Surviving a Fuel Scarcity Phase as a Small Business Owner
Surviving a Fuel Scarcity Phas…
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Startup Basics
Choosing an Ideal Price for your Product
Choosing an ideal price for your product is important as it determines the customer segment that will be attracted to your brand. It also defines its classification as a luxury or basic good. Before deciding the price of your product or service, here are some factors to consider: 1. The Price of your Competitors Your market competitors could be startups or established brands with differentiating factors that make customers rethink whenever they consider switching to a different product. You should compare product prices and consider your price falling within the (un)stipulated range. This doesn’t mean that you should copy their strategies however, closely monitoring their patterns will provide insights into the market’s entry points. 2. Suppliers or Service Providers The supply chain is a key determinant for delivering superb products or services. Some organisations have built solid relationships with suppliers. Hence, raw materials are available all year round at stable prices, which helps to maintain price consistency. However, this might not always be the case as prices of raw materials could fluctuate, transportation costs may increase, and other unforeseen circumstances might ensue. A selection of suppliers with quality service, integrity and proximity to raw materials is the best bet to make you deliver your products or services at reasonable prices. 3. Energy needs Many Nigerian businesses depend on electricity for their energy needs, but this isn’t reliable due to the epileptic power supply. Therefore, provisions for alternative energy sources should be included in your budget to avoid power supply interruptions that would affect your business’s day-to-day operations. Power supply is pivotal in determining the overall production cost. 4. Cost of Goods The cost incurred while making a product is referred to as the “cost of goods”. It includes; wages of the labour force, processing, packaging and energy expenses, as well as costs incurred during the procurement of raw materials. These costs exclude transportation and distribution. Profit on any product or service can only be determined with accuracy when the Cost of Goods Sold (COGS) is known. A thorough analysis of units of goods produced and units sold is required for choosing an ideal price for your product.
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Unhappy People Cannot Serve Happiness- Part 1
“Unhappy people cannot serve happiness” I was privileged to listen to the Founder of Ruff n Tumble, Adenike Ogunlesi, outline the simple yet effective ways she has used customer experience strategies to scale her business to a multi-million enterprise. Her words made me reflect on why it might still be a long journey to the promised land regarding service delivery in Nigeria, especially with MSMEs. It is sad to note that despite the plethora of write-ups and voices clamouring for an improvement in how startups handle their service delivery, little or nothing is being done about it. These businesses often forget that customers now have options with minimal attention span. This means they can easily take their money somewhere else. One then wonders why it seems to be such an unachievable feat. Entrepreneurs such as Mrs Ogunlesi, who have realised the goldmine an excellent customer service offers to a business, have jumped on the train, and they sure are not looking back. Let’s see what these strategies entail below. CX Winning Strategies for Small Businesses The below may sound mundane or even trivial, but you would not know just how powerful they are in bringing huge ROI (return on investment) to your business. Let us examine a few of them: Conclusion The entrepreneurial path is never an easy one, especially in Nigeria coupled with the growing economic difficulties. As you seek quantitative ways to boost your business, the qualitative weigh twice as much and do not think these are not measurable because they are. It requires a lot of investment. As we round off the first part of this article, be sure to be on the lookout for the concluding part in the next publication. If you enjoyed reading this and think it is useful, please drop your questions and/or comments and don’t forget to share this. Read more: Unhappy People Cannot Serve Happiness- Part 2
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Overcoming Imposter Syndrome: Tips from an Award-Winning Entrepreneur
At one point in your life, you’ve probably experienced imposter syndrome. You felt like your success at something isn’t “all that”. You felt like everyone was exaggerating, and your success was “luck”. If you didn’t know, these pangs of doubt are called “Imposter Syndrome”. What is Imposter Syndrome? The Harvard Business Review (HBR) defines it as “a collection of feelings of inadequacy that persist despite evident success.” To understand this mind-boggling feeling from the perspective of a Nigerian entrepreneur, we spoke to Olabanke Subair, a participant of the Orange Corners 2019 Cohort, and Founder of Cyrus45, an art-inclined, eco-interior furnishing company. She describes imposter syndrome as self-doubt. “It almost feels like you’re not confident in yourself. Despite the accomplishments, achievements and visible track record, you feel like you’re a fraud because you doubt your abilities”, she says. “Basically, it feels like being a fraudster”, her sentence drifting to an end with a chuckle. “Even when I get awards for things I’ve visibly succeeded at, I find myself asking questions like— Did I really deserve this award? Could I have done better?” How to Overcome Imposter Syndrome as a Nigerian Female Entrepreneur “As an entrepreneur, I remember when I first started. My business was a unique one at that time, so I started questioning myself and asking why everyone was interested in my art, person, and creative skills.” Olabanke detected this feeling of imposter syndrome early in her entrepreneurial journey by asking herself why she felt she wasn’t good enough. She did some research, and found the terminology ‘imposter syndrome. For her, it was easy to say, “how can I deal with it? How can I fight this terrible feeling that deprives me of achieving my full authentic potential?” She was able to surmount this feeling by doing these: Acknowledging that you feel unsure about your abilities is the first way to conquer imposter syndrome. When you acknowledge something, it means that you recognise it and you’re committed to finding ways to tackle it head-on. Celebrate the littlest thing! Even if it’s getting up from bed or checking off something from your to-do list, celebrate that. Olabanke would be very excited when she’s able to finish things on her to-do list, even if it entailed calling someone, or posting on social media. When you celebrate these things, it gives you a level of confidence that you’re able to achieve something. Confide in trusted friends. Tell them, “This is how I feel; this is what I’m going through.” Good company gives you good advice and helps with the support you need. They echo good things you already know about yourself but aren’t so sure of. Last year, a client wanted Olabanke to do a wall mirror for her house. She stalled for a long time because she lacked confidence in the sketch’s first draft. In fact, she almost backed out. But her friend and husband motivated her to share the sketch with the client, which she unenthusiastically did. To her utmost disbelief, the client loved the sketch. One thing that people who deal with imposter syndrome tend to do is decline new opportunities. This isn’t because they’re incapable, but because they’re scared of not doing well enough, despite evident track record. Ignore this feeling. Close your eyes and do it afraid. Most people that suffer from imposter syndrome also suffer from the “perfectionism” syndrome. Try not to believe that everything has to be perfect. Tell yourself that perfectionism is a façade. Nothing can be perfect. Just do it afraid and release. What you deem imperfect, someone else will find perfect. Whatever you’re working on, don’t hold back from releasing it. Do it first, then receive feedback before concluding it’s not good enough. Overcoming imposter syndrome is never easy. It takes a lot of work and self-determination to cripple these nagging thoughts that make you feel so small. But, as long as you choose to keep believing in yourself daily, you’ll definitely overcome.
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Aspiring Entrepreneurs Programme: Of Cuisines and Connections
The Aspiring Entrepreneurs Programme (AEP), Tertiary Edition thoroughly educates student entrepreneurs on the fundamentals of business. It also provides support for them at no cost. Currently, the programme is sponsored by Standard Chartered Foundation and Youth Business International. Mr Afolabi Tajudeen Adeola, the Founder of FATE Foundation might not be a civil engineer but he certainly has interesting thoughts on the most important type of construction work – building up youths. In translating these thoughts to reality, various programmes have been established. I had the privilege to participate in the Aspiring Entrepreneurs Programme (AEP) and here’s my story: Before the Aspiring Entrepreneurs Programme (AEP) As a fourth-year student of a federal university in 2022, I am a victim of a tussle between the Federal Government and the Academic Staff Union of Universities (ASUU). One day, my friend, Ìbùkúnolúwa Dàda, sent me a broadcast from the Union of Campus Journalists, University of Ibadan (UCJUI). The broadcast specifically targeted female student entrepreneurs for its intensive entrepreneurial training. I thought that I might be a good fit but I doubted my entrepreneurial capabilities, however, Ìbùkúnolúwa gave me some advice which prompted me to apply for the programme. The following week, I lost hope because the programme had commenced. However, God sent me a miracle through a phone call from a representative of the FATE Foundation and an e-mail of admission. I did a quick celebration spin and prepared an outfit for the next day. My First Day in Class As I walked into the fully air-conditioned classroom, I was blown away – not by the cold air- but by the scene before me. The classroom was more organised than I had imagined. It seemed like an international conference. Files, name tags and packs of books were neatly arranged on the table opposite the participants. Even in the hands of many were chinaware tea cups containing either coffee, tea or a choco drink. I couldn’t figure out what was going on so I missed breakfast. With time, I caught on to what was happening in the class. We had two amazing facilitators come to teach us about goals and thinking. Also, I met other classmates and was not surprised to discover that the bulk of the class were students from my school [University of Ibadan]. At the end of the day, the Programme Associate, Mr. Simeon Oluwaseyi Peter told me to introduce myself to the class. I managed not to stutter while telling the class that I make bags and write content. During the Programme: Cuisines and Connections The Aspiring Entrepreneurs Programme fed us with intellectual cuisines from different fields of discipline, then with actual tantalizing meals. The facilitators who took different courses in the programme were all professionals; they explained theory and gave practical examples, with real-life situations. I particularly enjoyed the session on Defining Your Market taken by Mr Adeoye Adekoya. I learned not to sell to everyone. Another interesting session was that of the Business Model Canvas facilitated by Mr Ogunsola Daniel. He strongly advised us to do away with emotions and assumptions in the world of business. I was intrigued by his words so I wrote a story around them. [Mission Impossible] Also, if our class was given a dollar each time we enthusiastically welcomed the facilitators with our signature clap, we may have saved enough to start up our hypothetical businesses. During the course of the programme, we were divided into groups and came up with five beautiful business ideas. They are: G-Two [Group Two Waste Outlet]: Solving the problem of waste management and providing the solution of compost making. My Health: Bringing healthcare to an individual’s doorstep digitally. Sumptuous Taste: A food business targeting remote workers and business people who do not have the time to prepare meals. A-GROW: A business that provides a platform for connecting food producers and consumers. FATE Transport and Logistics: In this group, which I was a part of, we formed this business to solve the problem of transporting people and goods efficiently and economically. The Various Types of Cuisines My favourite intellectual cuisine was finance. I’ve been to many places and tasted varieties of “finance” but I dare to say that the AEP’s finance cuisine is the most delicious of them all. The ingredients were adequate in proportion and it was excellently cooked. The meal wasn’t hard like others I had tasted; it was cooked to tenderness and I’m thankful for this because it was something my finance milk teeth could chew. Moving on to the other kind of cuisine (the tantalizing meals), the sponsors of AEP understood that learning requires sound health and a sane mind. A popular saying goes thus: “a hungry man is an angry man”. Therefore, in the course of this programme, all students were fed with two important meals of the day – breakfast and lunch. The Jollof and Fried rice combination with a side dressing of fried plantain or coleslaw and meat was my favourite meal. The quality of the meals was nothing short of top-notch. Standing before kings requires a platform to meet kings. Moving on to the area of connections, AEP offered that platform freely to all the participants – some facilitators offered to start a business with some students, providing an opportunity for growth and profit making. Still speaking of connections, mentoring sessions were held during the course of the programme. Having experienced entrepreneurs to guide you is important; cheers to FATE Foundation for meeting that need. Highlights [Visits] Football fans may understand the feelings that come with watching the highlights of a well-played match so my apologies are to non-football fans who may not fully understand the emotions of highlights such as these. I will now proceed to describe some major highlights of this programme: 1. Entrepreneurial Visit to My World of Bags On Wednesday, August 17 2022, we took a trip to the workstation of My World of Bags. We had the opportunity to learn from Mrs. Femi Olayebi, CEO,
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Business Ownership in Nigeria
Introduction This article explores business ownership in Nigeria specifically matters such as ownership and control, succession, taxation, charitable giving (CSR), public accountability, internal reporting, and registration requirements. Is a business owner the owner because they are the owner i.e. because they contributed the main capital? What is (are) the limits of business ownership and how do you thrive in Nigeria owning a business? Before we continue, I must mention that there is no best ownership type/structure. What you might get is how to determine what’s best for you (including your peace or better still your mental health and emotional balance) and your business – survival and sustainability amongst others. Business Ownership Types in Nigeria First, the fact that you proposed a business does not make you the overall boss. Also, your significant financial contribution does not automatically confer ownership. Business ownership in Nigeria has many dimensions, and ownership implications change with peculiar situations and decisions. Before I delve into the specific implications, I will quickly highlight the business types in Nigeria: Considerations Founders want to know which business ownership type is preferable. Like I earlier mentioned, the most appropriate business type for you may change with time, location, and capacity of the business. For example, a merger or an acquisition potentially changes a business’ structure. You should consider the following when deciding what business structure to run with: 1. Funding consideration Your funding decision will significantly influence the type of structure to start with. There are basically two funding models – debt and equity. But you might say, I have gathered enough personal savings and donations to start – it is still debt since we hold a business as a separate entity to its owner(s). This position is limited with respect to sole proprietorship and unlimited partnerships in some situations. If you decide to start with your personal savings, it is okay to consider a partnership or a private company structure. I intentionally omitted sole proprietorship, because I believe it is best to share risk even if it comes with its own risks too. Considering equity? It means you are going for a company structure where other people can be part-owners with you and enjoy some levels of limited liability. Currently, in Nigeria, an individual (one person) can register a private company. 2. Liability Risk Preference There are many business risks, but here I highlight liability risk. You should understand your risk preference as it helps you stand in the face of liability. Basically, there are two extremes – risk averse and risk takers. It has been argued that all entrepreneurs are risk takers because they take some levels of risks. While this is true, be true to yourself and know your limits. Sole proprietorship structure exposes you to significant liability risks in the event of total loss of personal property or your inability to pay bills, which may even lead to bankruptcy. Partnership structure minimises liability risk, while company structure eliminates the risk. It is best to use your risk score to determine which structure to start or run with. The good thing about business structures in Nigeria is that you can cross-carpet after meeting certain regulatory requirements. 3. Ownership Goal Depending on your personal and/or family considerations, you might desire that ownership revolves within the family. For such desires, a partnership or private company structure are good options. If you do not mind allowing “outsiders” to have a stake in the business, partnership or private company options are good too. I must quickly add here that ownership is different from management. Many people fear that if they are not practically involved in the management of an enterprise, their stake could diminish. While this can be true, you can own stakes in an organisation and not be directly involved in its management but can appoint managers to carry out your strategic objective. 4. Tax Consideration Currently in Nigeria, sole proprietorship and partnership structures are not taxable, but their owners and partners are liable to Personal Income Tax (PIT). In addition to the PIT, such structures would also pay Value Added Tax (VAT) on taxable goods and services acquired. To shield your business from tax exposure, you may want to consider structures immune from taxes and grow from there. I must mention as well that small companies are sort of immune from some taxes that bigger companies must pay. There are also some tax incentives such as siting your business in a Free Trade Zone (FTZ) and/or applying for a pioneer status amongst other opportunities. 5. Survival and Sustainability I usually advice owners of family business to consider transitioning to company structure when the arrowhead of their business is retiring without an interested family member. For example, a great educational facility might go extinct if none of the children of the Proprietor is willing to take over leadership of the school. In this case, the family can decide to transition to a company structure and allow capable hands to manage the business while the family interest is protected by ownership. 6. Profit Taking Entrepreneurs may be interested in causes other than profit. For such causes such as health, art, or education, a business owner may wish to establish a not-for-profit entity. This implies that a private company structure limited by guarantee may be a good option. However, if the motive is profit-making, then other structures are the way to go. 7. Public Accountability Having public accountability implies that a reporting entity is required by Law to publish its financial statements and make it public. The Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Nigerian Exchange Group (NGX) and other agencies of Government have powers to sanction erring companies – companies required to but who refuse to make their financial statements public within the stipulated timeframe. All publicly listed companies have public accountability. However, I must note that there are limitations to the public accountability rule. For example, Pension Fund Administrators (PFAs), most of who are private companies, must make
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Achieving Product-Market Fit in your Business
To begin, product-market fit means that your product, on all fronts, meets the needs of your customers. To achieve this, you must first identify your most important assumptions and hypotheses. Once you have done this, you need to conduct preliminary experiments. These experiments include the following: Opening a blog to publicise your product and learn from feedback. Visiting online discussion forums such as Reddit and Quora to ask open-ended questions, and gather feedback Creating surveys using tools such as SurveyMonkey Creating a landing page and collecting pre-orders for your product Creating and running test advertisements on social media channels such as Facebook and LinkedIn As you begin to get feedback on your Minimum Viable Prototype (MVP), compare it to your initial hypotheses. If you are correct, congratulations. If there are discrepancies, then it’s time for you to change strategy or ‘pivot.’ Unlike conventional businesses, pivoting isn’t evidence of failure in entrepreneurship – it’s a sign of progress. Oftentimes, a successful startup doesn’t hit on an effective business model until after Plan A, Plan B and even Plan C fails. The important thing is to ensure that you control your financial outlay, and the time and effort required to run the business until you achieve product-market fit. You know you have achieved product-market fit when your target market has adopted your product and is willing to use it and/or pay for it consistently. ACTION STEPS Brainstorm your assumptions and convert ten of these assumptions into key product-market hypotheses to be tested Run tests to prove the validity of your hypotheses Be willing to change strategy or ‘pivot’ if feedback from users suggests another direction until you achieve product-market fit. Creating a product that your customers cannot live without doesn’t happen in a day. The process requires active listening, tweaking, re-tweaking, patience and dedication.
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Defining Your Business Hypothesis
“No business plan survives first contact with customers” – Steve Blank, Silicon Valley entrepreneur. The lean startup movement, pioneered by Eric Reis, is an approach for dealing with the inherent uncertainty in entrepreneurship. It is particularly well-suited to early-stage startups when: The starting point of the lean startup approach is the creation of a Minimum Viable Product or MVP. The MVP allows you to go to market and test the response of the market to your product and/or service. The MVP could be a physical product, software, or service. How to Define Your Business Hypothesis The form of the hypothesis is as follows: I believe [target market] will [do this action/use this solution] for [this reason] Hypotheses are usually based on assumptions. You need to isolate the most important assumptions for your product and/or service and test them first. Based on the work of Tom Eisenmann of Harvard Business School, assumptions fall into four key categories. Each category could give rise to several business hypothesis as follows: 1. Customer Value 2. Technology and Operations 3. Sales and Marketing 4. Finance and Profit As a team, consider each assumption and rate them: Select the assumptions with the highest scores as your key assumptions and hypotheses. Once you have identified your most important assumptions and hypotheses, you need to conduct preliminary experiments.
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Cyber-attacks: What, Why & How
In Q4 of 2021, there were an astonishing 1,353 cyber-attacks weekly in Africa, in comparison to an average of 925 cyber-attacks in the world. Cyber-attack is a form of digital assault using computers, networks, or devices with access to the internet; directed towards other computers, networks, or devices with access to the internet which threatens public safety, national security, and economic security. Cybercriminals usually compromise systems and steal financial, property, and/or intellectual property such as business or customer financial details, sensitive personal identifying information, customer/employee emails, databases, and so on. As internet penetration is increasing, and more and more people are interconnected through the digital world, there is an increase in cyber-attacks. Examples of typical cyber-attacks are email compromise, identity theft, ransomware, phishing, online predators, and espionage. These attacks damage computer hardware and network, give unauthorized access to data, and in some cases physically harm people. In order to protect your business or yourself, it is important to have a comprehensive security plan and infrastructure that offers protection. Out of 182 countries, Nigeria ranks 47th on the 2020 Global Cybersecurity Index with about 84.76% of measures taken to ensure protection. Mauritius, the highest-ranked in Africa and the 7th ranked in the world, has taken about 96.89% of measures to ensure protection. So what exactly can be done to protect yourself? Use strong passwords that are reviewed and changed at least quarterly Update your software frequently and/or have automatic updates activated Turn on and use multi-factor authentication Apply firewalls and IPS Have segmented networks Be cautious before you click on links or download attachments Most importantly educate yourself, your family, colleagues about cybersecurity Most cyberattacks come from email compromise, if the email sounds too good to be true, it probably is, therefore do not click nor download, just hit delete. Contact Versa Research your trusted data, research & consulting partner! References https://techpoint.africa/newsletter/techpoint-digest-236/?utm_source=mailster&utm_medium=email&utm_term&utm_content&utm_campaign=techpoint Africa digest https://preview.mailerlite.com/t8e9n4e2t5/1862154675466279540/l5f7/ https://www.fbi.gov/investigate/cyber https://www.ibm.com/topics/cyber-attack https://www.nibusinessinfo.co.uk/content/reasons-behind-cyber-attacks https://guardian.ng/technology/nigeria-lags-behind-mauritius-ghana-others-in-cybersecurity-ranking/
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How to Create a Prototype
“A prototype is not an end in itself but a means to an end – the validation of your idea.” – Professor Karl T. Ulrich, Harvard Business School Creating Physical Goods According to Professors Karl T. Ulrich and Steven D. Eppinger, in their 2015 book “Product Design and Development” there are two focused and comprehensive prototypes. A focused prototype reflects just one or a few dimensions of the performance of the product being developed. It can be referred to as a test rig or a mock-up. A comprehensive prototypes are fully functioning products, which goes through successive refinement and often goes by the term ‘’proof of concept, alpha, beta, pre-production, etc.’’ They go through cycles that help the team achieve milestones and demonstrate progress. Prototypes of physical goods are useful for the following reasons: A tool for learning Solving problems Answering the question “do you have product-market fit?” Proof that the solution works technically Proof of user acceptance and customer adoption Visual communication of your idea Demonstration of your ability to implement the solution Creating Software Practical steps for building a software prototype include: Gather user requirements: Interact with the user and discover his needs and demands Develop an initial prototype that is static and of low/medium fidelity: An example of this initial prototype could be a hand-drawn sketch or a visual tool such as Microsoft Word, Photoshop, Visio, or PowerPoint Get initial feedback: Share this prototype with users and get feedback Develop an interactive prototype of medium to high fidelity: An example of this interactive prototype could be produced from wireframing tools like Azure, Balsamiq, and OmniGraffle Get feedback and iterate: Continue to get feedback on the product and pivot or change the prototype in line with the user’s requirements Proceed to development Creating Services The approach for creating a prototype for a service business is often called the “Wizard of Oz” approach. This entails providing the front-end of the service digitally and delivering the back-end of the service manually. This is not usually very capital-intensive. There is usually no need to work with third parties to develop the full product, as the delivery of the service can be done in-house. An example could be a landing page, or a blog post describing the product. It could be used to test user responses through sign-ups, expressions of interest, etc. Action Steps Test your idea by creating a prototype in any of the following forms: Physical Goods Software Services
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