..

I always tell people that running business is not meant for everybody. But will they listen? No.

Oluwahelpme:
I always tell people that running business is not meant for everybody. But will they listen? No.

Any advice?

WrathJustified:


Any advice?

Where is the location?

Oluwahelpme:
Where is the location?

Lagos mainland

WrathJustified:
Hello all,

My mum's business is in huge debt all because of her mismanagement. The debt is almost up to 25 million while the business is a small business. She keeps taking loans to pay loans and spending on unnecessary expenses. I am fed up and i have decided to intervene. But I have no financial knowledge to take the reins and ensure the situation is turned around.

Is there any reliable person or financial analyst i can hire to audit/ analyze and advise the business so that that this debt can be put in a good strategy for repayment and measures are put in the business to manage the situation?

Or is it something I can learn myself?

This business is a private primary school business.

Thanks in advance for your contributions

I can help if you're in Lagos. Will do it pro bono. You only take care of personal expenses that might arise in the course of getting the job done.

Johnrake69:



I can help if you're in Lagos. Will do it pro bono. You only take care of personal expenses that might arise in the course of getting the job done.

Wow, really. Thanks. God bless you. Let me PM you so we talk better and understand your offer/generosity better. Just sent a PM now

WrathJustified:


Wow, really. Thanks. God bless you. Let me PM you so we talk better and understand your offer/generosity better. Just sent a PM now

0.9.0.315.99840. You can chat me on whatsapp

WrathJustified:
Lagos mainland

Owned or rented building?

Johnrake69:
0.9.0.315.99840. You can chat me on whatsapp

Thanks, Just sent you a whatsapp message

Oluwahelpme:
Owned or rented building?

Rented building

WrathJustified:
Rented building

Problems started here. Rented building is not too good for school business. U want to pay rent, pay ur staffs, school bus maintenance, payment of electricity bill etc. What is the students population? Are they able to pay school fee? All these need to be considered.

Oluwahelpme:
Problems started here. Rented building is not too good for school business. U want to pay rent, pay ur staffs, school bus maintenance, payment of electricity bill etc. What is the students population? Are they able to pay school fee? All these need to be considered.

yh, some pupils not paying school fee on time is an issue as well as unnecessary expenses

WrathJustified:
yh, some pupils not paying school fee on time is an issue as well as unnecessary expenses

Mention those unnecessary expenses.

WrathJustified:

Hello all,

My mum's business is in huge debt all because of her mismanagement. The debt is almost up to 25 million while the business is a small business. She keeps taking loans to pay loans and spending on unnecessary expenses. I am fed up and i have decided to intervene. But I have no financial knowledge to take the reins and ensure the situation is turned around.

Is there any reliable person or financial analyst i can hire to audit/ analyze and advise the business so that that this debt can be put in a good strategy for repayment and measures are put in the business to manage the situation?

Or is it something I can learn myself?

This business is a private primary school business.

Thanks in advance for your contributions

I hope you have been able to resolve the issue

SavageResponse:


I hope you have been able to resolve the issue

No.

WrathJustified:
Hello all,

My mum's business is in huge debt all because of her mismanagement. The debt is almost up to 25 million while the business is a small business. She keeps taking loans to pay loans and spending on unnecessary expenses. I am fed up and i have decided to intervene. But I have no financial knowledge to take the reins and ensure the situation is turned around.

Is there any reliable person or financial analyst i can hire to audit/ analyze and advise the business so that that this debt can be put in a good strategy for repayment and measures are put in the business to manage the situation?

Or is it something I can learn myself?

This business is a private primary school business.

Thanks in advance for your contributions

The fact that the business is in huge debt may not necessarily be as a result of mismanagement, it could just be because of the harsh economic situation in the country occassioned by the lock period schools were on lockdown.

You first step would be to determine if the business is even profitable. here is what you will do:

Compute all the revenue
Get a list of all the pupils in all the classes and multiply the number by the tuition fees for each class
Primary 1 =Number of pupils x School fees for that class - Bleep
Primary 2 =Number of pupils x School fees for that class - Bleep
Primary 3 =Number of pupils x School fees for that class - Bleep
Primary 4 =Number of pupils x School fees for that class - Bleep
Primary 5 =Number of pupils x School fees for that class - Bleep
Primary 6 =Number of pupils x School fees for that class - Bleep
-------
Total xxxxx
-------

After this you compute the revenue from other sources
Sale of school uniforms
Sale of text books
Payment for school bus



Next you compute the expenses
Salaries of teachers
Rent for school building
Salaries of gateman, school bu driver, cleaners etc
Expenses for sewing of school uniforms to be sold to pupils, purchase of books
Fuel costs for school bus and generator (if available)
Electricity bill, water rates
Sundry expenses (This includes all expenses incurred in running the school
Interest charges for bank loans

The total revenue subtract the total expenses will tell you if the business is even making a profit or not

When you're done with this the next step will be for you to do what is called revenue assurance this means conducting a confirmatory test to be sure that the revenue (in this case school fees and all the other takings) actually enter the coffers of the school.

To do this you need to conduct what is called a walkthrough test
Go to the register in each class and select 15 random names or a sample that makes up at least 40% of the population in that class, determine the school fees these pupils should pay then try and trace their payments to the bank statement for the schools bank account.
If you cannot find evidence of payment of complete school fees by those pupils then it means that either those students are owing school fees or they have paid but someone is diverting the money into his/her private pocket.

This guideline I have given you is a rough sketch but it should help you get the answers you seek.
Only your mum should know what you intend doing but you also need to be very careful about what you eat in the school during such exercise, people get poisoned especially if there was massive fraud in the system!

Is this still open? I can do the analysis for you at a fee. By the end of the day you will get a true picture of where the school stands finacially, identify cost centers, revenue streams and recommendation for the way forward. Contact 08063813348.