What I am learning...

Hello! I know I have been gone for a while now. In the time I have been absent from this blog, I have been busy with a couple of things. First, I finished NYSC and I really wanted to be part of the parade. So I spent the week of Valentine's in rehearsals for the Passing Out Parade. With that done, I am back in Lagos attending the Social Media Week.

Social Media is something that every business person should at least give a consideration. It is not right for every audience but it is a good tool for creating brand awareness. I am sure somewhere down the line I would have more of an in-depth discussion on social media.

One of the things that has stood out to me during social media week has been how everything really comes back to the big picture of business and entrepreneurship. I have learnt that to be successful in business, one needs to be consistent.

I have attended so many sessions during this social media week and if I had to choose one buzz word for the week, it would be "consistent". Consistency relates to not just the act of building brand. It applies to product, to service, to management, to human resources. It applies across the board.

So, if you are wondering what you are possibly during wrong, ask yourself  "Am I being consistent in my business?"

Avoiding The Kitchen Sink

The other day I was talking to my cousin about a venture he wanted my opinion on. As this cousin reeled off the list of things that the business will be doing, all I could see was a red neon signing flashing before my eyes. STOP!

Must Read: BIg Technology Has Found A Big New Opportunity

I am reading this Business Insider story that I believe other entrepreneurs ought to read, especially African ones. The article covers the recent convergent of big technology companies in Africa as market participants. If big corporations are finding opportunity somewhere, it means there is an ecosystem that is waiting to flourish. If you think that because you are small, you can't partake in this new opportunity you are wrong. Even size of company has the ability to benefit when a new market opens up. The companies just need to figure what their strengths are and tailor it to the new market.

Please go ahead and read this article and let me know what you think.

How Not To Lose Friends In Business!

I remember when my business partner and I first started our fashion label in Nigeria. Our first set of orders for clothes were from our family and friends. Every time we wore something out to an event or put up a picture, our nearest and dearest would place an order. In those first days before we were really a brand, their encouragement meant the world to us.

How To Harness Your Personal Network For Business

My aunt is trying to create a new brand image for a business that has been in existence longer than I have been alive. The first thing she did when she saw me was present the case to me. She stated her goal and then she asked me the best way to reach that goal. As I sat there discussing my opinion with her, I realised that I was perhaps giving her another perspective to consider before making a move. When she was done talking to me, she headed to the neighbours' house to ask their opinions as well. She is essentially crowdsourcing ideas on branding from the people closest her.

Should You Take A Big Leap?

Back in 2009 when I decided I wanted to transition my hair back to its natural state, I looked at my relaxed hair in the mirror and I was scared. I did not want to have short hair. This meant doing the "Big Chop", in natural hair parlance, was out of the question. Instead, slowly over time, I snipped out the relaxed bits of my hair. I hid the whole process by sticking to a regiment of braids and weaves. Eventually, I got to a point where I felt my natural hair was long enough and I cut off the remaining chemically-processed hair in one trim.

Disguised Opportunity

Back at the beginning of the fashion business my sister and I started, we were accepting custom work from clients. We had a particular client who had asked us to make her a flowing dress with chiffon that we had in stock. We went ahead and made the dress for her. When she came in for her fitting, she was quite upset. The execution of the style was wrong. She did not want to pay us. We were both upset but I looked at the dress. At first I saw a whole lot of wasted fabric that no-one would pay for and then I called the tailor. I told him to cut the dress into a high-waisted maxi-skirt for me.

Four ways To Get Best Out of Your Workers...

Just as multinationals are some of the best places to work, Nigerian companies are known for the horror stories they generate. The banking industry in particular is so terrible that it has been known to cough out entrepreneurs from within it rank. These ex-bankers turned business owners often leave really lucrative positions because they are tired of the inhumane existence. So imagine my surprise when I realise that some of these ex-tortured souls start businesses that become notorious for the lack of consideration for the staff. The business owners do this not because they are horrible people. They do it because they just don't know any better. As a former business owner myself, there are times when I talked to people and they recommended drastic steps because Nigerian workers are infamously disloyal, untrustworthy and inefficient. This flaw in employees does not mean you still should not consider creating a friendly atmosphere for your employees in your work place. Below are four ways to start creating a work-place culture that would encourage your employees .

1. Be Consistent: Create a clearly defined and expressed set of rules for your employees. Alongside the rules, there should be clearly defined consequences for breaking said rules. The most critical part of this process is the follow-through; make sure you follow-through on punishment when rules are broken.Consistently abiding by the rules creates discipline in the work environment.

What I am reading this Weekend: All About African Women

• Water is still a luxurious commodity in many parts of Africa due to the scarcity of clean and portable water. Find out how Saran Kaba Jones, a Liberian, came back home after fleeing at age 8, to make a difference with water.

January In Review

As the month of January rolls away, it is clear that some of the stories on the blog have made more of an impression than others. Our most read story in January has definitely been  What I learned about Negotiating Buying Food in Ibadan. This post on understanding the value of your product when negotiating terms with your clients has been a run-away hit since it was published late in the month. Below is a run-down of the most popular posts in the month of January. If you missed anything, it is worth taking a moment or two to read it.

• If you are wondering if a business plan is a good idea, I have definitely had the same dilemma. Here is where I stand on The Business Plan Dilemma!

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.

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. 

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.

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.

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?

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.