source
for the needed manpower with the
required technical –know-how, both within
and outside its existing parastatals.
ADVANTAGES OF BUILDING MINI-REFINERIES
It is my candid belief that several
advantages will accrue to the country if
mini-refineries are established:
i. Refineries will be built at more affordable
cost because it is indigenous technology;
ii. The strategy will constitute a driving
force for the rapid development of all
aspects of engineering, science and
technology, locally in the petroleum sector;
iii. It will generate a large pool of
engineering design and manufacturing
industry in human resources in support of
oil refining and pipeline industry that will
emerge;
iv. A great number of these firms will be in
the small and medium enterprises cadre;
v. An indigenous capability in maintenance
will follow as a natural cause, with
workshops turning out spare-parts, locally
fabricated and manufactured, for
maintenance of the mini-refineries;
vi. Most of the inputs into the operations of
the mini-refineries will be obtained locally;
vii. Mini-refineries, suitably and strategically
located across the country, will develop
their own local captive markets which they
will serve more effectively, thus doing
away with the problems of long supply
lines and bridging issues;
viii. Prices of petroleum products will
drastically reduced; and industries using
petroleum products and energy to propel
their equipment will become more vibrant
and have capacity to produce up to their
maximum level because of cheap
petroleum products;
ix. In future, exportation of our crude oil
will be reviewed. Nigeria will prefer to
export more of the refined products
overseas, since its by-products will largely
serve our emerging industries as avenue
for attracting more foreign exchange
earnings, through exportation of such
capital goods.
Finally, such a strategy will help the Nigeria
Economy and enhance the welfare of the
citizens. In essence, it means that
establishing mini-refineries all over the
country, is synonymous with establishing
avenues for job creation.
Perhaps, if Mr. President, and Commander
in Chief of the Armed Forces, Ebele
Goodluck Jonathan, can accede to the
laudable project for the benefit of all today,
Nigeria can be a better place for us to live
tomorrow.
The controversy surrounding the plan to
remove oil subsidy has continued to gain
ground, particularly among the governors.
The myopic thought of some of governors
is that, only the removal of the oil subsidy
could bring more revenue for them from
the Federation Account, as a saving grace
to bail them out of the increasing overhead
burden brought about by the new
minimum wage. To them, the N18,000
minimum wage cannot be paid unless their
share of the national cake is substantially
increased through removal of oil subsidy.
It is therefore an economic blunder for any
government in Nigeria of today, to remove
the so-called subsidy on petroleum
products. This is not the best of time to
think in that way. Such resolve would only
lead Nigeria to economic suicide, which
would neither favour all levels of
governments, the private sector, which
clamours for subsidy removal, or the
common man, who is bound to bear the
burden for the following reasons:-
1. Prices of goods produced in the country
would automatically increase.
2. Transportation fares would sky rocket to
the extent that the common man would be
forced to make most of his trips around his
vicinity on foot.
3. Health care delivery would also be
affected adversely since the common man
may find it difficult to raise money to treat
himself.
4. The notion that the money accruing from
subsidy removal would be used to provide
infrastructure to accelerate economic
development would be a mirage.
5. It is the common man, whose interest,
the government is claiming to protect that
would suffer most.
6. In the final analysis, the federal
government would realise that removal of
oil subsidy would be counter-productive as
it would not be the best option to improve
our economy.
The best panacea to all our petroleum
problems is the provision of indigenous
mini-refineries.
It is unfortunate that the main issue that
has occupied the Federal Government’s
agenda since the era of Obasanjo, is the so-
called removal of subsidy from petroleum
products. Nigerians expected Obasanjo
Government, since May 29, 2003 to have
brought economic succour and prosperity
to them. In his second coming, three square
meals were expected to be on the table of
Nigerians, employment opportunities for
the jobless, integration and development of
rural areas, and make life more abundant
for all-apology to the great sage, Oyeniyi
Obafemi Awolowo. But these expectations
were dashed. After he took over the
mantle of leadership on May 29, 1999, he
increased the pump price of petroleum
products eleven times throughout his 8-
year tenure, leading to nationwide strike
on six occasions. This means that
something is wrong somewhere,
particularly when Nigeria could not produce
adequate refined petroleum products for
domestic consumption. It had to resort to
heavy dependence on importation of the
products. The idea of mini-refinery was first
mooted some years ago to complement
the output of bigger refineries in the
country, but was quickly swept under the
carpet by the president because it would
obstruct importation of petroleum products,
thereby putting some cronies of the
government, who imported the products
out of their lucrative business. So, the
selfish interest of certain individuals in
government was allowed to prevail over
national interest.
That is why this cartel makes sure our
refineries are not maintained properly so
that they could continue to import
petroleum products permanently for their
own gains. When government talks of
removing subsidy from petroleum
products, is it not to shore up the gains of
this same cartel in charge of importation of
the petroleum products which we could
easily produce at home at cheaper price, if
the four refineries were made to function
at optimum capacity? The same cartel is
behind the illegal bunkering and smuggling,
which results in government losing more
than $3.5 billion every year according to
Central Bank Report.
PERMANENT SOLUTION TO REMOVAL OF OIL
SUBSIDY
The Federal Government has the solution
at its finger tips. It is not jacking up prices of
oil products every time, or mass
importation of the oil products, which has
turned to be a soft landing pad for
emergency millionaires, as being done at
present, it is not by removing the so-called
subsidy in order to have what our
president called “marginal gain”. But by re-
ordering our system of local production of
the petroleum products. In doing this, we
have to be in-ward looking. It should be by
establishing mini-refineries in the 6 geo-
political zones of the country to start with,
preferably near cement manufacturing
centres, which will make use of most of
the by-products of the petroleum products.
Nigeria has the manpower with adequate
technical know-how to design, construct,
fabricate and construct mini-refineries. The
little inputs from the foreign experts can be
readily made available by Malaysia,
Indonesia, India or any other developing
country that depends mainly on mini-
refineries for the energy supply of their
domestic needs. Malaysia alone has about
28 mini-refineries as at 2000 to provide for
the required energy supply for
transportation and manufacturing
industries. Most of the developing countries
don’t depend solely on the type of gigantic
refineries that we have in Nigeria and
which are difficult to maintain. They have
failed to provide adequate premium gas
for our domestic needs because of lack of
effective turn around maintenance (TAM).
It is a tragedy that for the better part of
our existence as an independent nation,
particularly since the military rule of
Ibrahim Babangida, Nigerians have been
facing one form of fuel scarcity or the
other. The situation refuses to abate.
Instead, it continues to linger due to poor
maintenance of the four refineries.
In the words of Larry King, “Nigerians
import what they have and export what
they don’t have.” What a parody!
Nigeria can solve this problem, which has
become seemingly intractable. During the
military era, the junta preferred to import
fuel for local consumption in order that
their immediate families and cronies could
largely benefit. Therefore, they preferred
importation to the maintenance of these
refineries. When the civilians took over,
they continued to import the needed
premium gas as temporary measure,
thinking that, as soon as the ‘Turn-Around
Maintenance’ (TAM) of the refineries was
carried out, importation of the petroleum
products would stop. But this was not to be.
Two weeks after the TAM was carried out
on Kaduna refinery, it was gutted by a
mysterious fire, the cause of which has not
been discovered up till today. Because of
one problem or the other, the four
refineries could not be adequately
maintained. The civilian government of
Obasanjo and Umaru Yar’Adua has no
alternative but to continue to import.
WHY THE REFINERIES COULD NOT BE
MAINTAINED
The terms on maintenance were not
sufficient enough to keep the refineries in
good shape for a longer period before
breaking down.
Whenever the TAM is to be carried out
periodically, foreign experts are brought
into the country but they have to wait
endlessly to do the work, whereas our local
experts in this field have not been
adequately trained to effectively take
over the TAM from the foreign experts
who installed the refineries.
It follows that there should have been local
workshops where the needed spare parts
for TAM should be fabricated and
manufactured, instead of waiting endlessly
for the arrival of such imported
components for repairs. Such workshop
would have provided more jobs for our
jobless technicians and engineers in that
field;
The authorities of these refineries have
failed to make use of certain government
parastatals, such as: Scientific Equipment
Development Centre, Enugu which was
responsible for the fabrication and
production of some essential components
for the refinery in Port Harcourt in the past
and Engineering Material Development
Centre, Akure. These two Federal
Government parastatals, under the aegis of
National Agency for Science and
Engineering Infrastructure (NASENI), have
the capacity and technical know-how to
produce needed spare parts and
complementary expert support to
contribute to TAM of the refineries;
Whereas, if a good maintenance culture
had been put in place, it would have led to
massive job creation with small and
medium enterprises, springing up
everywhere, paving way for jobless youths
who are roaming aimlessly on our streets,
looking for jobs that are not there. Naira
will naturally appreciate in value. Our
external reserves are definitely going to
increase, leading to real stability and
increase in the value of our local currency,
which at present, is nothing to write home
about. If we were to consider the volume
of our trade in crude oil, high inflationary
trend will be checkmated and Nigerians will
have value for money in their hands.
NEED FOR ESTABLISHMENT OF INDIGENOUS
MINI-REFINERIES
The better alternative to importation of
petroleum products is to establish mini-
refineries all over the country. In October
2000, when the report of the special
committee on review of Petroleum
Products Supply and Distribution was
released, the opinion of NASENI was sought.
The Agency came up with very beautiful
recommendations, which we are sure the
Presidency has not seen up till now.
An aspect of that recommendation deals
with establishment of mini-refineries across
the length and breath of the country as the
best panacea to checkmate the incessant
fuel scarcity in the country.
SOLUTION THEREFORE IS INDIGENOUS MINI-
REFINERIES
Nigeria could escape the vicious cycle of
fuel scarcity and jacking up the prices of
petroleum products and there will be no
talk about the removal of the so-called fuel
subsidy. There is an urgent need to ensure
the internal development of delivery
system for oil refining and pipe line
technologies to be developed along side
the existing imported ones. It is therefore
recommended that:-
i. Government should adopt a policy of
home-grown development of refining of
crude oil and processing of petroleum
products and by-products;
ii. To this end, government should
commission the conceptualisation, design,
manufacture and installation and test-
running of a prototype mini-refinery within
a specified period of time, to be fully
funded and the right manpower deployed
to ensure its success;
iii. Government should ensure the
proliferation of mini-refineries across the
length and breath of the country, and
preferably around cement plant locations in
the first instance, which needs certain by-
products of petroleum in the manufacture
of cement, based on the developed
technology.
iv. In the mean time, government should
ensure that all future TAM contracts of the
nation’s refineries and pipeline must have a
clause which requires the foreign
contractors to establish workshops locally
for the manufacture of certain percentage
of the spare parts and components to be
used in the maintenance contract:
v. All these should be tied to the NASENI
mandate as part of its programmes
already approved by the government. We
assure the government that by the grace
of Jehovah, it will be able to actualise this
fit within 6 months of its existence through
NASENI, which has the capacity to source
for the needed manpower with the
required technical –know-how, both within
and outside its existing parastatals.
ADVANTAGES OF BUILDING MINI-REFINERIES
It is my candid belief that several
advantages will accrue to the country if
mini-refineries are established:
i. Refineries will be built at more affordable
cost because it is indigenous technology;
ii. The strategy will constitute a driving
force for the rapid development of all
aspects of engineering, science and
technology, locally in the petroleum sector;
iii. It will generate a large pool of
engineering design and manufacturing
industry in human resources in support of
oil refining and pipeline industry that will
emerge;
iv. A great number of these firms will be in
the small and medium enterprises cadre;
v. An indigenous capability in maintenance
will follow as a natural cause, with
workshops turning out spare-parts, locally
fabricated and manufactured, for
maintenance of the mini-refineries;
vi. Most of the inputs into the operations of
the mini-refineries will be obtained locally;
vii. Mini-refineries, suitably and strategically
located across the country, will develop
their own local captive markets which they
will serve more effectively, thus doing
away with the problems of long supply
lines and bridging issues;
viii. Prices of petroleum products will
drastically reduced; and industries using
petroleum products and energy to propel
their equipment will become more vibrant
and have capacity to produce up to their
maximum level because of cheap
petroleum products;
ix. In future, exportation of our crude oil
will be reviewed. Nigeria will prefer to
export more of the refined products
overseas, since its by-products will largely
serve our emerging industries as avenue
for attracting more foreign exchange
earnings, through exportation of such
capital goods.
Finally, such a strategy will help the Nigeria
Economy and enhance the welfare of the
citizens. In essence, it means that
establishing mini-refineries all over the
country, is synonymous with establishing
avenues for job creation.
Perhaps, if Mr. President, and Commander
in Chief of the Armed Forces, Ebele
Goodluck Jonathan, can accede to the
laudable project for the benefit of all today,
Nigeria can be a better place for us to live
tomorrow.

COME AND LET US REASON TOGETHER.

• What if, we never saw another
flower bloom, because we grumbled
when God sent the rain?
• What if, God didn’t walk with us
today, because we failed to
recognize it as his day?
• What if, God took away the Bible
tomorrow because we would not
read it today?
• What if, God took away his
message because we failed to listen
to the Messenger? (Think about this
one………….)
• What if, God didn’t send his only
begotten son because he wanted us
to be prepared to pay the price for
sin?
• What if, the door of the church
was closed because we did not open
the door of our heart?
• What if, God stopped loving and
caring for us because we failed to
love and care for others?
• What if, God would not hear us
today because we would not listen
to him?
• What if, God answered our prayers
the way we answer his call to
service?
• What if, God met our needs the
way we give him our lives?
Just think about it.

COME AND LET US REASON TOGETHER.

• What if, we never saw another
flower bloom, because we grumbled
when God sent the rain?
• What if, God didn’t walk with us
today, because we failed to
recognize it as his day?
• What if, God took away the Bible
tomorrow because we would not
read it today?
• What if, God took away his
message because we failed to listen
to the Messenger? (Think about this
one………….)
• What if, God didn’t send his only
begotten son because he wanted us
to be prepared to pay the price for
sin?
• What if, the door of the church
was closed because we did not open
the door of our heart?
• What if, God stopped loving and
caring for us because we failed to
love and care for others?
• What if, God would not hear us
today because we would not listen
to him?
• What if, God answered our prayers
the way we answer his call to
service?
• What if, God met our needs the
way we give him our lives?
Just think about it.

Wednesday, 9 November 2011

LEADING THE ORCHESTRA TO SUCCESS.

If you want to lead the orchestra, you
must turn ur back to the crowd:
Friends many of us want to be
successful but we"re still glued to
things which will not be the
springboards for our goals. Though
the crowd is important, the man
with the baton must concentrate on
the players to deliver a good
masterpiece b4 facing them at the
end of a gud delivery. I there4
charge u who want to b successful in
lyf to turn ur backs to many
unnecessary thgs and give the
world ur spectators the best of ur
capabilities!!

AS WE PRAY!

"Heavenly Father,
we come before you today to ask
your forgiveness and to seek your
direction and guidance. We know
Your Word says, 'Woe to those who
call evil good,' but that is exactly
what we have done. We have lost
our spiritual equilibrium and
reversed our values. We have
exploited the poor and called it the
lottery. We have rewarded laziness
and called it welfare. We have killed
our unborn and called it choice. We
have shot abortionists and called it
justifiable. We have neglected to
discipline our children and called it
building self esteem. We have
abused power and called it politics.
We have coveted our neighbor's
possessions and called it ambition.
We have polluted the air with
profanity and pornography and
called it freedom of expression. We
have ridiculed the time-honored
values of our Forefathers and called
it enlightenment. Search us, Oh God,
and know our hearts today; cleanse
us from every sin and set us free.
Amen!

6 Reasons Why Now is the Time to Start Your New Business

I don’t have the time. I don’t have
the money. The economy is bad. I
am too busy with my family. These
are all common excuses among
people who are interested in
starting a business. Why continue
to hold yourself back from realizing
your dream?
Here are six reasons why now is
the time to start your new
business.
1. The Corporate World Has Never
Been More Unstable
With the U.S. unemployment rate
hovering around 10 percent, saying
that the job market is unstable is
an understatement. Are you
worried that you are going to join
the ranks of the unemployed in the
near future?
The thought that “having a
corporate job is safe” is a thing of
the past. Now, unless you are the
person in charge, you are in
jeopardy. Even if you are an asset
to your employer, there may come
a time when you are cut out of the
equation, sometimes for no good
reason.
Some of the largest employers in
the world are scaling back. Rather
than take the risk of being let go,
take the bull by the horns and start
your own business.
2. You Don’t Need the Stress
Let’s face it: working for a
corporation can be a world of pain.
From the daily commute to the
long hours and everything in
between, you are going to be
stressed out. In turn, your health
will inevitably begin to suffer.
Does this mean that starting a
business is stress-free? Of course
not. However, you are the one in
charge of your schedule. On top of
this, you can ensure that you
always have a job. Yes, you will be
stressed about getting your
company up and running and
earning enough money. But at
least you are the person calling the
shots and you are no longer at the
mercy of your employer.
3. Take Advantage of Cheaper
Prices
With the economy in the dumps,
there is great value right now in
many markets and industries. This
is the best time to secure low prices
on everything from office space to
labor to land and equipment.
Although it costs money to start
any type of business, you can save
big right now thanks to a struggling
economy and a hungry workforce.
4. You Can Have an Office
Anywhere in the World
Tired of a long commute and
traffic? Work from home! Are you
interested in moving to a different
part of the country, where the cost
of living is lower? Pack your bags
and get on the road - youre the
boss now! No matter your business,
when you are the guy (or woman)
in charge you can setup shop
wherever you want.
Tip: consider an internet-based
business. With this, the only thing
you need to get started is an idea,
an internet connection, and a
computer. It does not matter
where you live as long as you
have these three things. The cost of
starting up is less too, which is
another massive benefit.
5. Do What You Love
Have you spent a good portion of
your life working a job that you do
not enjoy? Join the club. This is
something that millions of people
all over the world face, day after
day. As common as it may be to
work a job that you don’t enjoy (or
even hate) this is not something
that you have to deal with for the
rest of your life. To quote Steve
Jobs: “We don’t get a chance to do
that many things, and every one
should be really excellent. Because
this is our life. Life is brief, and then
you die, you know? And we’ve all
chosen to do this with our lives. So
it better be damn good. It better be
worth it.” Pick an industry you love
that gives you the ability to earn
money while never feeling like you
are at work. Does it get any better
than that?
6. Flexibility
Unfortunate as it sounds, many
people sacrifice other parts of their
life, such as family and
extracurricular activities, for their
work. Dont be under the false
illusion that youll never have to
compromise again when you run
your own business, but you can
definitely be more flexible when
you run your own business. You
can take as many vacation days as
you want - as long as you get your
work done. You can take your child
to school in the morning, schedule a
doctors appointment in the
afternoon, or take your spouse to
dinner without having to worry
about what is going on at the
office. It is this degree of flexibility
that is often the most alluring
factor of starting up.

6 Reasons Why Now is the Time to Start Your New Business

I don’t have the time. I don’t have
the money. The economy is bad. I
am too busy with my family. These
are all common excuses among
people who are interested in
starting a business. Why continue
to hold yourself back from realizing
your dream?
Here are six reasons why now is
the time to start your new
business.
1. The Corporate World Has Never
Been More Unstable
With the U.S. unemployment rate
hovering around 10 percent, saying
that the job market is unstable is
an understatement. Are you
worried that you are going to join
the ranks of the unemployed in the
near future?
The thought that “having a
corporate job is safe” is a thing of
the past. Now, unless you are the
person in charge, you are in
jeopardy. Even if you are an asset
to your employer, there may come
a time when you are cut out of the
equation, sometimes for no good
reason.
Some of the largest employers in
the world are scaling back. Rather
than take the risk of being let go,
take the bull by the horns and start
your own business.
2. You Don’t Need the Stress
Let’s face it: working for a
corporation can be a world of pain.
From the daily commute to the
long hours and everything in
between, you are going to be
stressed out. In turn, your health
will inevitably begin to suffer.
Does this mean that starting a
business is stress-free? Of course
not. However, you are the one in
charge of your schedule. On top of
this, you can ensure that you
always have a job. Yes, you will be
stressed about getting your
company up and running and
earning enough money. But at
least you are the person calling the
shots and you are no longer at the
mercy of your employer.
3. Take Advantage of Cheaper
Prices
With the economy in the dumps,
there is great value right now in
many markets and industries. This
is the best time to secure low prices
on everything from office space to
labor to land and equipment.
Although it costs money to start
any type of business, you can save
big right now thanks to a struggling
economy and a hungry workforce.
4. You Can Have an Office
Anywhere in the World
Tired of a long commute and
traffic? Work from home! Are you
interested in moving to a different
part of the country, where the cost
of living is lower? Pack your bags
and get on the road - youre the
boss now! No matter your business,
when you are the guy (or woman)
in charge you can setup shop
wherever you want.
Tip: consider an internet-based
business. With this, the only thing
you need to get started is an idea,
an internet connection, and a
computer. It does not matter
where you live as long as you
have these three things. The cost of
starting up is less too, which is
another massive benefit.
5. Do What You Love
Have you spent a good portion of
your life working a job that you do
not enjoy? Join the club. This is
something that millions of people
all over the world face, day after
day. As common as it may be to
work a job that you don’t enjoy (or
even hate) this is not something
that you have to deal with for the
rest of your life. To quote Steve
Jobs: “We don’t get a chance to do
that many things, and every one
should be really excellent. Because
this is our life. Life is brief, and then
you die, you know? And we’ve all
chosen to do this with our lives. So
it better be damn good. It better be
worth it.” Pick an industry you love
that gives you the ability to earn
money while never feeling like you
are at work. Does it get any better
than that?
6. Flexibility
Unfortunate as it sounds, many
people sacrifice other parts of their
life, such as family and
extracurricular activities, for their
work. Dont be under the false
illusion that youll never have to
compromise again when you run
your own business, but you can
definitely be more flexible when
you run your own business. You
can take as many vacation days as
you want - as long as you get your
work done. You can take your child
to school in the morning, schedule a
doctors appointment in the
afternoon, or take your spouse to
dinner without having to worry
about what is going on at the
office. It is this degree of flexibility
that is often the most alluring
factor of starting up.

You Must Lead YourselfBefore You Lead YourCompany

It’s exciting to add new members
to your team. Going from a
company of one to two to many
means your business is growing
and succeeding.
It’s also terrifying.
Once you hire people, you’re also
on the hook for motivating,
teaching, coaching, and inspiring
them. You need to grow right along
with them. You must also resist
what I call “founderitis.” It’s your
company and your dream. You
might have a bias toward
micromanagement and being
overly proscriptive on how your
team does their job.
Don’t. They’ll hate you if you do
that.
Instead, move toward principle-
based leadership. Lay out clear,
actionable guidelines for how you’ll
lead your people and what they
can expect from you. Leading your
people is a core aspect of my
leadership maxims approach – one
where you articulate your
leadership philosophy on one piece
of paper. You do so by answering
some simple questions and distilling
your philosophy down to
straightforward maxims (rules of
behavior).
To lead your people effectively,
you need to answer four questions
about yourself and your leadership
style:
What is your natural style?
If you can quickly define what kind
of leader you are, your people will
trust you more because they know
what to expect. My style is “kick
up, kiss dow.” Translation: I protect
my people from silly decisions
made by higher-ups (kick up), and I
praise my folks and give them
credit for great work (kiss down).
How will you remember to treat
your team members as individuals?
People don’t want to be referred to
by title. They want you to know
things about them at a personal
level. I use a maxim of “he drinks
7Up,” because I once had a soldier
in my platoon who drank 7Up.
When I bought him a can of it, he
was pleasantly surprised that I
knew something simple yet
personal about him.
How will you stay connected to
their reality?
Your people want you to get your
hands dirty and demonstrate you
understand their jobs, their
challenges, and their capabilities.
You need a regular reminder to do
that. My reminder is the time I
crawled under my tank to pull
maintenance on it. When I did so,
my soldiers knew I had a good
feeling for their jobs and I cared
about the work they did.
How will you commit to their
growth?
People don’t just go to work for
money. They want to be
challenged and build their skills.
You, as their leader, owe them
those opportunities. Figure out a
way to remind yourself to
consistently give them new
challenges, opportunities, and
places they can fail (yes – you
need to let them fail occasionally so
they can learn), so that they can
ultimately succeed beyond their
own expectations.
Once you’ve articulated what your
people can expect from you and
identified the stories that help
explain those expectations, you
need to explain that part of your
leadership philosophy to them. Sit
down with them. Explain your
guidelines. Tell them the personal
story behind your philosophy.
When you share your personal
expectations and your stories,
they’ll have a better understanding
of who you are, what you want
from them, and what they can
expect from you. If you do this
successfully, you’ll find your
leadership philosophy scales up as
you hire. In other words, your
expectations are the same whether
you’re leading one person or one
hundred. You’re just applying that
philosophy over a broader base.
As your business evolves, your
leadership philosophy will adapt
and evolve with it. Review your
philosophy on a regular basis (once
a year, after a major business
change, etc.) and ensure your
principles still apply to the way you
lead. If they do, keep living them
every day. If not, revise them,
communicate them, and adapt.
The more solid your leadership
philosophy and the more broadly
understood it is by your team, the
better the odds of you leading your
people in a way that motivates,
excites and inspires them.

You Must Lead Yourself Before You Lead Your Company

It’s exciting to add new members
to your team. Going from a
company of one to two to many
means your business is growing
and succeeding.
It’s also terrifying.
Once you hire people, you’re also
on the hook for motivating,
teaching, coaching, and inspiring
them. You need to grow right along
with them. You must also resist
what I call “founderitis.” It’s your
company and your dream. You
might have a bias toward
micromanagement and being
overly proscriptive on how your
team does their job.
Don’t. They’ll hate you if you do
that.
Instead, move toward principle-
based leadership. Lay out clear,
actionable guidelines for how you’ll
lead your people and what they
can expect from you. Leading your
people is a core aspect of my
leadership maxims approach – one
where you articulate your
leadership philosophy on one piece
of paper. You do so by answering
some simple questions and distilling
your philosophy down to
straightforward maxims (rules of
behavior).
To lead your people effectively,
you need to answer four questions
about yourself and your leadership
style:
What is your natural style?
If you can quickly define what kind
of leader you are, your people will
trust you more because they know
what to expect. My style is “kick
up, kiss dow.” Translation: I protect
my people from silly decisions
made by higher-ups (kick up), and I
praise my folks and give them
credit for great work (kiss down).
How will you remember to treat
your team members as individuals?
People don’t want to be referred to
by title. They want you to know
things about them at a personal
level. I use a maxim of “he drinks
7Up,” because I once had a soldier
in my platoon who drank 7Up.
When I bought him a can of it, he
was pleasantly surprised that I
knew something simple yet
personal about him.
How will you stay connected to
their reality?
Your people want you to get your
hands dirty and demonstrate you
understand their jobs, their
challenges, and their capabilities.
You need a regular reminder to do
that. My reminder is the time I
crawled under my tank to pull
maintenance on it. When I did so,
my soldiers knew I had a good
feeling for their jobs and I cared
about the work they did.
How will you commit to their
growth?
People don’t just go to work for
money. They want to be
challenged and build their skills.
You, as their leader, owe them
those opportunities. Figure out a
way to remind yourself to
consistently give them new
challenges, opportunities, and
places they can fail (yes – you
need to let them fail occasionally so
they can learn), so that they can
ultimately succeed beyond their
own expectations.
Once you’ve articulated what your
people can expect from you and
identified the stories that help
explain those expectations, you
need to explain that part of your
leadership philosophy to them. Sit
down with them. Explain your
guidelines. Tell them the personal
story behind your philosophy.
When you share your personal
expectations and your stories,
they’ll have a better understanding
of who you are, what you want
from them, and what they can
expect from you. If you do this
successfully, you’ll find your
leadership philosophy scales up as
you hire. In other words, your
expectations are the same whether
you’re leading one person or one
hundred. You’re just applying that
philosophy over a broader base.
As your business evolves, your
leadership philosophy will adapt
and evolve with it. Review your
philosophy on a regular basis (once
a year, after a major business
change, etc.) and ensure your
principles still apply to the way you
lead. If they do, keep living them
every day. If not, revise them,
communicate them, and adapt.
The more solid your leadership
philosophy and the more broadly
understood it is by your team, the
better the odds of you leading your
people in a way that motivates,
excites and inspires them.

Tuesday, 8 November 2011

1
Write down your likes and dislikes.
There is no sense in starting a
business that involves doing
everything you dislike doing.
2
Write down your skills. What do
you know how to do that other
people will pay for?
3
Look at market trends. What is
going on in the world? What kind of
things are people buying? What
types of services are hot?
4
Look at your lists for Steps 1-3 and
begin generating business ideas.
5
Seek input from family, friends, and
trusted associates. They may notice
talents and skills that you never
thought of.
6
Do some market research to see if
any of your ideas are viable. Just
because you think something is a
good idea it doesn't mean that it
will catch on.
7
Read- a lot. Spend time reading
about business and
entrepreneurship. Read both books
and magazines. Read stories of
successful business owners. Keep
up on the latest business news and
trends.
8
Come up with a plan. What kind of
business will you start? When will
you start your business? How will
you make sure your legalities are
in order? How will you finance this?
How will you market your
business?
1
Write down your likes and dislikes.
There is no sense in starting a
business that involves doing
everything you dislike doing.
2
Write down your skills. What do
you know how to do that other
people will pay for?
3
Look at market trends. What is
going on in the world? What kind of
things are people buying? What
types of services are hot?
4
Look at your lists for Steps 1-3 and
begin generating business ideas.
5
Seek input from family, friends, and
trusted associates. They may notice
talents and skills that you never
thought of.
6
Do some market research to see if
any of your ideas are viable. Just
because you think something is a
good idea it doesn't mean that it
will catch on.
7
Read- a lot. Spend time reading
about business and
entrepreneurship. Read both books
and magazines. Read stories of
successful business owners. Keep
up on the latest business news and
trends.
8
Come up with a plan. What kind of
business will you start? When will
you start your business? How will
you make sure your legalities are
in order? How will you finance this?
How will you market your
business?
1. Know the rules. Research which
licenses and registrations you need,
your tax responsibilities and the
right insurance to protect your
interests.
2. Set up your office. Find the best
space, at home or elsewhere.
Decide on what technology you'll
be using, how to implement it with
a local IT consultant and how to use
that technology to its fullest. Visit a
Microsoft Across America
Connections event, which highlights
the latest in small-business
technology and helps you get the
most out of your existing
programs.
3. Build a brand. A compelling logo,
marketing materials and a well-
designed Web site are key to
making a positive impression.
4. Do the marketing. Research your
market and choose the right
vehicles, including advertising,
keywords and public relations, to
get your message out.
5. Make the sale. Be prepared to
accept payments in various forms
and to keep track of customer
relationships.
6. Watch the money. Manage your
costs and keep your books in good
order.
7. Mind the details. Support for
shipping, travel and legal issues is
affordable and nearby; get it in
place now.
8. People first. Find the stars who
will help you succeed and retain
them as happy employees.

Monday, 7 November 2011

LIVING FOR OTHERS: A RECIPE FOR A HEALTHY LIVING.

The most important and beautiful
thing about the incredible
opportunity of being alive is being a
reason for which another wakes up
in the morning with a hope, an
expectation, a praise and gratitude
to God, even in the face of the most
adverse of circumstances. The
meaning of life, in whatever way
you may look at it, is being a
blessing to others. Living
consistently in the attitude of
enhancing and uplifting others is far
more important than fame, wealth
and power. When the last stock will
be taken of you on this divide of
life, may it be that your living was
more of a ladder on which many
climbed to reach the height of their
destiny, and not a wall that stood in
their way of reaching God's
destination for them. Please be a
BLESSING TODAY!
Shalom.

Sunday, 6 November 2011

LEADING THE ORCHESTRA TO SUCCESS.

If you want to lead the orchestra, you
must turn ur back to the crowd:
Friends many of us want to be
successful but we"re still glued to
things which will not be the
springboards for our goals. Though
the crowd is important, the man
with the baton must concentrate on
the players to deliver a good
masterpiece b4 facing them at the
end of a gud delivery. I there4
charge u who want to b successful in
lyf to turn ur backs to many
unnecessary thgs and give the
world ur spectators the best of ur
capabilities!!