Emmanuel Otori

Emmanuel is a Small Business Consultant, Start-Up Advisor and Consultant For SMEs across Nigeria. He's also the CEO of Abuja data School. He Has Worked With 50 Small Businesses, Including A World Bank And Federal Government Project. He Has Provided Advisory Services, Capacity Building Trainings And Consulting In The Hospitality, Information Technology, Fashion, Agric, Power And Services Sector.

How to Leverage Data for Business Growth

Many organizations are seeking ways to offer their products and services to customers in an efficient way in order to save time, ease their processes and provide the highest quality of delivery as at the expected time. One major opportunity that most start-ups are not taking advantage of in their quest for efficiency is the availability of data in the public domain as well as the internal data they are gathering to make business intelligent decisions. When is mined correctly, it helps you act with precision and less assumption and it reduces the margin for error and ultimately makes your business thrive. How To Gain Actionable Insights From Data Data gathering Gathering of data is the most rigorous step as without data, the ability to make decision is hampered. Assumptions would thrive and there would be much gap in the margin of errors. Before collecting data, the scope of the project in terms of questions to be asked in the survey, the duration of the project and field enumerators to be used as well as medium for gathering the data should be known. These tools are for gathering data Surveymonkey, Google forms, Microsoft forms, Hubspot and Google analytics. Data Cleansing Data cleansing or wrangling is the art of removing unwanted items not needed in working with the data collected such as symbols, extra spacing, grammatical error etc. Data Analysis To analyze any form of data that has been collected, these tools are the most comprehensive tools in the marketplace, they include Microsoft Excel, SPSS, STATA, Python, R programming, MATLAB, E-views. Data Visualization Data visualization is the art of representing data in the form of charts in order for comprehension by stakeholders. Examples of tools for data visualization are Power BI, Tableau etc. Business Intelligence The action taken having seen the feedback hidden in the data collected is called business intelligence (BI). This is the most important aspect in order to act with precision. What is Predictive Analytics? Predictive Analytics is a form of using records from past data collected over a period of time to determine what the future holds in the form of forecasts. Predictive Analytics is a branch of data analysis that helps to make decisions in the business world. Tools for Predictive Analytics There are free and paid tools for predictive analytics and they are numerous in the form of software applications. They can be utilized by anyone who has competence in gathering data from customers through surveys or from a database and knowledge of which tool is applicable to best analyze certain data. Non-coding tools Microsoft Excel SPSS STATA 2. Coding tools Python R Programming Application of Predictive Analytics Stock Control Staff Utility Price fixing Managing of Peak Times Determining call rates The future of business will be driven by African start-ups that can use the data gathered to study behavioral tendencies of customers and how to serve their needs with a greater level of efficiency. Read Also: Thriving Through Disruptions – Tips for Startups  

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What Investors Look for in a Start-up

A start-up needs investments in order to reach out to its numerous customers especially when the demand for their product or service is high. The major reason for investments in start-ups is the steady growth experienced. Start-up founders need to understand that an investor is not a friend but an enabler with financial capability to help sustain the growth of the business, who in turn expects to get returns in the form of dividends or equity in the overall stake. Investments in a start-up could be by a venture capitalist, financial institution, crowd funders, family and friends, corporate investors and government organizations. Why Cash Flow for A Start-up Is Better Than Profit Start-up Founders are usually trapped in the need to begin to make profit and might wear themselves out when business does not look profitable. Profitability is not the most important factor to measure the growth of a start-up. Every investor understands that to classify a start-up as ready for investment, it has to show steady cash flow in their financial statements, which is the primary check to showcase the healthiness of the business. Determinants of Start-up Investments Team The success of a start-up depends largely on the team and most especially the experience and expertise they bring to the organization. Start-ups are very fragile and therefore risky to invest in. However, with a qualified team whose portfolio reflects a level of experience and exposure in a similar role or organization proves to the investor that decision making would be properly done and tasks executed with precision. A great start-up team is usually  a team that has knowledge of product development and management and also the ability to connect with people in order to sell the products. Traction Traction is the metric to measure the growth of an organization. How many sales have you made within a specific period of time? How many downloads? How many customers are being served? Traction represents the overall cycle of how deepened the dealings of a business has fostered consistent growth with the customer. The tractions are usually represented in charts to display the gradual progression. Licenses Investors are concerned about the level of work that has been done by the start-up founders and these can be shown in obtaining the necessary licenses, intellectual property and compliances to enable the smooth running of the business. Investors want to ensure their investments are secure and would seek a level of understanding in ensuring that the necessary regulations are being adhered to. Risk Management Policy Investors like to know what the next line of action would be if the plan does not go as expected, it could also be that the plan is executed as expected but then the business experiences difficulty, what would the next line of action be in order to continue to stay in business. Risk could range from personal risk, financial risks as well as health and safety risks. Your Competitive Advantage Investors are aware that there are other existing businesses like your own, one of the ways to showcase that a start-up is ready for investment is to leverage on what makes you better, amplify it in your promotions and show measurably how it has helped to create exponential growth better than your competitor. Bear in mind, that alongside the factors mentioned, the start-up founder with a good portfolio is the capital reason for making capital investment. Without strength of character, staying power, grit, tenacity and resilience, investment in a person might not suffice. Read Also: How to be Investment Ready

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How to Maximize Social Media for Ecommerce

The emergence of ecommerce in Africa has seen online shoppers take advantage of the convenience it offers, as goods can now be delivered directly to their doorsteps while they also have the flexibility of selecting the payment channel either using their debit cards or payment upon delivery option. However, as ecommerce continues to evolve and shape how business is done, there are numerous challenges that has been associated with making orders online, these challenges if unresolved over a long period of time, would make the trust the customer has to completely diminish as the reputation of the businesses would also be affected which would reduce the demands and sales. Social Media for Ecommerce A major growth that ecommerce is experiencing in Africa is the transition from building enormous ecommerce sites to the use of different social media platforms such as Facebook, Twitter and most especially Instagram to deliver products and services to online shoppers. The advantages of utilizing social media for ecommerce is numerous Social media platforms require no payment to utilize them. Building followership on social media is relatively easier compared to making a website rank well using digital marketing. Interaction between online vendors and shoppers is instant. Online vendors do not necessarily need to have the product until an order is made. No requirement of any form of maintenance for the platforms used. No formal business registration is required to become an online vendor. While the use of social media platforms for ecommerce has scaled ecommerce in Africa, a major challenge experienced by shoppers is trust. Online shoppers order for products and receive a totally different order, a damaged order or one that is totally different from what was displayed on the platform. This has been seen with items such as confectionaries, fashion, hair extensions, utensils, electronics etc. The inability of customers to get a refund or a replacement of the item ordered when it does not meet up with the specification is a big gap that is causing customers to reconsider when making a purchase on social media. Customers are well informed and are now beginning to compare prices of items in a physical retail store. Reputation Management Techniques for Online Vendors Reputation management by online vendors is very important as it can help to build a real business from scratch and not a side gig as is done by most vendors. To build reputation, it is important to do the following Create a relationship with prospective shoppers by engaging in visuals such as posting a video of the person engaged in business as an online vendor. A lot of shoppers want to relate with a person they see and the ability to have a visual can help in building reputation. Stick to your terms of order and delivery. A product that should be delivered within 3 days should not exceed the expected day of delivery, and if there are changes, the online shopper should be informed. There should be no hidden charges when engaging in ecommerce using social media platforms. Conducting Due Diligence Before Making Payment To avoid losing their monies to fraudulent vendors, shoppers are to conduct dues diligence on the vendors Read through the comment section of the vendors from 3 months, you would either find complaints or compliments. Start with an order that does not cost much in order to understand the vendor’s mode of operation. Insist on paying through an online payment platform such as Paystack or Flutterwave in order to be able to channel complaints appropriately. To ensure customers are protected, it is necessary to have a system that ensures goods are only paid for when the customer receives them and confirms they are in good condition. This way both the buyer and seller’s interest are protected.

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The Benefits of Standard Operating Procedures

“Organizations cannot experience sustained growth until they develop a set of standards to guide their operations”. Standard Operating Procedure (SOP) is a detailed and systemized instruction that is expressed in a step-by-step sequence on how the roles of employees should be carried out. A standard operating procedure is usually created by the employer in order to create a company culture that transcends individual differences in carrying out activities related to business and office management. The Need For A Standard Operating Procedure? A standard operating procedure ensures that a business can be successful since it operates with precision, accuracy and uniformity while working across different stakeholder segments of the business. When regulatory agencies visit an organization and realize there is a standard operating procedure at work, it sends a positive image of control and proper management of activities. It serves as the foundation of a good quality management system, such that an organization can become responsive when an error occurs, therefore making the ability to get back on track feasible. Most small businesses are run in an informal manner regardless of the number of years or the number of resources invested in them. The desire of most organizations is to become №1 in their industry and grow their businesses through the ranks from a brick and mortar business to a medium sized organization or conglomerate. However, it should be considered that only systems make organizations to serve the different the kind of people that come into it, and this is not to resent individuals with great talent who make immense contribution to delivering value in these organizations but that the organization takes the discipline to put a system in place and refine it as they grow. A standard operating system compels team members to share in this generally accepted standard that the organization is trying to put in place. A number of processes are examined to fine tune what is expected in an ideal organization   Areas Standard Operating Procedures Are Applied Cloud Storage of Electronic Documents While different organizations have procedures for saving electronic documents. An easy to use general procedure is to create a folder that holds electronic documents for a month, this monthly folder is then embedded with weekly folders to save activities done for the week and the weekly folder has daily folders to save activities done for the day. Each folder will contain a set of specific documents, images or visuals saved with the name of the document or client’s name and date. This allows for easy referencing. The folder is then uploaded to the cloud or saved in a hard disk. Receiving and Answering Calls Imagine an organization where there is no procedure for answering and receiving calls, without initiative on the part of the handler of the device, it appears to anyone like a chit chat which from a distance can be observed by the person at the other end. A recommendation that provides flexibility is as follows Good afternoon Sir/Ma, I am XYZ, the customer center head How may I help you? The outline here for calls is to accord the client or prospect with the level of respect regardless of their age and only call them by their name if they only ask to be called by their nomenclature. While all the information that is being requested by a customer may not be available at hand while the call is ongoing, it is important to let them know that you would return the call when you gathered further information, in order to prevent informing the customer wrongly and misrepresenting the organization. Choosing a font style and size in every document An organization has to be seen as one with whoever it is having business dealings with and one way to show uniformity is in the preparation of documents that are either for use within the organization or one to be sent out Font Size: Georgia Font size: 12 Line spacing: Double line spacing Document format Some documents are sent out in an editable format and because these can easily get exposed to viruses, might make the client go through the stress of getting to open the said file. A PDF (Portable Digital Format) document is what is recommended as it doesn’t lose its authenticity from whichever platform it is sent online. These sets of operating procedures as simple as they are can save an organization from acting randomly and bring about cohesion and a sense of accountability in following such principles. Procurement For an organization to make procurements especially private organizations, it is necessary that the store manager communicates a depletion in the specific item by sending a notification through the procurement officer to the manager, the manager then passes same to the accounts officer to verify the duration for the depletion of the item is as specified before requesting for a list of eligible vendors to generate an invoice for the items requested. Funds will be transferred to the vendor and upon confirmation by the vendor; the item is released with a receipt as evidence of payment. The procurement manager then upon delivery ascertains that the item requested is exactly what was purchased; he then sends it to the stock through the store keeper who enters this as a new stock. An organization depending on the culture they intend to build can create procedures that work in order to ensure accuracy and avoid duplicity of procedures initiated without authorization from the management. Read Also: Guidelines to Developing a Standard Operating Procedures Manual

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Why You Need a Business Continuity Plan

There are many uncertainties in business and the more a business grows, the more the uncertainties.  All these uncertainties are risk factors associated with businesses and they could arise due to expansion to a new geographical location, promotion of team members, and production of a new line of product or seeking partnerships to strengthen the market share. The ability of the business owner to ensure the business can continue its operations in spite of the numerous risks at any point in time could determine whether a business would go bankrupt or evolve. What Is the Business Continuity Plan? A business continuity plan is a document that outlines the actions or measures that should be taken should there be a disruption in the form of an associated risk such as fire outbreak, loss of equipment, death of the business owner, or a collapsed building. The ability to get back into business despite the disruption is key to business success. As customers will continue to demand for the products and services and the inability to meet these demands would lead to a huge loss in market share and more effort to win them back if it takes a longer time for the business to get back on its feet. A business continuity plan is significant in the following ways: Availability and Accessibility: The plan ensures that a business is sustained and can continue to offer its products and services regardless of any disruption. The use of Information Technology (IT) infrastructures such as cloud computing help to save and backup all documents such as receipts, invoices, purchase orders, bank transactions, log sheets of staff, etc. online and in real-time. Uninterrupted operations: The plan ensures that systems that govern the smooth operations of a business can be installed immediately after the disruption so that operations can continue seamlessly. Disaster recovery: A secondary source of ensuring a business can sustain itself back into operations is key when it comes to disaster recovery and its management. Disaster recovery could be the ability to get back from where everything stopped. A website that has experienced cyber-attack and is the major source of engaging customers should have a sub-domain hosted separately so that it can get back live quickly and recover swiftly. This way, the company will minimize its losses. Processes for designing business continuity plan While planning to have a holistic document for the business continuity plan, the following metrics are important to ensure a robust design is carried out Business prioritization: The starting point for planning a business continuity plan is to identify and quantify the risks, threats, and vulnerabilities. This should be done across all platforms and departments. Adoption into IT: Take the input from business prioritization and perform an overall business continuity program design. Information Technology gives a competitive advantage when it comes to risk management as it provides the infrastructure to safeguard and ensure easy recovery and accessibility to files saved with the aid of cloud computing. The risks identified from the business prioritization should be adopted into workable IT systems. Manage: The ability to utilize what has been designed prior to a gap caused by a breach requires discipline. Hence, it is important to update the files regularly so that you can enhance the capacity of the team to utilize the systems designed effectively. The key components of business continuity are: Strategy: Strategy helps to create a secondary system in place while ensuring that the day-to-day operation runs smoothly. Organization: Organization of the key components of the internal and external resources that keep the system running, most especially the human resources, their responsibilities, and opportunity to communicate output through a regular assessment of all systems ensures organization of the overall plan for business continuity. Software applications and management: Any Software application that is used regularly for business operations should be backed up. Processes: Documentation of all processes with specific terms in the form of a flow chart or process map, such that any team member can begin to deploy the knowledge from the files without needing a third party to make explanations. Technology: Every form of technology that supports the overall existence of the business, such as the infrastructures for production, maintenance, repairs, use of energy, etc. should be documented. A business continuity plan is important because it becomes a reference point should any form of disaster occur and helps to provide the framework for recovery to deal with different forms of risk and the ability to return to operating again.  

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How to Leverage Story Telling for Your Business Pitch

There are a number of reasons a business needs investments, these investments could be in the pre-seed, Series A or B and regardless of whatever stage the business is operating, the major reason for seeking investor’s funding is usually for expansion purposes. This expansion could be in the line of products or the need to serve more customers in their growing numbers due to exponential demands. Why Storytelling? Story telling has been found to be the underlying magic when pitching to investors. Effective story telling has to be genuine and linked to the WHY of the business i.e. the challenge the founder(s) were trying to mitigate when they set up. It also has to be told with clarity backed up with research-based statistics on prospective customers that are in need of such solutions. Highlighted below are the key elements of a Pitch Deck The Pitch Structure The pitch deck structure while different in the pieces put together as templates by different businesses, should still have the most essential ingredients and answer the potential investor’s questions. These items in a pitch deck should be on each slide Cover Page The cover page is a basic design that captures what the organization does. Usually the logo of the organization and the tag line, which serve as their value proposition to clients. The cover page should be very simple in design and text. Introduction The introduction is the executive summary of the pitch deck. All the parts in a pitch deck should follow a simple rule “less is more”. The Pitch deck should have very limited words and should be clear. Problem State the problem in a very clear and concise manner. This slide should capture in bullet points the problem your business is trying to solve. Solution The solution slides need to state the function of your product or service as it addresses the problem you have stated. Try not to get into mentioning features as what is important here is how your product will benefit customers. Product Demo If you are making a physical presentation, your product demo should be in a video of 30 seconds or less about how your product or service functions to provide the solution. If you do not have a video, then a pictorial view of images can also be used to represent this. Market Size You can adopt two approaches. You either take the top-down or bottom-up approach. The top-down approach is to find out the size of the market and estimate how much of that size you think you can capture. I think the top-down helps to be more realistic as what you hope to capture can either be expressed in years or in the lifetime of the business. Business Model What would your business model be? Are your products going to sell for a particular price? Would your customers have to subscribe to it weekly, monthly, or daily? This is what your business model represents. Some social media platform runs on a freemium model where users do not pay to use such platforms; however, the platform then makes money from advertisers wanting to gain visibility from this number of users for their products or services. Competition List your competitors whether they are direct or indirect and mention how you are better than them. For example, the indirect competitor for a carbonated drink is water and most bottling companies have succeeded in making their products a unique alternative to water by serving a refreshing taste. Mention here what makes you stand out. Go-to-Market When you launch a new product, it is necessary that a market plan exists; it helps to answer the question of how you would acquire customers. What steps are you going to take for customers to engage you? Would you have a direct market, use radio or television, social media, sponsored adverts, print, etc. to reach out to your targets. Team Your team information should display competence. Most start-ups have a product developer and a marketing officer. This can be seen in the likes of companies like Apple where Steve Jobs is the Chief Marketing Officer with communication prowess and ability to get customers to buy while Steve Wozniack was the developer. 2-3 team members can be the founder or co-founder and launch the start-up and add other team members as the organization grows. Milestones Investors only want to make a contribution because they look forward to returns on their investment (ROI), no investor is your friend. This is the section where you show your traction in the form of partnerships, number of downloads, and most importantly that you generate consistent cash flow and serve a good number of customers Fundraising Information How much funding would you need and in what ways are you going to apply the funding you get. What this funding injection would generate within a specific timeframe. These are questions you want to answer in this slide. Funding is usually needed for operational costs such as rent, staff salaries, office equipment, licenses or certifications, and many more depending on your business needs at that moment. While receiving funding for your business is a great move, it can also lead to the death of start-ups as initial exposure to huge funding without experience or the ability to manage such funding could lead to instant gratification. This is why some start-ups have raised funding but are not profitable. I suggest that a business proves through its financial statement to be profitable enough before seeking funding in order to grow a sustainable business model.   Emmanuel Otori has over 9 years of experience working with 100 start-ups and SMEs across Nigeria. He has worked on the Growth and Employment (GEM) Project of the World Bank, Consulted for businesses at the Abuja Enterprise Agency, Novustack, Splitspot, and NITDA. He is the Chief Executive Officer at Abuja Data School.

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How to Leverage 360 Degrees Marketing Technique to Increase Sales

Sales are a determinant of whether a business would survive or not. The lifeblood of every business is embedded in the day-to-day activities that can generate consistent cash flow. Some organizations get caught up in trying to do many things are at a time and this affects their downline and ultimately the finances of the organization. Many organizations may not necessarily know that they are doing too much until there is a sharp drop in revenue. A sharp drop in revenue is an indication of many factors and this symptom can mean that some core activities such as staff retention, customer service, lack of repeat sales, poor product management, and unclear definitions of the target market are suffering. If there are consistent sales, a business can survive the most difficult phases as cash flow is directly linked to the overall activities. The most important question to ask then is “how can more sales be made?” Without asking this question, the business risks every other form of major distraction. The 360 degrees Marketing Technique The 360 degrees marketing technique can also be called Integrated Marketing Communications (IMC). This technique is a mix of several activities that organizations are engaged in to increase awareness about a product or service. The perception of visibility by a customer over a long period consistently makes a brand become the preferred choice of a customer whenever they need to make a purchasing decision as the brand is the first to come to mind due to the number of exposures they have had with the prospect and vice-versa. 1. Email Marketing Email is one of the easiest and fastest ways to reach a large audience and when properly deployed has the potential to create a consistent stream of customers, as it takes the form of a closed user group through the reception of newsletters by the customers and overtime a relationship is built through readership as the audience are regularly updated about the activities of the organization or products and services. Email Marketing also helps to create some form of targets as there are metrics that could show who reads a particular newsletter and how many times. Observing the behavior of the readers and the type of content they are reading could initiate a purchase decision by offering a product that compliments what they read. 2. Blogging Blogging is similar to email marketing, but while email marketing is only sent to subscribers or users generated through a third party, blogging reaches out to all possible audiences that are online and serves as a tool to consistently inform customers about the product, services, or activities of a business. Regular blogging should average up to 3-5 blog posts weekly to make conversions; this done for 6 months is a guarantee for increased sales. 3. Granting Media Interviews As much as the new media is emerging greatly, the traditional media is still the preferred option for most audiences, and the ability to use these tools such as television, radio, and print media is key to reaching a lot of people. The conversations on these platforms create a direct connection with the listeners as it is visual. These interviews, serve as a vehicle for the firm to share industry-based experiences and this ultimately makes them thought leaders in that space. Over time, such personality becomes a face and voice in their sector. 4. Search Engine Optimization (SEO) Search Engine Optimization is arguably the first on the list of all techniques as it reduces the time, effort, and energy to directly reach out to prospective customers. SEO guarantees that prospects can easily find an offer and make a purchase decision as it places a brand right where the audience is seeking answers. Sales are also made round the clock with no limitation of where the customer buys from. 5. Networking Getting exposure as a Founder for your business is necessary to build a personal brand first, as this benefit extends to a business brand as trust can easily be built when people can interact with the owner of the business. A core part of business visibility is to ensure that business owners continuously put themselves out there as many times as possible, and this consistency over time builds loyalty right from the onset and sales. While there are many other techniques in addition to the ones mentioned, engaging in one or more of these activities has the potential to increase the revenue base of the business and reachability.

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Key Factors that Hinder SME Growth

According to a report published by the World Bank, it was observed that while Small and Medium Enterprises (SMEs) create 7 out of 10 jobs in emerging markets, access to finance has remained a key constraint to SME growth. The Report noted that access to finance is one of the most cited obstacles facing SMEs to grow their businesses in emerging markets and developing countries. While access to funding is a challenge for most SMEs across the world and especially in Nigeria, the ability to create jobs to support the ongoing efforts of the Federal Government of Nigeria has become a significant priority as several financial interventions such as the Anchors Borrowers Programme, TraderMoni, Survival fund, AGSMEIS initiative, the creative industry fund, etc. seeks to drive economic development by directly impacting SMEs in order to create jobs. A question of whether the interventions provided has been properly utilized has also been a major concern to the Central Bank of Nigeria as there has been a high level of defaulting in the ability of these SMEs to make repayment for the loans as well as a discovery of misappropriation of funds. The challenges SMEs face are hinged on different factors and access to finance is one of them, however, without fixing some other challenges that are cardinal to the success of a business, access to funding would make no difference in the operations of such businesses. Some of the key factors that hinder the growth of SMEs aside from access to finance are: 1. Lack of Good Financial Records One of the reasons for the failure of SMEs is the lack of proper financial records. Inability to understand whether a business is making a profit or running at a loss is an assumption that owners of SMEs indulge in, thinking that as long as there is cash flow, the business can survive. While cash flow ensures that a business keeps running, survival does not in any way equate to growth as growth comes from profitability.  In order to expand, offer additional products or services, or hire extra hands you need your business to be profitable. Keeping financial records does not have to be rigorous. It simply has to be what forms the cost of running the business (expenditure) and what are the sources of revenue (income). Income has to be higher than expenditure in order to be profitable in business while still serving the client with quality value. There are several tools in place to ease bookkeeping e.g. Quickbooks and Sage 50. These tools can help managers without accounting background track their finances. 2. Lack of Standard Operating Procedures (SOP) Due to the lack of jobs for the teeming population, entrepreneurship becomes the best chance for most recent graduates and those in the informal sector, therefore leading to the emergence of accidental entrepreneurs. These sets of entrepreneurs lack the basic skills to compete globally with their counterparts as there are many gaps such as lack of adequate training to establish and manage a business. They do not also have a Standard Operating Procedure for their businesses. Standard Operating Procedures are a set of instructions that help to create structure on how a business is operated by the team, this helps to create cohesion and organization in the day-to-day activities of the business. SMEs usually run on impulse either due to ignorance or inability to hire an expert to create an SOP, leading to haphazardly running the organization in a fire-brigade approach, making deadlines almost impossible to reach and satisfying customers becomes a mirage. 3. Inability to Leverage Social Capital Social capital refers to the ability to leverage key relationships with different stakeholders that are key to a business. This form of capital can either be a relationship with the supplier of raw materials required for production, to support the receipt of input at a reasonable price or provision of the materials on credit. Relationships with family, friends, associates, and belonging to circles of social clubs can be the beginning of securing customers whose patronage would help secure capital for takeoff. 4. Inability To Create Visibility Online Creating social media handles on Facebook, Twitter, Instagram, LinkedIn, and other channels as well as having a website are necessary for a business to become visible to its target market. SMEs are limited in customer acquisition as their dependence is only on customers that can access their physical location. Being able to gain visibility to markets outside your environment of operation will give your business a competitive edge and also ensure you gain immense visibility online, therefore, increasing your overall efforts in acquiring customers and continuous cash flow. When these factors are properly tailored to support the growth of a business, having access to capital might not necessarily be a major challenge as reported by SMEs as a buffer of opportunity to benefit from the market has already been created as a result of putting the following constants in place.

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What You Need to Know About Customer Types

The lifeline of every business is enmeshed in the number of stakeholders it interacts with as well as their activities in relation to the business. These stakeholders include the suppliers of the raw materials needed for the business to manufacture its offerings, the employees or human resources who engage in the production and the customers who are the end users and the most important stakeholder in the cycle. The Customer Customers are consumers or end users that products or services are made for in order to satisfy their needs with a series of unique experiences. The customer in-turn has a unique role to play as their consistent purchase makes them become the most important stakeholder in a business. The major reason businesses collapse is for lack of customers as customers generate cash-flow for the business whenever they make purchases therefore contributing to increasing the sustainability of the business to remain afloat. The uniqueness of the customer does not trivialize the role of the supplier and employee but then without the customer, the aim of building a business without an end user is defeated. The Nigerian market is characterized with different categories of customers. The ability to understand the type of customers a business attracts through their purchasing behavior and data driven approach will support the growth of a business. This understanding helps businesses position their offerings correctly in order to attract the specific customer segment they want and also secure a reasonable market share through intentional strategies.  Here are the five customer types and what we need to know about their personality traits in order to sell to them Innovators (2.5%) Innovators are the type of customers whose buying decisions are risk driven. Innovators are the youngest in age and willing to experiment upon seeing a product or service they desire to use. The personality trait of innovators is that they are impulse buyers, their need for adopting a new product has no regards with respect to whether they have budgeted for it or not. Because they are risk takers, they easily adopt new technological solutions and while they can easily help brands to get exposure by putting these products in the presence of other potential users, they might lose their financial resources if such solutions fail based on some limitations. The Innovators account for only 2.5% of purchases made. Early Adopters (13.5%) These categories of customers are the second set of individuals to adopt an innovation after the Innovators, they are called the Early Adopters and they account for only 13.5% of purchases made. The Early adopters are also very young in age just like the Innovators and have a high social status and reasonable disposable income. They are opinionated and can be regarded as thought leaders. Because Early Adopters are judicious in their choice of adoption, they can easily maintain a central communication position, especially in giving reviews. Early Majority (34%) The Early major only adopts new solutions when a degree of time has passed after the launch of the solution into the marketplace. The time taken before they adopt any solution is usually longer than those of the Adopters and Innovators. They usually tend to be slower when it comes to the adoption of a solution and only belong to the above average income class, however their contact with Early Adopters eventually informs their decisions about eventual purchases. They also rarely hold an opinion which is a direct opposite of what the Early Adopters do. They account for 34% of all purchases. Late Majority (34%) The Late Majority only adopt any form of innovation after the average in the society has done that. Their approach of innovation is with a high degree of skepticism. They are far from being risk takers as they are low on disposable income and want to avoid mistakes when making purchases since their income is limited. They are also characterized with very little financial education, are in contact with those in the Early majority and their peers, and possess not much opinion leadership. They account for 34% of all purchases just like the Early Majority. Laggards (16%) The laggards as the name implies are the last to adopt any form of innovation. These individuals have no respect for change as they hold on to their first generation of solutions and do not consider a change of such a solution except if there is a breakdown of such a product or it no longer works again, only these circumstances makes them embrace change. They are traditionalists and are usually elderly, have very little disposable income, lowest financial education and are only in touch with family and friends All customer types make their unique contributions to grow a business; their role in the value chain supports the sustainability of a business in different dimensions. The early majority and the late majority are usually the difficult set of customers, however learning to sell to them by winning their confidence and serving them right, has the ability to increase repeat purchase as they both account for the highest percentage in overall purchases made. Customers are never the same and understanding how to serve them uniquely in a particular market, holds the key to profitability.

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How To Validate Start-up Ideas With Design Thinking

Innovators are concerned about building a product that will have a huge impact on the lives of people by increasing the quality of living standards, addressing a pain point or an alternative that is cost effective for its consumers. With these great thoughts comes a big question that has to be answered before launching a product or service and it is the question of “is there a market”? The addressable market size becomes a question to answer in order to ensure that when a product is manufactured, it will find users or consumers who are willing to utilize the product based on the offer that is being given. One of the techniques that most successful start-ups in the world has applied to ascertain whether a product will sell or not is called “Design Thinking” Leading Change One of the failures is the assumption that there is a market, is one that can be seen or witnessed in solutions that have been made for people. An example is the construction of an overhead bridge for pedestrians to avoid crossing the expressway. However, the humans who this provision has been made for usually ignore the bridge and use the expressway to connect to their routes, which even makes their transit riskier than the use of the overhead bridge. Why would anywhere risk their lives to cross an expressway when there is an overhead bridge beside them? Failure in the consideration of what would drive people to use the overhead bridge is what is lacking and why the preference for the use of the expressway. Would these same people use the overhead bridge if there were possible factors considered before making the designs? The answer is an absolute yes. The failure in the use of the overhead bridge is driven around the fact that the normal tendencies of human behavior were not considered before constructing the bridge. Human Centered Design Design thinking takes into consideration the natural tendencies of human behavior before designing a solution. This will ensure shared responsibility from both parties such that there is already a market with reasonable demand to capture a market share than can sustain the business when eventually presented to the users. The failure of most start-up ideas is embedded in the emotional attachment that founders have to their ideas which makes it difficult for them to be open to feedback from the prospective users. However, a fact based finding should be prioritized against emotions when creating a solution. How Design Thinking Drives Innovation There are five stages in the design thinking process 1. Empathize Being able to empathize with customers most especially when it is a challenge or pain point that makes the purchasing or usage of a product or service difficult for them gives you an opportunity to learn closely from them. Customers who have a reference point of a better offering would always voice out hence, active listening to their challenges is a great feedback for start-ups. This stage consists of interviews in getting to know what the ideal scenario is to prospective customers. 2. Define Having interviewed the prospects, it then becomes necessary to begin to define what the challenges are from all the opinions gathered from several interviews conducted with stakeholders. The age group of those facing these challenges, their income level, experience, education and location becomes parameters to pay attention to. 3. Ideate The aim of conducting interviews and surveys by visiting the field is to be able to generate a product or service that has a fit for the market. All the feedback that has been given now needs to undergo divergent or convergent processes where divergent takes the several opinions and create solutions around them while convergent thinking helps to narrow down to the best idea. These two thought processes helps to come up with what the proposed solution to be developed would be. 4. Prototype Prototyping involves making a Minimum Viable Product (MVP), a minimum viable product is one that is made with the minimum resources in order to furthermore see how customers interact with the product or service in its pilot or beta phase. The feedback from the usage and engage would then help to determine whether a full product would be manufactured or not. For digital products such as web or mobile apps, tools such as Figma or Adobe XD can be used to make a prototype. 5. Test The testing stage helps to pick the ideas that work and move very fast to implement them. If there are impediments or bugs, then it has to be corrected. When the product passes the testing stage, a complete product category can now be created and ready to make entry into the market. The first two stages in the process of design thinking helps to look out for evidence by carrying out Primary Market Research (PMR) to ascertain by means of qualitative and quantitative analysis the fact there are evidences to either support whether a challenge really exists or not for a solution to be created. Founders should learn to embrace what the primary market research presents in order to avoid losing big as a result of the assumptions of what they either expect the market to be or their emotional connection to the product. Read Also: Ten Marketing Tips for Startups

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