Hi Nairalanders let's talk about business.

I had an encounter with a woman this evening.

A retailer bought an Item of 54k from her shop as a wholesaler, (She sells baby items, diapers etc) with the promise that she will pay in 3days.

Three weeks after she hasn't paid finish. Paying almost four times annoyingly.

She has to be remembered that she's owing before she pays the little she had paid.

Her excuse?

The people she's selling to, are also owing her.

Imagine! She may be right.

Yet the profit on the 54k sales is barely 3k. The gain is in turnover. To buy sell, and restock quickly and do that over and over.

I met the wholesaler, she laments bitterly today and says she's getting frustrated with the business.

"Sir, How much am I making on this product that I will have to beg people to pay, all because I don't want to tie goods down? - She told me while almost crying ...�

I explained few things to her that may help.


The woman above is like many of us in business. Many people put money in businesses but at the end of the year, it's almost down the drain, not because of anything but because many people buy without paying or delayed payment.

A business can be like a sick being, you need to heal it. If you don't, it will fizzle our before your eyes and everything will become history.

Guys, you see, debts repayment is a big problem in Nigerian business sector. No matter how beautiful your business plan is, if you don't design a model to checkmate buying on credit because you don't have patronage, the latter will kill you than "not selling" that you are running away from.

There is actually nothing bad in buying when you are stranded or borrowing when you need, I borrow too, but everyone knows me, If I borrow N1 from you, you should have your money in the next hours once I get boxed up or when I promise.

I hate debts. It kills my enthusiasm.

I don't go to sleep with debts. I hate it. I won't be okay...

I learnt this from my Dad. He will tell you "A kii fi gbèsè sorun s'osoo" . You don't owe someone and you start buying other things to merry or for comfort or to look good. No, you should sacrifice for someone who do you a favour.

This is the same attitude with loan repayment, you will see people getting loan from an account through bank and warm people not to send money to that account again, so that banks don't deduct. What evil is more?

"Can I take it and pay later" is a common attitude in Nigeria, especially among salary earners.

You feel because they work, they will pay but you will be shocked that they won't turn up as expected. They will even insult you and make you feel like that are only helping by even buying on credit.

Many people even have money, but will go and pay those who they know don't give shits and won't sell when you don't have money.. As they do "cash and carry". But for you, they know you are very caring. Smile.

Nothing Nigerians won't buy on credits, even for food canteen, you will see "No credit today, come tomorrow, pay before service". Lol...

Visit car parks and factories to see how drivers and big men keep eating morning, afternoon, and night on credit and food vendors will be chasing them about. I know a lot about this... Lol

All these point to many things.

You see, before you decide to sell anything, Plan on ways and model to sell them very well and only trust few people. Know your area and the kind of people they are.

Let me share an experience.

My Dad wanted to start a school business about 20yrs ago that, we often call "Ekolagba International School" jokingly. (Ekolagba means Education leads in Yoruba)

He was so passionate about education and having made small money in real estate, he got money for start with some buildings, with many kids in the neighbourhood that he can Influence to have, and being a retired teacher and a community leader, the school by forecasting is already a success by estimation.

But hey, he sat down and rethink. He knows the challenge that many school owners are facing and being a father to many people in the area, he will most likely be getting many parents begging to allow their kids to stay that they will pay later, yet he would have to pay teachers and finance the school running.

He aborted the Idea immediately and went to buy land in bushes which he was reselling later at appreciable rate.

Here are 5 things to know...

1. If you are very popular, you will have problem with people begging to have your service freely. Think

2. Know the kind of business you can do (You can know know your kind of business in many ways. One of it is knowing yourself well and your personality. It helps to know what you can handle well. You need discipline to succeed in some businesses otherwise people will wreck you. (See my book for other ways to know your own kind of business)

3. Design your marketing and sales plan well in a way that credit seekers may not be much, if at all you will allow few.

4. Always try to know what you will be 50% sure that it will sell and learn innovative ways that you can use to sell, I shared some in my a research work I put together on ways to sell your products that can help you greatly.

5. Study what it takes to do business well In Nigeria. Ask people who are already in the business. Don't assume most things. The book "Making money with small businesses in Nigeria" is a must for all small business owners in Nigeria, because there are some special things about Nigeria customers and people that you need to learn.

Don't bring foreign business education to Nigeria without studying the pattern and starting small to experiment. It always end in premium tears.

See my signature, for more helpful business Ideas, hints, and tips for starting small business in Nigeria.

Don't let Nigeria happen to you. Be wise!


Source: Omoelublog
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CC: Lalasticlala, Seun, Mynd4, FOD, naijacutee, dominique, puskin