The Nation Newspaper

Category: Small Business and Entreprenuership

  • ‘How technology boosts enterprise’

    ‘How technology boosts enterprise’

    Bankole Cardoso, 25, is the Founder/Managing Director, Easy Taxi, Nigeria. He studied Business Management and Accounting at Boston College in United States of America (USA), and later acquired a three-and-a-half year working experience with a technology outfit, Price Waterhouse Coopers (PWC), a consulting accounting firm in New York city, among others. In this interview with JOKE KUJENYA he speaks on his passion for entrepreneurial venture which led him to establish a thriving e-tech operated Easy Taxi business in July 2013. 

    Easy Taxi in Nigeria?

    After about twelve years out of Nigeria, what I wanted to do was move back home and start a business to contribute my quota to the economic growth of my fatherland.

    I came home eventually in July 2013 and almost immediately launched Easy Taxi, an online service aimed at hailing a taxi from the comfort of one’s home or office via a mobile device or computer. Before then, I had been exposed to a similar technology like this in USA which I used all the time then. So, I thought it was an idea that could work here especially with the spate of unemployment in the country.

    Prior to that however, I occasionally come home at Christmas. That was when I grasped a little feelings of how things were happening here and I saw the opportunity to fill a gap. I also have friends that told me how hard it was for them to get jobs. Also, when I watched the news on Channels TV via Youtube and saw the sorry pictures painted, I became seriously home sick. I felt if I could return home and try to do something worthwhile.

    Using E-taxi?

    Technology these days make life a lot more easier. People that patronise our services all have the smart phone application on either their Androids, iPhones, PC or laptops. Our programmes are easy to use and free to download. Our duty is to connect passengers to drivers in a very simple way. We use GPS to connect our clients to the closest driver.

    When a passenger request from, let’s say, Lekki, we radio on our GPS to call one of the drivers on our services within a ten minutes’ range. Before the driver arrives, we would send the passenger the driver’s name, the exact car, license plate number with which our clients can use to trace the taxi on a map. You’ll see him as he connects respective streets leading to your location. The passenger sees his or her to be driver’s face and the cars they drive as they come towards them. We help our customers with prompt ways of getting a taxi instead of standing for long by the roadside waving taxis or going through your phones to call their very busy taxi guy.

    Reception in Nigeria’s security-sensitive clime?

    Precisely, security is the main thing that we are trying to sell. This idea was birth because I had been exposed to this kind of technology out of the country. And previously when I visited Nigeria, I saw that people would caution me about using taxis because of safety.

    So, when we were packaging this idea, we decided, in our little way, to use technology to bring safety to bear. When we sign up any driver on our platform, we take all his information, take them through a screening process, check his background, driver license, car registration, license, plate number and insurance documents. We go to their parks and associations to verify and know everything about them before they belong to our taxi bank. So, our customers can actually see the safety upfront. In the case of companies using our services, they would have and see information of the drivers we are sending to them.

    Guarding against falsified information?

    So far, we have not encountered such. And it would really be tough for any of them to attempt such. We rely more on the original government documents and license they provide. We don’t do testing for them. We leave that for the government to do. We also don’t have a link with the government yet. But we make sure we do background checking on them. However, we are confident that what all of our drivers present to us so far have been real. We haven’t had any issue because they all belong to one taxi associations. We don’t approach drivers on the streets. We only go to them through their associations. If a driver is not part of an association, he can’t be a Easy Taxi driver.

    Staff strength and managing the business?

    It has been very daunting. So far, we have about 600 drivers across the country, only in Lagos and Abuja. But it has been capital intensive to manage them. We have the technology in the office because Easy Taxi is a global team. We actually started in Brazil about three years.

    We are having our anniversary soon in some African countries. We only started the Nigeria version last year. So, it’s in Brazil that we have the IT, where they make all the updates to the application, maintain the Apps and ascertain that all the technology are functioning well.

    What we have on the ground here is to recruit the drivers, publicise, promote the business and give the people of Nigeria an E-Taxi experience. Right now in Lagos and Abuja, we have about fifteen members of staff, two customers service engagement teams, an Admin HR officer and our drivers’ recruit team to keep them online and show them how to use our services and as well tell them about the new media. We call them customer engagement because we want them to show Lagosians and Abuja people that this is E-Taxi.

    Making profit?

    We are a start-up business, just a year old. Of course, not many start-ups can clearly articulate their profits in one year. But we are a very low cost business because we don’t own the cars. And we don’t deal with tyres or petrol. We make our money, as in, on every ride that we give a driver, we take roughly about ten percent in commissions.

    Five year projections?

    We want to be the number one E-taxi service in Nigeria and in Africa. By the end of the year, we want to launch in two or three more cities in Nigeria, eyeing places like Ibadan, Port Harcourt and Benin.

    Dealing with sceptism?

    At first, people were like this cannot work in Nigeria. And then, as they kept having the experience, they’ve been like ‘wow’. Now, our customers are the ones telling their friends to try and use Easy Taxi and that is very powerful statement for us.

    On timeliness?

    We don’t disappoint for the most part. This is Lagos where the taxi culture have not been quite amazing. So, I can’t say they don’t disappoint, but it is very infrequent. You know, the infrastructure, the roads, sometimes, cars break down and so on, but with E-Taxi, we have good cars so they don’t break down.

    We don’t see none of those issues.

    Most of our drivers use the official Lagos yellow taxis. And we use the cleaner ones that are not rickety. We also have unpainted car hires because that is what majority of our customers prefer because there are places that the painted taxis are not allowed to enter.

    Fighting unemploy-ment?

    I would say that we are providing jobs and it is clear. With a staff strength of about fifteen people, it is tough in Nigeria. As a young person, I found that rate of youth unemployment is about sixty percent. And that is a really bad record for Nigeria and indeed, for any country. So, I feel that it is up to us, youth in Nigeria, to create employment for ourselves. That is what I try to do with Easy Taxi by creating employment directly. Today, we have about six hundred drivers who are given jobs on a daily basis.

    Funding and breaking-in?

    Major nag is a lot of people, while in the university, are looking for jobs in big companies like Shell, Chevron, ExonMobil and all that. But there are many opportunities outside such places. The main thing is about showing possible financiers your professional strength. You try to highlight what you have done, that you are hard working and you can really do more. What we see now is that while the jobs are available, it is how to match people to the right jobs that is a problem. So then, one thing is selling your strengths, another is projecting that you do have ideas and you can try things. I always tell young entrepreneurs like myself that we should strive, especially as so many things are technology-based and one can just start selling things even from your Blackberry.

    Business potential of E-Taxi?

    I would say it’s a scalable business. I say that because we can effectively run the business across  Nigeria with our staff strength of fifteen from Lagos. All we need to do in Abuja is to recruit trusted drivers and let customers know that we are there and also maintain our relationship with drivers.

    That way, we don’t need a customer service team because we can do it from anywhere. Once we have the information from Abuja, Ibadan, Port Harcourt and other cities, the team in Lagos will distribute the details as needed to other areas.

     

  • Making money from foodstuffs export

    Making money from foodstuffs export

    Demand for  indigenous dishes  is soaring in Europe and the United States. As a result, export of food items have grown phenomenally to become the single largest category in world agricultural trade, and by extension, creating   opportunities for more Nigerians to make money. DANIEL ESSIET reports.

    These are boom times for Nigerians involved in  export of  local foods. What started as a humble cottage industry has undergone a significant transformation with a lot  of  entrepreneurs finding  success in exporting  food items to  Europe and United States.

    One of them is the Chief Executive Officer, The Thy Consulting, Ismail AbdulAzeez.

    The initiative has resulted in huge business in terms of export sales and income for the company.

    He  told The Nation  that the demand for traditional dishes has  risen with increasing number of Nigerians leaving the country in   search  of  greener  pastures in Europe and the United States. While there, such people like  to stay connected with “home” by way of eating local dishes. As a result, they create a market for fresh and refrigerated local food items, thereby helping   small businesses increase their exports of food and agricultural products.

    Foodstuffs in demand include fish, gari, beans flour, melon seed, Ogbono, crayfish,cassava flour, bitter leaf, pounded yam flour, vegetables and pepper. It also covers processed fruits and vegetables, fresh fruits and vegetables.

    Food stuffs   exports is believed to be in  excess of N100 million yearly, yet there is plenty of room for it to grow.

    Abudulazeez said  with  N100,000 an intending exporter can start the business and turnover the money many times within a year.

    AbdulAzeez  said   the opportunities to export  food  items are great.According to him,  food stuffs exports have demonstrated huge potential in sales abroad and represent an opportunity to  reduce poverty through income generation among small entrepreneurs.

    Having broken into the markets and built a lot of contacts, AbdulAzeez is  encouraging  more Nigerians  to  participate in the business.

    As these exports increase, the  small businesses would create jobs and improve the strength and stability of the  agricultural economy.

    He offers  programmess and services that help boost  agricultural exports.

    He said there are opportunities to export  food  produce to Europe, following the increasing number of Nigerians and other Africans relocating in search  of greener  pastures. The marketing strategy is sending  the food stuffs through using friends and relatives in  United Kingdom.

    For him, value added food exports  are rated high and attract  much  profits.

    To export, price plays a factor, but to successfully develop a market requires marketing and promoting, such items through export groups targeting Africans.

    Many large supermarkets and hypermarkets now have their own purchasing agents who specialise in buying food items for African consumers.  These buyers   source food items directly from small farmers and producers.

    The buyers then  consolidate small orders from multiple vendors into  refrigerated  containers  for export to various  points  in the United States and Europe.

    The landscape for small entrepreneurs’ participation is changing. But the most important concern among consumers is  food safety compliance with environmental and ethical standards.

    New entrants can   break   into key  markets  through  increasing  contacts with extensive networks around the world. This allows for timely export order information.

    Exporters must be careful of produce packing, branding and and  currency variables, he said.

    For  exporters like him, the  relationship between Naira and the major   currencies is an important part of a small business exporter’s strategy.  A highly  valued U.S. dollar means more money  for  Nigerians  sending  food  items abroad.

    The other issue is that  there are  important differences to consider in methods of payment in international trade. Exporters need to consider payment options carefully and consider asking for cash in advance, partial payments or control the consignment with the use of a documentary collection or letter of credit  to minimise risk. Since food and agricultural exports travel much further than domestic shipments, they may be exposed to rigours of additional handling, temperature variables and other weather-related elements.

    They may also travel in an “Intermodal” fashion, which means by one or more trucks, vessels, aircrafts or trains, between origin and destination.           The   exporter needs to be aware of the differences in customs procedures in countries across continents. The way to understand these procedures is attending  a training on food export.

    According to him,  timely and professionally prepared documentation is one of the keys to success in the export business.

  • Association to establish micro-credit bank

    PResident, Association of Small Business Owners of Nigeria (ASBON), Dr Femi  Egbesola has said his association is establishing a micro-credit bank to enable it raise funds for its members and other entrepreneurs.

    This becomes necessary since commercial banks were not extending much support to the sector. He noted that the sector has been hit by inadequate funds and high interest rate, which is as high as 25 per cent, adding that financial institutions have become reluctant to meet the funding needs of the Small and Medium Enterprises(SMEs) segment, thus making it difficult to source capital for expansion.

    Access to capital, he noted, has remained one of the major challenges hampering businesses, hoping  the banks would help alleviate some of these challenges.

    He said the association was ready to empower entrepreneurs who had persistently complained of capital and high interest rates.

    For him, if the country must  develop, it has to be done by local business entrepreneurs,  reasoning that it was time to empower Nigerians.

    Egbesola said ASBON will not relent in working with the government to empower the private sector, which is the engine of growth in any society, adding that empowering the private sector is about the people, the businesses, the economy and the country.

  • How poultry farming eradicates poverty

    While many young people dream of getting well-paid jobs, some are going into poultry farming to make a living. DANIEL ESSIET reports.

    Ugbo Ejike Henry is a graduate of Animal Science and Fisheries, Ebonyi State University. He was jobless after the National youth service. Ebonyi State Government called for intensive three  months training in Agriculture at Soghai Agricultural Institute in Porto Novo, Republic of Benin. He sat for the competitive exam and passed. He was among the selected 25 out of 300. After the training, he benefited from the state government’s loan and was given N2,700,000 to establish his farming business.

    He set up a poultry house (pen) for N1,400,000 in August 2009. Today, he has a lot of chickens. He sells eggs and breeds broilers, which he sells to fast food and hotel operators. He bags the poultry droppings and sells them to the crop farmers as manure.

    Henry said:“So, I make my money from the eggs and  chickens, cassava root tuber and the poultry droppings as manure.”

    He is proud that he is an employer. At Henjyk Majestic Farms Nig Limited, he is into poultry production (layers and broilers), cassava farming production, processing and packaging. Through all these,  his company has  employed some permanent workers.

    His company is in partnership with Ebony State Fadama (111) project to train people who has interest in agribusiness and  help investors to establish their farms.

    He  appealed to young people to approach farming as a business. This is because  employment is not available. He believes that youths can create their own employment regardless of their level of education.

    The ripple effect of small and medium sized entrepreneurs,  such  as Ugbo has made the difference.  He  goes to the grassroots and help  people, teaching  them  how to do business.

    Mr Stephen Oladipupo    launched the poultry business after  quitting his  job  as a marine engineer on a vessel.  Now, he  manages his  own poultry operation and has more than  500 birds.

    Adeleke Theophilus Ayodeji is a 24-year farmer. He hails from Ibadan, Oyo State. He is ambitious and with strong determination to feed the nation and prove to the world that agriculture is the key to ending poverty, unemployment and food insecurity.

    An animal scientist, he  was a participant of the Meet The Executive Business Plan Competition sponsored by Sterling Bank where he presented agriculture as a viable option for wealth creation.

    He served as an attendant and  Supervisor of Animal Production Venture, University of Ibadan.

    He said Anchor Farms is an integrated agricultural venture.

    It  has a poultry section (egg production) with about 2,300 capacity.

    He  supplies chickens. The results are not only a sustainable business, but one that encourages other youths to take up poultry  business.

    He   sees  Nigeria  as a nation  of entrepreneurs and  with  an  environment that  ensures long-term results. With a greater margin of income, he and others can  provide a safety net taking his resources to provide employment, food, clothing, and assistance to those in need.

    Miss Amoo Anifat Olawumi is an  IT graduate. She  was running a poultry business with her mum before she gained admission to a university.

    She  is so  convinced about  her future in poultry  business  that she quitting  her job  to open a big  poultry  business.

    Compared to growing crops, chickens represent a more dependable source of income for her .

    Thousands of similar stories have been playing out across the country in recent years thanks to the growth of the poultry industry.

    Being in the company of her mum  helped her  to refine her  thinking and learn from her ‘ successes and challenges. As part of the training, she developed a business plan for a poultry enterprise.

     

  • Making a fortune with make-up

    Making a fortune with make-up

    Looking good, the popular saying goes is good business. Bukola Afolabi and Dorcas Umunagbe write about how some entrepreneurs are making money from doing make-ups for others

    Tara Durotoye, Banke Meshida,  Sam Fine and B.MPro are some of the big names that come to mind when one talks about professional make-up in Nigeria.This line of business has created lots of small and medium scale businesses that are thriving all over the country. Instead of waiting for the typical white collar job, a number of unemployed graduates and other young people have discovered their talents here, created jobs for others and are smiling to the bank on a daily basis.

    AdeyeyeTemitayo, a successful make-up entrepreneur, talks about how it all began as a passion. “I have always loved to play with people’s faces. I liked to do make-up right from my days in school. I can say I am obsessed with make-up. At times if I see you are not looking very fine, I give you my own make-up to use. I just like to transform people and so when I left school, I went for this job. As a matter of fact, I had also wanted to be independent and work for myself and so make-up did that for me.”

    For Temitayo, starting out was not easy. “I just worked on the faces of my friends and family to start then,” she said. “I went to photographers, models, magazines and worked for them to see and by doing that I created awareness and along the line, I got to work for some big people in the industry. It might take time to see the result you want but you just have to keep working. Know what you are doing, keep your make-up box clean, have a good attitude and be pleasant with people. By doing this, the change will come.”

    To make it a profitable venture, Temitayo advises that it is better to have good contacts or a good network of people. “There are make-up artistes that are not so up to the task, but then they get the pay because they know a lot of people and right people at that. So, if you have the contact, it will be profitable. A bride called me for a job and I gave her my price and then she did not call me back, but the amount she used to do it eventually was worth more than mine. Later, I discovered that she felt like I did not know what I was doing because my price was too cheap. We are talking about N80, 000. So, when you have the contacts, it gets profitable. When you know what you are doing, it gets profitable.”

    Getting customers, she says, is a major challenge but she has mastered the art to overcome this. “I work within London and Nigeria, and in London without advert, you won’t sell and so I do flyers, I make complementary cards. At times the complementary cards and flyers don’t work because some people might just throw them away and so I go through the stress of making myself up every blessed day to advertise for myself. Also one’s work should be able to convince people that you are good. There are many make-up artistes in Nigeria, though that is not my challenge because my work will speak for me. You just have to work hard. Another challenge could be that people are not ready to pay as charged; some people have underrated the business and so they are not ready to pay. They offer what is not worth your stress.”

    Her achievements in the past seven years include setting up her studio worth about N1.4 million, buying a car and much more. “I work for weddings, birthdays, graduation, etc. I go for parties that I am not invited, have rapport with the photographers and then stay with them and so when people come to take pictures, I do make-up for them and then they pay me. I can do make-up for like forty people. I might still tip the photographers but I have enough money.”

    Happily, she recounts one of her memorable moments on the job.

    “I did a make-up for a wedding and in the course of the wedding they projected pictures of the couple on a screen projector at the reception. They projected the pictures of the engagement of which I handled the make-up and everybody was just commenting and commending it.  The Master of Ceremony then asked the make-up artiste to stand up and I stood up and people were clapping for me. It was on point and I was very happy.”

    Oluyinka Oyindamola’s journey into the make-up business was about six years ago with one of King Sunny Ade’s videos. “His manager, then, introduced me to the job and I was always there to work,” she said. “That was before I did my training with Shapes and Shadows. I really love doing make-up and I have a passion for it. It has also helped me to pay a number of bills with the economy of the country.”

    She goes on to talk about some of the challenges encountered in the business. “There is a financial challenge in the sense that people look at make-up lightly and don’t want to pay much for it and so they want a cheap work, but then the work differs. Quality is quality. It could also be a little challenging to get customers because there are now plenty make-up artists out there.

    Her major clients include some artistes, brides and everybody. “I look at other people’s works, see what I cannot do, practice it till I can do it. I practice a lot. I learn from people who are better than me. I wish to be a makeup artiste known all over the world. I want to do make up for real big people like Michelle Obama. I want to be known.”

    Asked what inspires her on the job and she replies: “Okay, when I just got into the business I did some free jobs just to create awareness and some people have just got used to it. Just recently, I went to Ibadan to do a job for my cousin and if I tell you how much she gave me, you won’t believe it. People don’t just appreciate others. They feel she is my cousin or friend, so I can call her anytime.”

    Tolulope Oluyemi also recounts how she got into the business while studying in the university. “Then, I was a Mary Kay distributor and I discovered that my blushes do not usually sell. That was the time when people used blushes above the cheek bone, just very close to the eye ball and it looked like they have a burnt face. In my own little way, I could do make-up but I did not still know how to use the blush and so in my quest to know how to use blushes I signed up for a make-up training when I saw an ad on Facebook. The first day I was going to resume, I had plenty make-up on my face just to show them that I could do make-up but when the lady that was to usher me in opened the door, I was ashamed of myself; I realised I had rubbish on my face.”

    Going down memory lane, she recalls some of the challenges encountered at the beginning. “In Lagos, you have to be in traffic for hours before you get to where you are going, so that’s one. Another challenge is that people always think that prices are too high. You can call a price for someone and they will be like but say “it’s too much, is it not just powder and foundation? Meanwhile, you know what you are going to put in for them.  So, most people don’t understand what make-up is all about and why you have to charge so much for make-up and it could actually pose as a challenge.”

    Asked what she has achieved in the past four years and she replies this way: “I have achieved a lot, I can’t mention all but most importantly it has taught me how to tolerate people because in make-up you meet lots of people, some are really nice and some are really nasty. I also got a professional camera for myself (laughs). I have a little studio outside Lagos State where I sell basically Mary Kay products. I am still working because I still have a lot to achieve.”

    For her, the future is very bright and her prospect is she intends to have her own make-up line and also wants to be a well-known make-up artiste. “I also want to have a bridal fashion house. I attend make-up workshops. I watch makeup videos on YouTube and some of them I buy and I practice a lot.”

    Asked about her memorable moments, she says: “When I first learnt make-up, I did not learn how to tie gele (women’s traditional headgear) and then having to do my first bridal make-up, I was nervous. I actually did not think about tying gele and so when I did the make-up, everybody liked it and commended it and it was time to tie the gele and I could hear my heart beat but fortunately for me, the gele was fine and thereafter, I learnt how to tie gele.”

     

  • Six lessons Hakeem Belo-Osagie has learnt in business

    Six lessons Hakeem Belo-Osagie has learnt in business

    Hakeem Belo-Osagie recited these lines from a poem by Robert Frost while addressing a recent conference at the University of Cambridge Judge Business School.

    Belo-Osagie is regarded as one of Nigeria’s richest businessmen, having made his money in industries, such as banking and telecoms. He is the Chairman of mobile network operator, Etisalat Nigeria.

    Belo-Osagie shared with the audience some of the lessons he has learnt in business.

     

    •Have a healthy scepticism of data

     

    Belo-Osagie says much of the market data and information about Africa he has come across in his career had been incorrect.

    One of his biggest mistakes in business was when he was part of a losing bid for the first mobile network  licences in Nigeria. At the time, some of the world’s most well-known consultancy firms advised that the Nigerian mobile phone market could not exceed 20m subscribers.

    Based on this figure, Belo-Osagie’s partners decided not to bid more than $265million. The winning bids came in at $285m. Today Nigeria has more than 100m mobile phone subscribers, and in hindsight, Belo-Osagie says the value of the licence was probably closer to $800m.

    He did not make the mistake of relying too much on expert data when he bought United Bank for Africa (UBA) in the late 90s. The Nigerian lender was for sale for $15m. Many advised him that buying the bank was a bad idea, but Belo-Osagie felt it was an undervalued asset and stuck to his guns.

    He approached a large South African bank to put in $8m for a 51% stake in UBA, but this was deemed too risky an investment. Belo-Osagie however went through with the transaction. A few years later the same South African bank made him an offer that valued UBA at $300m. “So when I tell you to have a healthy scepticism [or] disrespect for data, I mean what I say.”

     

    •Don’t exaggerate political risk in Africa

     

    Many foreign investors are scared to invest in Africa due to the perceived political risks. Belo-Osagie says companies however need to look beyond only political risk, and take into account all the other risks that could be a threat to a business.

    While there may be greater political risk in some African countries, firms in the west have higher “technological risk” with their business models constantly under threat from new disruptive technologies being introduced by companies like Google.

    “The risks that you face in a lot of other countries are far higher than you imagine, and they often, in my view, outweigh the lower political risks that you have in the western world. Therefore, success in Africa needs a correct appreciation of political risk, not exaggerating it and not unduly worrying about it.”

     

    • The right team is essential

     

    Belo-Osagie says winning teams are critical to the success of any business. “Teams are crucial because they combine the differing talents of different individuals, and they make the whole better than the part.”

    He notes large companies operating in Africa today typically have a mix of expat and local employees.

    In terms of expat workers, Belo-Osagie says those with a need for structure, certainty and clear procedure often don’t do well in Africa. It is therefore important to appoint someone with “a spirit of adventure, a hunger for new things”.

    “When the light packs up or the washing machine stops working, he or she doesn’t throw their hands up and head for the airport… That eagerness and desire to experience something new, is more important than functional intelligence.”

    When it comes to local staff, there are broadly two kinds of people: the foreign educated MBA with an understanding of “what life could be”, and those who have lived in a country like Nigeria all their lives.

    He says a winning team is a combination of those with international experience and streetwise locals who know how to work the system.

    • Relationships need to be    nurtured

     

    Weaker institutions and legal systems make personal relationships more important when doing business in emerging markets such as Africa. Belo-Osagie says these relationships need to be nurtured.

    “You may not want to go [to] the CEO’s daughter’s naming ceremony. You may not want to go [to] his daughter’s wedding, but I’ll strongly advise you to go, in your own interest. These relationships are fundamental and they do not stop at five o’clock in the afternoon… they go round the clock,” he explains.

     

    •Be bold despite uncertainty

     

    Drawing from The Fog of War, a 2003 documentary film on the life of former US Secretary of Defence Robert McNamara, Belo-Osagie compares the uncertainty of business with warfare.

    “When you go into war, it is like walking into fog, you cannot see very clearly precisely what there is on the other side. I love that analogy because I think that one of the key factors for success in business is you must have that mental attitude to walk boldly through the fog of uncertainty that is an inevitable part of business,” he says.

    “There are some individuals who cannot make a decision until every fact is in, who cannot live with uncertainty. By the time every single fact is in, you are inevitably too late for the opportunity.”

     

    • Don’t sacrifice your personal life for business success

    Belo-Osagie urged the audience not to neglect their personal lives in the pursuit of business success.

    “Your relationship with another human being, whether that be a wife or a partner or with your parents or with your family, is very important. I know many businessmen that are on the pages of newspapers and on the front pages of magazines, who return to their lives and their houses, who are deeply unhappy. In your desire to be great successes, I want to urge you not to lose yourself. It is far easier to change a job, to change an industry and to improve a business, than it is to change an unhappy life.”

     

    •Culled from www.howwemadeitinafrica.com

  • Plantain farming as money spinner

    Plantain farming as money spinner

    Plantain farming should be an avenue for the government to get Nigerians, especially the youth, out of poverty. This is because plantain is a staple food that commands high price. The business is attractive due to low labour cost requirement for its cultivation, compared to others such as rice, yam and other grains. Modern breeding has produced high-yielding varieties. DANIEL ESSIET reports.

    Two entrepreneurs are promoting plantain farming as a money spinner and inspiring others to replicate it.

    They are  Sanmi  Akindipe, Chief  Executive, Set Group,Lagos and  Olufemi Adetifa, an Ogun-based  agro entrepreneur.

    To Akindipe, plantain farming should be an avenue for the various arms of the government to get Nigerians, especially the youth, out of poverty.

    This is because plantain is a staple food item and its prices are on the rise. The business is attractive due to low labour cost requirement for production compared to maize, rice and yam.

    Modern breeding has produced high yielding varieties. However, not many Nigerians grow it, in spite of its high demand and ready market. In most markets, a small bunch of plantain costs about N1200. And yet, growing this delicacy across the country is not as widespread as any money spinner should be.

    Many farmers spend money on plantain, yet they could grow it themselves. It is just a few who are earning from it.

    Akindipe said one can  start with an hectare  and expand. The types of planting materials used are peepers, sword suckers and maiden suckers. Peepers are young suckers appearing above the ground with large scale eaves only.

    Sword suckers are formed from buds or eyes and bear narrow leaves. Maiden suckers are taller, with broader leaves. The recommended spacing is 10ft (3m) x 10ft (3m) and a depth of 0.2m at the onset of the rainy season. About 400 suckers can be planted on an acre.

    Akindipe  has worked  to  acquire  more than 50hectares of farming plots to be made  available for plantain farming. Under an arrangement, his organisation provide would-be farmers with farmland and sucker sourcing.

    Adetifa, who owns a plantain farm off Papa Lanto (on Ilaro/Sagamu road) off the old Lagos-Ibadan Expressway, said plantain farming is lucrative. He plants plantain and makes good cash from it yearly.

    By divine guidance, Adetifa started plantain farming on trial. This was the beginning of his rise. Gradually with the profit realised from  his  farm, he has got more  acres of land to grow different varieties on rent. From cultivation on each acre, he is getting at least 40  per cent  return from  his initial  investment. Inspired by his success, more farmers have taken to plantain cultivation.

    In Lagos and  Ogun states, he  has  got  more  entrepreneurs  and  more  plantain have been grown. The success has transformed the lives of many farmers with children studying in private schools and their houses having some amenities.

    As a strategy, he  identifies breeds that are more productive – high-yielding and pest-resistant varieties.

    At the beginning of the planting season, he bought 1,000 suckers at N120 each, which adds up to N120,000. When he harvested, he got 1,000 bunches of plantain which sold for at least N1400 each. So, he made about N1.4 million. He said after expenses, one could still make 400 per cent profit.

    To improve the quality of his yield, Adetifa receives improved suckers from the International Institute of Tropical Agriculture (IITA), Ibadan. Prospective investors need to have at least N350,000. This will cover lease on the land, purchase of suckers, labour and other costs.

    He said with an investment of N350, 000, one can make more than N1 million in turnover and more than 400 per cent in profit. The profit depends on the quantity of bunches that can be harvested per acre/hectare multiplied by the selling price per bunch of plantain. Adetifa said plantain growing has changed the livelihoods of many.

    He helps the entrepreneurs secure a land, prepare it and get good suckers. The market for plantain is  all-year-round. It provides monthly income.

    He said prospective investors can start with an acre of land, which can contain about 1000 suckers. The market is guaranteed. There is also a market to process raw plantains into the ever-popular plantain chips for sale in schools and markets. This has proved to be a lucrative enterprise that is raising incomes of entrepreneurs as they improve the market value of their plantains.

    Plantain plantation can last for a very long time if it is well maintained. According to him, constant weeding is the key to reaping big harvest and good quality crops. He received instructions on new planting techniques, pest control, and improved post-harvest practices. The impact on production is remarkable. Though these production improvements have been impressive, one must compete in the N1300 to marketplace to sell the produce.

    Adetifa  is an agricultural entrepreneur looking to the future with enthusiasm and optimism. He aims to increase access to sustainable livelihood pathways for targeted youth through plantain farming.

    He noted that for  the farmer  to  make more profit  more acres of  farmland is  required. At the time of writing, the “high” selling price of a good plantain bunch is N1500 in Lagos and environ. Bigger bunches cost a lot more.

    For him, plantain has a ready market.  “Buyers look for you. One gets customers from a far, who have been directed here by other people.

  • Living on shoe making

    Living on shoe making

    A university graduate proves that the days of small beginning should not be despised. Starting small as a cobbler, he has become an entrepreneurial model for youths, showing the way in self-sustenance through shoe making. Daniel Essiet writes.

    Long before he graduated, he was already his own boss. And while his contemporaries roamed the streets after graduating from various tertiary institutions in search of unavailable jobs, he became an employer.

    The story of Abraham William, a cobbler, is one that aptly captures the determination of an indigent’s quest for success. After learning shoe making in Uyo, the Akwa Ibom State capital, William has taken what was his childhood passion of shoe making, to become a small scale footwear manufacturing firm. Today, he is the Chief Executive, AB Leather Works in Shomolu, a suburb of Lagos.

    “I learnt the trade many years ago in Uyo, Akwa Ibom State, for three years; and today, I am a happy man,” he told The Nation. He certainly has every reason to be happy. From a business he started with less than N50, 000, Abraham has grown his trade to become lucrative. For instance, he used proceed from the trade to educate himself at the University of Lagos, where he obtained a degree in Business Administration in 2011.

    Besides, on his payroll are 10 apprentices and journeymen.  He has also been able to acquire different machines and equipment to modernise his work. This has made him famous, especially for his unique footwear designs and quality, and carving a niche for his business. His firm also makes old shoes become new again and custom-making leather goods.

    As a young business owner, William is proud of what he has been able to accomplish. He therefore admonished the young generation to explore the idea of manufacturing local shoes. The market for shoes, he explained, is huge, especially considering the nation’s growing population. To succeed, he advised entrepreneurs to focus on producing high-quality products that are able to compete with other companies vying for market share and consumers’ attention. In the market, the quality, attributes and brand of the product, he said, should be able to stand on its own merit.

    William’s commitment to continuously support young Nigerian entrepreneurs is based on his believe that they are vital to economic growth. Small and medium-sized businesses, he said have continued to create jobs while strengthening economic recovery. For him, the problem is that many people who make shoes are not trained in the art and science of making shoes and are not ready  to do it well.

    “The best way to make it with small – scale – shoe business is to carve a niche and offer something that big brands may not be offering. Particularly, create a new design that will attract a common man and a wealthy customer to your business,” he said.

    Satisfaction for William comes in the feeling he gets when customers love what he has done; hence, his continued effort to put his energy and ideas into building a profitable business, which has been buoyed by his tertiary education, has positioned him to acquire capacity to coordinate his financials, market himself, interact better with his customers, and converse with them about things they are interested in.

    “The business has repaid its start up capital many times over,” a satisfied William said. Though his vocation involves a lot of hard work and challenges, his strong passion has always kept him going.

    Austin Esia, another shoe cobbler of 20 years, corroborates William’s position. He said the business of shoe making has become lucrative because everybody wears shoes. The business, he explained, is low risk. According to him, making an entry into shoe business is fairly easy if there is focus. “There are no significant barriers such as stringent government regulations or prohibitive capital expenses, to entry into shoe making business. One can start a shoe store even without a huge initial investment capital, depending on inventory selection and shoe location. The right location is extremely critical to the success of a shoe retail store,” he explained.

    But he says the vocation is not for the lazy. This is based on the enormous man hours that go into working on a shoe. For instance, William said he works for about 13 hours daily, while Esia does about the same time daily.

    For this duo, shoe making is the business for unemployed youths. Esia advised  young  entrepreneurs   to explore opportunities  within the  industry, because with patience and perseverance, they can grow tiny businesses into large establishments  manufacturing all kinds of footwear and equipment. Besides, there is a huge job potential in the vocation which can serve as a means of job creation for the teeming unemployed population.

    One aspect of shoe making that is a money spinner in some areas is shoe shining. The startup capital for this is low: a large can of Kiwi polish which sells for N150 and a shoe brush of N50, you are in business.

  • AMEN canvasses SMEs’ export drive for industrial growth

    AMEN canvasses SMEs’ export drive for industrial growth

    President, Association of Micro Entrepreneurs of Nigeria(AMEN), Prince Saviour Iche, said small and medium enterprises (SMEs) need to start considering the option of exporting overseas if they want to see the  economy grow.

    This, he explained, however require, improvement on packaging of their products to meet standards that are able   to explore international opportunities.

    While many exciting business opportunities lie overseas, he said many small firms are daunted enough by the challenges to put their export plans on the back burner. He said small firms like the ones he owes have  received lots of requests for exports but securing the necessary finance to underpin an export trade is proving to be a challenge for a lot of businesses.

    He said Nigeria’s dependence on imported goods would only stop if the government at all levels promote skills acquisition, which would make local industries grow.

    To this end, he announced that the association has acquired export licence to assist  members carry out export trading. Within this, it is not only big players that are getting  into the export business.

    He lamented that inadequate support for local industries had made Nigeria dependent on foreign countries for basic goods such as matches box, toothpicks, cotton buds, water starch, disinfectants, toilet wash, stain removers, body perfume, air freshener, insecticides, body and hair creams among others.

    “We, at AMEN, want to industrialise Nigeria. We want Nigeria to be an industrialised nation. We are tired of importing common products such as   soaps and other household items that we can produce ourselves,” Iche said.

    Right now, he   said,  the  local  cosmetic  and  detergents industry  was  so developed  for the government to stop importation of such  products. The small and medium industry for perfumery and cosmetics, he  maintained,  is  large and   is  expanding, motivated by the gradual access of their population to fragrances and personal care products.

    According to him, the number of SMEs’ manufacturing cosmetic and toiletry products have increased.   Iche said the association was ready to work with the government to give an environment where  small business could thrive.

    He reiterated that SMEs are critical in generating income and  employment, adding that these could lead to better standard of living, reduction in poverty, crime rate and rural industrialisation, among others.

  • Group plans national small business week

    The Association of Small Business Owners of Nigeria (ASBON) is planning  a  National Small Business Week for entrepreneurs and small businesses across the country.

    The  event is billed  for the last week of  October.

    Its President, Dr. Femi  Egbesola,  said the association will take the opportunity to highlight the impact of outstanding entrepreneurs, small business owners, and others from  across the country on the ceonomy.

    In addition to events, panels, and talks that happen around the country, winners of the Small Business Person of the Year will be unveiled at the event.

    The sassociation will provide small-business owners with strategic counselling, selects the winners based on a handful of factors, including the business’staying power, growth in the number of employees, sales growth, innovation in the field, and contributions to the community. The winners are creating jobs, driving innovation, and carving out niche markets.

    According  to him, the  association  is working to grow small businesses, create jobs, drive innovation, and increase competitiveness, adding that it was ready to honour entrepreneurs that have done the nation proud.

    The weeklong event, he added,   will focus on startups that need the best solutions that deliver value to their business.

    He said  participants will  hear from three outstanding international  business owners and three local entrepreneurs.

    As part of the events, the association, Egbesola added,  would be  hosting a roundtable  for small businesses and industry experts on the topic of how small businesses can succeed.

    During the week, he said participants would be  informed on  opportunities provided by the Federal and  Lagos State governments through provision of industrial parks.

    He cited the affordability and availability of land to potential industrial tenants, with prices pushing locations closer to the city up in price.

    He said the association is determined   to  support  small businesses with access to funding, entrepreneurial development, and advocacy.