Islam and Business Finance

Image courtesy of KROMKRATHOG at FreeDigitalPhotos.net Today, I will just be giving few tips on carrying out a market research. Every business must carry out a market research before starting their business. This will help the business figure out what products to make. The data that you want to obtain should then be determìned. Data can be gotten from the internet, questionnaires, focus groups, surveys, interviews and databases. The amount of money you will be willing to spend on the research should be determined, that will be one of the factors that influence your decision on the type of data you will be using. Secondary data are readily available since they have been previously collected and can be obtained easily from databases. Primary data are collected directly from the sources through interviews or questionnaires or focus groups. Both primary and secondary sources can be used to obtain data. If you are going to collect data via primary sources the next thing would be

Image courtesy of Salvatore Vuono at FreeDigitalPhotos.net Hello readers, today, I decided to give you a list of industries you can invest in. These industries are profitable as such you can start a business or buy the shares (halal) of companies that exist in the industry. 1. Healthcare Industy This is one of the largest and growing industries in the world and it takes at least 10% of the GDP  (Gross Domestic Products) of most developed nations. The industry had a net profit margin of over 18% in USA (2015). 2.  Finance Industry This industry is also a very good one for investment. Everyone deals with money. The industry had a net profit margin of over 16% in USA (2015). However, your products should be halal 3. Transportation Industry Individuals always move about, thus it is a good industry to invest in. The industry had a net profit margin of over 8% in USA (2015). 4. Communication Industry This industry is also a good one, individuals alway

Image courtesy of Stuart Miles at FreeDigitalPhotos.net Anyone could learn a particular skill insha Allah (if Allah wills). It takes determination, commitment and the right mindset. Y ou have to break some emotional barriers that you might have such as I do not want to make an error in front of others, what if my work comes out bad. Everyone makes mistakes. This new skill you want to learn, if you have to know why you want to learn it, this will serve as a motivational factor.  Afterwards, figure out where you can learn this skill, do you need to attend classes or a workshop. If subjects being taught are optional, focus on the ones that are the most important to the skill you want to learn. Make sure you understand what you are being taught. Do ask questions if you do not understand and do not miss your classes or workshop. Practice regularly, carry out several tasks that will require you to use the skill you have acquired, eventually it could become a part

Image courtesy of Stuart Miles at FreeDigitalPhotos.net Previously on this blog, I wrote an article "  How to prevent fraud in business: Part 1 " , so today I decided to write part 2. The risk of fraudulent activities exist in all companies. The use of CCTV camera works very well, use sophisticated cameras that can still reveal the identity of an individual in the dark. Yes, the CCTV camera is quite effective at preventing fraud. This will be applicable to companies that can afford such facilities If you receive a lot of money in cash on a regular basis, your staff must be instructed to take some amount to the bank (halal account) once it reaches a particular threshold. Only authorised personnels can take the money to the bank. When purchases need to be made by the company, it should be approved by 2 to 3 persons depending on the amount that needs to be spent. A sophisticated information system must be used once they can be afforded, they must be re-evaluated fr

The way individuals communicate with others depend on their perception of the other person they are communicating with, their past correspondences with the other person and their emotional state. Personally, I believe that the way an individual communicates depend on how they perceive things. People interpret things differently, what might upset one person might not even bother another. Thus, you as an entrepreneur or a potential one will have to develop your reasoning skills insha Allah (if Allah wills). An individual might mean another thing some other individual might interpret it as another, thus, reasons should be given when necessary and appropriate. For example, a bricklayer might be told to set some blocks in a particular way, the bricklayer might not understand the reason behind it and might just decide to bypass that order. However,  if the bricklayer is told that it will make the building stronger then the bricklayer might be motivated to set the blocks the way he h

Image courtesy of Stuart Miles at FreeDigitalPhotos.net Hello readers, some have been rejected in business or at a job at one time or the other. Either you do not pass an interview or a client turns down your proposal or you are sacked. Rejection should not bring you down, I know some individuals might find it devastating, do not let it be that way. Once you get the rejection keep going do not stop there, just keep going.  At the end of the day it is just one person's or a group of people's opinion, as such a few NOs should not stop you, you have to keep pushing till you succeed in business. At times lack of skills could be a reason for a rejection but then these skills can be developed. Disobedience could also be a reason for rejection as such you could learn from that. Afterwards, the same goal can be pursued again after the required skill has been developed. If you try achieving a business goal using one method and it does not work, you have to try another metho

As a good manager you do not have to know everything. No one knows everything except Allah (SWT). All you have to do is to manage the resources available the best possible way in order to achieve the best possible results. I was listening to someone talk, she went to the manager to get something signed. He actually did not know what to do so he asked for her advise. She said she felt so irritated, however she told him what to do. The manager was new.  A manager should understand a business but does not have to know everything. A good manager must be willing to learn from subordinates in other words he did a good thing by asking. Just because an individual is a subordinate does not mean they won't know something you do not know. A manager is part of a team, yes you are leading the team, your main goal is manage resources efficiently and effectively (which include human resources) in order to achieve great results. Someone once said to me that if people's expectation of

Image courtesy of hywards at FreeDigitalPhotos.net The shareholder's theory stipulates that agents of a company (managers) should only aim at increasing shareholder's wealth. However, the  stakeholder's theory came around and challenged the shareholder's theory. This theory states that the needs of all stakeholders must be taken into consideration. Stakeholders include the shareholders, managers,  employees, creditors, government and the community at large. There are times when the need of one stakeholder might conflict with the need of another stakeholder. Mendelow theory has dealt with such challenges. The theory suggests that stakeholders should be classified into four groups and this should be based on their power and interest in the company. Stakeholders with high interest and high power must be treated carefully, the stakeholders with little power but high interest in the company should be kept informed because they have the ability to influence more p

Image courtesy of lekkyjustdoit at FreeDigitalPhotos.net You should  be prudent.That way you could thrive well financially as it will prevent you from spending more than you can afford to insha Allah. This should be applied in businesses as well, it will help owners to know the true position of the company, thus promoting growth as well as preventing debt problems. Stay away from interest, Allah hates interest. A prudent mind could avoid potential business problems. Thus, if you see a major red flag when you are about to enter a business. Do not enter the business deal, thinking you will deal with the problem when it occurs. You could end up with losses and probably even huge debts. Some individuals might say they saw the red flag but they ignored it, do not ignore it. In other words if their is a huge risk that the problem will occur and the impact will be high on the business, avoid the risk. Thus, reject the business deal.  Make sure your business is halal. You shoul

Image courtesy of franky242 at FreeDigitalPhotos.net Hello readers, what do you do before you sleep. Do you watch tv before sleeping you should not do this before sleeping. They could affect the quality of your sleep. As the research I carried out, makes me know an individual requires 6-8 hours of sleep everyday to be emotionally healthy. Allah(SWT) knows best. So the first action they carry out is not to work at least 1 hour before bed time. You should not associate your bed time with work because that way your mind might find it hard to relax when you want to sleep. The next action they carry out is to spend time with their family or spouse. They deepen their bond You should be thankful to Allah everytime. Your job or/and business should be halal.  Everything happens according to the will of Allah. Everything should be done deliberately for the sake of Allah. Part of  doing something deliberately for the sake of Allah is hoping for a reward from Him (in this li

Image courtesy of Stuart Miles at FreeDigitalPhotos.net Both small and big companies have to put controls in place to prevent fraud. I have heard a story about a person living in one country and starting a business in another country. He leaves the business underneath the supervision of another, at the end of the day all what the business does is to make losses. Apparently, the person started a business in haulage, and all what the staff were reporting were losses. The person then decided to close down the business and the staff started begging. I told the person it is a small business you have to be there in person that is the one of the ways your business can become successful.  Even, when the owner is present at the business there are still some individuals that will try to defraud the business, talk-less of you being far away. When your business is small it is clear that you cannot put control of very high quality that will prevent fraud cause it is expensive. Once your

Image courtesy of hywards at FreeDigitalPhotos.net - Individuals that are financially successful, think in a productive way. Thus, they always think before they act and they always take responsibility for their actions. - They do not procrastinate, they carry out actions when they are meant to. - They apply the pareto principle, the 80/20 rule, as such they figure out the 20% of their financial activities that makes the 80% difference and focus on it. - They go after their goals no matter how challenging it may appear. -They aim for excellence not perfection with a great sense of gratitude. You should be grateful to Allah everytime. Your business or job should be halal. Everything happens according to the will of Allah. Everything should be done deliberately for the sake of Allah. Part of doing something for the sake of Allah means hoping for a reward from Him (in this life and life after death) Keep checking my blog regularly, Cheers!