The Nation Newspaper

Tag: small business

  • ‘How govt can help small business to grow’

    ‘How govt can help small business to grow’

    The Managing Director and Chief Executive Officer of COK Best Limited, Vera Afam-Aguiyi has asked governments at all levels to provide discounted tariffs, energy and adequate security to small scale businesses.

    She said this would help small scale businesses to thrive in this period of economic hardship.

    Afam-Aguiyi stated this during the opening of the COK Mall and Lounge, in Kubwa, a satellite city in the Federal Capital Territory, FCT, Abuja.

    The Mall which has already employed 65 people with state-of-the-art facilities and solar powered also provides fitness facilities for residents of Kubwa and its environs.

    She said the business outfit was part of her little contributions to create jobs and reduce social unrest, adding that the motivation came from God.

    She said: “This edifice you are seeing was conceived some years back, but actual implementation started July 2022. Maybe we say one and a half years. We were motivated because we want to create employment, we want to touch lives, we want to touch the less privileged, especially considering the location.

    “This is Kubwa. And most people like to invest mostly in the city center. But one thing you should know about Abuja is that, the real people that need to be touched are not staying in those city centers. They stay in these satellite towns and the suburbs. And people invest more in the city center. Meanwhile, 90% of people who go to work at the city center retire back home here in Kubwa and other satellite towns.

    “We have a multidimensional two floor supermarket, we have an event hall that can accommodate close to 1000 people. Then to make it better. We brought the gymnasium fitness center that can take up to 500 people as well. And this is something that people around this area have been lacking.

    “The entire facility is automated because the lift here can take 1300 kilograms. That means it can take more than 13 people then the house is a greenhouse.

    Read Also: Five printable marketing items for small business success

    “The major thing about this building is not that it’s beautiful, the major thing is that it is compliant with the international environmental standard. It is a green building, powered by solar. We have other sources of energy, but 80% of our power requirement comes from solar and that is not common even in the whole of Nigeria, people just want to build, you build to standard when you consider the environment.”

    On what should be done to encourage small scale businesses, she said, “Government can come in in so many different ways. If you notice, even with the fact that we try to go green and bring solar we’re still battling energy or power supply.

    “Government can make it affordable to small scale businesses like this by giving them a different tariff that will make people like to build this kind of business. If you encourage people by giving a discounted tariff to businesses, businesses will thrive, investors will come from outside the country to invest in things like this.

    “Also, security is very key. If the government provides security it will be very easy for people to come and invest. What scares people when you mention Nigeria or mention Kubwa or mention anywhere, even city centre, they will say how can I come and push my money into a place that is not secured?”

  • Four reasons you need to start creating content for your small business

    Four reasons you need to start creating content for your small business

    By Akanimoh Asuquo

    Research as of January 2020 showed that the total world population stood at 7.75 billion, smart mobile phone users are about 5.19 billion, internet users 4.54 billion, and active social media users 3.80 billion.

    Statistics also show that every minute, about one million people log on to Facebook, 3.8 million searches are made on Google, 4.5 million videos are viewed on YouTube and 347 thousand users scroll on Instagram and other platforms.

    Social media has become an effective tool used for modern information dissemination across the globe.

    It has become a lucrative platform for creative entrepreneurs to thrive.

    Brands and businesses now leverage social media platforms to double sales, promote products and services for visibility, as well as communicate with both existing and potential customers.

    This is made possible through effective and consistent content creation.

    Every business online uses content to showcase its products and services to both its existing and potential audiences.

    It is on this background that I want to share with you four reasons you need to start creating content for your small business online in this digital age.

    1. Business awareness:  One of the reasons every business needs content creation to thrive is brand awareness – to be known to as many people as possible who are online.

    The goal of every business is to double sales and be visible online and this can only be possible through content that brings your business to the eyes of people online.

    The success of any business or organization is determined by its ability to project itself to the public.

    People need to know what you are doing if they will ever purchase your product or ask for your services.

    To create awareness about your products and services, you need to create content about them. With content creation, people will know what you are doing, why you are doing it, and how you are doing it. It will protect you in the face of over 5 billion people using the internet today which is about 63% of the world’s population.

    Well-written content is the easiest way to reach more people. Traditional forms of advertising or the use of word-of-mouth advertising can’t do in 100 years what engaging and valuable content can do in 1 year. Try it out and come and share your testimony with me.

    2.  Target customer attraction: It is through consistent content creation that you attract your target customers who will later buy from you.

    Everyone is not your target customer. You need to differentiate between an audience and a target audience or customer.

    An audience is someone who reads your content while a target audience or customer is someone who reads your content and needs it to solve a problem in their life.

    Creating good content will help you separate your audience from your target customers. Then you can concentrate your energy on building relationships with your main customers.

    3. Content nurtures your customers:

    It is not enough to attract your target audience, there’s more work to be done after you’ve attracted them.

    You need to feed and nurture them for a purpose. It is at this stage you develop the KLTV factor as a brand or business. KLTV stands for ‘Know, like, trust, and value.’

    People don’t buy from those they don’t know or trust. They buy from people they know, like, trust, and value. Content gives you the platform to establish this with your audience.

    So, as a business-minded person, you must leverage content to nourish your audience and develop a rapport with them through written content that solves their problems and answers their questions. This will enable them to know you, like you, trust you, and value you.

    Read Also: FCMB offers N10 Million clean energy loan to households, small businesses

    4. Conversion of audience to customers:

    After you’ve nurtured them with your consistent content, they now know, like, trust and value you, what follows is that they’d graduate from the mere audience to people who can confidently buy from you without fear – conversion – you will double sales.

    Every business wants to make more money daily. And I am sure no business wants to do otherwise.

    Now, you need to understand that before anyone will buy from you, they need to know you, like you, trust you, and value you. Once these 4 things are achieved they will buy whatever you sell to them no matter what it is. They will become your customers and even beg you for their money.

    However, you must understand that sales don’t happen overnight. You don’t just start selling immediately you start creating content, it takes time and consistency.

  • Do I Know You?

    Being a small business owner can be hard. Scratch that; it can be as excruciating as walking in a straight line after a brutal kick to the groin. Ouch! You have a lot to contend with on a daily hourly basis: competitors, inadequate capital, exorbitant bills and taxes, poor infrastructure. You already know the problems you encounter and I need not remind you. My intention is not for you to teeter on the edge of despair.

    But there is one problem all small businesses face, including yours that we will tackle today. It is akin to calling up your beautiful crush two hours after she gave you her phone number and hearing her say, “Sorry, do I know you?” Damn! That hurts!

    I know you are wondering what problem your business faces that could be causing you so much embarrassment and pain. Yes, I know. Your curiosity is at its peak.

    What if I told you that by reading this, you are literally gaining insight into what this problem is and how you can solve it?

    Here’s the thing. When you cold-call a prospective client, you may get either of three responses:
    1. No, never.
    2. No, later.
    3. Yes, let’s meet.
    If you get the third response every single time you cold-call, this article is not for you. If you get the first two responses frequently, let’s continue.

    Now, imagine that when you call again, the same person who had shown enthusiasm in meeting you picks up the phone, listens to your brief introduction and says, “I’m sorry, I do not remember ever having a discussion with you. What exactly do you want?”

    These are the kind of responses that can make you want to pack your bags, sell your business assets and leave for an endless vacation. But you know this already, don’t you?

    How can you avoid these dismal scenarios?

    Let’s flip the coin.

    It’s a sweltering Wednesday afternoon and you just ‘jumped and passed’ a clash with a difficult client. Your phone rings and because you are nearest to it, you pick up. It’s my sonorous voice on the line cold-calling you.

    You feel the tension dissipate slowly from the soothing effect of my voice but you cling to the familiar wariness that shrouds you like a second skin whenever some stranger calls you. You are about to tell me you have no intention of buying when I say that I would like to send you some tips on Customer Retention for free.

    I assure you and request that you check out my website for my free eBook on Customer Retention and weekly updates on the same subject. Of course, you are a smart business owner so you agree to check my website.

    Three months later, I am facilitating a training on Customer Retention for your five-man staff. What changed?

    It is most likely that I applied the same techniques I have used in this article to draw you in. It’s not jazz. It’s not hypnotism. It’s not seduction. Or maybe it is.

    It most certainly is copywriting.

    As a business owner, how can you leverage the tools of copywriting in reeling in clients and loyal customers? You will find out in my next feature article next week.

    My name is Ini Akpan and I love to help your business make profit through copywriting. Do you have questions and suggestions? Please send them to iniwrites@sw-advantage.com. I’d love to listen to you.

  • BoI and Nigeria’s small business

    nigeria’s leading development finance institution, the Bank of Industry, is on the threshold of becoming a veritable game changer for micro, small and medium enterprises, MSME, across the country. The bank has secured a $750m    (N250bn) facility from 16 financial institutions to fund the Micro, Small and Medium Enterprises sector of the economy. The loan is syndicated by the African Export-Import Bank, Afrexim, and will be disbursed at single digit interest rate.

    The deal, financed by 16 lenders including the African Export-Import Bank, the ECOWAS Bank for Investment and Development and British Arab Commercial Bank Plc, would buoy the effort of the bank to effectively play its developmental role in the economy. It is in fact the result of a strategic corporate plan to enable the bank meet its obligations and aspirations. The big idea is to raise a N1 trillion loan facility, locally and abroad, to part-finance the industrial component of the federal government’s Economic Recovery and Growth Plan (ERGP).

    Indeed, the chairman, BoI board, Mallam Aliyu Dikko, has described the package as a game changer for the bank, which has shown a deep commitment to financing small and medium enterprises across the country. Dikko and other members of the board were quite enthused by the deal sealed at the recent meeting of Afrexim Bank in Abuja, in the presence of President Muhammadu Buhari.

    “This event is historical because this is the biggest relationship we have ever had with Afrexim Bank and it is a major milestone towards achieving our mission and vision. This day is one of the most successful days in the history of our bank. We have the capacity to impact on the MSMEs and this facility will go a long way in assisting us to achieve our objectives,” Dikko projected.

    The gesture extended to BoI is the single largest syndicated facility to be received by a development finance institution in Nigeria. The bank’s Managing Director, Olukayode Pitan, is confident on the bank’s capacity to effectively utilize the fund for its purpose. Financial life blood awaits local enterprises for a period of between five and seven years as BoI seeks to bridge the funding gap for MSMEs, estimated by Pitan at N704bn.

    “The idea is to support industries. This package will enable us loan additional N250bn to willing and able entrepreneurs in the industrial sector’, said Pitan, who also disclosed that the bank will target enterprises in the creative industry, manufacturing and gender-based businesses.

    The big idea is to act as a catalyst in creating wealth for small and medium enterprises, create new jobs and thereby drive down unemployment rate in the country.  “We are looking at small, medium and large enterprises. We are looking at enterprises or companies that have a focus in using local raw materials, companies that will generate employment and bring down their cost of borrowing.

    “We are working with the Central Bank of Nigeria that the loan we will give to Nigerian businesses will attract single digit interest and be a longer term loan of between seven to eight years for the industrial sector,” the bank chief elaborated.

    In pursuing this goal, BoI last year entered into partnership with some local  financial institutions to make funds available to low capital entrepreneurs with a view to reduce poverty, create jobs and raise Nigeria’s Gross Domestic Product. Through its Bottom of the Pyramid (BOP) scheme, an on-lending package in partnership with Microfinance Banks (MFBs) and other acceptable financial services institutions, the bank recently disbursed N3.1 billion to 14 micro-finance banks for on-lending to MSMEs.

    Indeed, the BOP model is in tandem with the operating models of some of the world’s best Development Finance Institutions (DFIs) that deliver their services indirectly through intermediary retail finance with extensive branch network. An example is BNDES, the only DFI in Brazil which is also reputed to be the most impactful DFI in the world in terms of customer base. As at 2015, it had no fewer than a million customers. It achieved this with a product called BNDES Card under which it lends to small traders through commercial banks.

    Beneficiaries of the BoI gesture include LAPO Microfinance Bank which got N1 billion, while Fortis Microfinance Bank and Lotus Capital Limited got   N500 million each. Earlier, N1.1 billion had been previously disbursed to 11 microfinance institutions under the BOP scheme while the bank did earmark   N1.13 billion for disbursement to nine other microfinance banks already captured under the scheme. The objective is to engage the established services of these banks as vehicle for credit delivery to the under-served and under-banked micro-entrepreneurs.

    According to BOI, the scheme is essentially aimed at poverty reduction through job and wealth creation focusing on the rural micro-enterprise operators with a view to extending financial inclusion to them.

    Bank of Industry leverages on the spread and penetration of the participating MFBs in all parts of the country to stimulate economic activity among the small and micro level entrepreneurs. Credit facilities are continually offered to entrepreneurs based on the comparative advantages of the various states in the country.

    Facilities are expected to be injected into business enterprises in agriculture, light manufacturing, food products, beverages, solid minerals, services and artisanal activities; others include tailoring, shoe-making and other value addition business interests. The soaring music and film industries are not left out.

    The bank’s mandate is to provide financial assistance for the establishment of large, medium and small projects; expansion, diversification and modernization of existing enterprises; and rehabilitation of ailing industries. BoI’s activities include project identification and selection; resource mobilization and financing on long, short and equity terms. It also includes industrial policy formulation, business development, support and advocacy towards improving the effectiveness and efficiency of the local entrepreneurs through reduction in initial set-up costs, taxation, timing and cost of obtaining consent to mortgage as well as obtaining land for business.

    In carrying out these mandates, the bank renders support to business that add value to local raw materials on the concept of value chain development, thereby generating employment for the youths and  the unemployed; creating wealth and stimulating export.

    Indeed, many of the 36 states in the country have signed up to boost micro, small and medium enterprises by providing matching funds to enable them benefit from the varieties of services available on the BoI template. Available records indicate that Katsina and Sokoto have committed N2 billion each.  Abia, Anambra, Delta, Kaduna, Ogun, Oyo and Ondo states allocated N1 billion each.

    Taraba has committed N630 million, followed by Niger with N600 million; Cross River, Edo, Gombe, Kano, Kogi, Kwara and Osun have also staked N500 million as matching fund, while Enugu and Ekiti have committed  N283.6 million and N200 million respectively.

    Analysts have hailed the deal with Afrexim as the culmination of the bank’s commitment to support the ERGP and boost enterprises that would hasten the realization of the global benchmark contained in the Sustainable Development Goals. This fits perfectly into the strategy to shore up the bank’s risk assets next year to N1.2 trillion in line with its revalidated strategic plan (2016-2019). The recapitalization drive by the bank is premised on achieving its developmental agenda and in ensuring that MSMEs account for at least 30 % of the bank’s projected risk assets of N1.2 trillion by 2019.

    By this plan, no fewer than five million jobs would be created through businesses being financed under various schemes.

    It is pertinent to state that effective collaboration between the Bank of Industry and various governments and institutions is imperative to mitigate the pangs of unemployment and poverty on the Nigerian people sooner than expected.

     

    • Kareem is a public policy analyst.

  • Small business growth and our declining possibilities

    Entrepreneurship is not a subject you find in the curriculum growing up in Nigeria. Nevertheless, it is an inextricable part of our lives. We all know entrepreneurs. We know that akara or boli seller whose child’s education was financed through their sweat and hard work. We know that family member who couldn’t get a job and had to start a business. We know the laundry man, the tailor, the driver, and carpenter, the welder and plumber, everyday Nigerians, most of them without a business school certificate, surmounting incredible odds to build businesses from the ground up. The truth is, no nation has achieved sustainable economic growth without entrepreneurs willing to convert ideas into businesses that create jobs and raise productivity. The battle is fought and won at the level of government’s ability to create an enabling environment that encourages more people to innovate and take risks. And this has been one of Nigeria’s challenges, a socio-political problem rooted in history.

    Historically, ‘doing business’ in early postcolonial Nigeria, largely, was something you did when you were not ‘good enough’ for white collar jobs. Or something your financial circumstances forced you into. And when money wasn’t an issue, it was a glorified hobby to keep you busy. In fact, universities were wired to prepare you for a white collar existence and parents were there to keep you on prevailing career paths. You were either a lawyer, doctor, accountant, engineer or rebel. But the widespread failure of state capitalism across Africa – where government efforts to predominantly provide jobs and control the market started to prove inadequate – began to pave the way for the slow rise of an entrepreneurial class in the mid to late 80s. Today, we are beyond the cusp of what Peter Drucker called the entrepreneurial society, with technology making entrepreneurship a normal and steady reality. And what is also important to see, is that the bulk of what is happening in the current climate is being driven by young people.

    All across the county technology is enabling young Nigerians look beyond traditional career paths and the golden dream of working in an oil company or in a multinational. Hopeful and exciting as this picture is, there is a counterfoil of reality that reveals millions of young Nigerians on the fringes, unemployed, drifting, and portentous. What they represent, however, through the lens of calculated optimism, is an opportunity to turn around the economic fortunes of Nigeria, one that can only be seized with the right investments in education, in skill acquisition, and in creating opportunities and enabling environments for ideas and new businesses to flourish. This of course will require deliberate state intervention. Something along the lines of the National Social Investment Programme and the Job Creation Unit’s N-Power program, an initiative that is amongst other things, connecting businesses to new markets, bridging skill gaps and creating new enterprises.

    N-Power addresses the challenge of youth unemployment by providing a structure for large scale and relevant work skills acquisition and development while linking its core outcomes to fixing inadequate public services and stimulating the larger economy. The modular programmes under the initiative ensures that each participant will learn and practice most of what is necessary to find or create work. The N-Power Volunteer Corp involves a massive deployment of 500,000 trained graduates who will assist to improve the inadequacies in our public services in education, agriculture, health and finance (tax). The intervention is yielding fruit. Beneficiaries are adapting skill and some of them are starting new enterprises.

    Ugwunna Chukwuemeka Charles always wanted to be a farmer. Like most young Nigerians, he went to the university, earned a degree, and landed a job far outside the realm of his dream. Working with a private firm in Umuahia that drew too much sweat, delivered little knowledge and far less remuneration, Ugwunna’s aspirations were subjected to the more pressing demands of survival, until N-Power. Applying for the programme’s N-Agro initiative, Ugwunna took a step into an opportunity that opened new possibilities in agriculture, one that married professional training, funding options and community service. With N-Power’s technology driven approach to skill acquisition, Ugwunna was able to leapfrog from idle passion to professional farming. Today, he works as one of N-Power’s Agricultural Extension Officers, providing knowledge to local farmers, helping them improve their output and grow their businesses. In 2017, he started one of the fastest growing fish farms in Abia State, transitioning from a frustrated under-employed graduate who was barely able to make ends meet, to fulfilling his potential. In the orbit of Ugwunna’s evolving success story are numerous beneficiaries – dependents supported by his increasing income, employees and their own dependents, local farmers and the larger community are testaments to how far effective policy initiatives like N-Power can go in writing new narratives.

    It is true that the Nigerian government, for decades, has not fared very well in crafting policies that enable entrepreneurs, particularly with the development of public infrastructure and access to finance. But an initiative like N-Power can form part of a redemptive process as it continues to arm young Nigerians with the skills and access they need to create businesses and create jobs. The initiative is empowering about 20,000 participants with skills in software development and hardware repair. It is providing technical training in carpentry and joinery, welding and fabrication, plumbing and pipefitting, automobiles, masonry, electrical works, painting and interior decorating, and connecting beneficiaries to markets. So far over 230 small business have also been indirect beneficiaries of the programme, with over 20,000 additional jobs created to support it. There is something here that can be bigger and better given greater attention and commitment.

    That Nigerians have an entrepreneurial bent has now become a cliché, but it is true. And what this truth needs to enable Nigeria extricate itself from the persisting economic and social woes, is the commitment of government to expanding the range of opportunities available to its bearers of ideas. According to the Nigeria Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the last five years. Imagine how much more we can create by empowering effective initiatives like N-Power. Softcom, a wholly Nigerian owned technology company, is one of the private partners the government is working with in the execution of the N-Power programme, and the company’s proven capacity to seamlessly manage a project of such scale, is a further testimony of what young Nigerians can achieve given the right tools. The truth is, getting young Nigerians to hone their skills into viable businesses is a prerequisite for reducing unemployment and poverty. And N-Power’s skill acquisition drive and internship model is headed in the right direction.

     

    • Akinseye, writes from Lagos.

     

  • How to create a website for your small business in 30 minutes

    You may be wondering if a website is really required by your small business.

    Its answer lies in a single line, if you are a business owner interested in growing you business, your business definitely needs to have a website.

    Who should be online?

    Almost every small business can benefit from being online.

    Right now there are over 93 million internet users in Nigeria as per stats by Nigerian Communications Commissions (NCC). Almost every internet users is now favorable to buying things online such as clothes, shoes, grocery and gifts online.

    Their search is not only limited to buying goods but they also look on Google for services such as legal advisors, local medical clinics, and consultancy services & jobs. So, whether your business sells products, have an open vacancy or you are a service provider, it is must for your business to have a website.

    Moreover, your existing clients may be searching for your company/brand on internet and if they don’t find you online then your competitor who is online may convert them into his customers.

    A website ensures your customers can find you, establishes your brand and credibility, markets your business, and expands your reach to a wider audience.

    What are the options to build your Business website?

    There are 2 ways for you to create a website for your business. You can choose the best depending upon your convenience and budget.

    1) Hire a web designer (Minimum cost is N25,000): If you are not into DIY solutions then you can hire a professional web designer/developer to build your website for you. But this can be expensive & you should consider this option if you can afford it. You can look for various web designers in your area on Google and other business portals.

    2) Use WordPress (Cost starts from N300/month): You don’t need to have deep pockets or HTML/coding skills to start your business website. With WordPress you will get access to 1000s of free theme/templates for every business type, be it a lawyer or exporter or ecommerce store.

    WordPress software is free to use but you only need to find a good web hosting provider like DomainKing to register your domain name & host your WordPress for you. The cost of a starter web hosting plan at DomainKing is N300 per month that will be only cost involved.

    Steps to create your website:

    Whether you plan to use the service of a web designer or even if you want to build your website on your own, you will have to get 2 basic services that are required by every website on internet.

    Register your Domain name:

    A domain name is your business’s address on the internet just like your company’s name such as abcstore[dot]com would be perfect domain name for you if your company is “ABC Store Limited”. Your business website will be accessed on the internet through your domain name, so it is really important to choose a unique, relatable and easy to remember name. It just costs N699 to register domain name in Nigeria from any popular Registrar like DomainKing, Godaddy, Namecheap & many more.

    The domain name that you will choose is very influential to drive direct traffic and via Google search to your business website. There are 1000s of domain extensions (tlds) available right now.

    The most widely used domain extension by small businesses on internet is .com, but that also makes it very crowded. Very few good names are left now in .com so you would have to get the right name through auctioning. But there is good news because if you are a local Nigerian business then the best option for you is to get a .ng domain like abcstore[dot]ng. This will not only give your website a Nigerian feel but will also help you rank higher for your keywords on Google search rankings.

    Choose a web hosting Provider:

    Your web hosting provider will help you to get online space for your website as well they will register domain for your business. It is easy for SMEs to find a number of providers on internet but it is important to choose the best provider that will offer full suite of web services at a reasonable rate.

    A good provider should offer you a free domain with your hosting account, Free CMS installation, Free Malware/virus scanner & should allow you unmetered traffic on your website.

    There are many providers out there but you should choose the top hosting providers in Nigeria such as DomainKing.NG, Godaddy and 1&1. For example, you can choose to host your website with DomainKing.NG which allows you to create your website with WordPress on their SSD powered servers backed by LightSpeed technology for good hosting experience at just N300/month.

    You need to visit DomainKing as they offer web hosting in Nigeria (it will make your website load faster) and you can choose any plan on their website. You can choose from 3 web hosting plans i.e. Soldier Plan, Minister Plan, and King Plan that have different pricing & resources.
    Web Hosting

    Once you have selected your plan, on the next page, you will be entering the domain name that you want to use for your website. You will need to select the first option ‘ I want DomainKing.NG to register a new domain for my Hosting Package’ if you have not registered your domain till now.

    If you see your domain as available, then simply click to continue, you can also select the other domain extension for your domain such as .net or .ng for brand protection.
    After that just follow the onscreen instructions and you will reach the final checkout page where you will be able to see the final price. You will need to create an account with DomainKing by which you will be managing your website as well paying and renewing the services.

    After adding your details, you need to accept the terms & conditions and select a payment method to complete the order. You will be able to pay via your debit/credit card such as Verve Card, VISA and MasterCard along with that Bank deposit/transfer option is also available.
    Once your payment is successful and your account is registered, you will receive all the instructions for starting your website on the email that you gave during sign up. If you have followed all these steps, you will now have a domain and web hosting for your website. Now you can either hire a web designer to design a website for you or you can simply install WordPress to start your website.

  • Six helpful tips for starting a small business

    Six helpful tips for starting a small business

    Starting your business is stressful and quite demanding; however, there are some helpful tips to help ease the process to a reasonable extent. Jumia Travel, the leading online travel agency, shares 6 helpful tips for starting a small business.

    Have Plan to Execute Your Idea

    It’s not enough to just have a great idea for your business, you need to develop that idea and you need a plan to do that. You should first develop a business concept, then from there you write a solid business plan to guide your development of the business concept. The business plan is a very essential tool for bringing your business idea to life and presenting to potential investors for help in setting up your business.

    Establish a Budget

    A budget is essential for efficiently managing your financial resources. It is necessary to first do some research to find out about the standard cost factors within your industry, then develop a budget to run your business based on this information. Once you are able to efficiently manage your financial resources, there is a higher chance of success in your business venture.

    Get The Right Investors

    This is one mistake common to first-time entrepreneurs – failing to get the right investors for their business. Not just any investor is right for your business, because there are some that might take advantage of your inexperience. It is therefore extremely important to find an investor that shares your passion, understands your idea and is someone that you can work with (that last part is extremely important).

    Get a Great Support System

    At the initial stage of your business, you typically need to spend a lot of time and resources getting things running. As a result, you’ll need support from family and friends. You should first ensure that your family is on board with the necessary sacrifices you are going to make in terms of time and resources, and your loved ones should be prepared for how challenging financially and even emotionally things might get. It helps to assure them that it’s only for a while and that it won’t last forever; but then you also have a personal responsibility to ensure the cost of your business venture to your loved ones isn’t far more than they can bear, because in the end ‘family should always come first’.

    Ensure the Legal Aspect is Well Taken Care Of

    The key word here is ‘well’. You cannot afford to be nonchalant with the legal aspects of your business venture; that can prove to be a very costly mistake. Secure the necessary permits and licenses, determine your tax obligations and get a good lawyer to guide you legally every step of the way (especially when negotiating with investors).

    Take Advantage of Free Resources

    The sub-heading says it all; if you can get it for free, then please do. You are not going to be given a medal for paying for every single thing relating to your business, so if you are able to negotiate and get a couple of things for free, then it really can help the success of your business venture in a monumental way and take a lot of financial pressure off you.

     

     

  • 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.

  • Small business start ups tips

    Starting a small business is for many an irresistible challenge. Creating and running your own business can be immensely rewarding in various ways: personal fulfillment, self-discovery, financial independence, a way to make your mark in life, and also to make a positive contribution to your local community or chosen business area. While these lessons, tips and guidance give simple help on how to start up a small business in the third world, the principles and techniques – including the increasing use and success of micro-finance (also referred to as micro-loans or micro-credit) apply to starting a small business anywhere in the world. This free article and guide to small business start ups in the developing world has been contributed by Lynette Dobbin of the Microloan Foundation, which is gratefully acknowledged.

    Our modern lives and high-tech environments sometimes obscure the simpler values and lessons in life. These references points also help keep a humble perspective, and a straight and honourable path.

    We often think of the Third World – that non-specific catch-all term for countries we deem to be less ‘developed’ than ourselves – as somewhere that relies heavily on us for support. We offer them – sometimes slightly patronisingly – our superior skills, top flight technology and sophisticated expertise. And there is no doubt, as anyone who has ever visited the poorer parts of Africa and India will attest, that they do indeed desperately need our help.

    Many eminent institutions have developed their own reasoning as to why this should be. Dunn & Bradstreet for example believe that 90% of all small business failures can be put down to poor management, lack of planning, and under-capitalisation. Others highlight poor location, over-investment in fixed assets, and lack of experience.

    These examples come from the MicroLoan Foundation, a small UK registered charity, which has been helping people in the developing world set up small businesses since 1998. The charity provides the know-how, the start-up capital, and on-going support but the individual borrowers design and run the businesses for themselves. 97% of the loans are re-paid in full, a figure that most UK bank managers could only dream about. The 3% failure rate results from several factors, one of the commonest being that the borrower has died. With life expectancy of only 37 years, a high incidence of HIV/AIDS and malaria, it is a sad fact of life that some of the businesses will fail because of death.

    The following illustrates the key success factors in running these successful small businesses.

    •Background research

    Many businesses start ups fail because of inadequate market research. Overcrowded sectors, insufficient customer awareness, wrong location – the list of potential pitfalls is almost endless. In Malawi however the situation is very simple.

    There is not a great deal of choice available, because of course there would be no market for hi-tech wizardry in a village with no electricity, nor branded consumer goods for people who have never seen a television. So there is no temptation to come up with a revolutionary new concept, product or service and then try to find a market for it.

    People need food, and people need clothes, and to a limited extent people need things like fishing lines and firewood. Agnes Mwaremware lives in a village located 5 km down a deeply rutted dirt track. To get to the main road villagers had to walk this distance and then travel to the nearest trading centre crammed into the back of a heavily overcrowded pickup truck. One or two of her neighbours had invested in the ultimate convenience, an exceedingly elderly bicycle, but found themselves at a loss when the chain broke, or the brakes failed, or (as often as not) the whole thing fell apart. Agnes spotted her niche and now runs a stall supplying bicycle spares to her community. This is not the sort of market research that would move mountains, but it is nevertheless based on sound analysis and common sense. It is not surprising therefore that her business is doing well.

    •Legal position

    How often do would-be entrepreneurs come up with a terrific idea only to have it fail because they cannot negotiate change of use for a premises, permission for alterations or construction, or they fail to observe the necessary rules of environmental health and local planning requirements? In Malawi, no-one would dream of setting up a business before first consulting the local chief or village head man. True, this may be a matter of common courtesy rather than a legal requirement, but understanding the permissions that a business needs to trade is an important piece of the starts up framework. The same principles, although more complex and extensive (health and safety, equal rights, to name just two examples) apply in the developed world.

    •Location and route to market

    The choice of where to trade in Malawi is again governed by simple rules. It has to be somewhere that people can get to. It has to be somewhere that needs the product or service. And (importantly) it has to be somewhere from which the trader can easily obtain his or her raw materials or commodities. Often the simplest choice turns out to be best. Adija Msw for example borrowed £15 and started selling tomatoes on a makeshift table outside her mud hut. Her home is several kilometres from the nearest trading centre and in the middle of a well populated village settlement. She knew that she would have a ready market because her villagers often complained about having to walk into town to buy their supplies. Adija is Malawi’s answer to the corner shop and the profits from her business support a family of 12 dependents. She now sells fish and firewood as well.

    In the age of e-commerce and sophisticated distribution models, identifying a location and route to market is just as crucial for business start-ups in the developed world.

    •Small is beautiful!

    As the example from Adija’s business shows, it is not always either necessary or desirable to over-invest in fixed assets at the start of a business undertaking. Adija has had to expand her operation to accommodate the firewood but she has taken the simplest route again – she stacks it neatly on the ground.

    ‘Quality’ is often defined (quite rightly) as ‘fitness for purpose’. The lessons from Third World business start-ups are valuable ones for the developed world too – find common-sense solutions to business start-up and growth challenges. Unnecessary overheads will result in higher prices for your customers, so keep solutions simple and practical.

    Culled from www.microloanfoundation.com