I had the utmost pleasure of speaking to a group of young people on Business Intelligence earlier this month. It was very eventful for me as I had the rare opportunity to speak to eager and intelligent youth on “Business Intelligence: Maximising Opportunities for Sustainable Growth”. The highpoint of my day was when I received a bunch of questions from these youth. The questions demonstrated that the youth had not only listened to all I had said, they had tried to apply what I had said to their peculiar situations (brilliant guys, aren't they?) and were seeking answers to the knots and challenges they encountered in the process of assimilating.

I have decided to share the questions asked by the youth and my simple, practical answers given to them. I believe that the answers will help a business owner/(budding) entrepreneur. Here goes:

1. As a young man intending to do business but has no funds, what can I do? You said we should not borrow, is it wrong to approach banks for loan?

(I actually didn't specifically say that one should not borrow, but I said the Bible does not encourage Christians to borrow)

For most businesses, you really do not have to borrow in order to get capital. Rather, you should focus on starting small, thinking big and growing fast. There are other alternatives to raising capital, such as getting investors, savings, plough-back profits etc. You should focus on reducing costs, including the interest on loans taken.

Where however, it is absolutely necessary to borrow, then, it is best to look for loans with zero or minimal interest rates. The interests are a cost to your business operations that you can avoid or mitigate. Loans can be taken from family, friends, colleagues, employers at no interest (at least, in Nigeria). You can also consider loans from microfinance banks or moneylenders whose interest rates are lower than commercial banks’ lending rate which is in the range of 24%- 28%.

2. If you intend to start a business that has not been done before and you are worried that your idea might be stolen. What can you do?

The law contains provisions that protect novel ideas and interventions. However, if your idea does not fall within the scope of these intellectual property rights, you can ensure that a non-disclosure agreement is signed with the person/organization you are about to share your idea with.

3. How can a budding comedian present himself and create opportunities?

With respect to appearance, what you sell as a comedian is laughter. The best way to present yourself as a comedian is to look funny. Once you see Mr. Ibu, your first reaction is to laugh. He has caught your attention without saying a word. The same goes for you as a comedian, work on your mien such that people find humour in your presentation.

To create opportunities for yourself, you must remain prepared. Always be prepared. You must be a strategic and creative thinker. Volunteer to do comedy skits where people are gathered. Volunteer to present jokes at weddings, children parties, church events etc. There are radio shows that allow callers to say what is on their mind, use the opportunity to share a joke every day until you become a household name. Compete in talent shows. Remember, any social gathering of people is an opportunity to publicise your talents.

4. When maximizing opportunities, to what extent can one take risks?

Risks are a crucial part of running a business. As an entrepreneur, you must take risks in order to grow your business. However, you have to take informed risks. Do research. Do a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, a Cost-Benefit Analysis etc, to ensure that it is a risk worth taking.

Create possible scenarios on the risk you are taking and make plans on how to mitigate the negative effects of the risks you are taking. Where possible, take out insurance policies for indemnification in the occurrence of the risk.

It is acceptable to take risks in business, but only when the risks are calculated.

5. Is it professional to sell your products at a bus-stop or in an open market?

Whilst location is important to the success in a business, it is not unprofessional to sell your products at a bus-stop or open market, if your products will sell there.

Professionalism depends more on the manner in which you carry out your business and treat your customers. You can distinguish yourself as a puff-puff seller by maintaining a clean workspace, wearing a clean apron or even wearing a suit! Treat your customers with courtesy and in a professional manner and you will be seen as different, despite the location of your business.

A good example is SLOT. SLOT is now a brand name for buying standard phones. However, SLOT started in computer village, an open market where phones, laptops and other ICT gadgets/accessories are sold and is notorious for selling sub-standard/counterfeit products. SLOT distinguished itself by selling original products at competitive prices. Now SLOT has braches all over Nigeria and in the highbrow areas of Lagos.

Your location does not determine the professionalism of your business, your mode of operation does.

6. I have an opportunity to establish a small business, but there is no space, what can I do?

You first have to ask yourself, “Do I REALLY need space to operate my business?” I once spoke with a young entrepreneur who wanted to run a “pure water” (pure water is what Nigerians call drinking water in a sachet) production, but claimed he could not because he could not afford to buy land.

If you are sure you need space, then you have to think creatively. “Can I use a space in my house?” “Is there an office/shop where I can share in the meantime?” “Is there some other way I can get space without spending too much?”

While doing all these, bear in mind that this is not your final destination, remain focused the big picture and plough-back your profits into getting the space you need.

7. Is there anything like a second opportunity or second chance?

Yes, there is. But like first opportunities, they are scarce. Therefore, you must train yourself to make the best of first chances and opportunities. You may get a second chance, but it is highly unlikely and even if you do, you will have lost a lot of time & progress waiting for your next opportunity.

On a final note, opportunities are the lifeline of business growth and you must learn to make the best of them.


You are invited to the SME Legal Clinic which gives insight into the provisions of Nigerian Business Law in the areas of corporate governance, taxation, dispute resolution, contracts & contractual liabilities. The course is scheduled to hold between November 20 – 21, 2014. Contact us for more information on registration.

Source: www.pearlworth.com