Hospitality is not just for hotels...

Back in 2011, I went on a life changing trip with my mother to India. It was a business trip for her and she had taken me along as a treat.When we arrived at the airport, I was struck by how congenial the business owners we were meeting in India were. I thought "well, we have only just got here." I was operating with my normal Nigerian cynicism. However, after spending 8 days with them, I learned that hospitality in business is not just about running a hotel. Being extraordinarily friendly and generous to your clients can help your create a strong bond that will inspire loyalty and generate growth for your business.

Here are a few other things about running a small business from them:

1. It is possible to have a business meeting that is not driven by money: Over the 8 days we spent with them, it was very rare for us to discuss money. You are probably thinking "how is that even possible?" It is possible because our host focused on the other values that doing business with them brings. They were more of tourist guides than they were business people trying to sell a commodity. If there was any experience they thought we should have, they not only recommended it, they went out of their way to make it happen.

Money! Money! Money!

Starting a business is really expensive in any country...Getting capital to start a business can be the end of any business, even before you start. The thing that makes starting a business more frustrating is that your initial estimate of your capital requirement is usually much lower than what your business really needs when you get started.
The fact of the matter is that getting funding for early stage business in Nigeria is incredibly hard. Funding options are limited. 

What are the limited options to get your hand on cool Naira for your business? Well, follow on and I will tell you.

Self-Financing: In any early entrepreneurial scenario in any country, your first source of funding is personal. Yes, your personal bank account should be the first place you look for funding for your capital. The logic is simple. If you as a business owner are not willing to take the risk of investing in your business, why should any one else? The problem with this scenario is that it creates problems of it own. A lot of people who could benefit from starting up a new venture, e.g. the unemployed or under-educated, don’t have the deep pocket required to fund their own business. So, if your bank account is closer to null than a billion, where do you go?

NdaniTV presents Tara Durotoye, CEO House of Tara

There is this lipstick that my sister loves; for her, it is perfect.  The first time I saw the lipstick on her, I expected her to tell me that it was a MAC or a L'Oreal. Alas, the lipstick was House of Tara 'Orelekelewa'. Just the name alone was something so distinctive and captivating. I asked her how much she bought it and she told me it was about N1500. I was stunned. Here was a Nigerian brand selling a superb product at a price that was really affordable and accessible. I just had to know more. It is since that moment that I have been intrigued by House of Tara, brand conceived and developed by Tara Fela Durotoye. Personally, I am a massive fan of a reddish-bronze eyeshadow from the brand because it works so well with my skin tone and the texture is divine.

What I learned about Negotiating Buying Food in Ibadan.

I am currently completing NYSC service in Ibadan and I must tell you that watching the small business owners in the market has been an excursion in entrepreneurial training. One of the things that I notice in Ibadan market is that the traders are proud of their products. As a result, when negotiating, they are unafraid to say 'No' when they terms are unfavourable. Granted, as a buyer, there are many times I have been frustrated by their inability to see "reason". However, as an entrepreneur reflecting on their behaviour makes me realise that they are on to something that I perhaps missed in my previous stint as a business owner.

Five Things I Learned About Negotiating:

• Be clear on the value of your products. If you are certain on the value of your product, you are less likely to undersell. Every mango seller will tell you how rare the mango from their corner of the village is. They will tell you cannot go buy it yourself. They are right because the convenience of it being in front of you is part of the value they are selling.

What I am Reading This Weekend

• Even if you are a business school graduate, you probably don't realise that you need to take action to get your business idea off the ground, says Kasper Hulthin, in this article featured on Forbes.com
• Understanding failure is an important part of success as an entrepreneur. This is why there is something called a Failure Conference. Jennifer Wang has chronicled this year's conference for Entrepreneur.com
• Disappointment is inevitable in business. Here are 3 ways to get a handle on that feeling of disappointment, courtesy of yfsentrepreneur.com
• Do you feel unsure about what customers need from every business? Inc.com has answered this question.
• Want to get more done everyday? Why not follow these tips.

Are You A Lazy Entrepreneur?: Ten Ways To be Disciplined As an Entrepreneur

You never will be the person you can be if pressure, tension and discipline are taken out of your life

-Dr. James G. Bilkey

One of the myths about entrepreneurship is that it is easier than working for someone else. After all, especially for a place like Nigeria, there is nobody on your neck about showing up to work at 7 AM in the morning. There is no need to have that meeting at 9PM. As a business owner, you get to decide when you want to work. Wrong! If you think this way, your endangering your success as an entrepreneur. 

Ten Ways To Be Disciplined as an Entrepreneur

1. Get in the habit of waking up early in the morning and getting dressed. Do this even if you have nowhere to go. It is a way to get you mentally prepared to work.

Get Your Wallet Ready For A Start-Up

There are many factors that will undermine your foray into entrepreneurial land. Just be careful not to let your personal finance be one of the hurdles you can not overcome. As a business owner in Nigeria, one of the things that is certain is the uncertainty. No matter how well you think your business is going to be, you have to be ready for your income to be irregular. In cases where you were in a paid position prior to takin the 'big' leap, you are likely to find yourself taking a pay cut as well. This scenario should not be the reason why you decide not to start your business. There are certain things that can be done to buffer your wallet against the financial dilemma of entrepreneurship. Some of the steps you take now will help you when you become an entrepreneur.

Things to do

1. Get in the habit of tracking your day-to-day spending. Most likely than not, you are using a smartphone so it will be easy for you to take notes of your spending. When you track your spending, you are able to see how your spending is divided into the needs and wants categories. It is important that if you are spending heavily on wants, that you rein in this behaviour. Also, are you spending impulsively? This another behaviour that needs to be checked. 

The Business Plan Dilemma!

I have been thinking long and hard on my opinion of business plans lately. You see, when I started imagining up this blog a couple of months back in November, I saw it as a one-stop shop for business owners in Nigeria. At the same time, a lot of what is going to come up on this blog is going to be written by me. Therefore, it is a reflection of me. It is this realisation that has made me think hard on my postion on business plans.

Why spend such valuable time thinking about business plans? It is because I have come to realise that business plans even in their best forms may not be the best documents to help develop a business idea. Back in 2009, I was a student at the Lancaster University Management School taking a class on New Venture Planning. I remember that we spent so much time going through the business plan. The teacher for the class talked us through the importance of the business plan, how to write one and how to use the business plan. Now, I am post-school and one failed business venture down and I am not so naive anymore about entrepreneurship. I am not saying I know everything about owning a business; I am saying that I have developed a healthy scepticism for some of the theories that I learned in school. Perhaps, this is because the real world does not bend to the will of theory.

NdaniTV interviews Lisa Folawiyo of JBL

I admire Lisa Folawiyo, the founder and creative director of Jewel By Lisa. As an entrepreneur who has dabbled in the fashion industry in Nigeria, I respect her. I respect her because I understand the amount of work it takes to take your vision from your head to a drawing on a piece of paper to something executed in fabric. This last sentence cannot express the sheer amount of hardwork it takes to produce clothes. Fashion as an industry demands passion, tenacity and the ability to keep pushing. I respect Lisa Folawiyo's success because it means that she is doing the hardwork she needs to do to keep her company growing.

One of the things that struck me in this presentation is that her business was born out of her passion. In entrepreneurship, with the amount of challenges one faces, it is important to be passionate. On the worst day in business, a business owner still needs to be able to see some token of goodness.

Watch and let me know what you think in the comments section below.

The Power of Small

One of the biggest hurdles that entrepreneurs face when it comes to taking that step is the realisation that they do not have the capability to get to the great big dream. This is especially true in Nigeria where there are a whole universe of systemic issues that make entrepreneurship ever more difficult. I mean the World Bank ranks Nigeria at number 131 out of 185 economies for ease of doing business. Nigeria is ranked number 119 for the ease of starting business. (Click here for their data chart) Against the many different hurdles, it is still possible to be an entrepreneur. One just has to be really strategic about the choices one makes as a potential/new business owner.

What I am Reading This Weekend

• Your Company's Unique Identity Should Influence Your Management Style by Steve Tobak
• Old Man and the Sea by Ernest Hemingway (Reading this novella has thought me so much about perseverance and courage in the face of endless challenges)
• Personal Networks are an essential resource for entrepreneurs. Here is how to build your social media network properly courtesy of SimplyZesty.com
• Branding is an important part of building a sustainable business. This article by Nadia Goodman on youngentrepreneur.com talks about the importance of a brand's story

Why "NO" can save your business and your sanity.

The other day I  got a phone call from my business partner about a potential client. After much discussion about the client’s request, I advised her to say “no” to the girl. Saying “NO” in small business is a bold step but trust me when I say that it is an important entrepreneurial skill.

Top 5 Reasons to Say “NO”

1. Not all business is profitable. Very early in the entrepreneurial process, it is very important to establish marginal cost. Marginal cost is related to creating an additional unit of product or service. For example, in the food business, one has to decide what the difference between cooking 50 portions and cooking 55 portions. If the ingredients come in 50 portions sizes and you will have to buy another pack to make 55 portions, you need to reconsider the client’s request and look at your bottom-line.
2.   In relationships, it is often said that you should trust a person when they show who they are. Same rule applies in business. In doing business, if your potential client is rude to your employees or yourself, or generally being difficult, it might be better to say “No” because it is very likely that you won’t be able to satisfy the person.
3. Don’t destroy your brand for one job. If you work as a designer of any sort, a fashion designer or interior designer or event designer, your work is your calling card. If a client comes to you with a demand that does not match your usual aesthetics, consider saying “No”. Creating work that you cannot defend or that is not up to your usual standard could destroy your credibility and help you lose more clients that you will gain.
4. You don’t usually make fitted skirts but this woman just wants a fitted skirt and is convinced you will be able to do it. Say “No”. Don’t try to take on a job that you do not have expertise in, no matter how flattering the offer financially and ego-wise. Identify your business strengths and work within them.
5. At some point, you have to recognize that all growth may not be good for you. If accepting that one extra job is going to potentially break the camel’s back by increasing your staff’s workload and decreasing morale in the office, consider saying “No”. It is important to remember that morale and physical wellbeing of the human component of your business is as important as the financial rewards of pushing the limits.

QOTD- Be Quiet and Think

Sometimes it is best to take time to be quiet and think!

-Patrick Driessen

NdaniTV Young: Tayo Oviosu, CEO Paga

I first heard of Paga from my sister, who is also my business partner, when we were discussing payment options for an ecommerce site we were developing at the time. I did not realise then that Paga was a start-up; I just thought it was another company branching out into Nigeria. One of the things I like about Tayo Oviosu after watching this video is that is understands start-ups not just as business ownership but as a culture. Start-ups are machines for innovation. Most innovations come out of small businesses that are willing to take risks and develop new ideas because they don't have much to lose. I also like that one of his visions is very similar to mine; professionalising the start-up environment in Nigeria by providing infrastructure. 

SWOT Your Business!

One of the steps in writing the traditional business plan is the SWOT analysis. Taught as a part of many business course, the SWOT analysis is a great tool to begin exploring the viability of your business idea. SWOT stands for :

S-Strength

This refers to the advantages you will potentially have internally within your organization. This is the time to figure out if you perhaps known a genius that will give you technological leverage over competitor. Or do you have the ultimate networker in your family that can introduce you to people? Or are you a persuasive genius that is the next big thing?

QOTD: Vision

“I think you have to have a very clear vision, very clear, very simple. And then you have to stay consistent with it.”

- Angela Ahrendts

CEO, Burberry

How I learned Product Strategies From a Moin-Moin Seller

My breakfast of choice lately has been moin-moin and bread. There is a woman that sells moin-moin inside of the school where I am completing my NYSC year. On the first day I got her moin-moin, she just told me it was 30 naira for each one (*food is incredibly cheap in Ibadan) and I paid her for the two wraps that I got. However, the next time I wanted to buy moin-moin, I got it from her earlier. She was still at her stall outside the school. She asked me if I wanted to 30 Naira one or 50 Naira one. I asked her what the difference was between the two. It turned out the 50 Naira moin-moin has a whole egg in the middle. Then I noticed in school that the students buy a smaller sized moin-moin that has been steamed in plastic bag. By the time I completed my investigation I realised that the woman has 4 different price levels for her moin-moin. Each type of moin-moin had a clear value to it consumer. The student moin-moin is not steamed in the traditional banana wrappers thereby lacking that distinctive taste.

One thing I realised also is that she knows who buys from her at any particular type. She makes more of the student portions when she is going to sell lunch in the school compounds. She makes a few basic teacher portions and very limited number of the teacher luxury portion. This way of having different value levels and price has meant that she caters to all those who eat her food properly.

What have I learned from her?

• Know your customers at each point of contact and adjust your product offering to your audience
• At each price level, there should be a clear value difference in the products
• Understand your MVP. That is know your minimum valuable product
• Try and have a wide audience base without devaluing your brand. This means your least valuable item still needs to have a high level of quality.

Recommended Course: Udacity 'How to Start to Build a Start-Up'

I just finished taking a class on entrepreneurship at Udacity.com. The classes are free there and I felt I really needed to learn more about starting a business. The thing about entrepreneurship is that you have so many moving components you need to consider before you become a full-fledged business owner. This is even truer for a business owner in Nigeria. Although the class I took is taught by an American, Steve Blank, a lot of the concepts discussed are universal. One central theme for the class is the idea behind the lean start-up. This an idea that has inspired me and it is something I will be discussing further as I write more on this blog. In the mean time, I encourage you to take the time and enroll for the class. It could save you from making costly mistakes as you take that proceed in your entrepreneurial path.

How To Change Lives One Sanitary Pad At A Time.

Dr. Musaazi, founder t4t

"So little done. So much more to do." These are the words that are inscribed on the car of MakaPad's founder, Moses Kizza Musaazi. His company in Uganda, Technology for Tomorrow, is responsible for a locally made sanitary pad that allows young girls to continue with their education even after they reach puberty.  I discovered his story by reading a lovely article on Inc. magazine website (Click here to read article). One of the things I like about Dr. Musaazi's approach to entrepreneurship is his focus on sustainability. He is not interested in solving one problem by creating another. Instead, he takes a holistic approach that solves many problems at once while also making sure he is not endangering the environment. He is an example of the possibilities of social entrepreneurship.

These days, with our materialistic tendencies, it quite common to focus on entrepreneurship as a glitzy get-rich scheme. There is almost no thought on the parts of entrepreneurs as to how to integrate their ideas into the local economy in a way that solves problems. 

What I am reading this weekend...

Here is a round-up of what I am reading this weekend:

• Thinking of doing resolutions for 2013? Are New Year's resolution ever really helpful in helping you move forward? You may rethink your new resolutions after reading this article.
• Work is good for the soul but sometimes work can be stressful. I will be learning how to work and be stress-free by reading this.
• Sometimes even I need to be reminded why I am so gung-ho about becoming a business owner in Nigeria. So this list by Young, Fabulous and Self-Employed will certainly help my memory. 

Starting In a Business In Nigeria

When I first decided I wanted to start a fashion label, the first thing that ran through my mind was not the many nitty-gritty of owning a business. (Maybe that should have been a warning sign to me.) As someone who spent a whole year going through a MSc. in Management programme, perhaps I should have known better than to assume that owning a fashion label is about just sewing clothes. 

The truth is that as a failed entrepreneur, I have come to realise that no amount of business school training can prepare you for the reality of running a start-up. Business school classes train you to look at business from a point of maturity onward. Unless you are in an entrepreneurship track, most business school graduates are only familiar with models that deal with companies that are established and beyond the initial shaky phases. A start-up, by its very nature, is an unstable entity that has a multitude of challenges that only a dedicated and passionate entrepreneur can lead into a state of maturity. That process of quelling fires and celebrating barely break-through moment can really be exhilarating and character-building. 

The truth about entrepreneurship is that it is often more than just the initial concepts you have. As a matter of fact, most businesses that survive beyond the initial start-up phase are not based solely on the concepts with which they were born. Start-ups often evolve in other to remain successful. The concept is really just the face for the business, it is what people see when they look at your work. The actual work is in the engine that powers the face. The engine is what makes everything light up and look all glitzy.

Glitz is often what attracts people to owning their own business. They see people who appear not to answer to anybody else. They see money flowing in and the endless potential for growth. What they don't see is the empty bank account despite pulling in massive sales the other night. They don't see the human resources nightmare of trying to find a reliable employee that is trust-worthy and has the needed skills to get the job done. They don't see the customer service nightmare that arises when you can't fulfill an order because everything that is beyond your control is going wrong.

My job on this blog is to help you through every step of your journey as an entrepreneur. I want to be there as you decide if business ownership is a right path for you. I want to be a source of inspiration by bringing you stories, from near and far, on those that are making it. I want to cover stories on failures so you can recognise pitfalls in your own business.  I want to be a teacher by telling you what I wished knew before I jumped into bed with my first business. I want to be for you, as a Nigerian entrepreneur, what I wished I had during my teething days as an entrepreneur.

Feel free to leave a comment on things you wish would be covered on this blog and I would try my best to get it done.

NdaniTV Young CEO: Ola Orekunrin/ FlyingDoctors Nigeria

Often, the best ideas are born out of personal tragedy. That spirit of "Never Again" can really push individuals to come up with solutions that might seem daunting if not for the tragic context. Take for example the work that Ola Orekunrin is doing with her organisation Flying Doctors in Nigeria. After the death of a sibling, she decided she wanted to tackle the problem that contributed to the death by starting an emergency service that allows patients to be moved safely to places where they can receive the care that they need. Her business solves a critical problem within the Nigerian healthcare sector. Watch her interview with NdaniTV below.

QOTD: On Obstacles

I should have died many times, but I didn't. I always thought that somewhere around the corner was another road, and I would find it. It's just that right now there's a big mountain in front of me and I can't see it.

-Ping Fu

Co-founder, Geomagic

Read  more on this amazing woman here

QOTD: What's Important?

The Important thing is to keep GOING...

-anonymous

QOTD: Dale Carnegie on Success and Happiness

Success is getting what you want. Happiness is wanting what you get

-Dale Carnegie, Leadership and Self-Improvement Guru

Avoid these bad habits and gain back time!

Efficiency is one of the keys to successful entrepreneurship.As an entrepreneur, I know that your time will fly and you will wonder what you did in that time.This is why I am recommending this article on how to achieve more.  I read this on inc.com and I knew I had to share. From avoiding meetings without agenda to reorganising your emails, this article advices you on how to make the most of a very limited resource.

Click here for the full article

If you have any more tips on how to maximise time, leave a comment below and I will update the blog with the best advice.

QOTD: George Bernard Shaw on Naysayers.

People who say it cannot be done should not interrupt those who are doing it.

-George Bernard Shaw, author

NdaniTv Young CEO : 3Invest's Ruth Obih

I just discovered this series on Ndani TV that profiles Nigerian entrepreneurs. I like this series because it gives me a vision of what is possible. I am able to see other young entreprenuers that are Nigerians that are making it in Nigeria. I really enjoy reading Forbes Lists and such because they give me an aspirational view on life but things like this Ndani TV series give me a realistic view of life. This is important because I can tell that it is possible to overcome the many obstacles one faces with doing business in Nigeria.

QOTD: Henry Ford on Failure

Failure is simply the opportunity to begin again, this time more intelligently.

- Henry Ford

Founder, Ford Motors

Nigeria's God Given Gifts

We are very blessed in Nigeria...we have an abundance of resources to utilise and have been given less disasters-if only Nigerians would realise their God given gifts and harness them, we will have very little to complain about.

-Aliko Dangote

Runner-Up, Forbes Africa Person of the Year 2012

Hello!

Hello! Welcome to 2013! Welcome to my blog! Start-Up Naija is more than mine though. It  is my hope that Start Up Naija would be a space for me and you, my readers.

First off, let me introduce myself. You see I am a sort of failed entrepreneur. I started a business in Lagos a couple of years back. Through the initial highs and few lows at the beginning, I was sure that I was ready to be an entrepreneur. It was only as I was shutting the door on my business that I realised that I was not ready. I failed massively because I was not ready to be an entrepreneur.
I am sure you are now wondering why the hell you should follow a blog from a failed entrepreneur championing entrepreneurship. Well, my hindsight through my lens of failure provides me with the special perspective. I have become obsessed with understanding entrepreneurship in Nigeria. I have also become obsessed with encouraging it and celebrating it. Business ownership is a good thing and can create the perfect platform to be able to make healthy lifestyle choices instead of operating on default. As you read more of this blog, you will begin to understand my entrepreneurship fanaticism better.

Welcome to 2013! I hope this is the beginning of an empowering journey for all of us!