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How to make your idea work. Part 1

The number of ideas that is “thought of” each day are far greater than the number of ideas that is “developed”. But then, ideas that are not executed have no capacity to grow a community left alone to rule the world. Therefore, there is a call to step up the game – Let’s move from “thinking of” to “working” the ideas.



Making your ideas work

Ideas rule the worldis a popular quote used by people to describe the effects of ideas to the world economy.
Of a truth ideas have a way to affect our systems of operations. They can dramatically change the concept of things around but then…

Read: The “Spark” Entrepreneurs Bring to Life

Do they really rule the world?

Let’s start this by describing a simple scenario when you told someone of your ideas. You passionately say, “hey, I have this idea to…(insert that idea you have told someone about)” . At the end of the talk, most often than not, their response would be like this; “wow! this is really a good idea, I think you can make this work”

Ideas will place a sense of responsibility upon the carrier of the ideas. In the real sense when you conceive an idea, its not your ideas that rule the world but the result of your idea.

It might excite you to know that in the world, millions of ideas are generated everyday (yours inclusive) and not up to 1% of these ideas are executed. Some of these ideas don’t even see the break of the next day while some ends up in the minds of the individuals.

Idea GenerationThe number of ideas that is “thought of” each day are far greater than the number of ideas that is “developed”. But then, ideas that are not executed have no capacity to grow a community left alone to rule the world. Therefore, there is a call to step up the game – Let’s move from “thinking of” to “working” the ideas.

Read: Mistakes you Should Avoid as a Start-up Entrepreneur

How to work your ideas?

So, you think you got the best of ideas the world has ever seen. You think when your ideas are fully blown they would cause a revolution, they would change the cause of things, they would better the world economy, they would yield great profits such that would enlist you among the top richest in the world. Then, what are you waiting for?

We have been able to establish that your idea is a good as nothing without execution. The big question is now, how do I make my idea work?

These is how I recommend ideas to be treated. Your ideas should pass through these stages;

  1. Validation
  2. Planning
  3. Strategy Development
  4. Execution

For the purpose of this part of this write up, I will stick to just idea validation and we continue others in the other part of this write up.

Idea Validation

What is the market value of your idea?

The potency of an idea is not how it looks in the head but the market value as placed by real people.

Idea validation is a process required to test the value of an idea. It gives indicators to which idea is worth pursuing and which should be neglected.

Not all ideas will end up the way they are in the head. In fact, ideas in the real world are different. I have come to understand that the fact that people seem to love your idea does not mean they can pay for it.

I have outlined five (5) processes below to help you validate your next idea and check the market potency.

1. Think it out

The first of five (5) processes to get your idea validated, is to get it out of your head.

So many times I have felt I had a whole lot about an idea right in my head but will end up finding out that there is really nothing big about the idea. This does not say my ideas were not good, but then, on paper they were not as cumbersome as they are on my head.

The process of idea validation will require communication. You will need to communicate your ideas to real people. Therefore, if you cannot communicate the idea first to yourself by writing them down, then you might need to take a little more time to think it out.

You can do this for your next idea; take a paper or booklet and try to write your idea like you are writing to someone who would buy from you.

Note: You don’t need to be perfect at the first try. You keep doing it until you think the idea is best communicated.

2. Research

Has anyone tried out what you have in your head before?

Someone once said, “nothing is new under the sun”. This statement has a level of truth attached to it. You are not the first person to think about that idea. In fact, some people have gone to execute it.

You can go ahead to search the internet and other resources to see what you can find out about this idea. Most importantly, don’t feel disturbed that someone has started whatever you had in mind. It only means you would need to find out ways to get better at it if the idea is eventually what you would like to work on.

3. Enlist your potential buyers

Who do you wish to sell to?

At this point you would need to create a wish list that contains every of your potential buyers. By potential buyers, I mean people who would not just “love your idea” but are willing to pay for the idea because it solves their problem or helps them get answers to their questions.

Please note; I would advice you do not include friends and families in your list because they might not be exactly truthful to you.

4. Meet with real buyers

The next thing you should do is to meet with your potential buyers. This you can do by scheduling a physical meeting with them to ask them specific question that would reveal their willingness to pay to get your solution.

Taking it further would be to create a test product and probably allow them use for a period of time such that would help them make sincere decisions.

5. Review & Decide

The final stage of validating your ideas is to put your result together and review every part of it. This is important to making the decision to carry on with your idea or discard the idea.

Read: How to have a great product launch


If you are going to go ahead pushing your idea, saying you are ready to make it work; then you are welcome to read the other part of this write up. I will be dealing with creating plans, strategies and then execution.

If not, you can think of another idea and repeat this process with that idea. Together we would rule a better world!

I am enthusiastic about individual and business growth and a hardcore evangelist of self discovery and development. I build businesses and develop sales strategies for startups as well as planning & managing corporate events for businesses, organizations and individuals.

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KITCHEN APPLIANCES: Top 10 Must-have Small kitchen appliances for your business



small kitchen appliances, kitchen appliances sets, kitchen apploances bundles and packages

A huge part of getting chores done in and outside the kitchen is largely dependent on our mastery of kitchen appliances. But then effective mastery is built on how familiar we are with these appliances. Well, this post goes beyond the couple of knives, spoons, or cutleries you have stacked up in your kitchen at the moment. It basically gets you acquainted with every type of kitchen appliance including the best small kitchen appliances you will need for your businesses. Furthermore, it will give you a rundown of Kitchen appliances sets, bundles, and packages you can leverage and the best time to buy them.

With these in place, let’s get started.

Types of Kitchen Appliances

For the longest time possible, types of kitchen appliances have been often misconstrued for a list of these appliances. Basically, half the information you find online only end up giving you a list rather than the types of kitchen appliances. This may not be entirely wrong though, but a more rational concept will be to categorize them into the following as listed below.

  • Food Production Kitchen Appliances
  • Maintenance Kitchen Appliances
  • Food Storage Kitchen Appliances
  • Special Kitchen Appliances  

And also seeing categories and types are synonymous to each other, we are definitely on the right path.

Now, let’s briefly go through these four.

Food Production Kitchen Appliances

As the name suggests, this type of kitchen appliance are sets of equipment that mainly facilitate food production. These appliances mostly work on either electricity or LPGs (Liquified Petroleum Gas).

The later can be attributed to the advent of technology. However, to fully get a hold of what exactly this category/type of kitchen appliance looks like, I have listed a few production appliances below;

Cooking Range

Cooking range appliances are used for a number of kitchen activities like baking, grilling, frying and boiling. They are divided into Restaurant range and Heavy-Duty range appliances.

But, while restaurant range appliances take care of food production on a small scale, the later deals with those on a larger scale.

small kitchen appliances, kitchen appliances sets, kitchen apploances bundles and packages
Cooking ranges

Other appliances under this category include, Burners, ovens, Cooking spoons and pans, Vegetable choppers and cutters, and finally, Steamers and Cookers.

small kitchen appliances, kitchen appliances sets, kitchen apploances bundles and packages

Maintenance Kitchen Appliances

This type of Kitchen appliances centres on ensuring the maintenance of tools in the kitchen. They include Dish washers and dish warmers.

While dish washers help to clean multiple bowls and dishes in the least time possible, dish warmers help with drying. According to MyKitchenSpecs, a typical dish warmer can dry as many dishes as a thousand, eight hundred per hour.  

It further eliminates the problem of contaminations associated with drying dishes manually.

This type of Kitchen appliances include freezers, refrigerators, heated storage systems, display counters, cold storage systems, vegetable storing systems, stainless steel wall shelves and so many others.

Food Storage Kitchen Appliances

These appliances keep food items fresh also ensuring they last longer.

 Special kitchen Appliances

This category basically features most miscellaneous tools you find in the kitchen. And these may include tools for either commercial or home use.

Some of these special kitchen appliances generally include Shredders, Nutcrackers, Kitchen Knives and so on.

With that out of the way, let’s move to a detailed look at small kitchen appliances. 

Small Kitchen Appliances

As you flip through pages across the net, you will find several definitions of a small kitchen appliance, but a more precise view was given by Wikipedia. It defined small kitchen appliances as

portable or semi-portable machines, generally used on table-tops, counter-tops, or other platforms, to accomplish a household or kitchen tasks.


In other words, they are basically small appliances found in the kitchen. Consequently, if this definition is anything to go by, examples of these appliances would include: toasters, humidifiers, microwave ovens, coffee makers, and food processors, to mention a few.

So it’s safe to say that these appliances have nothing in common with white kitchen appliances like small refrigerators or small washing machines. And that’s because using the quantifier, “small” makes no difference.

However, we will go through that shortly.

Uses of Small Kitchen Appliances

Small Kitchen appliances are basically used for tasks like; Beverage making (coffeemakers, iced tea-makers, electric kettles, etc), Cooking (electric hot plates, microwave ovens, etc) and so on.

A handful of these tools literally carry out the same function as their larger versions, only on a smaller scale. In other words, manufacturers often produce commercial and home versions of these products to either reduce costs or power usage. 

For instance an oven is a commercial version of a toaster oven. They perform similar functions but it is almost impossible to find toaster ovens in big restaurants and vice-versa. This largely has to do with the high level of food production we find in restaurants. And trust me, toaster ovens would hardly be able to keep up.

But more importantly, the industrial versions of these small kitchen appliances are generally designed to consume more electrical power. So attempting to use them for tasks at home may attract more electrical bills.

However, there is just one overside to taking this route; they are capable of carrying out heavy tasks at the same time. 

Best Small Kitchen Appliances

In no particular order, the following are my best picks for small kitchen appliances. By best picks, I mean the most essential small appliances that should be found in your businesses.

These picks practically centers on how important they are to ensuring the smooth running of your food-based businesses.

 Toasters and Ovens

These two have a lot in common than you could imagine. For the most part, Ovens are often called Toaster ovens but a major similarity hangs on the fact that they both heat up food items with the aid of electric power.

However, while toasters help to crisp bagels and pieces of bread slices efficiently, toaster ovens are used for melting cheese.  They are also the best small kitchen appliances for warming foods which makes them one of the most basic kitchen requirements.

Coffee Makers

Unlike most small kitchen appliances, coffee makers are hardly found in the kitchen. They are mostly seen in places like hotel rooms, offices, or basically anywhere in or outside the kitchen, especially considering the fact that everyone loves a cup of hot coffee.

This singular factor may literally put it on the top of this list, making it indispensable.


For those who are particular about mixing juices, sauces or soups, blenders are an important addition. But it is important that we do not confuse them with food processors. As similar as their functions sound, just one of them does the job better.

Many give that credit to food processors but blenders also have their benefits. Part of which is its ability to blend food ingredients efficiently, regardless of the amount. It is also a great tool for mixing liquids and ices. This is because they possess less powerful motors and less sharper blades than food processors.

Food Processors

Chopping of vegetables have not been more easier since the advent of food processors. They carry out the job perfectly well. They are your best bet for any processing need.

Mostly, they come with blade attachments in different sizes to meet those needs. So, you have the luxury of picking any blade that perfectly fits into your game plan.

Electric Grill

This is nothing like the conventional grills you know. Electric grills are way smaller and easier to clean which gives it a position on the list of best small kitchen appliances. But more importantly another factor hangs on the fact that food prepared on electric grills tastes way better and are a lot healthier than those traditionally fried on pans.

These days, electric grills of all kinds including panini grill, clamshell grill or electric griddle are welcome in the kitchen.


I guess only bakers will totally understand the need for mixers in the kitchen. I for one literally experienced the stress, first-hand, in stirring cake butters and bread doughs. Trust me, it’s a sorry sight.

Generally, mixers take away the stress of having to mix these ingredients. They easily combine wet and dry ingredients, like the eggs and flour, making your baking experience more fun.

However, most mixers also come with the necessary attachments for kneading.

Slow Cookers

Busy Chefs totally understand the importance of slow cookers. This is because they could help you keep a meal cooking for as long as you want. According to Overstock;

you can prepare a meal before leaving the house for the day and have it done by the time you get home.

With slow cookers, you can basically provide your family with a flawless home cooked meal by allowing food to simmer all through the day. Furthermore, slow cookers are also known as crock pots.

Rice Cookers

With the push of a single button rice cookers help you get the best results. They take out the guesswork experienced each time you decide to prepare rice on your stove or burner-tops.

However, a prominent property which makes it one of the best small kitchen appliances is its ability to carry out its primary function in automation.


As expected, this small kitchen appliance is takes care of your frying needs. The only difference however to your traditional frying methods is that deep fryers are more efficient. They make hush puppies, French fries and chicken fingers to perfection.

Conversely, they may not be as healthy as grills but they sure have a way of bringing the taste from restaurants home.


Microwave ovens is literally considered as the most-loved small kitchen appliance. Or as Overstock puts it, “the entire kitchen experience.”

Unlike the conventional ovens, microwave ovens heat up food way faster- less than halt the time it takes for other ovens.

And here’s an added advantage; they are durable and extremely easy to operate.

White Kitchen Appliances

Well if you thought white kitchen appliances were just white tools in the kitchen, you wouldn’t be totally wrong; but you wouldn’t be totally right either. White Kitchen appliances go beyond just tools painted white that are found in the kitchen.

According to MBN (Market Business News),

White kitchen appliances are large kitchen tools such as stoves (British: cookers), refrigerators, freezers, washing machines, tumble driers, dishwashers, and air conditioners. They are large electrical goods for the house which were traditionally available only in white.

However, their availability in white is a thing of the past. You can find virtually every one of these products in several colours these days. But regardless of this fact, they are still referred to as white goods or white kitchen appliances.

On the flipside, with the earlier perspective of white kitchen appliances, there are tons of reasons why they have become a trend in recent years. Part of the reason being that they are crisp, bright and clean looking which gives your kitchen an attractive view.

Furthermore, other factors that play major roles to this trend include;

  • Their ability to blend with any colour, making it easier to decorate the kitchen.
  • The fresh and clean feel they give
  • The fact that they are easier to clean
  • And most importantly, their inability to get fingerprints, unlike their stainless-steel counterparts

Kitchen Appliances Sets

As you may have figured out, certain kitchen appliances serve specific kitchen duties better than others. For example, if you prefer baking to cooking, you will require a totally different set of kitchen appliance to achieve better results in any given situation. And trust me, it’s not an option to attempt using the wrong kitchen tool; it only makes the situation worse

But, half the time, we go out purchasing the pieces we need individually. However, we fail to realize that we often incur more expenses, taking this route. Although there are several other cons with purchasing these tools individually, we may not outline them in this post.

Rather, we will go through the best solution there is, kitchen appliances sets.

Purchasing the full set of kitchen appliances designed for a specific activity (like grilling or baking) will save a whole lot of stress. Because in the long run, cooking is meant to be fun.

At least, it is often considered a hobby by a handful of female folks.

So below are the best sets of kitchen appliances there is for every category, with their prices on e-commerce platforms inclusive.

Best Cooking Appliance Set

According to popular opinions, endorsements, personal experience and reviews, the Cuisinart 7-Piece Assorted Set takes the spot. Cuisinart is one of the most highly-respected and popular kitchen brands out there. This assertion is based on their reliable and high-quality tools which has been confirmed by its 4.8-star rating.

The 7-piece set includes a slotted spoon, a regular spoon, a spatula, a ladle, a spaghetti server and a skimmer. It makes this kitchen appliance set versatile, covering pretty much every rudimentary cooking activity.

Price: US$50

 Best Appliance Set for Camping

One of the fun things to do while camping remains cooking. Well the Life 2 Go Portable Outdoor Cookware Kit takes care of all your camping needs asides cooking.

This kit contains a spatula, tongs, knives, a serving spoon and fork, a scissors with an in-built bottle opener, a small cutting board and more. It basically ensures you are set for any cooking scenario while out in the woods.

Price: US$26

 Best Silicone Kitchen Appliance Set

Silicone tools are often highly sorted-after for as a result of their durability and heat-resistant qualities. Basically, their ability to resist heat also makes them resistant to scratches. 

But considering the high level of imitation out there, if you ever decided to pick one, your best bet would be the Le Chef 6-Piece S Tip Set.

This kitchen appliance set comes with 6 utensils in a bid to cover every basic kitchen need. And more importantly, these tools are dishwasher-safe.

Price: US$35

Best Baking Kitchen Appliance Set

These days, kitchen activities go beyond the conventional cooking, fr­­ying, and roasting. Baking has become a safe haven for most female folks. A means to ease off stress for some, a fun activity for others and a means to generate income for at least 50%.

Well for which ever category you fall in, a perfect set to try out is the Oannao 9-Piece Silicone Spatula set.

This piece covers a wide range of vital baking tools such as multiple sizes of spatulas, whisks, brushes and so on.  It is also produced with BPA-free and food-grade silicone materials which make them heat resistant.

However, two factors make them stand out from other sets, their durability and their inability to retain food smell.

Price: US$16

Best Non-Stick Kitchen Appliance Set

The Anolon SureGrip 6-piece set is your best bet under this category. Tons of reviews confirm that this set outranks silicone-made tools due to a number of reasons. The most prominent which hangs on its ability to handle cooking on non-stick pan.

Other attributes similar to the silicone set include their soft-to-touch handles, and a sturdier design which also makes them heat-resistant and dishwasher-safe.

The set is also available in grey, black and brown colours.

Price: US$40  

Best Wooden Kitchen Appliance Set

Olivewood meet several requirements for cooking appliances. Wooden sets may not sound like a popular choice for kitchen appliances, but that idea is relative.

A considerable number of individuals think of them as the best option, largely because of how nice they look.

However, unlike several wooden sets, Tramanto Olive Wood 5-Piece set is designed to meet the need of every Wooden-appliance lover out there. They do not absorb odour and can be washed severally without fear of splintering or cracking.

But like I mentioned earlier, Olivewood features tools with one of the loveliest designs. The Tramanto 5-piece set includes a nicely curved, slotted and flat spatula, a spoon, a corner spoon and so on. And more importantly, they produce these pieces with top-quality and genuine olivewood.

Price: US$38

Best Stainless Steel

The Chef Craft Kitchen appliance set ranks as one of the best-selling products on Amazon. It covers pretty much every tool you would need as a home cook.  Furthermore, they are produced from rust-resistant and durable steel; something you might want to keep in mind considering the popular fear for steel appliances.

The 6-piece set also come with comfortable handles that make it easy to hold for extended durations.

Price: US$20

Best Grilling Appliance Set

Any set outside the Cuisinart 20-piece Grill set would totally ruin your grilling experience. Part of the reason being that it has a 4.8-star rating on one of the most recognized e-commerce platforms. Also, it covers basically every tool you would need to prepare a pleasant meal on the grill.

These tools include skewers, spatula, tongs, basting brush, digital temperature fork, corn cob holders and a cleaning brush (a replacement head inclusive).

Additionally, the tools fit into a portable, light weighted aluminium kit that makes storage very easy. 

Price: US$70

Best Bamboo Kitchen appliance set

One of the benefits of a bamboo set in your kitchen is that it prevents damage of your pans. Activities like stirring clumpy pastas, flipping hefty pancakes and so on, becomes less detrimental to your cookware.

This is because bamboos are naturally gentle, so this keeps them from scratches and damages in the long run.

Price: US$25

Kitchen Appliance Bundles

Kitchen appliance bundles are a lot different from kitchen sets. Bundles feature multiple sets in them.

So it is safe to say that, kitchen appliance bundles are a combination of several kitchen appliance in sets or individually. In other words, a bundle could cover up to 3 or 4 kitchen sets, which means they basically cost higher than individual tools or sets.

However, while sets could contain different tools like we have mentioned above, they could also contain similar tools; in different sizes though. Examples of these sets include pot sets, pan sets, kettle sets, cooking spoon sets, knife sets.

And for the most part, kitchen appliance bundles tend to feature these kinds of sets. But speaking from experience, I have come to understand that sets aren’t the only tools you find in kitchen appliance bundles. E-commerce platforms now go beyond the norms to include tools like gas burners, cylinders, pressure cookers, toaster ovens, and a couple of other small kitchen appliances.

How Kitchen appliances bundles are picked

Basically the idea of kitchen bundles hardly follow a specific pattern. And choices of the tools that appear on these bundles are largely based on the discretion of e-platforms. A deep research into what customers need influences this action. Though, these choices are restricted to just kitchen sets and small kitchen appliances.

Consequently, some kitchen appliance bundle may contain just sets, others, small kitchen appliances and others, a combination of both. The only con however, is the perception that their prices are unreasonably high. Well, to an extent they have to be considering the fact that they cover a combination of several kitchen tools.

But in realty the idea behind kitchen appliance bundles is to get you tons of kitchen appliances for less. A detailed analysis geared at purchasing these tools individually will help you see that. 

There are several kitchen bundles on the net to pick from, an example below should give you a clue as to what to expect.

small kitchen appliances, kitchen appliances sets, kitchen apploances bundles and packages

Kitchen Appliance Packages

Similar to bundles, kitchen appliance packages feature kitchen tools and appliances either in combination or individually. Kitchen packages also come with the aim of helping you get more for less especially newlyweds, regardless of how expensive these products may seem. They basically designed to help you save money.

But two major differences exist in this regard; the kind of kitchen appliances found in packages and the platforms or organizations responsible for putting up kitchen appliances packages.

Mostly kitchen appliances found in packages are often white appliances like refrigerators, washing machines, dish washers and so on. Furthermore, platforms or organizations responsible for putting up packages are often manufacturers of the products.

For example you could easily find some of the best kitchen appliances packages on the official websites for brands like Samsung, Bosch, Thermador, Beko and the rest of them.

On the flipside, packages are also flexible; i.e., you can decide exactly what appliance you want in a kitchen package. And depending on the weight of your purchase most brands are bound to give you a percentage-off or a freebie, like an additional free appliance.

While there are tons of kitchen appliance packages on the net to leverage, the list below should help you narrow down your choices. According to Dadong, these are the best kitchen appliance packages for 2021.

Samsung Side-by-Side Package

Samsung Counter Depth Package

GE Profile Total Whirlpool Suite

KitchenAid French Door Package

Jenn-Air Counter Depth Package

Beko Counter Depth Package

Bosch Slide-In Kitchen Package

KitchenAid Freestanding Package

Thermador 30-Inch Kitchen Package

Jenn-Air Professional Bundle

Best time to buy Kitchen appliances

Every single time we go out to get tools or appliances, the game plan is always to get the best qualities at great prices. Most times a part of us wish we could to get them at prices that sound almost free.

Well now you can have that!

Regardless of whether you decide to get these appliances individually, or get them in sets, bundles, or packages, certain times during the year get you these wishes. They are regarded as the best times to buy kitchen appliances. They include;

  • Presidents’ Day
  • July 4th
  • Memorial Day
  • Labour Day
  • Black Friday (or anytime in November)

N.B: While it is possible to get these kitchen appliance packages from different brands it is advisable to stick to a brand for uniformity and maximum efficiency.


Kitchen appliance sets, bundles and packages are always a great way to save money with their qualities intact. Hope this post helped you figure out how to go about getting your kitchen appliances.

You can reach out on the comment section for more info.

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Financial Institutions: The A-Z Guide With Top 10 Examples (+ quick easy tips)




Financial Institutions are a part of our daily lives. This is because almost everyone living in a developed economy has a need for the services of financial institutions.

They encompass a broad range of business operations within the financial sector including banks, trust funds, credit unions, underwriters, insurance and investment dealers.

So, if you’ll like to learn more about financial institutions, then you just got lucky as this article will teach you all you need to know about financial institution, its types, importance, and functions.

Let’s get started!

What are Financial Institutions?

Financial Institutions are businesses that focuses solely on financial and monetary transactions such as loans, deposits, investments and currency exchange.

According to Wikipedia, financial institutions, otherwise known as banking institutions are corporations that provide services as intermediaries of financial markets.

Hence, you can say that financial institutions are responsible for the supply of money into the financial market. Without them, no financial transaction can happen.

Large financial institutions such as JP Morgan Chase, HSBC, Goldman Sachs or even Morgan Stanley can control the low of money in an economy.

Furthermore, almost everyone deals with various financial institutions daily. Whether it is depositing money, applying for loans, exchanging currencies, investing into the stock market, or acquiring a new venture.

Thus, this makes them very important to the economy of a nation, and governments personally oversees these institutions.

Importance of Financial Institutions

Financial institutions are very important factors that contribute to the growth or failure of the economy of a nation. Hence, they are very crucial factors.

Below are some of the highlighted importance of financial institutions

  • Firstly, financial institutions promotes direct investment by the customers
  • Secondly, they explain all the risks associated with financial transactions to their customers
  • Thirdly, they provide various kinds of financial services to their customers
  • Next, financial Institutions helps in forming the liquidity of the stock in case of an emergency
  • Finally, they are known to provide an attractive rate of return to their customers

Functions of Financial Institutions

Financial Institutions perform a wide variety of financial functions to its customers. It involves a wide range of business financial activities including trust funds, banks, insurance companies, brokerage firms, and investment dealers.

Below are the functions of financial institutions.

  • Financial institutions provide loans and advances to customers.
  • They serve as a depository for their customers.
  • They offer high rated consultancy to the customers for their beneficial investments.
  • Some financial institution offers a high rate of return in the case of investment.
  • They help to minimize the monitoring cost of the company.
  • All the finance related work is done by the financial institution or on behalf of the customers.

Types of Financial Institutions

Financial institutions offer a wide range of products and services for individuals and commercial clients. Hence, they vary by size, scope and geography.

There are three major types of financial institutions. They are;

  • Depository Institutions
  • Contractual institutions
  • Investment institutions

#1. Depository Institutions

These are financial institutions that accept and manage deposits and make loans. A depository institution provides security and liquidity in the market, uses money deposited for safekeeping to lend to others, invest in other securities, and offer a fund transfer system.

Hence, they must return the deposit in the same order it was given.

Additionally, they serve as a connection between the public companies that issue financial securities and the investors or shareholders.

Depository institution includes banks, building societies, credit unions, trust companies and mortgage loan companies.

RELATED POST: Financial Planning: Overview, Types, Importance, Concept (+ Free PDFs)

Functions of a Depository

Below are the functions of depository institutions according to corporate finance institute.

#1. Serves as a link between the public and investors/shareholders

A depository financial institution functions as a connecting link between the public companies that issue financial securities, and the investors or shareholders. The securities are issued by agents associated with depositories, who are known as depository participants. The agents are responsible for transferring the securities from the depositories to the investors.

#2. Eliminates risk related to owning physical financial securities

A depository institution allows traders and investors t hold securities in dematerialized form; thus, eliminating the risk related to holding physical financial securities. The buyers and sellers now do not need to check whether the securities have been transferred successfully without any loss or theft. The depository system reduces such risks by allowing the securities to be held and transferred in electronic form.

#3. Allows the provision of loans and mortgages to interested parties

A depository holds the securities of customers and gives them back when the customers want. The customers receive interest on the deposits, while the depository earns even more interest by lending the deposits to other people or businesses in the form of loans or mortgages.

#4. Accelerate the process of transferring securities

When a trade occurs, a depository transfers the ownership of securities from the account of one investor to another. It helps in reducing the paperwork associated with the finalization of a trade and accelerates the process of transfer of securities.

Types of Depository Institutions

As mentioned earlier, the following are the main categories of depository financial institutions.

#1. Banks

A bank is a financial institution that accepts deposits from the public and creates a demand deposit while still making loans.

The bank can decide to lend directly or indirectly through capital markets. Banks can either be commercial or cooperate banks. However, we will stay within commercial banks.

The range of services offered by commercial banks depends on the size of the banks. For smaller banks, their services are limited to consumer banking, small mortgages, simple deposits and loans.

However, for larger banks, their services can include foreign exchange-related services, money management and investment banking.

#2. Building Societies

A building society is a financial institution owned by its members as a mutual organization. They offer banking and related financial services, especially savings and mortgage lending.

Building societies are similar to credit unions in organizations.

More so, rather than promoting thrift and unsecure business loans, building societies provides home mortgages to its members.

#3. Credit Unions

Credit unions are financial cooperatives owned ad controlled by the members of the group. It operates on the principle of people helping people, providing its members credit at competitive rates, as well as other financial services.

The profits are either paid to the members as dividends or reinvested into the organization.

Since credit unions are non-profit institutions, they pay no federal or state tax.

#4. Trust Companies

A trust company is a financial institution that acts as a trustee or agent of trusts and agencies. It can be owned or owned by a bank or law firm.

A trust company manages investments, keeps records, manages assets, prepare court accounting, pay bills, medical expenses, charitable gifts and other distributions of income.

#2. Contractual Institutions

Contractual institutions are financial institutions that get their funds through contractua agreement.

Usually, when they obtain these funds, they invest them into the capital markets. Also, Contractual institutions have a steady inflow of funds from their contractual agreement, hence, they don’t experience difficulties with liquidity.

This makes them perfect for investors, as they can make them long-term investments in securities and common stock.

More so, they can predict their liabilities, fairly accurately and thus they don’t have to worry about losing funds.


Types of Contractual Institutions

The following are the main categories of contractual institutions.

#1. Insurance Companies

The most familiar non-bank financial institution are insurance companies. They are the oldest form of financial services and hey provide insurance to either individuals or corporations.

There are several types of insurance companies, but the most popular under this category are the life insurance companies.

Life Insurance Companies

Life insurance companies sell life insurance policies that protect the beneficiaries against financial hazards that follow the death of the insured person.

Depending on the contract, other events such as terminal illness or critical illness can also trigger payment.

The policy holder ( insured person) typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits.

These financial institutions acquire funds through payments of premiums by individuals who pay to keep their policies in force.

Life insurance companies can calculate liabilities with a fair degree of accuracy using mortality tables. As a result, they use funds to buy longer-term securities—primarily corporate bonds and mortgages. 

#2. Pension Fund

Pension fund is any plan, fund, or scheme that provides retirement income. They usually have large amounts of money to invest and are the top investors in listed or peivate companies.

Additionally, Pension funds are very crucial to the stock market especially there’s a large number of institutional investors.

The Federal Old-age and Survivors Insurance trust Fund is the world’s largest public pension fund which oversees $2.72 trillion USD in assets.

#3. Investment Institutions

Investment institutions, as the name implies are financial institutions that are focused on investments.

They know which security, or stock market to invest in and can guarantee rate of return on an investment.

Generally, they facilitate investments in financial assets by individuals and institutions by pooling resources and investing them according to desired objectives.

Types of Investment Institutions

The financial institutions under this category are;

  • Investment banks
  • Underwriters
  • Brokerage firms.
#1. Investment Banks

Investment banks specialize in providing financial services designed to improve business operations, such as capital expenditure, financing, and equity offerings, including initial public offerings (IPOs).

According to Wikipedia, an investment bank is a financial services company or corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations, and governments.

Traditionally, investment banks are associated with corporate finance, and assist in raising financial capital by acting as a client’s agent in the issuance of securities.

More so, an investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services ( fixed income instruments, currencies, and commodities).

While an investment bank is also referred to as a regular “bank”, its operations are entirely different and big companies depend solely on them.

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#2. Underwriters

Another type of investment financial institution is Underwriting services. Underwriting services are provided by some large financial institutions and involve a situation whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such a deal.

An underwriting agreement may be created in different situations like insurance, issues of security in a public offering, and bank lending.

#3. Brokerage Firms

Brokerage firms are financial institutions that help you buy and sell securities. They act as the middle man between the buyer and the seller of the securities and become the principal party to the deal.

Depending on the brokerage firm type you choose, you can either buy securities through telephone, smartphone, or internet.

Also, brokers can represent the buyer or the seller but not the both at the same time. And they are very crucial in the purchase of financial instruments.

Usually, brokers have the tools and resources to screen potential buyers and sellers for the perfect match. This is because, they are compensated by commissions after a successful transaction.

Brokers are generally cheap especially in smaller markets with smaller accounts, or with a limited line of products.

Wondering which financial institution to work with? Let’s go over the top financial institutions in the world below.

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List Of Financial Institutions

There are several financial institutions in various countries of the world. However, only a few make it to the top as some of the best financial institutions.

Below is a list of the top financial institutions in the world as well as their assets, capital, and revenue.

Bank (Rankings according to Accuity)

BanksAssets( $M)Capital ($M)
Industrial & Commercial Bank of China Limited4,319,862.0080,709.00
China Construction Bank Corporation3,649,392.0035,870.00
Agricultural Bank of China Limited3,569,338.0061,676.00
Bank of China Limited3,266,821.0042,236.00
BNP Paribas SA2,427,625.0030,358.00
China Development Bank2,367,945.0060,437.00
JPMorgan Chase Bank National Association2,337,646.002,028.00
MUFG Bank Ltd2,217,261.0015,830.00
Crédit Agricole SA1,982,329.009,705.00
Japan Post Bank Co Ltd1,950,237.0032,364.00

Insurance Companies (Rankings according to Insurance Information Institute)

Insurance CompaniesRevenue( $)Industry
Berkshire Hathaway254,616Property/casualty
Ping An Insurance184,280Life/health
China Life Insurance131,244Life/health
Japan Post Holdings109,915Life/health
Assicurazioni Generali105,921Life/health
Legal & General Group90,615Life/health


Financial Institutions are all around us, offering different type of financial products or services.

So, as a customer you should first of all determine what type of financial service you want before choosing which financial institution you’d like to work with.

Additionally, it is imperative that you do proper research before investing your money in a financial institution.

I hope this post helps you.

Good luck!

PS: Don’t have a business plan yet? Or you’re still a bit confused about the idea of a business plan? Don’t worry, we got you! Click on the button below to have access to our list of workable business plans that has helped a lot of business owners in over 10 countries of the world.

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Financial Planning: Overview, Types, Importance, Concept (+ Free PDFs)




Financial planning for a business is one of the critical aspects of running a business. The process is designed to predict the business’s financial future and to determine the best way to use the companys financial resources.

The end product, which is a financial plan, serves as a roadmap that guides all your future financial endeavours.

Want to take your business to the next level? Then let’s get to know all about the financial planning process.

It’s your lucky day because this article is going to teach you all you need to know about financial planning for your business.

Let’s get started!

What is a Financial Plan?

A financial plan is a document containing your business current financial situation and the several methods you intend to take to achieve your financial goals.

To create a solid financial plan, you’ll need to analyze the main components of your business. In other words, the part of your business where the majority of the money goes. Hence, to discover this, ask yourself these questions.

  • How much money are you taking in and paying out?
  • What are your biggest costs, and where are they likely to increase spending the most in the near future?
  •  Where will you be able to cut costs?
  • How is competition likely to affect your business?

Having the right answers to these questions will enable you create a financial plan that captures your current financial situation and future expectations.

Now, to the main topic of the day.

What Is Financial Planning?

Financial planning is the process of determining how a business will achieve its goals and objectives. Generally, for every business to grow, it needs to have money to expand, hire more staff and buy tools required for production. So, creating a financial plan for your business will help you make better finance decisions.

You can decide to create it independently or with the help of a certified financial planner.

However, to properly plan your business, you need to have a well-defined business vision, goals and objectives. This is because, the Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved.

It involves the following activities:

  • Analyzing the business environment
  • Identifying any risks and issues with the budget set.
  • Confirming the business vision and objectives
  • Calculating the total cost of each type of resource
  • Quantifying the amount of resource (labor, equipment, materials)
  • Summarizing the costs to create a budget
  • Identifying the types of resources needed to achieve these objectives

Since financial planning is one of the major aspects of financial planning, it is important you critically think it through and analyze it before deciding to implement it.

Because a poorly crafted financial plan from a bad financial planning process can cost you your business.

Yes, I really mean it.

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Importance of Financial Planning

The importance of financial planning cannot be overemphasized. Just as you need a business plan to properly direct your actions towards the success of your business, you also need a financial plan that will guide you on the several financial investments you’d take over the course of your business.

So, below are some of the importance of financial planning for a business.

  1. Firstly, financial planning provides your business plan with enough details required to pull the business through. It shows that the business can be established financially and can equally be monitored till it starts bringing in profits.
  2. Secondly, it shows the commitment of a company to sound business practices. That is the ability to meet financial goals and spend wisely. This can encourage external investors and increase the potential for long-term success.
  3. Thirdly, it ensures there’s a balance between the inflow and outflow of money in a business.
  4. Next, It helps to sustain growth and expansion programs that move the business forward.
  5. Again, it ensures the company has enough funds to operate
  6. Finally, financial planning reduces uncertainties of a business which can hinder the company’s growth.

Regardless of all these importance, some business owners still neglect the need for a financial plan. Some may even bypass the idea and believe they have it all figured out which isn’t entirely so.

The truth is, financial planning isn’t just for large companies. Even with your small startup, you can create a financial plan for it to enable you remain on track towards the success of your business.

So, while you can’t guarantee that everything will play out as you’ve planned, having a financial plan for your business prepares you for what is ahead.

Objectives of Financial Planning

There are a lot of financial goals to set, hence the need for financial planning. Below are some of the objectives of financial planning.

#1. Determining Cash Flow

The main need for financial planning for your business is to know where your money is going. Having a record of all the finances that go into your business will enable you to know what you really need to spend on and what expenses you need to cut down on.

One way to determine this if you don’t have a financial plan yet is to check through your credit card and checking account statements. Together, there would be traces of what you spent your money on before you realized that you need to do financial planning for your business.

To track your average spending per month, add up all your expenses in your statement and divide it by 12. This way you wouldn’t overestimate or underestimate what you spend monthly.

#2. Determining Capital Requirements

Determining your capital requirements depends on factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: Short- term and Long- term requirements.

#3. To ensure that financial resources are maximized in the best way possible to get maximum returns on investment.

#4. To determine the amount of capital required in the business. This includes decisions of debt-equity ratio, both short-term and long- term.

#5. To create financial policies with regards to lending, borrowing, and cash control

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Types of Financial Planning Process

The financial planning process for a business involves the steps taken to come up with a good and workable financial plan. Hence, below are the types of financial planning processes you can adopt.

  • A short-term financial plan
  • Medium-term financial plan
  • Long-term financial plan

#1. Short-term financial planning

This type of financial planning process lasts for as long as a year. Here, you take into consideration your current financial status and the financial resources at your disposal that can help you meet your financial goal.

#2. Medium-term financial planning

In this type of financial planning process, you are planning for a longer period of time. Anything between two to five years. You take into consideration your current income status, your business sector, If there’d be any switch to another sector, future income increment, and growth prospect.

#3. Long-term financial planning

Here, you are planning for a longer period of time, From 5 years and above. You take into consideration, the different types of investment opportunities that are open to you. To do this, you need consistent and systematic planning, savings, expenditure control, tax savings and carefully following the financial planning strategy.

Concept of Financial Planning For a Business

Generally, the concept of financial planning revolves around the following;

  • Cash flow management
  • Investment management
  • Debt Management
  • Tax Management

#1. Cash Flow Management

This involves managing the cash flow of your business. In other words, keeping an eye on the inflow and outflow of funds.

To properly do this, you need to estimate your present and future expenditure, an keep the expenses under control, because that’s the fastest way to achieving your financial goals.

In addition, it involves creating a reserve of emergency funds for unforeseen circumstances. I call it, “your life support”.

#2. Investment Management

To acheive those financial goals, you’ve set, you need to invest in various investment instruments through out your life.

Doing the right investment is the surest way to accumulate enough funds to spend on the very important aspects of your life.

#3. Debt Management

This involves managing all the cash you borrowed in time past. Although they say you don’t always pay off all your debts, the best thing is to keep it at a minimal level.

If your business can’t afford to sustain an expansion or a diversification into an entirely new product. Then there’s no need going to borrow money for an expansion in the first place.

Putting your debts in check helps you control the amount of money your business spends externally.

#4. Tax Management

Paying of taxes is a major factor in your expenditure list. Hence, to maximize your real income, tax exemption and tax liability is of utmost importance.

Consult investment planners or tax consultants to recommend the best tax saving instruments you can invest in, through various government and private investment scheme.

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What is the Financial Planning Process?

Financial Planning is process of creating objectives, policies, procedures, programmes and budgets regarding the financial activities of a business. This ensures effective and adequate financial and investment policies.

However, to come up with a good financial plan, there are steps you must take that complete the financial planning process.

Below are the steps involved in the financial planning process.

#1. Set financial goals

The main reason you are coming up with a plan is because there is a goal that you need to meet. So, wonder why it’s the first step to financial planning?

Set realistic financial goals. Keep it achievable within the period of time you’ve set for it. Separate your needs from your wants.

Also make it inspirational. What do you want your business to look like in the next five years? How many assets do you want to acquire in the next 10 years?

Your goals need to inspire you or you wouldn’t work towards achieving them.

#2. Gather your financial information

In this step, you need to gather all the current financial information about your business. This is because the financial planning process depends on the quality and clarity of the information you have at your disposal.

Here’s a guideline.

  • Find out what your income and expenses are, assets and liabilities, as well as, risk attitude.
  • Know where your money is. Know exactly what’s coming in, what’s going out, and how it is going out.
  • After you have created a financial plan, then the next thing to do is to
  • Find out if there are cash diversions anywhere and tackle them squarely.

#3. Analyze your business financial information

For this segment, you can decide to hire a financial adviser.  It involves monitoring all the financial information you have gathered about your business. Ensure what is on paper is exactly what’s happening in your business.

Through analysis, you or your financial adviser will be able to determine what exactly your financial situation is, identify areas of strength and weakness, and narrow down your financial actions to what will truly benefit the business.

#4. Create a financial plan

Having followed the above steps till now, its time to create a financial plan. The plan is developed bassed on the final information you have from step 2 and 3.

Additionally, the financial goals you’ve set will be included, to help you work towards achieving it.

Your financial plan will include:

  • Net worth statement (a balance sheet)
  • Annual consolidated tax calculation
  • Annual cash flow report (displaying surplus or deficit)

Now, you have a clearer picture of what you are looking to attain.

#5. Implement your financial plan

Once all the other steps are done, its time to implement what you have created. Usually, there’d be a recommended course of action to follow in line with the new financial planning process.

A typical course of action may include;

  • Income and expenses adjustment
  • A new investment strategy
  • Or additional insurance.

Either way, you’d implement the results from your planning process, and come up with suitable plans for your business.

Personal Financial Planning Process

This process involves strategically planning your finances for your future. It involves monitoring your income, expenses and debt.

This process is not just for those with a lot of money. Its for everyone who has an income and expenditure. And at least 70% of Americans belong to this category.

A well-planned finances will go a long way in saving your future.

Here are the steps to take

#1. Define your financial goals

The first step in financial planning is often times the hardest. Because to clearly define your financial goals, you need to start asking yourself questions like. where do your see yourself in five, ten years?

This helps you to consider what you value in life and determine what kind of life you want to live in the future.

#2. Prioritize your goals

Now that you have an idea of your financial goals for your future, its important that you prioritize them above anything else.

Prioritize the important aspects of your life and save towards them. For example;

  • Save for retirement
  • Save for your children’s trust fund
  • For a down payment on a home
  • Save to go out of a debt

Remember the 50/30/20 rule? Where 50% of your income goes to regular bills and expenses, 30% goes to personal needs and 20% goes to saving? Yes, employing it at this stage is really advisable.

#3. Create a budget plan

Yes, after you’ve arranged your needs in order of importance, create a budget plan and stick to it for the rest of your life.

The budget will be based on all your incomes and expenditures. Here’s how to create one.

  • Make a list of your income and expenditure over a 30-day period
  • Group your expenditures into fixed and variable costs. Fixed means it’s the same amount, e.g rent while variable costs mean that it changes over time e.g groceries, night outs, etc.
  • Analyze your variable expenses and identify areas you can cut back.
  • Save that amount you’ve decided to cut back from your expenses
  • Review your budget monthly for possible adjustments.

 RELATED POST: Personal Finance: Basics, Importance, Types, Management ( + Free Softwares)

Top Financial Planning Apps

Below are some apps you can use to aid you in the financial planning process.

Financial planning pdfs and research papers can be found online from financial reearchers across the globe.

In Summary

Financial planning for a business can be really hard because of some variables that affect the business. For instance, consumer behavior toward a new product or a change in the price of an old product is hard to predict, and this affects the finances of a business.

Regardless, its still something that is worth trying as its better to plan and have a model, than to leave your business finances in the hands of your business. Literally.

As you read this article, I hope it helps you make a good financial planning decision.

Good luck!

PS: Don’t have a business plan yet? Or you’re still a bit confused about the idea of a business plan? Don’t worry, we got you! Click on the button below to have access to our list of workable business plans that has helped a lot of business owners in over 10 countries of the world.

Continue Reading


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