Perchstone and Graeys

Non-Monetary Compensation of Employees

Running a business requires both the entrepreneur’s effort as well as the support of other team members who contribute their quota towards positioning the business for growth and sustainability. These team members who are referred to as employees, are often compensated for the role they play in the daily affair of the business. As a startup, you may want to attract the best talents as employee but may not have enough funds to compensate them. The economic depression and inflation on goods and products have also reduced the value of salaries in the hands of current employees. The following are non-monetary compensations you can consider giving to your employees: Equity Compensation (“Pay Me in Equity”): One of the most common forms of non-cash compensation of employee is allotting a portion of shares to such key employees. This builds a sense of ownership and belonging in the company. An employee who is a shareholder or a potential shareholder is more likely to be loyal to the company. Companies must however ensure that the shares are not given outright, rather the shares should vest over a period and certain restrictions must be placed on the shares in the interest of the company. Flexi work: Since the incidence of the covid-19, the world of work has changed. Many organizations have come to realize that productivity can still be achieved even when employees are not in a brick-and-mortar office 9a.m to 5 p.m. Employers should infuse flexi work in the schedules of employees because it can reduce stress and increase productivity. Hours spent commuting can be better utilized. Concerns about the dedication of the employee to work can be addressed by the use of technology which will enable employees log in hours spent on daily tasks and this can be monitored from the back end to measure employees’ performance. Happy Ambassadors: Employers should pay attention to the wellness and health of their employees and must show their genuine concern for creating a healthy balance of work and personal life. Employers should also be interested in the career growth of employees. Whilst it is important for your employees to be driven by profitability goals of your business, employees should not feel like a means to an end only. They should be able to envision their relevance, growth and the fulfillment of their career goals within the context of the larger goals of the business. Freebies – Employers may consider providing or subsidizing breakfast and lunch to its employees. Allowances such as transportation allowance, mobile phone credit top-ups and data allowances are also good ways to incentivize an employee. Personal and Professional Development: Employers may consider paying for trainings and certifications that would enhance the skills of its employees. This will not only make the employee happy, it will most likely have a positive impact on the productivity of the employee and ultimately the company. There are also some good online certifications you can encourage your employees to sign up for. The genuine interest of an employer in the professional development of an employee is always palpable. Recognition: Recognize the efforts of your employees so that they feel valued and are motivated to do more. You will be surprised how far a simple “Thank You” note would go! The year is rounding down and this may also be a good time to pay bonuses or give personalized gifts or have a social end of year event to reward your employees and let them know you appreciate them. Read Also: How to Ensure Employee Satisfaction

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Ten Marketing Tips for Startups

As an entrepreneur, marketing is critical to the growth of your business. It is one of the most powerful instruments to get your company up and running as it provides the platform to introduce your brand to the world. This is what is known as marketing/promotion and though we know that it may sometimes take a huge chunk of your budget, it is important to know that the result is always worth the expenses. Here are 10 major marketing tips that are extremely useful for promoting your brand, irrespective of your financial position: The first rule, know your clientele: When you know your target audience, it is easier to devise marketing strategies that create a real connection between your brand and customers. Therefore, it is vital to know your potential clientele and the message you are trying to pass across to them so as not to lose their attention. Social media marketing: Just like it is possible to feel like you know someone after 10 minutes of scrolling through their Instagram page, so also, it is very likely that your potential clients will quickly form an opinion about your brand based on your social media posts without ever being exposed to your team, services or products. That said, engage a social media expert who understands how you want to portray your brand and who knows the best way to grow your network of customers. Do not be afraid to change strategy: Be honest about what is working or not. Not every business model has to advertise via regular social media channels. Whilst Instagram may work very well for marketing one product, radio jingles may be more useful for another product. If you have tried a strategy and it keeps failing, do not be afraid to try something different, including billboard adverts, flyers, radio/TV adverts. Remember, your target market will determine the best marketing strategy. E-mail marketing: This is an alternative marketing strategy. Your database is a gold mine and what you do with your record of phone numbers/emails can possibly skyrocket your progress into success. You can choose to send periodic updates, newsletters, discount codes, etc. to the contacts you have accumulated over the years. You must however be careful not to infringe on applicable data privacy regulations. You must ensure that the numbers/emails are only used for intended and agreed-upon purposes. Connect emotionally: Most great brands have built up their image using compelling stories to drive connection with their clients. No one is saying you should make up stories or tell untrue tales, but there is nothing wrong with giving your customers a brand that they can easily connect with. A business can use real-life day-to-day experiences as a marketing strategy to connect with its potential customers. Socialize: It is important to make out time to attend networking events, seminars, workshops, religious and political engagements that are relevant to the line of your business. You have the opportunity to market your business to every person you meet. Therefore, always be prepared for impromptu conversations. At such events be clear in terms of your outcome and act on your goal; initiate a conversation, exchange cards, target potential customers, distribute free branded gift items to attendees, etc. Follow-up: It is not enough to attend events. After interacting with a prospective client or customer, it is also very important to immediately follow up with a call, email, or text message; while the memory of your meeting and interaction is still fresh in the mind of the other person. During a follow-up interaction, use formal greetings, speak clearly, listen, be respectful, suggestive, and not imposing. Be resilient and interested in getting positive feedback. Build products that clients can trust: There is nothing greater than having returning users who recommend your products to their friends/families because they were satisfied with your product. Referrals have proven to be one of the most effective and resourceful marketing tools for businesses. It is therefore very important for a business to focus on earning the trust of its customers. Your customers will only recommend a product they trust. Build a client referral system: Word of mouth referrals have proven to be a useful key in influencing purchasing decisions especially for emerging businesses. Therefore, strategically build a system whereby existing clients trust your product and are inspired to let people in on your fantastic product/services. You can take the further step of rewarding those who recommend your product by creating a bonus/point earning system. Form strategic partnerships with other brands: This is one of the easiest ways to build your reputation as a startup. Many small businesses have sparked public interest within a few hours of announcing their partnership with bigger brands. While it may be impossible to collaborate with the biggest brands yet, there are always other brands you can strategically connect with to improve sales and visibility.  

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How to Position for Sustainability

Businesses require a well-thought-out process to stay afloat and abreast with market dynamics. The importance of this basic plan is even more pronounced with the uncertainties of our time – the incidence of COVID-19, regulatory changes, economic downturn and many other disruptive factors. While some businesses have recorded massive and positive growth despite these disruptions, other businesses have wound up or struggling to stay afloat. This article will highlight the 5 (Five) important factors that entrepreneurs need to consider in their business operations if they must grow sustainably. These factors are: Finance – Capital is the lifeblood of any business; it is important for take-off, operations and growth. You can finance your business either through debt or equity (other people buying shares in your company) or you can adopt a mix of both equity and debt. You can also consider grants, commercial loans or bringing on Private Equity or Venture Capital companies. Whatever financing option you take, the growth potential of your business and the amount of risks you are willing to take now, must be keenly considered. An entrepreneur may need to seek professional advice to take on the most suitable option. Growth – Growth is a product of consistent and intentional efforts with the application of sound strategies in achieving business objectives. To grow, the business needs to create value. So, to advance in business, the entrepreneurs need to answer the WHY Question. What is the key product or service this business has created? Is it really meeting a need? What is my product fit? Who are my target customers/clients? The WHY questions will guide you in making the right decisions and the answers to them will set the stage for business growth. Talent Recruitment – A suitable workforce is crucial to furthering business objectives and attaining set goals. Hiring should be done with objectivity, excellence, purpose, and on a needs basis. Entrepreneurs should build a team that can align with the values and ethos of the business and who can key into its vision and imbibe its culture. Establishing Systems & Structures – Entrepreneurs need to initiate and institutionalize appropriate mechanisms and procedures to ensure the efficient running of their businesses even in their absence as founders or CEO. Ensure that your employees understand the business dynamics and can make valuable decisions even in your absence. Use of Technology –It is important that entrepreneurs leverage on technology as a tool to create an efficient system and improve their business service delivery. Technology keeps disrupting the norm and any entrepreneur who does not adopt technology stands the risk of losing its business to its competitors.  

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Common Mistakes to avoid as a Startup

Entrepreneurs invest both financially and emotionally in their businesses whether overseeing a team of Two (2) or One Hundred (100).  They are self-motivated and enjoy a challenge at meeting the specific needs of their customers. These businesses, often founded on the basic concepts of innovation, organization, and vision are not without risks, which could be internally, and externally generated ranging from financing to market fluctuations, and competition. These risks notwithstanding, the entrepreneurs can still operate effectively in a risk-filled environment, when they are armed with the right information. This article highlights the common mistakes entrepreneurs often make in their businesses, with a view to equipping these business owners with the information vital for business sustainability. These are the ten common mistakes you often make as an entrepreneur: Choosing the Wrong Business Structure – Registering a business entity is the first step you take before starting a business. However, many entrepreneurs fail to do this, or sometimes when they do, they register the wrong entity. It is important to have the right structure in place. No Founders’ Agreement – Many entrepreneurs end up having issues with their co-founders because the terms of the relationship were not clearly defined. It is advisable to enter into a Founders’ Agreement clearly stating the terms, and vesting shares to the co-founders at a later time to protect the interest of your company. No Intellectual Property Protection – Many entrepreneurs fail to protect their ideas and inventions. They get carried away with the excitement of having created something novel and do away with registering at the applicable registry. It is important to register your intellectual property. No Business Plan – It is said that many entrepreneurs are sometimes not businessmen. They have innovative ideas but do not think of how to turn those ideas into scalable businesses. A business without a proper business plan has failed from the beginning. Thus, it is important to have a business plan highlighting all the business goals and the timeframe within which they should be fulfilled. In addition, it is important to have a business plan as this is the first thing an investor will look at to consider if the business is worth his investment. Neglecting Regulatory Compliance – Many entrepreneurs ignore strict compliance to the regulatory framework and this gets them into trouble. It is important to ensure that your taxes are properly filed; the required licenses (if any) are acquired, and the conditions required by law for a particular industry you operate in are met. No Employment Contracts – Entrepreneurs when starting a business fail to enter into employment contracts with their new hires. It is important to have a contract highlighting issues on salary, Intellectual Property ownership, and assignment, non-competition, vesting arrangement, stock options, and so on. Have an experienced lawyer prepare a standard employee contract for your company. Getting in Bed With the Wrong Investors – Many entrepreneurs raise funds desperately and do not carry out their due diligence on the investors. When you raise funds desperately, you tend to overlook some issues or give equity in your company away without properly considering the implications it would have on the company later on. It is advisable to raise funds only when you need it to simply build upon what you have. Not Having Standard Contracts – It is important to get all your standard legal documentation in place such as your Non-Disclosure Agreements (NDAs), terms and conditions, etc. Not Keeping Accounting Records – The majority of entrepreneurs fail to do this. It is important to keep records of every penny that goes in and out of the business. This will not only give your business integrity in the eyes of your investors but will also help you monitor how well your company is doing. Not Having Experienced Lawyers – Entrepreneurs have a mindset that it is only when they desperately need a lawyer that they get one. It is important to get a lawyer (not just any lawyer but one experienced with startups, the ecosystem, and your industry) to guide you from inception through the scaling. Sustaining a business takes hard work and dedication embedded in a bespoke business model that has the potential to stand out in the marketplace. However, the very purpose of these businesses which is profit-making can be defeated in situations where the employers are not proactive enough to overcome some avoidable mistakes. Read Also: Ten Marketing Tips for Startups

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Thriving Through Disruptions – Tips for Startups

In a constantly changing and evolving business environment, business owners, entrepreneurs, and business managers are always seeking innovative ways to manage threats that could potentially ruin their business.  Growing a business entails creating solutions to everyday problems such as constantly identifying your target market in order to increase your revenues, sourcing suitable talents as employees, ensuring efficient business operations, and surpassing client’s expectations with minimal resources. There are however the not-so-everyday challenges that businesses must respond to; these sometimes come in form of disruptions and they have the potential to suddenly change the way a business has been operating. Disruptions can generate positive results especially if a business is built to respond and not only react to sudden changes. Disruptions could come in the form of infrastructural changes which can impact the physical location of a business, the shutdown of a supply chain, entry of a competing business in the market, regulatory changes, etc. In recent years, startups and even established businesses have had to grapple with disruptions from the covid-19 pandemic, change in government policies, regulations or laws, and technological innovations. Irrespective of the model of disruption, businesses should be built to anticipate, respond and thrive through the uncertainties that disruptions bring. In Nigeria, disruptions caused by changes in government policies and regulations have been the bane of many Startups. Notable examples include the ban on motorcycle and tricycle operations by the Lagos State Government, CBN restriction on the use and trade of cryptocurrency, the restriction placed on Fintech companies by the Nigerian Securities and Exchange Commission, prohibiting these companies from offering foreign securities (listed on other countries stock exchange) via their digital/online platforms. We cannot forget the most recent regulatory disruption – the suspension of the use of the Twitter app in Nigeria which has not only disrupted the marketing strategies of many startups but also thrown spanner in the works of alternative customer service channels used by many businesses in Nigeria. Disruption has the potential to cripple business operations but businesses can be proactive to ensure that they remain adaptable to take on any challenge posed by such disruptions. Some tips for adaptability are: Business Diversification- Having a single product line in a volatile business environment may not be advisable. To survive, Startups can begin to diversify their businesses by offering new products/services to their target market. It is also important to diversify different segments of your key operations. This for instance could be by having multiple supply chains, different communication channels for customers, and different marketing strategies for different customer segments. Business Model Reinvention: Businesses must ensure that their business models are flexible and innovative to enable them to enter into new markets. Reinventing the business could mean connecting with your customers and clients using technology in order to expand your reach or packaging your products differently using different brands. Explore possibilities of partnership: Businesses can explore the opportunities of collaborating with existing businesses using integrations. You can collaborate with your suppliers, retailers, or other businesses, thus creating complementary products/services. This collaboration can also lead to the creation of a diversified product/service for a different market. Constantly analyze the business environment: In order to predict disruptions and act in time, businesses need to analyze both internal and external operational risks which can hamper their operations. Businesses must simulate possible disruptions, and create make-shift solutions which can ensure that the negative effect of disruptions is better managed. Businesses can also have a business disruption and continuity plan. Seek professional Advice – Businesses can engage professionals who will help them identify the inefficiencies in the different segments of their business. Professional advisors can also help businesses put in place mechanisms that can make a business better suited to adapt to disruption. For instance, for regulatory disruptions, a legal professional can engage the regulator so that the regulator is better able to appreciate the non-traditional business models in that industry. Disruptions to your contractual transactions and relationships (e.g non –performance of contractual obligations due to the pandemic) can equally be managed when armed with sound legal advice. Businesses must come to terms with the fact this is a disruptive age and any business which will be sustainable must be built to adapt to change and respond quickly to challenges using innovative techniques.

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