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.

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.

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.

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.