stmHave you been searching online on how to be successful in daily contribution business? You’ve come to the right place. This article features all you need to know about daily contribution business. Continue reading!
A daily contribution is a local form of banking, by which customers contribute a particular amount of money daily. Then after a period of time (mostly monthly), the money is returned to the customer.
You might be wondering how they make their money right? Here’s how it works, the first money the customer deposits to your account is yours. For example, if a customer deposit N500 each day, the first N500 he/she deposits are for the registration and card.
This business sounds easy, but without complete knowledge of it, it might be difficult for you.
How To Start Daily Contribution Business
To start a Daily Contribution Business, there are some things you need to put in place;
– Register: In every business you do, it is important to have a register of customers, this book helps you keep a record of daily remissions. If you do not have this record, you might get confused at the end of the day.
– Record Card: This card is given out to eat customers, after which when they make their daily contribution, the business coordinator signs in the card. It is important to use a unique signature to avoid forgery.
– A Bank Account: In this modern age, it is not advisable to keep your money at home or in cash, due to the high rate of theft.
It is important that you keep your money in a secured bank account. It is advisable to use a Microfinance bank account as this daily contribution money boosts your chances of getting loans.
Moreover, you should not only receive hand-to-hand payment, but you should also create different modes of payments for customers, in the sense that they can transfer their daily contribution if they wish.
Challenges of Daily Contribution Business
Just like every other business, the daily collection business also faces some major challenges, this includes;
– Theft: As stated earlier, it is not advisable to keep your money in a secured bank account, when the money is stolen, you’ll still have to pay customers at the end of the stipulated time because they will not want to hear any explanation.
Furthermore, you should be extremely careful as to not reveal information regarding your bank account to fraudsters. Because they can wipe off the account with the right information.
– Customers Collecting Their Money Before Time: This is a major challenge because this business is mostly run around the neighborhood and marketplaces. Some customers might come up with excuses to collect their money before time.
The best way to handle this is to put a fine on the collection of money before time. For instance, if you give out money every month (30 days) and a particular customer wants to collect his/her money after 15 days.
Maybe the customer will have to pay a fine of N1,000 from the money being collected, by doing this, people will think twice before collecting their money before time, unless in terms of an emergency.
Conclusion
Daily contribution business helps you contribute to the lives of people in your neighborhood and also yourself. Because instead of them spending the money, they’d rather save it with you to get it in bulk at the end of the month.
It doesn’t cost much to start this business, but you need to gain the trust of people before they can keep their hard-earned money with you.
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