₦airaland Forum

Wallie:
@1k001

What's your revenue model? I can see digitization and access being a low-hanging fruit feature if you can get partnerships in place.

Sorry i didn't respond to this earlier, only just saw it as i was reviewing the thread.

As for revenue, we are employing a SaaS model. We get subscriptions from clients, ideally monthly to suit usual cash flows but looking at the financial industry in Nigeria, we bill annually instead. I wish we could have things like direct debits more widespread and easy to set up. It would make payments easy for businesses and people to manage. We also have an option for a one off sale but this wouldn't really suit the value we would like to provide.

Partnerships will be key for us but it's been proving a bit tricky to get in place particularly as i'm not currently in the country. Nigerians like face to face things. Hopefully when i land (in a few weeks) i can focus on this. In Africa partnerships will no doubt be key for all tech businesses. It allows the introduction of something new and different under the ambit of something people already understand and use. Look at how aggressively the likes of Iroko are chasing them. In the last few months they've announced partnerships with various telcos across Africa. Partnerships are the way to go.

Opeyemi4real:
Can you guys advise me on Ireland(Dublin)? Plss

Lived in Dublin for a while, unlikely i'll ever go back! Why:

- Cold depressing weather, rains for 2 weeks straight and i'm not even exaggerating.

- Only superficially friendly people especially if you're a teetotaler.

- Institutional and overt discrimination, an African once changed the name on his CV to a white name and got far more call backs.

- Expensive city to live in.

- 'Knackers', trust me, you don't want to come across them.

The list goes on. But so as not to sound too negative i'll also list some positives:

- Beautiful country scenery, plenty of history

- Good educational system and opportunity to get great working experience

- Reasonably good support for children and families

Hit it off with the right people and you can have some great moments

Realone92:
If its not Canada forget it ....


Yeah ...

Too cold bro, even the Canadians are running away. -30 no be beans!

Having been an expat and visited multiple countries over the last decade, I'm now becoming a 'repat' and returning home in a few weeks.

In my time in all these countries it's been fascinating to meet other expats who complained about their home countries and left as a result. I've meet Americans, Canadians, English, Irish, Kiwis, Aussies, Germans, Finnish, Dutch, French, Filipinos, Brazilians, name 'em i've met 'em. All had reasons to have left the very places many Nigerians are running to.

Bottom line i've come to realize is that happiness is actually not a function of one's surroundings. You can be happy and fulfilled from most places in the world, Nigeria included. There is no magic in the air in any country, they all have their own fair share of problems especially for one who isn't a citizen.

So to answer the question, i've seen my fair share of the world, now it's time to be back home and make Nigeria and Africa a place other people want to migrate to.

... because you are copying what everybody is doing. The key factor for blogging success is passion. no passion = no success. Also this general entertainment and gossip space is saturated. Unless you have a revolutionary take to it (highly unlikely), you need to avoid it altogether.

Blog instead about something you're thoroughly interested in because the thing about blogging is that it takes a long time of posting original content and advertising this content before you can ever hope to make it into a living. Your real interest in the subject matter will make you stick it out till the success arrives. Case in point, Linda blogged for years out of passion before she started to make money from it.

Niches to consider
Architecture
Education
Health
Fashion
Fitness
Dancing
Art
Music
Photography

The list is endless.

Well done @AsherStorm, we need more business startups in our country.

I must warn you however that this road you've gone down is a very difficult one. It's however one of the most rewarding things you could ever do.

A few questions on your first post.

- How may people have you signed up to use your studio?

- How much are they willing to pay?

- Any studios around you? If yes why not start out there to guage demand

- How will you be different? What's your USP (unique selling point)?

- You indicated limited production skills and a desire to hire a producer. Why would a producer come work for you and not go start their own studio?

Well done again and good luck with your journey.

Lack of capital is quite a hindrance to the average startup entrepreneur. I however posit that in our instance, the bigger problem is poor knowledge and consequent inability to execute. The advantage of not having money is the opportunity it gives to become more creative and learn quickly. When one is able to execute without money, the capital will come eventually and propel one to greater heights. On the other hand if one keeps waiting for money before executing anything, the money will not make a difference if it does come.

Bottom line is us entrepreneurs should stop complaining about capital, we need to get off our bum and start executing in any way possible. When this is done consistently, getting money will be easier and more useful.

I've always wanted to go into manufacturing but the challenges are too much currently.

First one has to supply one's own power, water and security. Has to source for expensive equipment with this bad exchange rate currently. After all this hustle then to find the right kind of staff with the right kind of expertise that would do a honest day's job is another headache. Per chance all this is figured out then one has to deal with the drama of distribution. Finding transportation options on the poor roads, not easy. Costs still await in marketing and getting shelf space or partner distributors as the case may be.

There are no doubt huge opportunities, what is most needed to succeed is deep pockets and a lot of patience I respect the manufacturers currently in the space, it's not easy at all. Maybe i'll join in the future but for now i'm sticking to tech: low overheads, high margins!

Negotiation

I just closed a business partnership deal i'd been working on over the last few weeks. The initial deal was with a certain other new business. They sounded interested initially so i sent them a proposal. After the proposal went, i kept thinking of how i could deepen and sweeten the deal further, so i dug around for further options.

I searched out for the necessary expertise needed via google, linked in, twitter and facebook. Finally i came across a suitable option. I got in contact and sent of a few emails. I was careful to try build a rapport first. I extended compliments and praise on the excellent work they were doing. I take this approach with most people i meet, the idea being that people often feel oblige to reciprocate with an affirmative response when you start out by praising them. One has to be careful to be genuine though as i almost got caught out.

After getting a bit of rapport going, i finally sent through an alternative take of the proposal to the new partner. This was well received and we started to plan on how to realize it. Turned out that the second partner was better suited than the first. The first still hasn't gotten back to me while I've largely sealed the deal with the second partner. In the course of trying to hammer out specifics we had to go back and forth over a few things. I drew upon some of my negotiation classes from my time in B-school. A few general things i applied.

- Always know your BATNA (best alternative to a negotiated agreement). This means that you know what your option is if the deal falls through. This reduces your desperation and enables you set an appropriate price for the negotiation.

- Always seek for a win-win situation. Never leave whoever you negotiate with feeling like they lost.

- Make the pie bigger. Make everyone see the bigger picture and focus on the benefits of a deal for both parties.

- Insert more negotiation points. For example if you're haggling over price, try insert other points such as other services. instead of going '' I'll give you 25 not 30 dollars'', do ''I'll give you 25 dollars + an extra service/ thing''. When done smartly, this extra layer enables more flexibility in the deal and more potential of keeping everyone happy.

- Never make two offers in a row, always wait for a counter offer. Conversely, try make the other side make two offers in a row. It means they can make 2 concessions without you having to make any.

Finally as i learnt from this episode of the first partner bailing out but the second coming through, don't put all your eggs in one basket. Always shop around and seek multiple options in parallel, saves you a lot of time and effort.

*Only 3 weeks left now till i officially take the leap to become a full time entrepreneur *

User Engagement

Well done @databoy247 on the rather impressive email marketing numbers. I've only been able to get max open rates of 11 percent. Following from this my current focus is now user engagement. I've thus paused my user acquisition efforts except for a few long term growth hacks that are already in the pipeline. I figure there's no point in acquiring all theses users and not be able to engage and retain them.

I'm currently researching, mostly via youtube, ways to increase engagement. I've settled on trying to standardize an on-boarding process that will have some gamified features. I imagine it will take a bit of technical time to deliver (wish my co-founder was full time). I'll also need to be on the ground to road test it and get direct feedback from users. I foresee gamification as being central to retaining users and increasing their lifetime value. Our user numbers are still quite small so it's as a good a time as any to start to test what on-boarding and engagement processes will work best. Obviously this will have to be iterated as things move along.

I welcome any inputs from anyone on what has worked for you.

Service Delivery

Across the Nigerian business landscape, a lot is left to be desired in their operations. None however irks me more than customer service. Poor customer service is so widespread and acceptable that we actually don't notice it. It wasn't till i left Nigeria over a decade ago i came to realize that this was the case.

Thus in creating my business I've tried to imbue the idea that we must deliver great customer service. The way i've approached this is to start from within. Thankfully I've been blessed with quite a good temperament. I've hardly ever been known to raise my voice or get angry. It's perhaps the way i was raised. I often have been the one to break stereotypes in people's minds of the 'loud, aggressive Nigerian'. Case in point, after i'd first interacted with my father in law who's not Nigerian, he asked my wife, then girlfriend, are you sure he's Nigerian? He doesn't behave like one.

Anyway i digress, my point being we Nigerians have gained this not entirely inaccurate stereotype of being aggressive. This aggressiveness is reflected in the way we do a lot of things, including our customer service. Personally i just try to be nice and courteous to everyone, including those that wrong me or i stand to gain nothing from. To the people that work(ed) for me I'm nice and fair to them. I respect them and treat them like adults. I don't ever shout. I never ask them to do something i wouldn't do myself.

My hope is that by doing this, I create a pleasant working environment where everyone is happy to come work and never want to leave. The hope is then that this joy in the workplace translates to the way we treat our customers.

We have the target of having a customer contact within 8 hours of signing up, preferably in the form of a phone call. We aim to speak to all our customers and keep in regular contact. When we speak on the phone we smile, it's amazing how this comes through in the conversation. We always try to build consensus and never antagonize people. Most of all we listen and try to solve the particular problem the customer has not the one we think they have. We're by no means perfect in any of this, they're ideals we continue to strive for.

When we interviewed people we had a little role play. It was that of an irate customer to test how the applicant would respond. Some responses were shocking! In one instance the applicant blamed the customer for a problem that was clearly not theirs.

Some of my aphorisms

- Treat your staff right
- Love your customers and solve their problems
- Smile always (even when on the phone)
- The customer may not always be right but their feelings are always right.
- Always agree and build consensus. Don't use 'but' use 'and' - replace 'but' in the following sentence and see the difference 'I understand how you feel but...'


The bottom line is to always have a kind and personable demeanor. Read the book 'How to win friends and influence people' by Dale Carnegie for more.

DigitalIdeas:
Can I know your list size? 47% open rate and 23% click is above industry standard. It will be nice to share with us the list size and methods of generating them. An open rate of 20% is regarded as a success. 47% open rate in email marketing is abnormal. Kindly share your email marketing methodology with us. Thanks in advance..

I had the exact thoughts, @databoy247 please come school us.

databoy247:
I simply used one of the oldest methods out there: Email Marketing. I could have as well converted my project website into a membership website and "be like others", which i actually thought of. But i put into consideration the following;

Great post @databoy247

I quoted the bit on email marketing as i'm not yet a believer. Many rave about it but in my little experience, the best open rate i've had is only about 6%. Click rates are even worse. Perhaps I've not put in enough effort or time, may come back to it later on when i build a bigger email list.

The internet has already replaced my TV! Now use my TV as a secondary screen for my PC.

Traction

Back to normal service.

After gaining all the background work and arriving at our MVP, the next step was acquiring users. One of the many resources i read had this quote: 'Almost every startup has a product, what failed startups don't have are enough customers'. I thus set about figuring out how to acquire customers. I knew that big ticket sales targeting business and corporates would pay well. The problem however is the long sales cycle and amount of work required. I left my team on the ground to pursue this angle. I focused mostly on online channels.

Now consider i had never attempted to sell or market anything much prior to this so i set out to learn. I watched several youtube videos, listened to podcasts, read books. Here's what i did practically:

I set up our social media pages - FB, twitter, google plus, pinterest, instagram even nairaland. I was waiting for people to come to me, didn't happen. So i did what was logical, i threw money at it. I set up a google adwords campaign. Using my analytics i was able to see increase in traffic via adwords but no signups.

We then altered our home page to look a bit more inviting. Explained a little bit more of our value proposition. We placed prominent call to actions (CTA), minimized the distractions on our page. I've since learnt and tested it myself that you need to give people only one option, greater options paralyze people. So with everything i promote now i try to put only one CTA, this is hard to do but trust me it works.

Anyway with search engine marketing (SEM) we saw increased traffic but no signups. Hmm how do i solve this now i thought. So i learned some more and decided to offer a trial period. Many people differ on whether this is a good idea. My thought is in a new market where my approach is quite different to what people are used to, it would be good to give them a trial. Hopefully we would be able to convert most trials through our great product and service. So our trial period was born, still no users though.

I got my team to go out on the street and talk to people individually, we were able to get a few people via this method. Was quite difficult and variable however.

Next thing i set up was the blog. I figured that half the battle is educating people on the problem they have. When they see that it is indeed a problem then we will swoop in to offer a solution. The blog was thus born. I worked on the blog and have published 21 original posts in a matter of weeks. On one frenzied occasion i wrote 5 blog posts in a few hours. With all this content i had to find a way to distribute. I went to social media, posted them and got a bit of interest. Put the posts into some targeted advertising and voila! started to see some action. I started to get hundreds of hits to the site. Out of this we were able to convert a percentage to become users.

This model has yielded pretty good dividend so far. I know almost with surety now that if i put out quality content and distribute via ads on social media i will get some sign ups. I'm now a believer that content is king and social media advertising works. I'm now trying to split test a few things to see what works best. My testing so far has led me to realize the group i should be targeting the most as i get the most sign-ups when i post material related to this group.

The other channel i think will work quite well for me is business partnerships. I'm working on a couple currently and hope they turn out ok. The bad part though is they are dependent not just on me. What i do when proposing partnerships is to think laterally and creatively. I also highlight the huge market potential of our partnership to the other business. All businesses like money, I try to present it to them in the right manner. I relegate what I stand to gain to the back burner to at least foster the relationship initially.

So in all this traction bit is the hardest thing of all, crack this and you're in business. I'm still learning and would love your input as to traction channels that have worked for you.

One book i highly recommend is 'traction' by Gabriel Weinberg and Justin mares. It details all the traction channels that are available to a startup.

Mordyb:
Op dont take offence From all this parable you wrote i cant decipher what you do all i can deduce is that you like to read books and get info but people like steve jobs did not start making money until they were able make lay men like me buy into your idea because idiots rule the world because of money.

My purpose is not to sell my idea but to describe my journey to help me make more sense of it and help others relate too. If i do try to sell you something i will break it down and make it understandable. For now just enjoy the parables.

Wallie:
Nice!

I'm currently in the same boat but my SAAS B2B startup is US based and I'm currently seeking Series A funding.

Dealing with institutional investors is nerve–wracking and time consuming especially when you're a solo founder like me. The amount of equity and terms they're seeking when you find a receptive investor almost makes you say "fu.k it', especially when you're looking at your burn rate! Couple the fund raising headache with customer development and acquisition, conversion of users to paying customers, attending trade expos, continued software development, resource issues, keeping an eye on VC funded competitors, uncertainties in some of your hypothesis, a full-time job, and family obligations...I will be writing a book once I exit. :-)

By the way, if any Nairalander attends Johns Hopkins, I will be participating in the 2015 Startup Fest at Carey Business School to recruit.

Wow man! I feel your pain. Just not enough hours in the day!

Would love to hear more about your fund raising experience. I'm currently bootstrapping and hope to raise my first round in the region of 6 figures USD in the next 12 to 18 months.

Start writing that book!

yusufu16:
I quite agree with databoy my oga OP. For most startups, exposure is very critical in the initial stage in order gain public acceptance of your brand. You can create the much needed curiosity for the public through online ads.

I want to say that I have gained a lot from your experience. But you can even make your startup litle easier if you bring your wife onboard. You can teach her how she can buy into the you vision. Its easier you know. While you concentrate on other things on she focus on other things like marketing. Again instead of renting an office , you can use a friends house or your house. It saves money again.

OP you also forgot one good aspect of any business. and that is PR. If you are an introvert like me, then i think is good if you can hire a PR Specialist.

We are still in speculations of this your startup though. Nobody will steal your idea here since you have started operation and have made all legal rights. By telling us what your business is on this forum, some people will be in a better position to give more advise on how you can move your business to the next level. There is no point hiding it.

Thanks for your comments, much appreciated. Yes my wife is already fully on board, she's handling sales and marketing. We have also moved out of the office pending my return, will assess at that stage what is the best option going forward.

As for a PR specialist, i'm not yet at the stage of delegating such a key task. I've gotta learn at least some aspect of how to do it before handing it off to someone else. Also i'm still quite early stage, still learning and refining a lot of variables.

Knowing my start-up doesn't make much difference. Advice on general principles is what is key rather than specifics that often don't turn out to be helpful.

Liferace:
Op,reading your stories brought me to tears..not sad but happy.
My family made the decision similar to yours about two years ago,the only difference is we were all in nobody was left behind. We have experienced a lot,from staff walking out on us to loosing all our hard earned money to a fraudster(how that happened is still a misery till date). Currently,i am trying so hard to support my husband looking at another business that can keep family going.

How are you able to cope with business to business in Nigeria?. The way Nigerians demand for money is alarming and frustrating!.

Wishing you success.

Thank you. Well done in your support of your husband. My wife stepped up and took a lot of responsibility when i was let down. There's nothing like a supportive wife so please keep at it and don't lose the faith as hard as it may be.

B2B in Nigeria is hard, long and you have to deal with people who just want a cut for doing their job or nothing in some cases. When i've found a reliable method i'll tell you until then i'm doing trial and error.

Wishing you all the success in the world too.

400billionman:
Sir, how much cash money has your start up earned ?

I hate stories..

Thank you for your comment. We are still managing tiny revenue, certainly not a billion man.

If you hate stories, i dare say that this thread might not be suitable as it is a story of a journey.

9japipper:
I love your posts.. Well articulated and inspiring. I have being in a similar journey for over a year now. Can we connect? Maybe via email or something.

Thanks. Would love to connect. Just send me a PM.

Oildichotomy:
I'm writing this as an employee of two big start-ups, There are some things diaspora owners of Nigerian start-ups don't understand about recruitment and hiring.

I started as one of the first set of employees for an online business about three years ago though it has grown so big presently after some investment dollars came in.
OP is wrong with the typical usual stereotype of Nigerian graduates and their competence especially when they have some stint overseas, going into recruitment with such mindset will definitely hand you the cheese as expected.

Be open to these guys (potential employees) and also be ready to teach and be disappointed in the process. If you get your recruitment right -- Success is sure!

I relate with what databoy247 suggested, about being street credible, it will definitely help your push to the streets, the only down-side is that your product is supposedly for the upper-class and middle-class and I just have to chip in this, the so-called Upper Class feed off the lower-class, so none is really unimportant in the circumstance.

One of my goals for this year, is to start something for myself and trust me, procrastination has been my companion the whole time, I doff my hat for budding entrepreneurs who threw away the comfort of good paid employment and tackle their dreams headlong, the grass is always greener at the other side.

Your post has really succeeded in pushing me to DO ME.

Thanks for your post. I've lived and schooled in Nigeria too so i know what's up. I interviewed quite a number of people myself before i formed the opinion i have. I wasn't looking for much, infact, i ignored CV's in many cases. I just asked open ended questions and listened. So many people just couldn't deal with this. These kind of people i can't hope to teach anything. People need a minimum set of skills that our schools are unfortunately not equipping them with. like databoy247 alluded too, I don't have the cash for them to learn on my watch.

As regards class distinctions, i'll take money from anyone who will give it to me. It is however hard to convince someone to part with 20 dollars for software when they're struggling to find food. So i hedge my efforts by going after the 'haves'.

I like you am a great procrastinator. I had a presentation to do at work today and didn't prepare it until this morning. What helped me not procrastinate my startup is:

1. I was extremely passionate about it.
2. I put some money into it early on. Not a lot just a little to buy a domain name. Once i did that i had skin the game and stopped procrastinating.
3. I read, listened and watched a lot of entrepreneurial stories. This motivated me plenty.

Good luck with your venture and please update us as you go along.

goofyone:
Nice story. But did they also tell you how he tricked the Aztecs? How he deceived them? How he stole their history? How his obsession with their gold made him see them as less of a people? How his army infected them with foreign diseases?

I'm not trying to punch a hole in your efforts. Good efforts by the way. Just trying to let you know that not all these grand western stories are as lofty as they appear.

Thanks for reading and commenting. I didn't attempt to paint cortes as a saint. All i did was use an aspect of his story to illustrate a principle. As evil as he may have been, he clearly did some useful things one can draw from. Remember that even a broken clock tells the correct time twice a day.

remsonik:
Op I read through every post on this thread and sure it's worth it. I am an entrepreneur too and I merchant for some ecommerce online shops here. I am thinking of dropping paid employment by the end of this month,I just got admission for a masters degree. I will further my studies and face my passion squarely.
Thank you for this thread,very insightful. A lot of startups just share their glories and never talk about where they faced difficulties and challenges. Entrepreneurship is good but not for the faint hearted!

Well done, i encourage you wholeheartedly to pursue your dream. You won't ever regret doing it but you will regret not pursuing your passion

Ibime:
Na wetin I dey ask since.

OP is on FP, one would think it's a good opportunity to tell us about the website

Thanks for reading and posting bro. If i tell you the website you'll be disappointed

More seriously, the interest from this thread is from a business side whereas my start-up is targeted at a non business niche. Two very different interests.

Media interest like this is only temporary and hardly ever enduring. The front page feature is only fleeting. I want to build a repeatable and scalable acquisition channel. Visits via this thread will be distracting as they weren't initially attracted by the value proposition i'm offering. People will only sign up out of curiosity. We don't have time for that distraction especially as we personally call everyone that signs up.

databoy247:
I appreciate you taking your time to read through my post and i am happy you picked a thing or two.

But i need to still throw more light.....

From your post, i deduced some factors which if you don't address, might still pose as setback blocks.

What you are putting on ground is a start-up! No matter the funds you have on ground you will not want to waste it on recruiting (the wrong person). From my experience, no matter how good and prospect-looking a graduate is, you still have to spend nothing less than six months teaching. If you can handle the time and expenses, then it's all good. Otherwise, you should go for an experienced hire. I know some guys, but i don't think they will come on board cheap. So, if you are ready to pay good, then there are always options.

This is Nigeria, recruiting is always a problem. You see a very bright candidate and by the time you expect the best from him, he ALWAYS disappoints. You just have to get this part right. And one way you can get it right is outsource the recruiting to an agency or a HR professional. But it's either you employ a secretary like i said before (secretaries can be converted to best selling pitchers if you want ) and the truth is that nobody understands a company more than a secretary. That's the way it works here in Nigeria. If you want to get ALL the details of a company, go and ask the secretary. OR you get an experienced hire (and be ready to pay super well and still expect disappointment).

Also, just like you said in your previous posts, partnership should not come on the basis of friendship. I am glad you got this part right. In fact the best partnership is that of when the only glue at the middle of you guys is business. I have run successful partnership with a startup for close to a year now, we are making money, the business is growing and till date we have not seen physically. Currently am also in the process of signing another partnership agreement with another new start-up of which the owner is based somewhere in Europe but wants his start-up to hit home strongly.

This is good but what happens when you are not there? It shouldn't be about you, it should be about the product. In fact, the product should be able to speak for itself. I have done a presentation for some peeps, i didn't convince them, the presentation did. In short, they were not even ready to listen to me because they were so glued to the presentation. The product should sell itself and not you selling the product. Like i emphasized on my previous post, invest more on online ads. One thing about online ads, is that it makes brands become a household name, and when it becomes a household name, you don't need to pitch for more than 3 minutes before closing a sale.

A good example is OLX. Now am not saying OLX is the best, but EVERYONE here have heard of it, have seen it through various ads. In fact if you open your opera mini on your phone, you will see it, on nairaland you will see it, on Google you will see it, on facebook you will see it, it's everywhere. Now i can bet my beans and roasted plantain that 96% of it's users knows nothing about the owners or people behind it. That is my point, let your product sell itself and this can be achieved via massive online ads. When that is accomplished, you will observe that everything will start falling into place (with proper planning).

What are the incentives for prospective partners? Make una nor mind me, i am a businessman, and one of our traits is dabbling into opportunities at any given space (that's how i got one small contract with Ministry of Education ). I am open to more discussion... nwakstar2020@gmail.com

Thanks a lot man, i'll be in contact in due course.

As regards recruiting, i take your point on board. I don't think i'll be hiring for another little while anyway. Will try and get a handle of things first and perhaps go for a secretary like you suggested. We'll see how it turns out.

You're right about the product speaking for itself. In my short experience, Nigerians like to know who is behind anything hence why i'm linking the product to my person. Over time i will be able to separate my person from the product. It also works for now as we can't afford any sole branding spend. All resources currently are directed towards acquiring users.

We are doing online ads and have acquired most of our users via it. It's only small scale as we have an MVP that can't do a lot of things we want it to do. We want to be guided by our users and not what we think will be good. Our website also needs a lot of work and features before it is ready for large scale online consumption. Thus we are focusing largely on direct offline sales.

Wow! I logged into Nairaland today just to catch up on the usual gist and couldn't believe my eyes!

Thank you all so much for your encouragement. I'll try to respond to each post individually.

To those who have gotten some inspiration, i'm glad i was able to help you along. Please come write your experiences so we can build a community of collaborators and entrepreneurs. We are only as good as our community. I hope we can build a great community via this thread. Who knows we may even take it offline someday.

As to revealing my start-up, I can safely say that i won't be doing so for quite a while.

Thanks again and keep the posts and experiences coming, love to read them. I certainly will be giving regular updates.

databoy247:
I hope am able to hit the points i observed.

What am going to do is to point out your errors based on my little knowledge and personal experience. I really dont know what product you are selling, but so far you are not making it interesting by not mentioning your product which i believe you are doing on purpose. You have done all necessary legal registration so i believe you should try to announce your stuff on every single avenue you come across (including here).

Your mistakes;
1. I dont seem to remember vividly, so let me assume you reside in the US. Methods of company launch and start-up processes differs between countries. The way it's done in the US and other 1st class countries has a pattern, while the way it's done in Nigeria is another ball game all together. Here, if you take one year or 8 months to plan a start-up and when you think you are all set, by the time you finally launch, everything will not go as planned and you will start wondering "What's going on?". Why am i saying this? Read my story, maybe you will understand why.

After school, i worked with a contracting firm for 3 years+ and started getting the urge to resign and start my own thing. Already, i was developing interests in the tech world. First thing i did, was to learn something. So i learned how to setup websites (with quack html codes....lol), which finally gave me the conviction to resign with the mindset that i wont go hungry. But alas i was wrong. I entered the world of freelancing, though i so badly wanted to start my own company, BUT i started with freelancing. It was tough getting jobs, but i persisted and after two years, i had a client base and was ready to launch my own company or rather go professional (getting incorporated and getting documented). Now my small tech start-up relies on my existing clients base AND referrals.

Let me buttress why i am giving this example: You are starting a company (GOOD), you have a product (GOOD), you have some level of knowledge (GOOD), you have some finance (GOOD), you have done all your legal registration (GOOD), but what you have not done is go into the streets...you don't have a reputation!

When it comes to tech business, Nigerians will be quick to label you "scam". This is because they DON'T know you, and a vast majority, even some of the rich DON'T key into tech. They so believe the traditional methods of doing things and for you to introduce your product to them when they don't know you, if you are not careful they will label you "scam".

If you love the tech business, then do some freelancing first. Test the waters, By so doing, you will understand how Nigerians welcome businesses and patronize businesses. DON'T base your feasibility study on surveys......because it may work well with the civilized world, but it WONT work with Nigerians. Do some freelancing, meet some people, build trust and when you finally decide to launch a product, the trust you have built amongst your existing client base will help you launch the product successfully.

For example, if you come to my office with your product and i have not heard about you before, or no one can vouch for you or recommend you, i will become skeptical...I am a Nigerian and that is how true Nigerians react.

My advice, don't be in a hurry, go into the streets, do some freelancing, gain some trust, understand the system (and the best way to do that is on the streets) and when you have covered some ground, you can launch your product.

Second mistake:
In Nigeria, partnership thing don't work like other countries. The reason is because it is extremely difficult to find someone who will have the kind of passion you possess for your company. If you have an idea and you finally develop it into a product, test drive it yourself. Push it into the market yourself, get stressed out trying to sell your product yourself, and when you have gained some footing, look for helping hands. The idea of getting partner(s) in Nigeria from the onset was a bad idea.

Third Mistake:
You decided to employ too fast. This is Nigeria, 97% of graduates did not graduate as a result of what the know, but how much money they have. So to get a staff to really do what you want after seeing his/her certificates is really a no no. What to do? get a secretary instead (male or female) and with time, the person will learn the trade and perform excellently more than so called graduates.

Fourth Mistake:
Since, it is a software (from what i understand), you should have focused on launching it on the web (ONLY). Let the website be very creative and attractive so it will become both the office and do the magic. Invest more on ads, let it be seen everywhere. Even if you are not making profits, at least your brand is spreading everywhere. So by the time you decide to get physical (get an office and start doing some offline pitching), it will no longer be "who are you?". It will be "i have seen this online somewhere, are you really the owner WOW...please tell me more".

Another example, when Seun started this nairaland, it was strictly web based. He built a reputation, he spread the brand and now he has a physical office with staff and landing deals with big companies like GTBank, First Bank, etc.

I dont know what your product is and i believe no one here knows... i wonder why keeping it a secret. Reps from big companies do come here and might just key into your stuff and you might just land yourself a huge deal (Maybe this is another mistake on your path). But your vision is great and i love it, just go back to the drawing board and you will buy me a bottle of beer.

Research my username here and you will kinda know me more...

Thanks for your post, for taking the time out, very useful advise. I've read your thread on your experiences. Well done!

You made several valid points that i've learnt myself. Wanted to address a few of them to demonstrate how i think long and hard about my strategy.

The reason i got staff on the ground in Nigeria was because i knew i wouldn't be around till later in the year. Their job was actually to go pitch for sales and manage relationships I'd built. As a result of some of their efforts we have a pipeline of potential clients i will be closing in the next few months when i'm back.

Also note that my first Nigerian partner i'd known for over a decade and he had some domain knowledge. Part of the reason for setting up the office was to test if he'd be capable of delivering. Now i know he isn't. Luckily i found out early when it is not so costly.

You're right that people are skeptical of new businesses. I and my co-founders have domain expertise in my field gained from multiple years in Europe, America and Australasia. I make a good living and have a personal and professional reputation to protect, the people i meet recognize that. In my field, freelancing is a BAD sign. I target the people i sell to so when i speak to them they recognize immediately that this guy is an expert at what he's speaking about.

I said something similar to what you've said in previous posts: no business plan survives on entering the market. Things will always be learnt. I'm glad things have turned out the way they have because i've learnt tremendously. I'm a big follower of Steve Blank who tells founders to 'get out of the building'. When i was in Nigeria i lived on the 'streets', met and spoke to people daily. I Continue to do so currently.

An example - i was flying from lagos to abuja and noticed a guy sitting in business class. My product is targeted at middle to upper class people so i kept a close watch on him. Soon as the plane landed i rushed to the front and started a conversation. I got his details and I'm hoping to get him on board as a customer in the future. Note that this is despite the difficulty this kind of encounters pose for an introvert like me. This is what i encouraged my team to do but they weren't so driven as i was i guess.

Our problem is actually not getting customers, that will be relatively easy once we're up and running. We have a pipeline of offline prospects already and have seen individual user growth of >100% week on week via online sources. The real problem for us is delivering the solution as it's not only dependent on software but a lot of offline collaboration and several other factors. Hence why i needed a team i could trust to deliver.

The story of partnerships not working in Nigeria is true but there's no way that can continue. I plan to build a billion dollar business, i can't do it alone so partnerships must work! by force! I'll just have to think of ways to make offers they can't refuse. Also a lot Nigerian businesses aren't creative, that's what i intend to bring, creativity. I've recently just convinced a good niche blogger to do a series of targeted posts that will culminate in a published booklet and a media tour. This should hopefully be good for both of our businesses.

As far as employment goes, I take your point, thing is i'm not looking for a secretary. I'm looking for superstars who are smart and not afraid to break things. I employed because there was work to be done and an enterprising person would have excelled. I just couldn't find any in my short foray into the labour market. If you find one please send them my way, i'm still looking to employ albeit more selectively.

As of today I've had invitations to come launch my startup in 3 different countries, but Nigeria is home and where i want to return to. Mine is a big industry where someone will make a big killing in the next few years in Africa. I hope that person is me. I choose not to reveal myself as my anonymity allows me more freedom to speak as i choose. Also i'm quite a personal and unassuming person so i don't want to come across as bragging or 'oversabi' when i post certain things. I do the branding related posts and efforts on linked in, facebook, twitter etc. For all you know you may have met me before

Thanks again for your advice, very helpful. It's constructive criticism like that i was hoping to hear. Hope to hear more from you.

databoy247:
Op, i have been a quiet follower of your thread and am quite impressed. However you have made some errors in your journey so far which i must point out maybe when i return from church. Till then keep faith.

Thanks man. Yes i've made several errors, all part of the learning process. Won't be repeating any of the errors hopefully. Keen to hear what errors you've observed.

More Setbacks, some positives, looking for staff

The last few weeks has brought with it more twists. In January we started with a team of 3 and an office in Nigeria. As of today we have a team of zero and no office. Basically the team has been shut down thanks to all the disappointment by people. We've also lost quite a bit of cash in the process. I don't understand people. They say things are difficult in Nigeria but yet when they get a golden opportunity they sabotage it. How is it that i'm hungrier for success despite the comfort and success I've already attained while people who haven't gained any success really can't dedicate themselves to providing results.

We have unfortunately incentivized the wrong kind of behaviors in our country. As such people don't know how and don't want to work. This is a disaster trip we're on if we continue like this.

Anyway, the strange thing in all of this is i'm even more excited and determined to become a success. My skin is fully in the game, i've lost personal cash so i'm going all in. Perhaps my determination comes from my strong belief in the need for and potential of what i'm doing. Over the last few weeks, we've seen users grow by an average of over 100% week on week. Also have a few things in the works to improve user acquisition, retention and engagement.

We will likely be recruiting over the next few months so if you know anyone in Lagos or Abuja who is enterprising, self starting and loves learning, send them my way.

gurusmac4:
@ OP which site or books will you recommend us to read/visit that will help us in our hustle to success

If you read through my posts, p.articularly the initial ones, i recommend a few books and online resources. You would want to learn generally about business, finance, technology and your own particular sector.

Also learn to ask yourself questions and then go find the answer. These questions often come when you read something and don't understand. Make google your friend.

To get you started i will say go read around the following statement: Free is not a business model, a viable business always has LTV>CAC.

eliok:
great post . i love ur path. same path i wil follow. just registrd my company.
kick off 4 biz soon. hope all would be entrepreneur know s it all about knowledge. i was thinking people will assist me until i discovered that i need to know most aspects. the reason is that even if you employ someone, you dont want to be told stories. you want to know exactly what you want and are paying for.

Thanks for reading and commenting. Learning is the most important thing as you've pointed out. When you can display some knowledge and expertise, people will trust and support you more.

I looked at the link in you signature, presumably for your upcoming business. You need to set up a landing page to harvest contact details ASAP. You don't want to lose any potential leads. Will also help you do some customer discovery and value proposition validation.