Angela Itambo Company

Winning is the verb for win, and according to the OXFORD dictionary winning is defined as ‘to be the most successful in a competition, race, and battle‘. For the benefit of those reading this column that are in small businesses we encourage you to come to the realization that it isn’t business as unusual, things have changed, the global economy and trade is well integrated therefore no longer should one be careless about how he or she conducts his or her affairs. Being in business is also a career and carries with it great responsibilities which should not be abdicated. As the definition goes to show to win means you must be in a competition or race or battle, which means you are not competing against yourself but with other businesses for the attention and constant patronage of targeted customers. The wrong perception of I alone mentality has resulted to one of the reasons why many small business owners are not able to play their roles in business thereby abdicating their responsibilities which often arises from lack of passion for a business once it is started or grows due to wrong choice of business opportunity.

The cause is created based on the notion that to succeed in business starts with a great idea. Many times we hear of this adage ‘ what you need to succeed in business is a good idea’ this isn’t correct, an idea which is defined by Oxford dictionary as ‘ a plan, thought or suggestion, especially about what to do in a particular situation’ only borders on the individual self interest often times (money gratification) What makes an idea a wrong premise to invest in, has to do with the fact that an idea originates from your own analysis or premonition, what every start-up or business man or woman should be concerned about is an opportunity in the market place that can be translated into a business. The difference between the two has to do with the focus group. The former is concerned about his or her personal interest which often are self indulging while the latter has to do with the customer, on what he or she is willing to exchange his or her business offer for their hard earned money.

From my experience in counseling /consulting it has been found that most people start businesses with the wonderful idea notion, and spend a lot more on time and all available resources to no avail. This has to change, the cry for additional funding, no market is often as a result of this practice. To address this misdemeanor the owner manager must undertake a thorough audit of its business along these lines;

• The motive for going into such a business, to succeed in business you should have a passion for what you are about to invest in , not having one can transcend down to others who assist you in running a business. Lack of passion terms from the wrong choice of business opportunity. Some individuals are coaxed into a business through the promise of instant pay back and often times these individuals have no nag for this choice of business, what propels them to invest was the promise of getting rich quick. No business is an instant money maker; there will be a period of inertia, where it seems everything is slow.

The motive for starting a business must take into consideration that there is a time to plant another time to harvest and it is in this middle field one has to wait and often this period records high drop outs of entrepreneurs. To contain this period you need to have a passion for it to outlive the dryness. Do you seem bored about the business you are in, especially as a startup or even emerging business? May be you are in the wrong business? What was the real motive for investing in such a business? Does it match the type of business you are in? There is a great difference between small business and entrepreneurship, small businesses are often ventures undertaken by individuals to fulfill the physiological needs of Man which are the need for food, shelter e.t.c this are immediate needs to alleviate poverty, the need for expansion isn’t there that is why such individuals find it reluctant to open up to outside funding which comes with its own set of rules such as diversity in management.

While being an entrepreneurship is about a long term vision to solve market need in a spectacular way. Often times these ventures are started on a small scale; however the vision for this business is not restricted to a geographical or immediate environment. Nevertheless, the entrepreneur is interested in solving a customer need often times those targeted may not be aware they need help so this takes time to make meaningful impact, the bottom line is these individuals are ready to wait. The thoughts we leave with you are; are you sure you are meant to be in this business? What are you, is it in small business or in entrepreneurship? Both are good but have different impacts. God bless you God bless Nigeria. Amen.

Peace to every reader of this column it is my desire that as you read this article you will be empowered to take the right steps for the overall interest of your business. In a bid to proffer you with the necessary information to ensure you thrive amidst the challenging economic environment around you, we are continuing our series on tips for the small business owner. As your business consultant, my tip for you this week is to consider joining a trade group or an NGO that advocates the rights of small and medium enterprises as a whole.

My reasons are as follows:-

• Quite a number of small and medium sized entrepreneurs fall victim to scam artists that reap them of their hard earned money, either through misleading them on some wacky business idea they can invest in or others fall victim to fraudsters masking as business service providers promising to perform one business function or the other and when money is exchanged, the entrepreneur is told a different story. If such an individual had belonged to a reputable trade group or NGO affiliated to his or line of business, this could have been averted, because most NGOs have a database of names of competent men and women who can perform these tasks and if they don’t can investigate un behalf of their members

• There is usually complains by small and medium entrepreneurs on the lack of proper implementation of polices created by government which is aimed at protecting their interest and even claim ignorance what government and the relevant authorities have on ground for them. As a member of one of the leading advocacy group as regards small and medium enterprises in the country, I have established that when government its relevant authorities have any information or policy for small and medium enterprises, often a times apart from the news media, these NGOs are the first to be contacted. For information on polices that targeted at Small and medium sized entrepreneurs; these can be access via this organizations.

• To further grow the real sector the federal government represented by the Central bank of Nigeria in partnership with Nigerian banks created the SMEEIS funds which is equity participation of banks in selected SME run organizations, One its criteria before this funds can be accessed is for the SME to be a member of a reputable NGO affiliated to the SME cause. In a nutshell for SMEs to participate in this scheme there must be bonifide members of at least of one recognized SME based NGO

• As a result of activities of some dubious individuals in connection with the illicit business transaction known as advanced fee fraud, and also the foreign investment drive of this present administration, to take advantage of the latter, while being careful not to fall into the hands of fraudsters, most foreign desks embassies have resulted to passing information about their trade missions, trade opportunities through this NGO’S and also feel comfortable to do business with those that are recommended by this bodies.

• Finally for you and I to thrive in this Nation call Nigeria as SMEs the environment must be enabling, which means the issue of infrastructure should be taken into consideration, trade barriers to other countries should be lowered, eradication of corruption in agencies meant to protect the interest of SMEs, as well as the enactment of SME friendly policies, moreover as we are going to polls to elect men and women to govern us. Those that will protect our interest should be chosen. This can be done with all SMEs coming together in unity to make our voices heard consistently; given the enormous responsibilities we hold in the economic rebound of this nation. To achieve this can only be through our membership in these NGOs. The big businesses have vibrant NGOs however their quota to the Nigerian economy can not be compared to ours.

Reputable NGOs to join:

• NASME : Nigerian association of small and medium enterprises
• NASSI : Nigerian association of small scale industrialist
• MAN ( The SMEG Group of the Body) Manufacturers Association of Nigeria
• Chambers of Commerce are also good trade groups to join; Lagos chamber of commerce and industry
• Bilateral Trade Groups such as Nigeria German business council, British council, e.tc.

To further reduce poverty in Nigeria from 59% as published by the United Nations, the small business/entrepreneurial ventures must be up and doing this can be done by the need to change the mindset of why one is in business. The I alone syndrome should be stopped for the well being of all the stakeholders in the sector as well as the polity as a whole.

This will witness a drastic reduction in failed or abandoned businesses. It will reduce unemployment because more jobs will be created, the standard of living will increase and a spread of wealth will be experienced. However this cannot be wished for rather a lot of hardwork, commitment on the part of the small businesses must be done such as the following :-

• The foundation must be checked and if need be; corrected, by foundation we mean the essence of being in business, this can be achieved by a reevaluation of the business as a whole

• This is necessary, because a business/an entrepreneurial venture is a building, if it is not properly laid it may look beautiful, however any slight climatic change can cause a collapse to it the same as regards a business. As your business consultant of which I have taken as a profession with the best of my abilities so help me God. I suggest you take time out now and access your business to do so means to ask yourself the hard truth.

• Are you pleased with your business as it is?

• What gives you the greatest concern? Is it that it isn’t generating income? Or it is generating income but not as you will expect?

• You dread going to your office wherever it may be or the thought of waking up the next day to resume where you stopped the previous day, what could be the reason for that?

• What of those around you, what are their views, are they in support or most cann’t quite understand where you are heading especially, your family including parents if you are single, spouse if your married, financiers, suppliers, business partner that assist you one way or the other as well as the community as a whole?

• What is this cause of this misunderstanding? Does the blame fall at your table or it is externally induced?

• Did you bootstrap your business meaning starting with inadequate capital than that was required? However due to passion, favour you were able to kick start the project(which is the lot of many small business ventures not necessarily restricted to the Nigerian polity

This exercise is to evaluate thoroughly your business as a whole with the view of putting in place the right structures to ensure it achieves the following: a winning brand which is driven by the most ideal business system to bring the most needed value for its target customers. This can not be achieved alone, the business consultant is inevitable to any business whether a small business or entrepreneurial venture at whatever phase it may be.

The business consultant should be on hand to assist you evaluate your business on regular basis to proffer useful workable suggestions to ensure the business is on the right track. However as a result of the bad experiences of some in the hands of these individuals this has robbed negatively on those who have the passion and skill to assist entrepreneurs as regards business management advisory.

In any case this shouldn’t discourage you reader, to seek professional advisory from these individuals, the key to derive maximum value for your money are as follows; you must have enough information on the business consultant intended on his or her competence to assist small businesses.

To succeed in this profession as an entrepreneur; you should be acquainted with all there needs to be known about it. The brief stint I have been privileged to be in business both as an entrepreneur as well as a consultant I have made mistakes and lost money and some time the confidence of those I hold in high esteem and it is my belief that Almighty God used these experience to teach me to have empathy for those he will direct me to serve as my purpose here on earth.

I aware that most people that approach me in search of business opportunities to invest in especially as first time entrepreneurs pretty have an idea on what there want however because of the many successful failures of start-ups; has made some of them think twice and also seek the counsel of experts before investing a dime. It is based on this and many preconceptions of entrepreneurship advocated about by this column we have dedicated this month to expounding all the truths of entrepreneurship; we will do all within our reach to bring you the truth and nothing but the truth to enable you make the right decisions.

This week we want to clarify the difference between entrepreneurship and small business;

• Many wonder what is the difference between the two, let us start by saying that every entrepreneur that starts small is a small business owner, however not every small business owner today is an entrepreneur

• The difference lays in the motive; this can be proved in the definition of who an entrepreneur is, according to Dr. Kathleen Allen a professor of Lloyd Greif center of entrepreneurial studies at the Marshall School of business at the University of Southern California and author of many books which includes entrepreneurship for dummies as ‘ordinary people who do extraordinary things. They take every day ideas and give them some magic (spectacular)’. While small business especially those you see around are started for the main aim to provide a source of livelihood(immediate income) to the individual, examples are the scattered shops such as barbing salons, hair dressing businesses etc

• For those of you contemplating starting a business, you must undertake a through self evaluation of yourself to ascertain what is pressing at the moment, such questions as the following should be answered:-

• Where is my source of livelihood coming from?

• With consideration to my responsibilities in the family, is the income enough for even the basic and a moderate lifestyle or that I honestly envisage for my family?

• My reason for reading this column is it for the fun of it or to access information on entrepreneurship

• My reason for contemplating starting a business, what are my reasons?

• Is it to provide a job for me so I can provide the basics or the lifestyle of my family? Or is it to augment the one I have? Or is it to prepare a nest egg (portfolio of investments that will grow enough for succession to the next generation) before you invest a dime you should clarify your reasons for starting a business. In any way this will decide whether to invest in a small business or an entrepreneurial venture

• A small business is an activity of trade which is done to provide immediate returns on investments. It isn’t a new idea rather a common business opportunity which is replicated to generate income It isn’t time consuming especially to recoup the investments. Often atimes small businesses remain small in size or is restricted to a geographical area, their owners see no reason to do otherwise

• Unlike entrepreneurial ventures, it birth out of creativity, it is the ability of an aspiring entrepreneur to spot a gap or a need in the market place; this often results to quite a lot time and energy and money committed to ensure it succeeds. One downside to this is that the time to reap its yields takes longer time than small businesses. The reason is that small business are birthed based on laid down tested technical skills as well as business management skills, while most entrepreneurial ventures are transacted on entirely new un tested technical/ business strategies. And this often creates inertia. Therefore the need to start seeing money roll out immediately is unrealistic.

This kind of businesses are done by the side or let say you should have an alternative source of livelihood to provide for the basic needs until this venture can make money on its own especially if it has been ascertained there is an untapped market which if nurtured can mature into a profitable market share. Example of such a venture is Dell computers started by Michael Dell. Some businesses were started as small businesses but along the line the entrepreneur caught the entrepreneurial bug example is a Anita Roddick of the body shop who simply wanted a business as a source of livelihood for her family same as the founders of Sweet Sensation and Tantalizers
The question I ask now as a consultant, what do you really want? Is it a small business or an entrepreneurial venture or small business? Are you ready to wait for the long haul that comes with entrepreneurship or you just want something that will provide a source of livelihood for you and immediate family or are you of a vision to set up a venture that will grow to serve the purposes of poverty alleviation, job creation and wealth creation? Both are good. Think about it and decide.