I still think Seun should explore the idea. Nigeria has a huge market and a lot of people will use the library. Build one first and situate it in a strategic location and see what happens. Like I said earlier, stock it with computers, and every other thing and see if people won't sign up fast fast. Not every young Nigerian in this day and age has access like some of us think. I can assure that if you build tht business well, even if tech takes over in latter years, you'll still have made your money and recouped your profits way over.

pash4naija:

I can assure that if you build tht business well, even if tech takes over in latter years, you'll still have made your money and recouped your profits way over.

And what do you do? Give out all the books, sack your staff, burn down the building and walk away because you've recouped your profits? Many people need enlightening. This is the typical idea of a black man. I recouped my profits.

nateevs:

And what do you do? Give out all the books, sack your staff, burn down the building and walk away because you've recouped your profits? Many people need enlightening. This is the typical idea of a black man. I recouped my profits.

Yes, you recoup your profits and you also build a business that will have a target market for its time. Believe me, Nigeria is ripe for it. Is business not about profit? Is it not what you've also been saying? There are still people who even at that time will not have access to that technology. Even today, many people in the developed countries don't even have access so what are you talking about? having it available and having access to it are two different things. I for one do not even like to read with gadgets. I prefer the old way of reading and i'm not even middle aged. It's left to him to take the ideas and do a research/market survey and based on that decide whether he'll continue or not. But saying outrightly its a waste of time, is just what it is, naysayin. I can bet you someone that knows their onions will still take this idea and make something of it. But the key is research. And mind you, Naija is not the same as US

pash4naija:

Yes, you recoup your profits and you also build a business that will have a target market for its time. Believe me, Nigeria is ripe for it. Is business not about profit? Is it not what you've also been saying? There are still people who even at that time will not have access to that technology. Even today, many people in the developed countries don't even have access so what are you talking about? having it available and having access to it are two different things. I for one do not even like to read with gadgets. I prefer the old way of reading and i'm not even middle aged. It's left to him to take the ideas and do a research/market survey and based on that decide whether he'll continue or not. But saying outrightly its a waste of time, is just what it is, naysayin. I can bet you someone that knows their onions will still take this idea and make something of it.  But the key is research. And mind you, Naija is not the same as US

Who builds a business for its time? Why don't you want to sustain it for 20 years, 40 years and hand over to your kids? Business is not only about profits, it's more importantly about sustained profits.

It is a waste of time honestly because it will eventually fold up. This is akin to you telling me that because many people do not have access to MP3 players, ipods, and music gadgets around the world, it is still lucrative to start a CD manufacturing business. No serious business minded person pursues a business idea when they know it will fold in time. Just because it pays profits now. You will end up broke.

When do you draw the line and say at this point, it is time to pull out. Let me give you a case scenario.

You start up a library in your neighbourhood, you hire one administrator, one IT person and one store assistant. You rent a place and stock books of all sorts. People like it. They patronize, you make some money. Word spreads and more people come in. More money. Then the place becomes jam-packed, you decide to buy more space, more chairs, more tables, more books, more computers.

Then you hear that some people would love not to travel to get to your library. You want to take advantage of that market and you open a second library. One more administrator, one more store assistant and one more IT person. You are growing making money. More customers, more space, more tables, more chairs, more books.

At this point, what's you plan? Expand or maintain? There's a market, more people want more libraries. You probably won't surround yourself with people like me who advise you on the outlook of your business model, you'll have people who ask you to invest for the moment.

Then you fire on.

More outlets, more staff, more books, more money. Now bear in mind that with all this comes more creditors, more contracts, more contractors, more suppliers, more financial commitment. (Details of which I cannot explain now).

Then after 3 years you notice the first decline in sales revenue. . . Oh no! It's just a blip. It should rectify. You hear on the news that Apple opened a store at the Eko Atlantic centre and are selling the Ipads half price. The other companies follow suit and open stores in Nigeria. . Why? Because Globacom now has an operational LTE network and people are downloading content over the wireless in Mbps speeds. Glo slash prices.

GTB, Zenith, Access sign deals with Mastercard and Visa that enables their Nigerian customers open current accounts with banks cards and are now able to buy books online from Amazon as part of the deal. (Amazon trying to capitalize on a potential 50million population market).  Then a smart individual opens a store in computer village selling Amazon Kindles. People like the e-ink technology because it looks and feels just like a book and doesn't strain the eye.

The Chinese realize an opening in the world market and then flood the Nigerian market with cheap Ipad replicas - cheaper than a mobile phone. Every mekunu (ordinary man) has a hand held device that connects to the internet through their ISPs.

And you thought the decline in revenue was just a blip . . . When in fact people are now downloading and renting books online for a fraction of what it costs to travel to your library and rent a book. The reluctance to get to the library. You don't see it coming because you cannot anticipate. . . So you spend the money in the bank on advertising and more awareness and more adverts. . . . Your reserves are depleting quicker than your income. . . but less people are coming into the library.

So what do you do? You cut staff and announce that you have to close a store. However, that doesn't help because people would rather borrow a friend's kindle and read a book on it - saving the cost of borrowing a book from your library.

The decline continues, you have to cut more staff, but out-going payments don't stop. Creditors are calling for their money, contractors are calling the money. Suppliers are harassing and threatening litigation.

So what happens? You end up paying everything you ever made from the business and end up shutting down simply because you failed to see where the world is heading.

Apart from coca cola, tell me a business that has lived strong and remained on top for 40 years? There are always alternatives in business. Even apple will be booted off the market by 2016. Check how many libraries are still vibrant in America or the UK you are and because Nigerians are like you this market remains untapped here. See how fast you opened an online publishing. You have not yet told me how much you are making from it yet. Bet you'd have made more if you sold books.

Why are there still profitable libraries in foreign countries even with the mighty e-readers, technology and high conversance with technology?
Why are there  still New York Times best sellers and sales have not slowed or affected with all the e-reader hype and statistics?
So you think 100 percent of Nigerians and world citizens will dump books - even 50 percent by 2020?
So Nigerians will keep failing SSCE because they dump reading for Facebook and BBM?
So booksellers are now closing shops or planning to do so because of threat to business?
So parents in the next few years will quit buying textbooks for their kids soonest and simply hand them kindle devices as textbooks?
Reading to grasp and understand is more effective with books than e-readers; E-readers are for quick articles, news and the rest?
So you are comfortable with reading and understand all 100+ pages of an educational material on an e-reader at same time?

waooh been following this conversation and its been very much informative, and now I decided to drop my2cents

I would say Nateevs is a very smart guy with limited information, with more information about what is happening in Africa and business in Africa most of his ideas are going to be very great

I think Mr Globe has solid points but he fails to elaborate on the points he makes hence you can underlook everything he says because its not explicit. I suspect its because he is typing off his phone on the highway

Truth be told a chain of libraries in Nigeria will help in the short term (Mr Globe style) and in the longterm (Nateevs style)

if you look at it very well Apple started the iPod when they already knew they will introduce the iPhone, iPad, I assume this because the series was systematic which means they had say a 10yr plan

if you setup a chain of libraries, they will become the store fronts to sell these kindles and e-readers as supplements for the hard book business overtime and then they will gradually replace (if they will ever) the hard book business, this way you are ready for the future yet having a life not starving to death.
Nateevs believes more in the western culture where people have venture funding and they can starve for 5yrs while buidling the business that will last the next 30yrs and start making profit from the 7th year (Amazon.com facebook.com)

but I say in Africa physical libraries will be the phase one of the project, then as people come into the library they can be introduce to kindles and the library can get these master cards, fast wifi and e-reader assistants that will help these Parents, students, kids on learning how to buy these books online, then this becomes an extra reason to go to that library, remember people will be going to the library for books and things related to books which is but natural that they will be happy to listen to a sales person in the library tell them about these new tools and to me the chain of libraries will now become a very strong partner for Apple, Amazon, Google, Samsung, they will see value working with an established books source all over Nigeria

please I am just sharing my idea ooh

thanks

businesses do not happen by mouth. talk is VERY cheap. JUST DO IT

Can you tell me where I told you I started an online publishing business?

I find amusing that you do not even understand my line of argument. For that reason alone, I say you are not a smart dude.
I never told you Libraries do not exist. I never told books do not sell. What I am telling you is that it is a declining market.
If you do not accept that, then you should never call yourself an entrepreneur.

You want one company that has lived strong and still contending after 40 years. Off the top of my head, IBM, HP, Nigerian Breweries, Guiness, MC Donald's, Burger King, KFC, Sony, Samsung, Toyota, GM, GE, Boeing, First Bank, Union Bank, without even researching.

I admit ebooks are competion 4 books but then its a healthy one. And marketing and ideas will choose the winner and ebooks have a better chance of fading away.

Research are on by innovative thinkers and here is one

http://wired.com/techbiz/people/magazine/17-06/st_thompson

Seun this is the business you plan to do, its successful in America & collaborates my points

http://nytimes.com/2010/10/20/nyregion/20textbooks.html

From what I have read everyone has a point or two.
If you think you can do the the write-up then do it and let the OP judge.

I hope you still understand why I still care to reply you - so that you dont misinform people with your thinking. Obviously, I have been teaching you a lot of things here. To start with an entreprenuer DOES NOT consider trends entirely, they consider underlying and consistent profits. An Entreprenuer will consider ok, the market is going two, how can I profit from them both. The Nigerian market will continue to live majorly on books for a projected 10 years time before 'ebook hurricane' eventually grip us. Thats if it will. So the OP is trying to capitalize off this market and with time we will be seeing the direction the market will go and make adjustments. Atleast people still care about books in universities, schools etc. The problem is you just want to argue. Just a quick googling, ve seen many libraries already smh. You are either lazy or blind arguer.
EBooks/Paperbacks, Ebooks and Paperbacks at NYtimes. How it works www.nytimes.com/best-sellers-books/overview.html
More reading http://writersweekly.com/the_latest_from_angelahoycom/006847_07272011.html
oya bring more logic thats not business

I've decided to continue with the competition but expand its scope a little bit:
1) The contest is not limited to books anymore. You can pitch a business that lends DVDs, CDs, and any other types of media in addition to or instead of books.
2) The contest is not limited to physical media anymore. You can pitch a business that lets people 'borrow' ebooks, movie/tv/music, etc.
3) You don't necessarily have to setup a chain of stores. A single store might suffice, if it enjoys a lot of traffic.
4) The stores need not be physical. They can be online stores, etc.

SEUN must be Rich
Nice!!!

Ok Seun, have you received any replies?

Mr. Globe:

I hope you still understand why I still care to reply you - so that you dont misinform people with your thinking. Obviously, I have been teaching you a lot of things here. To start with an entreprenuer DOES NOT consider trends entirely, they consider underlying and consistent profits. An Entreprenuer will consider ok, the market is going two, how can I profit from them both. The Nigerian market will continue to live majorly on books for a projected 10 years time before 'ebook hurricane' eventually grip us. Thats if it will. So the OP is trying to capitalize off this market and with time we will be seeing the direction the market will go and make adjustments. Atleast people still care about books in universities, schools etc. The problem is you just want to argue. Just a quick googling, ve seen many libraries already smh. You are either lazy or blind arguer.
EBooks/Paperbacks, Ebooks and Paperbacks at NYtimes. How it works www.nytimes.com/best-sellers-books/overview.html
More reading http://writersweekly.com/the_latest_from_angelahoycom/006847_07272011.html
oya bring more logic thats not business

It seems you have better understanding than other folks do. Others yelling e-Book, how consistent is it in the U.S. of all places? Barnes and Nobles, Books a Million et all are still powering, they haven't stopped. No one gets the fact that before Nigeria reaches the "SATURATION" of e-books et al, it's gonna take another 10 years at least in the making. Internet for instance isn't saturated and very pricey in Nigeria; reports have it that less that 27% of Nigerians know and use the internet. A lil % of that use it for education / research purpose. Anyway, Seun you have a good idea, you just need a sound strategy. As for a virtual store, that might sound good though kinda like Netflix; you just have to think about the pros and cons. If you want to deal with physical store, that will be more financial burdened, well I guess you have several options to explore @ the end of the day.

I like posts like these that look exactly like Mr Globe's one. These posts seem to be saying that Paper Books idea are a fabulous idea as compared to what "everyone else is saying" without saying why? Barnes and Noble still going strong eh? Books stores don't get bigger than Borders. For someone who lives in the US, you must know better. How big were Borders? Revenues topping $2.8m, 1,249 stores as at 2003, employing over 19,000 people in the US only. In February 2011, Borders filed for bankruptcy and closed down for good. Except. . .

"On July 7, 2010, Borders opened an eBook store to allow books to be directly downloaded to an e-reader device or a Borders eReader app for the desktop, iPhone, iPad, BlackBerry, or Android. Though branded as Borders's store, it was actually handled by Kobo, Inc.
On June 3, 2011, the Borders eReader apps were changed to Kobo eReader apps and users could transfer their Borders eBooks to their Kobo library."


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Books A Million - Second Largest Book Chain Store. 4th Quarter Results - 4th quarter ended Jan 29 2011.

For the fourth quarter ended January 29, Books-A-Million's net income decreased to $6.8 million or $0.44 per share from $11.9 million or $0.76 per share for the year-ago quarter.

Net sales for the quarter decreased 2.6 percent to $153.1 million from $157.2 million in the year-ago period. Comparable store sales for the quarter decreased 6.7 percent.

For the full year, net income dropped to $8.9 million or $0.57 per share from $13.8 million or $0.88 per share for the prior fiscal year. Net sales for the year decreased 2.7 percent to $495.0 million from $508.7 million in the prior fiscal year.

Clyde Anderson, chairman, president and chief executive officer, said results for the year reflected a dynamic and rapidly changing retail environment for booksellers.

Anderson added, " We were pleased with the results of the launch of our partnership with the NOOK range of e-readers in the fourth quarter and the performance of the new and expanded toy and game business as well as our entry into the electronic accessory category."


Link.


2011 2nd quarter results.

BIRMINGHAM, Ala., Aug 23, 2011 (BUSINESS WIRE) -- Books-A-Million, Inc. BAMM -0.88% today announced financial results for the second quarter and 26-week period ended July 30, 2011. Net sales for the 13-week period ended July 30, 2011 decreased 11.4% to $106.4 million from net sales of $120.0 million in the year-earlier period. Comparable store sales for the second quarter declined 12.9% compared with the 13-week period in the prior year. Net loss for the second quarter was $2.9 million, or $0.18 per diluted share, compared with net income of $1.9 million, or $0.12 per diluted share, in the year-earlier period.

For the 26-week period ended July 30, 2011, net sales decreased 11.2% to $210.4 million from net sales of $237.0 million in the year-earlier period. Comparable store sales declined 13.1% compared with the same period in the prior year. For the 26-week period ended July 30, 2011, the Company reported net loss of $6.4 million, or $0.41 per diluted share, compared with net income of $3.9 million, or $0.25 per diluted share, in the year-earlier period.



Is this your definition of Books a Million going strong? Even people at Books a Million recognize what the problems of industry are. You cannot tell us Books a million is doing fine without telling us why? This is Clyde Anderson again. . .

Commenting on the results, Clyde B. Anderson, Chairman, President and Chief Executive Officer, said, "Results for the quarter reflect a continuation of the trends that have been affecting our business since the beginning of the year. A soft publishing lineup, the effect of e-book migration and the impact of Border's liquidation all contributed to the decline in comparable store sales

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@nateevs:The scope of the contest has been broadened to include e-books, and video/audio streaming, so the e-book vs book debate is probably mute as far as this thread is concerned.

Barnes And Noble.

Read the 4th quarter report of Barnes and Noble Inc on their website here. I quote some parts of the result.

"Barnes & Noble Reports Record Sales of $7 Billion in Fiscal 2011. Digital Growth Fuels 78% Fourth Quarter BN.com Comparable Sales Increase.

The rapidly growing digital business propelled the top-line at BN.com driven by the company’s NOOK™ eReader product line and digital content from the NOOK Bookstore™.  BN.com comparable sales growth accelerated throughout the year, increasing 78% for the fourth quarter and 65% for the full year as compared to the same periods in fiscal 2010.  BN.com sales were $217 million for the quarter and $858 million for the full year."



You see from the results that comparable in-store sales decrease while digital sales are increasing. It's not enough for you to tell us Barnes and Noble are doing well without telling us why. This is not the way to inform someone who intends to go into business.


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Who comes up with this idea that Nigerians will be relying "mostly on books for a projected 10 years"?. I will like to read where this research result has come from. It's bollocks. With respect to Nigerians adopting the internet, the trend is upwards. No single person as far as I know can accurately predict what the market will be in 10 years. From a business point of view however, it'll will be a huge risk under-estimating the trend.

While starting a Commercial Library may make money in the short term, the long term risk/reward ratio for me, based on the trend, is too much for my investment. I will be looking elsewhere, inspite of the "potential profit", if there is any anyway. My two cents.

I am tired of posts that desperately attempt to keep an idea alive instead of looking at the trend. It's lazy as well as bereft of foresight to hinge an idea on the fact that only a few Nigerians have access to internet. A better idea is always to nurture a business opportunity in anticipation of more Nigerians adopting the internet.

Famous words from a book I read about Bill Gates . . . It says. . . "Bill Gates knew where the world was going and went to wait for it".


The greatest ideas ever developed did not take advantage of the present. . . . They took advantage of the future.

Seun:

@nateevs:The scope of the contest has been broadened to include e-books, and video/audio streaming, so the e-book vs book debate is probably mute as far as this thread is concerned.

I absolutely appreciate the fact that it's been broadened. Are you still paying 60,000 for the winner?

Yes. 60,000 naira for the winner, 30,000 naira for the runner up, and 15,000 naira for the 3rd best.

Seun:

Yes.  60,000 naira for the winner, 30,000 naira for the runner up, and 15,000 naira for the 3rd best.

My Opinion. . . Prize money is too cheap. Up the stakes and get creative minds working in your interest.

nateevs:

My Opinion. . . Prize money is too cheap. Up the stakes and get creative minds working in your interest.

How much would you suggest he pay(s)?

Hahahaha, ebook vs video streaming in Nigeria today, I get the trick. To get this dude to keep quiet. Seun, you no you wont attempt that business suicide. Atleast you no more than that. Remain with the book jare and if you want to spice it up a bit rent dvds and sell electronics unless this shop is about to be opened in 2050. This guy has no point. See how he is happy that the scope has changed. Nothing has changed from this contest. Seun just wants to sample your lame ebook ideas and probably laugh over it. Lets see if any of the contestants will cite ebook. Lol. Books are still selling in America with all the ebook marketing talk. People still have their library cards stuck, bring it down to Nigeria and thats more 40 yrs for books. End of discussion.
*Bored here, thats why am even replying*

Mr. Globe:

Hahahaha, ebook vs video streaming in Nigeria today, I get the trick. To get this dude to keep quiet. Seun, you no you wont attempt that business suicide. Atleast you no more than that. Remain with the book jare and if you want to spice it up a bit rent dvds and sell electronics unless this shop is about to be opened in 2050. This guy has no point. See how he is happy that the scope has changed. Nothing has changed from this contest. Seun just wants to sample your lame ebook ideas and probably laugh over it. Lets see if any of the contestants will cite ebook. Lol. Books are still selling in America with all the ebook marketing talk. People still have their library cards stuck, bring it down to Nigeria and thats more 40 yrs for books. End of discussion.
*Bored here, thats why am even replying*

Your problem is grasping of English. You will never learn. If you cannot understand simple things, no one can help you.
Can you point out exactly where I said books are not selling in America?

yamakuza:

How much would you suggest he pay(s)?

How much would you pay someone who comes up with a business plan for you to in invest N1m.

nateevs:

How much would you pay someone who comes up with a business plan for you to in invest N1m.

N 60,000 is reasonable especially since the business plan in question is not time consuming or expensive to write. It is not about how much one is investing in the idea, it is about the worth of the job.

nateevs:

How much would you pay someone who comes up with a business plan for you to in invest N1m.

10% maybe.

Would you rather he had only 1 winner and gave all the N105k to that person? Would that get more creative minds involved?

If we assume 15k is too small for 3rd place and make it 20k, 2nd place 50k and 1st place 80k nko? 150k total.

Worst case, the prizes default to that initially proposed if the entries are not up to a certain standard or quality?

Hello,

I'd like to inform every Nairaland member that the submission window of the media lending business strategy essay contest is now open. It ends on Friday this week.

The contest involves writing an original essay about how you would set up a profitable media lending business with just 1 million naira. For the sake of this contest, 'media' means: books, DVDs, CDs, e-books, music/video streams, or any subset of the above.

The first prize is N60k, second prize N30k, and third prize N15k. I think the primary benefit of this contest will be the discovery of sharp, creative minds worth doing business with.

Good luck!

Hello,

I'd like to inform everyone that the submission window of the media lending business strategy essay contest is now open. It ends on Friday this week.

The contest involves writing an original essay about how you would set up a profitable media lending business with just 1 million naira. For the sake of this contest, 'media' means: books, DVDs, CDs, e-books, music/video streams, or any subset of the above.

The first prize is N60k, second prize N30k, and third prize N15k. I think the primary benefit of this contest will be the discovery of sharp, creative minds worth doing business with.

Good luck!

Seun Osewa.

It's Tuesday. I've received only one submission so far, which will probably be disqualified for plagiarism.

Seun:

It's Tuesday. I've received only one submission so far, which will probably be disqualified for plagiarism.

Please explain.

You mean s/he copied ideas from this thread?

He copied articles from the Internet and pasted them together. I could tell.