Ir"~~"'
It is sad to note that over 50% of
new businesses could close shop
before their third birthday; due to
"poor business concept" This figure
could rise in Nigeria, especially
where the business environment is
harsh and less supportive. The
other time I set out into town (in
Port Harcourt), to seek for "Ad" for
myjournal hoping to catch-up with
some businesses and supermarkets
that caught my fancy, last year.To
my surprise! I was greeted with one
of two things, either a closed door
or meeting entirely new occupant,
the same premises.
Particularly, their was this "Wallace
Supermart" along Rumuola
Road, averagely sized, good lay-out
and fully stocked, with better space
for parking than even the one's right
at the Junction. First, I thought I
missed my way. But I know the
building! The Wall-ace sign had
disappeared! What could have
gone wrong with this business (that
is Wal-ace supermart); just within
the space of one year! Poor concept
and planning, possibly!
Instead of meeting a well-stocked
shelf with variety of items
beckoning; rather I met stakes of
refrigerators with apparently a new
occupant in the same
premises,which housed Wal-ace
Supermart,a year ago. This canjust
be one of very many cases; if one
actually takes count.
A sound business concept goes
9
,I.
l1li
l1li1
beyond mere admiration of a
beautiful dream or idea. Going with
the drnnkenness of mere wish - that
customers' will just beat the path to
patronize your business - just like
that. Far from it, man!
"A sound business concept goes
beyond mere vision to actually
capturing the vision and reducing it
down to strategies and a sense of
mission; locating the market and
then meeting the needs. This
further extends to rolling out a
practical plan that will keep you in
business in the foreseeable future.
A lot of people have varied reasons
for going into business or selfemployment.
The mere fact that the
rate of unemployment is high in
Nigeria: provides enough reason for
going into business. Observable
trends also shows a marked interest
BUSINESS & PEOPLE - The PortHarcoLlltJournalof
even the gainfully employed
setting up small businesses (by the
side), especially amongst
employees of major
multinationals., banks, and other
well established concerns with
large disposable incomes. Reasons
could vary from earning additional
income stream to hedging against,
eventual loss of job. But the
question is; do we really have
passion for the choice we've made
(to do business) risking our hard
earned resources?
Let's even look at. sQlJle other
reasons first timers have for
choosing a particular type of
business:
. He can buy an existing business
at a bargain
. Someonehe knows is doing well
in a similar kind ofbusiness
. A relative has offered him a
choice to take over a going
concern time
. Hehas idle funds; and a friend or. What are my surrounded by
close associate just offered a. How much should my business
suggestions pay me
Before you say jack! The man has. In five to ten years, how much
opened the doors for business. Six should this business worth in terms
months down the line when the of naira, dollars etc.
storm came, knocking, he closes
shop and loose hard earned cash.
"This is not meant to scare you, but
rather to put you in the right frame of
mind". The list above did not cover
every possible reason's (for first
timers); but each reasons stated
above has one thing in common. By
themselves, they're lousy reasons
for going into any business. A food
for thought: "That someone
climbed Mt. Kilimanjaro, because it
was their.A fine reason for going up
the mountain but dubious at best
when it comes to starting a new
business. Iftmly, your desire is to set
up an enduring business, then you Makethe following list:
must start, with a sound business
concept and model, because it is the
foundation; just like building a
house onthe rock.
Ir.~.'"'
Ngw let's consider some .practical
s4iepsthat can help us to develop a
soundbusiness concept.
CRAFTING A VISION:This
exercise will require some level of
concentration. Avoid any form of
distractions as much as you can. If
you canafford it - take a vacation for
a few days in a peaceful and serene
location. Orjust close your eyes for
few minutes, "concentrate deep"
and conjure up detailed image of
what you want your life to be in five
to ten years. Try to factor in, the
picture of this business idea of yours
into this whole plan; taking into
account your personal life and
family as well.
Be as specific as possible; and ask
yourself these questions:
. What should people know me
for
What kind of life do I want to
.' live
How would I want to spend my
.
.
10
Don't limit yourself to only these
questions. Ask yourself more - as
more thoughts hit you. Create a
vivid picture (image and vision) of
yourself touching on things that are
important to you. These are
personal issuesth~tshould influence
the type of business you choose to
run.
SELF ANALYSIS: These
exercises helps figure-out who you
are and if you have the stuff to pull
through the vision you're crafted.
(l)What am I good at: It could be a
talent for public speaking or you
could have a knack for fixing things,
sales or marketing skills, managing
other people, writing skills or
negotiating skills? "These are your
strength". And you may be used to
them that they don't readily come to
mind. Thus, engage people, who
know you well, for their impression
of what you excel at. Keep a list of
these skills and observe yourself for
weeks reflecting on them (and
comments from people) and
correlating these with concrete
realities of you.
(2) Skills that I have acquired:
Whether or not you've worked in a
conventional setting, you no doubt
have acquired some experience.
Wri te down all the work
responsibilities and varied task
you've performed over the period.
These experiences can readily come
to bare when you are starting or
running your own business. You can
make a list of five to ten of them;
depending on how much you've
been disposed to.
BUSINESS & PEOPLE - The Port Harcourt joLirnal-
(3) Things Ilike to do: List the things
=-
you enjoy doing. Stretch beyond
your hobbies and interest that
springs to mind immediately..
Engage people who have knownyou
for a long time in this exercise. Let
them say what they've seen you
doing when you're happiest. Engage
relatives, spouse, friends and
colleagues and ask for their inputs.
Note the areas where the business
conflicts with your personal life,
that is, family matters, hobbies and
other socials. Discuss with spouse
and close relatives (if necessary), on
how the business will affect them.
Note their comments. But you have
the final decision to make. Now you
should make a compromise. What
are those aspects of your personal
life are you willing to give in
because the business must succeed"
if you must risk your hard earned
cash and time. Once you've made
the decision to move forward.Takea
plunge and don't look back. Avoid
negative people, as much as possible
in this exercise. Generally, look
inwards to figure out what you like
or dislikes and where your talent lie.
Keep these lists for the various
exercises in an accessible
place,preferably on your desk top or
bed side, for as long as possible.And
anytime an idea comes to you; jot it
down in the order of the lists you've
previously made.
..
(4) Matching business idea with
personality and attributes: What are
the common features of this
business. List the requirements in
terms of critical skills, training,
manpower, time (devotion to the
business), financial implication and
more. Already, you've made list of
your talent and experience; likes and
dislikes. Now looking at the
business; what gap can you readily
fill; considering critical skills,
manpower and finance required?
Do you also hav\ the right kind of
personality for this-business? It is
better you engage in a business that
well suits your kind of person as to
fuel your drive further to succeed.
Else, it could be disaster or efforts in
vain. The next step is to fill the gaps
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Alsofigureoutthefollowing: -'0.
. What are people looking for that they can't
readily in the market; could be a product or service
. What are customers dissatisfied a b 0 u t ,
existing products in the market
. Ismy product or service unique
. Governmentpolicies to meet meeting these needs or wants
. Demographic shifts . Is their a nitche or under- . . Socialand attitudinaltrends market formy product or servIce
Ban on certain items, cassava initiative, passion for. Who are these people
football in Nigeria, health consciousness, the sudden. Where are they mostly found or
wave of tourism and the opening of Tinapa should. Howbest can I reach them;
begin to make sense to you. These are ways to l.ocate medium/channels
opportunities in your industry. or chosen busIness. . Who are my competing with in this market and
Don't be afraid if your first fe~ Ideas are flaw~d. Just what are they doing
put them aside and keep wor~mg. See~ advIse froI? These steps should help you come up with a good
experts in your propo.sed hne of busIness. It IS business strategy to break into the market with much
advisable to have a busIness mentor as well. Inf?rmal confidence. Don't join the crowd. Segment the market
interviews with supp~ies,custom~rs and oth.ersm the into geographic location, sex, age, income or social
same kind of busIness, possIbly outsIde YO~lf bracket. Locate a niche - or an under-services market or
immediate market who ~ay ~ot ~eeyou as a treat-wIll group and plug-in
reveal quite a lot. Also, IntervIeWIngcust~mers ofyo~r
direct competitors is very important. Fmd out theIr
needs and whatyour competitors can't offerthem.
~& M""moo'
that are left. Giveyourself a time frame to fill these gaps
.Youcould decide to employ someone to make up for
the gaps if you can't fit in. Or better still seek for a
partner of like minds having either cash or experience
or both to plug the gaps.
MARKET RESEARCH: Be Conscious of the
following:
At this point you should put your money to work for
you. Buynewspapers,journals and build your capacity
by attending seminars, conferences, exhibitions and
business workshops that could help to give you the
right focus: sometimes, some ofthese events are free.
But frequently,youhave to pay to attend.
If you can't do a good market research, you can contract
someone to do a detailed feasibility study for your.
Feasibility report :IDouldbe able to tell if you're ready to
roll out or not or discard the idea totally.
Figure out what the market needs are. And who would
actually buy from you and why? - And at what price? If
you can answer these questions convincingly, then you
can be sure to open the doors for business.
m anyway as
serviced
situated
through what
BUSINESS ROLL OUT: This will required some bit
of organized planning. And the following three steeps
should get you opening the doors forbusiness.
(1) Design a pilot model: There is nothing wro~
about thinking big, provided it makes rational sense.
But for now, put that grandiose plan aside and scale
down the budget to something realistic that you can
start immediately.
Depending, some types of business will
require a shoestring budget; while some will
require larger capital out-lay. Then you can
wait to put the funds together - if that be the
case.
Quickly list the most essentials you need to
openthedoors,andassigndeadlines: .
Date
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11 BUSINESS & PEOPLE - The Port Harcourt ]ournal-
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J
:;;& Management
~ You can include more on the list. Some businesses have longer gestation period. Thus, you may be required to
V>fund operations beyond three to six month; until cash starts rolling in.
Now, figure out what you have on ground and others not in place yet;
Items
Finance
Partner (if any)
Training/Education
Personnel
E. Location
F. In-kind support
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Note: For each of the items not in money
place, fix a deadline as to make. What ismy market
provision for and date for business. What do I do if the business
roll out. The good thing about pilot doesn't sell like block buster
models are that you have the luxury. Who are my competitors in
to adjust or make changes, as the the business
need arise in the plan or even discard
the idea, as you may not have
committed somuch funds, after all.
(2) Business plan: This
happens to be the single most
important and valuable document
you need to have as a business
.promoter. But often ignored, due to
lack of understanding on the part of
most entrepreneurs, especially
small businesses. And this
contribute inpart, to the reason most
business can't access funds aside
from personal saving (or sweat
equity).
Business plan basically integrates
every component of your strategy;
from production to marketing; and
providing a road map for executing
your mission. Depending on the
scale of business; all you need is not
more comprehensive than a .six to
ten page pages document of where
you want to take this business to.
What you need is - sit down and ask
yourself the following:
. Where do I want to take this
business to (reflecting on your
mission and vision)
. Can the business make
The objective of the business plan
exercise is to get you thinking like a
businessperson. Your business plan
can enable you seek for external
funding from individuals or
corporate institutions like banks.
For further guidance, you can check
out books or Internet on tips on how
to write a business plan. But it is
advised to seek expert opinions or
business consultants when
approaching third parties or banks
for funding.
(3) Getting Funded: Ifyou have the
financial muscle.With your plan in
hand, please go ahead and
implement. On the other hand,
where start-up funding becomes an
issue, that okay! Now you have the
idea for that blockbuster product;
you've targeted a nitche and you
have the plan to make it work. And
you can demonstrate clearly in you
plan how the business will make
money.
All you need is the money to get
going. Where will you find the cash?
20 BUSINESS&. PEOPLE - The Port Harcourt ]ournal-
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Probably not at the banks - as a startup,
except you have the track record,
reputation or collateral (as security)
to tender. Bank loans should be like
frosting in on the cake something
that comes at the end - on top of
everything else. Forget
conventional wisdom.Your friends
and family members are the first
people you should look for in
financipg your new business. Not
only are they likely to belief in you
and your business idea.Also, they
are less likely to saddleyou with the
kind of personal guarantees that the
banks demand.
Just make sure you spell out the
terms of the deal in clear writing.
Other sources of finding are:
. Personal savings
. Partners tojoin force with
. Micro finance institutions (some
are run by N GOs) . Thriftandcreditsocieties
Investment clubs . Cooperatives etc.
Having come this far; you should be
confident of having a sound
business concept and model that
will stand the taste oftime.
Author:
Amadi Dawari-Cottrell,
SMEstart-up coach;
08033400889,
infoneico@yahoo.co.uk