Just as water is life to fishes, blood to human life, also is information to the success of any business organization. When two or more persons come together to carry out business in common, they express opinion, ideas, dreams, strategies etc . through communication, also the business will need to communicate with external persons, businesses. An entrepreneur cannot achieve a desired success without mastering the art of effective communication, as it is used to seek or generate important and useful business ideas, opportunities, supports, skills, seek information about potential risk, benefits, and relevant resources needed for planning, executing and controlling the factors of production required in the business. Hence, to generate or develop ideas, make plans to take advantage of opportunities, evaluate potential risks, an entrepreneur needs to constantly seek, evaluate, analyse, and classify information. SOURCES OF INFORMATION
As mentioned earlier, information is the life-blood of every successful enterprise. For an entrepreneur to take advantage of any business situation, he/she must seek the required information in the right place considering the kind of market its product seeks to serve. Information source could be primary or secondary source. Primary source: Here data are gathered for the first time for the sole purpose of the organisation’s objectives. Secondary source: Information obtained here are those gathered by another person for a related purpose. Hence the following sources of information are available for an entrepreneur: Technical Information: Sources of technical information includes; * Local distributor or value-added reseller: Provides Information about latest/recent and most efficient technical equipment. * Training and Education: The use of recent technical equipment and tool requires adequate knowledge which could only be acquired through training and receiving proper learning programme. * Consulting: This has to do with seeking the service of a professional in a technical area of service. It could be to seek advice in the area of production process, equipment handling, resource combination or mainteinance.etc. In order to obtain economies of scale by reducing cost and increasing output/yield. * Technical Support : This is an additional service(s) provided by the manufacturer or the seller of an equipment that is highly technical in nature. Such support service(s) could be in area of installation, servicing, repairs, etc… in order to ensure optimization of service delivery by the equipment.
Marketing Information: In order for the entrepreneur to effectively assess the opportunities and threats surrounding a proposed business venture(s), past and present information about the players in the market should be sought. Such information may include; the market size, consumption pattern of the consumers, prevailing market price of the product, number of competitors.etc…. Hence, such information could be obtained from field sales force, marketers, competitors, trade journals, government financial publications. Financial Information: Information relating to the amount of funds required to fund the business, its source(s), it’s use, allocation, the ratio of equity to debt financing are gotten from three (3) sources: Balance Sheet - statement of financial position at a given point in time. The balance sheet is based on the following fundamental accounting model: Assets = Liabilities + Equity
Assets can be classed as either current assets or fixed assets. Current assets are assets that quickly and easily can be converted into cash, sometimes at a discount to the purchase price. Current assets include cash, accounts receivable, marketable securities, notes receivable, inventory, and prepaid assets such as prepaid insurance. Fixed assets include land, buildings, and equipment. Such assets are recorded at historical cost, which often is much lower than the market value....
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