LEARNING CURVE

It’s quite interesting to observe the link that exist in all the four courses we are currently running in Lagos Business School, the role of financial Analysis in determining a healthy business. One would had been in the dark to think that business is all about exchange of value and monetary resources. It’s so much deeper and wider, than what exist on the surface.

Analysis of financial performance is crucial in assessing prior strategic decisions and evaluation of alternative decisions, this is such a salient point, because it brings you as a business owner, to a place of detailed reality, fact facing and scurtiny. Considering prevalent positions of small growing businesses, many are started and run based on the passion, desire of the founder with little or no attention given to the inflow of cash, Business transactions and proper accounting.

This explains why well meaning businesses do not survive the test of time, many do not go past the 10 years bench mark of a good and thriving business,.ABP as a course has thrown more light on the importance of understanding the context a business operates in, the finacial performance and key factors to pay attention in analsying business performance and achievement.

Factors like industry competition, buyer power, supplier power, product subsitiute and even threat of entry. Other broader business factors exist, which includes life cycle of the business, outputs, financing, government policies etc.

As an entreprenuer posed to build muiltinational enterprise, this is a mind broadening exposure, a huge enlargement of the mind. This automatically positions you as a big player and a globally prepared entrepreneur. It is recorded that only 71 businesses out of the orginal founders of fortune 500 that survived over the years, One must give attention to details to excel in the business world.

In communiacting ones plan and business strategy, ability to communicate effectively is a also a key requirement, therefore revealing the thread that binds all the courses together, it’s like a puzzle that joins all the pieces together. Each is required to unravel the mystery in the other. The ABP places a demand on the application of DA; Data Analysis in solving the whole puzzle around the best business position to adopt.

Furthermore is the details revealed in the process of analysis, drawing ones attention , to what business investors , partners look out for in making investment decisions, Warren Buffet an astute Business investor is known for buying up or invseting into businesses with transprent accounting details, large volume sales and constant flow of liquid cash. The link is visible when we pay close attention, whatever the case is, from managing our communication pattern, to analysing our business strategy or position, to checking up on our data for feasibilty studies, finally balancing our sheets , It’s all part of the process of proper fine-tuning.

Business is therefore not a walk in the park, simple accounting,the detailed consideration of the equity ,liability and assests of the company in question, are all relevant and fundamental information.