Cash is Fuel; Profit is King
During the cash crisis in 2023, I could not buy foodstuffs because market women refused to collect transfer payments. The restaurant beside my house also rejected electronic transfer payments. Although in accountancy, there is no difference between cash held in a bank and a fiat currency, as I lay in bed with an empty stomach that night, I admitted that cash in hand is king in times of uncertainty.
The World Bank 2021/2022 data revealed that Nigeria is a low cash economy (when compared with other countries) in terms of physical cash in circulation. According to data from the Nigeria Inter-Bank Settlement System (NIBSS), out of Nigeria’s adult population of 160 million, 99.8 million do not have bank accounts as of January 10, 2024. There is a significant portion of the unbanked, underbanked and the informal sector that primarily relies on physical cash for their financial transactions. Culturally, Nigerians prefer physical cash for money transfers and gift-giving. It is a sign of goodwill and trust.
Nigeria has had a history of bank fraud. Nigerian banks lost ₦2.09 billion to fraud in Q4 2023, according to a report from the Financial Institutions Training Centre. The report also revealed a total of 12,405 fraud cases. Mobile fraud swallowed ₦356.57 million, ATM fraud totalled ₦40.47 million, POS fraud rose by 95.01 percent surge, and web fraud increased by 50.49 percent. These frauds have reduced public confidence in the banking system and resulted in Nigerians withdrawing their deposits and keeping their money in physical cash.
The CBN data showed that Nigeria’s currency in circulation in March 2024 is ₦3.87 trillion and the currency outside banks is ₦3.63 trillion. Many Nigerians are hoarding physical cash while others have become reluctant to deposit their cash in banks. In almost every club and owanbe in Nigeria today, money exchangers are usually present with mint notes to trade and make a profit. In some businesses, whoever comes in with cash in hand to buy is often given discounts, free shipping or extra products. In Nigeria, employee wages are mostly paid in cash.
In business, cash is valuable because it allows businesses to survive economic downturns. Except there is a coup and the value of money is reduced, cash people a simpler method of dealing with retail sales. In Nigeria, fiat currency is superior to cash reserves held digitally with a bank. Many companies still prefer cash payment to any other form of payment. Statistics of Payment Method reported by Jumia in 2017 showed that 67 percent of Nigerians prefer to pay by cash-on-delivery.
Cash payment reduces the paperwork and time needed to visit the bank. It allows for the immediate use of the cash and avoidance of taxes, and bank charges that accompany other forms of payment in Nigeria. Cash payment is more reliable. It is easier and faster to spot a fake currency than a fake alert in Nigeria.
The more easily available the cash is, the easier a business will be to pay its operating expenses, even if revenues are low. Without an adequate amount of cash, you may lose potential business opportunities. For example, during the Covid-19 pandemic and the recent japa wave, there were numerous distress sales. Many assets were sold for very low prices. Only those who have cash can maximize these opportunities.
Cash gives businesses the flexibility to acquire other struggling businesses during periods of market turmoil. In business, Cash is a liquid asset which is superior to fixed assets. Liquid assets and cash equivalents like treasury bills, commercial papers, money market funds, and marketable securities (with high liquidity and short-term maturity dates) are those assets that are easily accessible, easily convertible to cash in a very short time and not easily prone to market fluctuations. Regardless of how profitable a business is or how fast it is growing, without adequate cash, it may be forced to downsize, shut down operations or possibly risk bankruptcy; and may be forced to take on new debts or lose its investments.
In the field of investment, the time value of money states that a naira today is worth more than a naira tomorrow. As you invest in stocks, mutual funds, real estate and cryptocurrency, it is smart to have a portion of your portfolio in liquid assets or cash savings in your bank. Although cash is no longer considered entirely risk-free due impact of inflation, cash can help to lower your portfolio risk.
You may have a net worth in multimillions, if you do not have cash, you may be financially stranded and beggarly.
Cash is king in not only saving you from late fees and interest payments but also in paying your bills faster and maintaining a high credit score. Events will not always go as exactly as you budgeted in your business plan. Hence, businesses need cash to meet unplanned emergencies such as legal issues, natural disasters, system crashes, prolonged power outages, and medical emergencies.
Only 36 percent of Nigerians have emergency cash that can last at least 90 days. Financial experts recommend that households should have at least three to six months of living expenses set aside in an emergency fund. Individuals with good health and stable employment may save less cash in their emergency fund while people with an unpredictable income like freelancers should save more cash in their emergency fund.
Personal preference and peace of mind also may determine how much you may want to save in your emergency fund. As the cost of living and basic items increase, the money you have previously saved in your emergency fund should increase likewise. Your emergency funds may be saved where it will be earning some interest.
Cash is not the same as profit. Cash is needed every day, while profits may not be recorded every day. Profit is the ability to offer your product or service at a price that brings sufficient gain to pay your expenses and keep you in business. When overestimate profit and underestimate cash, you are digging the grave of your business. Without cash, profits are meaningless.
Although in the long term, cash flow and profit are expected to roughly even out, cash is more important than profit, in the short term. In the long term, profit is king. An unprofitable business with cash will thrive longer than a profitable business without cash. Bills are paid every day against cash, not net income. According to the CB Insights report, 29 percent of startups that fail are still profitable on paper, but just ran out of cash. Indeed, revenue is vanity, profit is sanity but cash is reality.
Surprisingly, too much cash is one of the reasons businesses fail. It is important to strike the balance because keeping too much cash idle will make your cash lose value due to rising inflation and you will continuously forfeit potential opportunity to earn higher returns if the cash was invested. If you are too conservative, you will miss out on some risks in new opportunities.
In business, cash is the fuel. Fuel is not everything but without fuel, you will be stranded, no matter the worth and brand of your car.
© Kingsley Ndimele
Your Reliable Consultant
How to Market a Luxury Product Without Appearing Fraudulent
Chioma’s wedding ring is worth two Rolls Royce cars. $1.5 million for an ‘ordinary small metal.’ Jeez! This was the reaction of many Nigerians to this news. How else do you explain why a pair of shoes (comparable to those produced in Aba) would cost $350,000 in a designer’s store in America?
My friend – Salvador loves using expensive phones. The most expensive phone he has used cost about ₦800,000. I thought he was obsessed with phones until I met someone who uses a phone that costs ₦2.2 million. Surprisingly, none of these folks are celebrity entertainers who need this stuff for showbiz. Why should anyone spend so much on a smartphone? How are these phones different from my phone that I bought for ₦63,000 in 2021 and used it for 3 years?
I may not own any luxury product yet, but I have used Nigeria’s only five-star hotel severally. From the ambience and state-of-the-art facility to the menu list and customer service, they gave me a kingly experience. If it was possible, they would take my anus to the toilet and poo for me. As many celebrities kept moving in and out of the restaurant, I felt like a celebrity too.
The words ‘luxury’ and ‘exclusive’ are two of the most abused words in the African marketplace. Some house owners who use white paints on their buildings now tag it ‘luxury apartment.’
- Luxury products are about brand equity, not production cost.
Did you see that trending bag made by one of the popular designer brands? It cost only $57 to produce that bag but it was sold for $2,780. Looking at the wide margin, it looks like a fraud-pricing model. When it comes to selling a luxury product, you must understand that the cost of production is meaningless. People are paying for the brand name more than product quality. This is why luxury brands have big markups. It’s all about brand equity.
2. Luxury product is about perceived value, not actual value
Perceived value is subjective, not objective. Perceived value, like beauty, is in the eye of the beholder and the heart of the purchaser. For luxury products, Perceived Value = Exclusivity. So, the price of a luxury product is whatever the buyer is willing to pay. As long the buyer derives value from it, the noise doesn’t matter.
The buyer’s satisfaction is based on the perception other people seeing them with these luxury products will have of them. Have you wondered why most real estate developers pay upcoming architects and structural engineers less than $400 to draw a building plan and a structural analysis while an Instagram influencer is paid $1,000 to post the same building on his Instagram page? People pay you depending on how you value yourself and your product. How you dress your product is how it will be priced.
3. Luxury products are about the symbol that the product confers on the buyer
The fact that everyone cannot afford it is what gives a luxury product its perceived value. If everyone has it then it ceases to be a luxury. The perceived value of a luxury product makes no sense to an average person, which is why they are fascinating to some individuals who seek to make a statement. You are paying to tell others that you can afford to spend an obnoxious amount for a product. You are paying to show everyone how rich you are. Classism is a hallmark of the elites, even for silent billionaires. The I-better-pass-my-neighbour gene is dominant in the African blood.
4. Luxury is not the same as premium
Oftentimes, business owners confuse a premium product with a luxury product. The premium product uses a tiered pricing strategy where products have different prices by either reducing or increasing their features or functionalities. The main idea behind this strategy is that the prices and features should be tailored according to the various needs of the potential customers who know what they want and how they will benefit from all the advanced features your product offers. It is centred around choice and flexibility. It gives potential customers the option of choosing between different versions of the same product.
5. Luxury products require luxury marketing
If the cost of producing a plastic bag is $57 and the selling price is $2,780, does it mean that the company made a profit of $ 2,723? No. Marketing a luxury brand requires luxury marketing. To sell a luxury product, you need to invest heavily in your brand. A huge part of the production cost covers the amount paid to influencers and celebrities to promote and position the brand as a luxury.
6. You must look like what you are marketing
To market a luxury product, you must have a wealthy aura and be situated in a high-brow location. You must look like what you are marketing. You cannot be marketing a luxury product and your head office is at Oshodi or your shop is at Nyanya market. You cannot be marketing a luxury product and you are sending broadcast messages to potential customers on WhatsApp. You cannot be selling a luxury product and have a field salesperson distributing fliers to passersby on the road. In fact, most luxury products are not priced in local currency.
7. Luxury products are less about the product
People buy luxury products because of their status and prestige, not necessarily because of the aesthetics, functionality, technology or durability. You are buying the heritage, messaging, packaging, experience and exclusivity. The materials used to make a luxury product are not necessarily special. It is all about having the prestigious logo prominently displayed. People buy luxury products because it gives them a psychological feeling that they belong to the 1 percent of the 1 percent. It is a great way to trickle down the money.
8. Luxury products are items that customers want but don’t need
Most of these big guys who buy luxury products have high purchasing power. These rich kids believe that the more expensive a product is, the more valuable it is and luxury brands take advantage of that. No matter how cheap they produce, they have to sell high to attract their numbers. Owing a luxury product is a great way to take some of their money from their bank accounts back to society to show their class. So, don’t ever include any element that suggests ‘cost-friendly’ in your marketing message.
9. Luxury goods are Veblen goods
Most luxury wineries don’t produce more than 100 bottles of a variety in a lifetime. This strategy follows the economic principle that states that scarcity creates value. Although, the law of demand states that the higher the demand, the lower the price, luxury goods are Veblen goods. Their demand rises as the price increases. That is, they have an inelastic demand that is not sensitive to price changes. This defies the general assumption of rationality in consumer theory (even though luxury consumers are less worried about the selling price, there is still an acceptable price range for a luxury product).
10. Luxury product requires strategic marketing
If Michael needs to sell 5 bottles of a luxury perfume to make ₦4 million in revenue and Charles needs to sell 400 bottles of a ‘regular’ perfume to generate the same amount, who is supposed to be more aggressive with marketing? While Charles needs to adopt a guerrilla approach, Bola needs to be more strategic and creative. Only high-networth individuals can afford to buy Michael’s perfume. However, Michael needs to create a luxury perception for his perfume.
It is important to note that price control mechanisms may not work for luxury products. Their cost of production and the selling price are not the business of the government unless there are illegal activities involved.
© Kingsley Ndimele
Your Reliable Consultant
How To Build A Culture-Sensitive Business
Did you watch the trending video of a Nigerian lady who lost her job in the UK for saying “I am sorry” to her boss who alleged her of misconduct? Sorry is one of the most abused words in Nigeria.
Nigerians say “sorry” for everything. Some Nigerians say “sorry” as a strategy to pretentiously appeal to emotions and attract pity. Others use it as a lame, weak mental construct to escape logical explanations. In the Western world, saying “sorry” means you are acknowledging that you regret your action.
It is considered an admittance of guilt. Rather than saying “sorry”, prove your innocence by explaining your notion. In the Western culture, saying “sorry” unnecessarily will get you into trouble.
Every artiste (even if you are a Grammy Award winner) who performs at Obafemi Awolowo University, understands that the first thing you do as soon as you get on stage is to dòbálè (prostrate) for the students whom you are going perform for. Sounds weird. Right?
Failure to do so will lead to a nightmare performance for you. Even the presence of the Vice Chancellor cannot intimidate the students at that point. The culture of dòbálè has been passed through generations of students.
I remember working in a firm where over 85 percent of staff were OAU graduates and my boss also finished from OAU. It’s a risky thing to do.
There are three reasons you should never employ more OAU graduates in your firm; (1) They will always question any policy they consider wrong. They know how to disagree with their superiors politely. (2) They always exercise their rights as employees. They understand every full-stop in your employee handbook and company policy. (3) They are always prepared to resign (worst case scenario), rather than have their rights being trampled upon.
An average OAU graduate in any company is a protest comrade. They are always considered the ‘rebels’ of the company. Interestingly, you cannot fire them easily because they are always very smart, productive and versatile.
Regardless of their gender or gentle appearance, they are a necessary evil. They are only a product of a free speech culture that OAU is renowned for.
In Yorubaland, you don’t give a customer money or goods with your left hand. That may be termed as being rude and disrespectful.
Why do most Igbos travel ‘home’ during festive seasons? Culture! They proudly lock up their shops and offices to celebrate Christmas. If you have an Igbo man as a business partner, you must make room for this and understand this. Omenala bụ omenala.
During one of the AFCON matches where Nigeria played against South Africa, my church was almost empty during the Midweek service. Yes! Nigerians love football.
Fixing a business meeting at a time of a crucial football match may be a bad business decision. Understand the culture and align.
In Nigeria, we celebrate the dead than the living. So, understand well when your Nigerian supplier says he is out of business temporarily to celebrate the 25-year remembrance of his great-grandfather.
You are ‘lucky’ if your business headquarters is not in Ijebu. Your employees will submit letters of request for permission just to attend parties.
Culture is a way of life of people – customers, employees, suppliers or investors. Culture is the values, norms and customs that a group of people share.
Understanding the culture of your business is key to efficiency. People usually perceive any behaviour within their culture’s range as normal.
Two young fishes were swimming along when they passed an older one. The older fish said, “Water is nice today. Isn’t it?” The younger fish nod and swim off. After a bit, one said to the other, “What the heck is water?”
The young fish were so surrounded by water that they never noticed it. And yet it completely shapes their world. This is how most of us relate to our native cultures. Because the beliefs ingrained in our culture are so deep, we often don’t realize how our culture influences our behaviour.
Be a culture-sensitive business owner. Don’t run your business like tourists who don’t necessarily share values. That is a dangerous way to kill your business. For your employees, customers and business partners to be on the same with you, you need to understand their terrain.
Whether you are branching out to another location or you are starting your business in an entirely new location, understanding the culture is necessary for business success. Don’t neglect culture when drafting your company’s policy document. Let culture drive the mission, vision and operations of your business.
When the key players in your business have different standards of behaviour, your business may turn into a war zone or you may be perceived as being too autocratic or too bureaucratic because you will think everyone is doing a bad job, whereas, in the real sense, nobody is objectively right or wrong. They simply have different cultures.
An Igbo culture greets with a handshake, regardless of the age while the Yoruba culture demands that a younger one prostrate or kneel to greet the elderly one, depending on the gender.
If these two cultures meet in a business setting, the Igbo folk who stretch forth their handshake to greet a Yoruba superior may come off as disrespectful.
The French work culture is deeply influenced by the country’s rich cultural heritage. In the French work culture, formal greetings are the norm.
Colleagues greet each other with their surnames, adding monsieur or madame. As a female, you might also come across the custom of la bise – the culture of greeting with cheek kisses.
Do you know that in France, every employee has the right to a minimum of 5 weeks of vacation per year? The summer exodus, known as “les grandes vacances” is a cherished tradition when many businesses temporarily close for vacation.
Make sure to not schedule important meetings in the months of May-August or December. That is when many employees go on vacation.
Engaging in “le dèjeuner” and participating in the post-meal “cafè” is a social ritual in the French work culture. The French law states that every employee must spend at least 11 consecutive hours away from work.
However, just like the Ghanaians, the French aren’t as obsessed with punctuality as some other countries. The most annoying part about French culture is that you have to get permits for almost everything.
To succeed in today’s multicultural business environment, you need cultural intelligence. Cultural intelligence is an outsider’s ability to interpret someone’s unfamiliar and ambiguous gestures in the same way in the same way that a person’s coworker would, to build a close or successful relationship.
Cultural intelligence can be learned. If you have a low cultural intelligence, you may misinterpret the harmless intentions of your customers, employees or partners.
Whenever there seems to be a distinction between what works for the company’s efficiency and what works for the culture, you need to strategically engage to bridge the divide.
Demonstrating a high cultural intelligence does not always mean copying exactly what a different culture does. It is about understanding others and finding a way to form a good business relationship.
Aside from the cultural shock, when you get to a new place, you may become irritated and frustrated. Business culture in Africa is different from the Western culture. It is risky to copy a company policy from another culture and enforce it on your staff. You may build a team that will continuously fight your company policies, or eventually resign from your company.
Build your business like a chameleon. Learn to adapt to different cultures and avoid cross-cultural conflicts caused by cultural differences. This will reduce your employee turnover rate and business failure.
© Kingsley Ndimele
Your Reliable Consultant
How Founders Can Manage the Gen Z Effectively
Have their private air conditioner with a remote? A brand-new MacBook Pro for everyone? A room to sleep anytime they want? Liberty to bring their puppies to work? Increased salary every 3 months, plus bonuses?
Fruit salads for lunch? More offdays than workdays? Staff retreat on a yacht? Greater freedom to decide which hours they work and report to their supervisors? What does the Gen Z really want?
Gen Z is expected to produce roughly 60 million job seekers in the next decade. They constitute 27 percent of the global population, making them the largest segment of digital natives in history. (Source: World Economic Forum).
According to the United Nations, over 60 percent of the African population is under 25 years. In Uganda, 75 percent of the population is below age 30.
While Gen Z currently makes up 30 percent of the world’s population, Gen Alpha will eventually become the largest generation ever, with a new member born every 9 seconds globally, 2.5 million every week, and 2.5 billion by 2025 (25 percent of the entire population). Soonest, the workplace will be dominated by both Gen Z and Gen Alpha.
Why is Gen Z important to companies? How should companies adapt to this reality? How can companies better appeal to and engage with Gen Z employees?
- Prioritize productivity over activity
Gen Z prefers to be labelled as Chief Vibes Officers in the workplace because they provide all the jokes, banters, slangs, and playfulness needed to “set the vibes.”
While these “nice-to-haves” may not be entirely bad in a workplace as it were, these activities should not blur the focus or decrease the productivity level and prompt deliverables in the workplace.
Business owners should help Gen Z understand that as much as lightening the mood and being the life of the office is not a bad thing to do, it must not compromise job productivity.
2. Set boundaries between work and personal life
The Gen Z is a multiscreen generation. 98 percent of Gen Z own a smartphone, while 72 percent use more than one device at a time (Source: Pew Research Center).
WhatsApp started in November 2009. Twitter started in March 2006. Instagram started in October 2010. TikTok started in September 2016. Snapchat started in September 2011. This makes the Gen Z a social media generation.
Gen Z has an extreme online presence, with social media usage reaching four or more hours a day and an average of 10 hours per day consuming digital content.
Business owners should continually emphasize to Gen Z that everything is not content. They don’t have to vlog about every activity in the workplace with no respect for boundaries and privacy.
It is great for Gen Z to be enthusiastic about work, but they should remember to maintain professionalism. Sharing sensitive company information on social media can have serious consequences.
There should be a balance between personal expression and our professional responsibilities. Knowing where to draw the line is very important. The Gen Z baddies in the workplace should be properly guided concerning internal communications protocol, social media usage and the company’s culture and ethics.
3. Emphasize interpersonal skills
A Gen Z may lack soft skills. This is because the Covid-19 pandemic affected their education and compelled them to remote learning.
Therefore, they were unable to interact physically with people as they should. Generally, a person’s interpersonal skills may suffer when they are isolated. The Gen Z is more tech-oriented and less human-oriented.
To manage Gen Z effectively, founders should emphasize interpersonal skills, organize exercises and build a structure or system that will facilitate more interpersonal relationships in the workplace.
4. Communicate in bit size
The Gen Z don’t like too many long meetings. The eight-second attention span syndrome of Gen Z could be a challenge and hurt their outputs (although not all Gen Z are victims).
When different generations team up for work or to discuss an issue properly, there is a likelihood that Gen Z will lose interest after eight seconds. This may result in conflict between the groups.
Business owners can assist in solving Gen Z’s “eight-second attention span” with improved communication that is customized around this period. Gen Z shows a quest for learning, with 76 percent stating they prefer to learn via YouTube videos, demonstrating the importance of incorporating visual learning into corporate training (Source: Pearson).
Therefore, businesses should encourage integrated training centred on piecemeal interactivity and learning.
5. Learn to manage remotely and give instant feedback
The Gen Z is not the suit-wearing, office worker. They love the work-from-home or hybrid model (this may not always be possible depending on the industry).
TalentLMs 2022 study reveals that almost 75 percent of Gen Zs would choose a job based on whether they can work from home. Hence, business owners should learn how to manage them remotely and make necessary provision for this.
The Gen Z do not like the traditional yearly appraisal. They crave ongoing and instant dialogue with their supervisors about performance, constructive feedback, and recognition.
According to a survey by the Workforce Institute, 75 percent of Gen Z prefer to receive feedback from their employers in real time.
6. Give self-affiliation projects and align their job roles with a greater purpose
Oftentimes, it is almost impossible to lead Gen Z effectively using the manipulative “command and control” managerial approach. Gen Z love to be given “self-affiliation” tasks, where they decide the tasks in which they want to participate.
Gen Z love to participate in projects that support causes they are passionate and make a positive impact on the world. Deloitte and NEW research reports that 77 percent of Gen Z stated that it was vital to work for a company whose values aligned with their own.
They care about finding their purpose in and out of the office. Gen Z loves projects that match their values and give them a sense of purpose.
7. Pay them well and support their financial goals
A popular narrative about Gen Z is that they have no loyalty. BBC Worklife predicted that Gen Z will switch jobs at least 10 times before they clock age 35. If Gen Z workers are unhappy at their workplaces, they quit or quiet-quit.
According to a survey from Bankrate, 78 percent of Gen Z employees say they will search for a new job in the coming year. The average time at a job for a Gen Z is 27 months (CareerBuilder 2021 Study).
The Gen Z workers are seeking opportunities to grow and advance their careers because of their competitive spirit and their need for financial security.
A Bank of America report found that 25 percent of Gen Z workers have switched jobs in the last six months – and more are on the move every day.
© Kingsley Ndimele
Your Reliable Consultant
Build-for-rent vs Build-for-sell; Which Investment is the Best Option for You?
I stumbled on a video on social media where a popular Nigerian preacher analyzed four scenarios;
- Build houses for rent
- Build shops for rent
- Build a house to sell
- Buy land and wait for a bank to offer you a fat cheque so they can build a facility on it.
After a quick mental Mathematics, he concluded that, “Building houses for rent is a useless investment.” Well, religious leaders are not Investment Professionals and they may always get it wrong when they delve deep into other areas of expertise that are not their calling.
- Building for rent is a long term investment.
Buying land and building apartments or shops on it for rent is not done for you to recoup your money immediately. Although building shops for rent may pay you faster than building apartments, you need to understand that not every location is a commercial area. If you are still in the working class and you can afford to build for rent, you are welcome to the club of passive income.
2. Building for rent generates positive cash flow
The house where I was born is a twin building with over 40 face-me-I-face-you rooms in it. The landlord wakes up every morning to receive rental payments. He uses these payments to service his financial needs and enjoy good food. Cash was flowing to him till his last days.
For your retirement, you need a positive cash flow. Don’t wait till your gratuity is paid. Start from the cheapest area that you can afford the purchase of the land and build with a minimum of 100 blocks per month or 3 months depending on your income.
Howbeit, the theory of the value of money favours building a house for sale because cash now is worth more than cash in the future.
3. Building for inheritance
After the demise of my landlord, his children took over the house. They became the new landlord receiving credit alerts. The death of a parent should not make the deceased miserable and back to poverty. Building a house for tenants is an inheritance for your children.
This is why you should choose a house design that will still be relevant across generations. Your children will financially benefit from the houses you built for rent. They will keep increasing the rent to flow with the current economic trend.
4. Build-to-rent is valuable as collateral
Building a house for rent could serve as collateral security if you want to take a loan for other businesses or even buy more land. Nevertheless, properties that may be accepted as collateral must have all the necessary documents.
5. You enjoy two-dimensional profit
If it costs you ₦50 million to build 4 blocks of 3-bedroom flat in Ibadan. And each block is rented for ₦600,000. It means you will be getting ₦2.4 million annually. You may decide to increase the rent and renovate your house every 5 years or 10 years. Your capital is the land and it keeps appreciating. Landlords are responsible for making major repairs to the house. Your profit is the rent minus the cost of maintenance and insurance.
Going by this scenario, you may think that it will cost you about 20 years to recover your ₦50 million capital. No! Calculating rent to raise capital is a WRONG Calculation. Although you are being paid rent, you still own the house. The rent is a bonus. If you decide the sell the house after 20 years, you will most likely sell it for ₦100 million. That is an additional profit for you. When you add the rents earned within that period to the new value of the property, you will see that it is indeed a profitable investment.
6. Your capital is at a low risk.
If you invest in other assets, your capital is at risk. If you are not smart, you may lose everything in a day. Unlike building a house for rent, whenever you need it, you can serve your tenants with quit notice and sell your house. The only risk on your capital is building on land that is not government-approved. Your land may be marked for demolition without compensation. You lose your capital!
7. Residential buildings are not restrictive
When I was house-hunting, the agents took me to some locations where I never believed people could live there. Interestingly, the cost of rent in these locations is almost the same as in other similar locations.
Property investment is not a one-size-fits-all. The value of land in a particular area determines the amount of house rent paid. The land area, standard of building and the finishing determine the amount you give it out for rent.
8. Every building needs maintenance
Many first-time home buyers believe the physical characteristics of a house will lead to increased property value. But in reality, a property’s physical structure tends to depreciate over time, while the land it sits on typically appreciates. Land appreciates because it is in limited supply.
No one is producing any more land. Consequently, as the population increases, so does the demand for land, driving its price up over time. Whether you are building a shop or an apartment, the only way land appreciation can offset the depreciation of a home is by maintaining it as it ages.
9. Build with a business mindset
When building for rent or sale, know that you are not just a landlord, you are a business person. Doing business in Nigeria is tough. In business, you don’t always win. If a tenant moves out and you don’t have a replacement, you are losing out on income.
The first thing you need is the knowledge of the risk, law and market that you want to operate in. If you approach building from a business point of view, you will keep records that will help you make smart pricing decisions.
Whether you are building to sell or building to rent, you must have your tenants and buyers in mind. Doing business with a tenant is different from doing business with a buyer. Whether you are building a shop or apartment, some tenants can be difficult to deal with. The best way to deal with bad tenants is to avoid them. The second-best way is to have a very solid legal agreement that can be activated upon breach of contract.
10. Built-to-rent are in higher demand than built-to-sell
So many people are so busy that they will never have the time to walk the sites to monitor the nitty gritty of constructing houses. They will prefer to buy a ready-made house and move in. How many people can read and interpret a building plan with all its jargon? How many people know the difference between a column and a beam? These people will just love to buy rather than go through the rigours of building it themselves.
However, from personal observation, it is faster to get a tenant than to get a buyer. Houses are generally illiquid. You cannot build today and sell tomorrow. The biggest drawback in selling ready-made houses is the sitting period. Sitting period is the time between when you complete the house and when a buyer pays for it.
This can be a very frustrating period. Someone may walk up to you and offer you half of the money you spent building the house. If you are building to sell, you have to be prepared to wait a while for the sale of your property.
You also need a good negotiation skill to source quality materials at a cheaper rate to give your buyers a superb home. On the other hand, before you finish building a house for rent, tenants are already waiting to rent your building.
11. Sell some, rent some; Rent now, sell later; Rent-to-own
Sometimes, you can sell some units of your house upfront and then maintain the rest of the property as rentals. The only problem with this sell-some-rent-some model is that you will be in a fractured ownership position.
In the rent-now-sell-later model, you can initially rent out some units of your house for some time before selling. After several years of cash flow from rents, the property is then sold at a profit reflecting the increased value.
You can also engage in a rent-to-own agreement where the tenant will place a down payment on the house and make lease payments to you for a specified period. After the lease is up, then the tenant has the option to purchase the home. During the time they are making lease payments, a portion of those payments will go toward the final price of the house.
12. Personal choice matters
Deciding whether to build to rent or build to sell also requires careful evaluation of your financial situation, your lifestyle and the housing market. A house is one of the biggest assets you can own. Instead of selling your house because you want to japa or temporarily relocate, why not rent it out? You may decide to keep your house if you have a strong emotional attachment to it based on personal reasons.
For some people, becoming a landlord gives them a sense of achievement. However, managing a rental property is time-consuming and often challenging. It is ok if you don’t want to be a landlord. If you don’t want to manage the property or the house needs lots of work before it will be rental-ready, it is better to sell it.
© Kingsley Ndimele
Your Reliable Consultant
Sit Down And Learn The Trade
Have you been an apprentice before? I have been an apprentice before and I have also had some apprentices trained under me through NOVEL Nigeria. There are two types of apprenticeship models in Nigeria.
1. Skills only
In this type of apprenticeship, you enroll to learn only the technical skill. You go from your house to the workplace usually between 8 am – 6 pm for an agreed number of years (usually less than 4 years). The apprentice pays the master for the tutelage.
The master doesn’t ‘settle’ the learner. Usually, you still need to make some payment for your freedom celebration where your master issues you a certificate as proof.
I paid to learn photography under my Oga. Because I was super brilliant and a fast learner, I spent only 5 months as against the 2 years.
2. Skills and Trade
In this system, you don’t only acquire the technical skill, you also learn the trade. Learning the trade means learning the business skills such as customer service, strategy, marketing, store management, clearing, shipping, negotiation, financial management, competition and lifestyle.
The biggest flex of this apprenticeship model is the access to network that you will get. Your Oga’s suppliers can give you products on credit.
You are learning in practical terms every boring theoretical business concept that you would have learnt in an MBA programme at Harvard Business School or Lagos Business School. You don’t pay for it in cash. You pay for it in kind. You pay by serving your master.
In this type of service, usually, the apprentice lives in his Oga’s house all through the apprenticeship year. He washes clothes and that of his children. He does some domestic chores and still goes to work at the shop. Most apprentices in this model are not paid. However, they are provided accommodation, clothing, food and transportation.
All you need to be enrolled as an apprentice in this model is your interest. This apprenticeship model is an informal mentorship. Learning the trade helps you to understand the business and how to operate it. The apprentice learns by observing and taking notes of the tricks and strategies that his master deploys in the daily business operations.
This apprenticeship model is common among the Igbos where the apprentice is nicknamed ‘Nwa boy.’ The learning is usually between 6-18 months while the serving is between 5-7 years. Upon freedom, the master ‘settles’ his apprentice. The settlement involves a lump sum of money to help the newly freed apprentice to start his own business.
The Igbo Apprenticeship model is the largest, most successful incubator and home-grown venture capital system in the world. This model turns over $4.7 billion annually with over 10,000 merchants. You acquire the skill, learn the trade and get some capital afterwards. Isn’t that interesting?
Prof. Ndubuisi Ekekwe explains it better; “When a business owner rise and is already established, he goes back home to take his younger ones from among his relations to train and establish them.” “Do not leave your brethren behind” is part of the Igbo culture.
The Igbo apprenticeship model has proven to produce more successful business owners.
You may not be able to pause your formal education to ‘serve’ your master, but you can integrate learning the trade as you acquire the skill. How? Get a mentor who has mastered that trade.
All my life as a Business Consultant, I have observed that those who do not have any prior working experience are most likely to fail in business. Work for somebody and learn as much as you can before you start your business.
Learning a skill is not the same as learning the trade. Acquiring the skills alone makes you skillful but learning the trade will help you to make sound business decisions. It only takes 15 percent of your technical skills to build a business. The remaining 85 percent is the trade (business skills). Enough of jumping from one skill acquisition programme to another.
Don’t just build competence in the technical skills. Sit down and learn the trade. Sit down and learn the business side of the skill. I have discussed this extensively in my book SATURN. Grab Your Copy Now.
Why Religious People Fall For Ponzi Investments
Some time ago, a young Pastor invited my friends and I to attend an investment seminar that was held in a hotel. He told my friends that there would be investment opportunities that would give 3 percent returns every day.
He said that the investment company was a reputable international company with a track record of results. When the Pastor sent the invitation to me through my friends, I knew proudly that it was a scam.
I am an experienced, certified Finance Coach with an in-built scam detector gotten through deep studies and training. As such, I refused to attend that seminar because I considered it a waste of time. More so, I was preparing for my CFA exams.
Of course, my friends saw me as “I too know.” And the Pastor saw me as a rebellious person. It was as if I was the only one who had made a covenant with poverty. I wished them all the best as they all attended the seminar.
On the day of the seminar, they gave them branded shirts and caps.They even served them refreshments. My friends and the Pastor put their money into the investment.
One month after, stories began. From one excuse to the other. The company kept feeding them with false hope. It took some time before they all realized that they had been scammed. I laughed as the drama ended in tears. I’m sure that many of his followers and sons-in-the-Lord were also victims of this scam.
Religious leaders are very influential. Often times, because they make their personal opinions look like a factual statement, the congregation, most times, do not make further research or conduct deeper studies. Most times, when a religious leader teach about money and investment, they speak deeper than what they know and unfortunately, they do so in absolute terms which may be grossly misleading for a congregation that takes everything hook, line and sinker.
Religious leaders may speak out of perspectives and experience to the degree that they know. Financial subjects are risky topics that should not be taught by religious leaders who have no expertise in finance. It does more harm than good.
This reminded me of a popular Ponzi investment in the year 2020. Quintessential Investment promised some too-good-to-be-true returns. It was almost difficult to believe that were scams. The CEO of the company portrayed himself as a religious person.
Mehn…You need to see him on Instagram Live. He gave Jesus boy vibes. He played solemn gospel songs in the background. He prayed before and after starting the live video. He never stopped mentioning “by the grace of God.”
People trusted them and invested their money. It wasn’t until kasala burst before people knew that it was a scam. Hard-earned money of spirt-filled, but financially ignorant people wasted.
Your pastor and imam though anointed can be wrong in investment matters. Ponzi investment companies have become more sophisticated than ever. Prayers and fasting can never substitute financial knowledge.
Religion sells more and faster in Africa.
An average African consult his Pastor or Imam for virtually every decision in his life, including investment decisions. Ponzi investment companies know this and that is why they integrate an element of religion in their marketing strategy. And it works like magic.
Ponzi investment companies hide under religion to scam people. Some religious leaders foolishly endorse and advertise these companies publicly on their pulpits. Unfortunately, they do so with so much authority and ‘anointing.’
Because Africans trust their religious leaders more than they trust their common sense, they keep falling for these ponzi scams.
Papa may be filled with the Holy Ghost, but Papa is NOT an Investment Consultant. Apostle may be the National Treasurer of CAN or PFN, but Apostle is NOT an Investment Consultant.
Alfa may be a First-Class Accounting graduate or the founding father of NASFAT; Alfa is NOT an Investment Consultant. Imam may see visions accurately; Imam CANNOT see the signs of a Ponzi investment.
Follow who know road.
Paying an Investment Consultant is cheaper than paying a Lawyer.As my friend Bosun would always say, “It is better to use your money to enjoy catfish pepper soup with cold Goldberg than to lose it to Ponzi Investment”
Confused about your business, money and investment? Speak to a reliable Consultant today.
Kingsley Ndimele
Your Reliable Consultant
How To Win A Price War
Whenever a new business enters any industry, they often crash their prices to compete and gain some market share. It seems like a good strategy, but it is a risky move. If you are not ready to fight it through, don’t start what you cannot finish.
Sometimes, a price reduction may work in your favour.
Do you remember when sim cards were sold for ₦20,000 and ₦25,000? In 2003, two years after early operators dominated the market, Glo entered the market and sold it for ₦7,000. Other telcos began to crash their prices. Today, you can get a sim card for as low as ₦100 or even free. Glo survived the price war.
Whenever you start a price war, expect a backlash. Glo did not complain or beg Nigerians to patronize them based on nationalism or patriotism, they only fought the war tactically and strategically.
Other times, a price reduction may work against you.
You cannot price-compete with a business that is bigger than you. Reducing your penetration price to compete with the industry’s top dogs often has repercussions. If the initial price was ₦100 and you reduce it to ₦50, they can reduce theirs to ₦30. You cannot go below that else you run at a loss.
What is the fate of Air Peace in this price war?
Some Nigerian airlines have tolled the path of Air Peace and failed. Will Air Peace survive this move? What does Air Peace need to fight this war to the end? Other international airlines aim to price Air Peace out of the market. They already crashed the price of Lagos – London from ₦17 million to ₦5 million and below
It’s going to be a tough and long war for Air Peace.
British Airways, Virgin Atlantic, Air France and KLM have enough cash reserves and resources to frustrate and fight Air Peace. They can afford to do that. They are already established in the airline industry.
They can take legislative actions to restrict Air Peace from flying to certain countries and regions. They can invite Air Peace to form a dangerous partnership to stabilize the price. They can even buy Air Peace and then soar the price.
As soon as they can underprice Air Peace out of the market, they jack back their price. If Air Peace charges ₦50 and other airlines charge ₦30, customers will shift to the cheaper option. Customers have zero loyalty. Loyalty is difficult when money is involved.
What should Air Peace do?
- Prioritize value.
9mobile has about 13 million subscribers out of the 217.9 million subscribers in Nigeria. When 9mobile reduced its price of 1 gig data drastically, other telcos did not shake because they did not even consider 9mobile as a competitor.
Although 9mobile’s data is the cheapest in Nigeria, Nigerians don’t consider it valuable enough to be patronized. 2,433 subscribers ported out of the 9mobile network in November 2023. In February 2024, 9mobile subscribers flooded social media to complain bitterly about its poor network services.
Customers are only loyal to value and will stick to any services that offer higher value, regardless of how low the competitors price their services.
Value is the biggest motivation for middle-class Nigerians who travel by air. For the middle class, it is about the most convenient airline and not necessarily the cheapest. Value is beyond serving airline passengers pounded yam and egusi soup.
Airline passengers detest last-minute cancellations, route changes and flight delays. Value involves making it easier to book flights, refund money and return lost luggage. If Air Peace can maintain international standards and customer service, they will survive the price war.
2. Pass messages that help customers to see the business as “Our business”
People love to support what they like and own. Give Nigerians the sense of belonging that Air Peace belongs to them and they will make it their first choice.
Air Peace came through for Nigerians during the xenophobic attack in South Africa, the Russia-Ukraine war and the South Sudan crisis by freely evacuating Nigerians trapped in these wars.
Patriotism comes with a price and Air Peace has paid the price to gain the love of Nigerians. Nevertheless, Air Peace needs to take advantage of this emotional bonding they already have with Nigerians.
In a tribalistic country like Nigeria, Air Peace should sell itself more as a national airline rather than a business owned by ‘one Igbo man.’ Nigerians will see Air Peace as their own if Air Peace brands itself more as a national airline. If Nigerians understand that this price war is a win for them too, the battle is partly won.
3. Provide irresistible offers
One straw is enough is break the camel’s back. While early operators were billing calls in minutes and rounded off every call that ended in seconds, into minutes, Glo came on board with the per-second billing system and every existing player in the sector immediately followed. While other telcos charged ₦50 per minute, Glo charged as low as 1 kobo per second. Irresistible!
Regardless of the income class, customers’ loyalty switches unapologetically whenever they are presented with an irresistible offer. Irresistible offers are innovative baits that are used to win customers, gain market share and disrupt any industry.
Before Air Peace can present a mouthwatering offer to the market, they need to understand their target market first. The middle class is not necessarily moved by quantity, nor are they looking to save cost, but they can be won by other creative offers.
4. Protect the balance sheet
The big foreign airlines do not necessarily need to fight Air Peace before it loses the battle. Air Peace just needs to record losses continuously and the game is over.
Before Air Peace can deploy a penetration pricing strategy or present irresistible offers, they need to protect their balance sheet or reduce their profit margin. Air Peace needs to be sure that their financial record is healthy enough to accommodate the cost of this price war without hurting its bank account. Fighting a price war is expensive.
Aside from ground handling costs, en-route navigation services, and landing and parking fees, it costs airlines between $500,000 and $1 million to carry out mandatory C-checks on their aircraft every 18 months. It costs not less than ₦2 million to operate a one-way flight using a Boeing 737 aircraft.
Air Peace is not a charity airline.
5. Switch from penetration pricing to discounted pricing
When Green Africa Airlines announced the launch of its inaugural flight to Ibadan on August 2024, it did not outrightly compete based on penetration pricing. Customers flew between Lagos and Ibadan for as low as ₦6,500 and ₦25,000 between Abuja and Ibadan.
Everyone knew that this price was not sustainable in the long run. That was why the announcement was made as a “discount price” to mark its second anniversary. The discounted prices were only available for a limited time. If Air Peace cannot keep up with this entry price, let it switch to a discounted pricing model.
6. Stabilize before going public
The last Nigerian airline on the international route that went public shut down business 18 months after, due to debts and decreased aircraft. Ten years after it was founded, Med-View Airline Plc was listed on the Nigerian Stock Exchange. .
Med-View Airline was the only Nigerian airline in the list of air carriers banned in the European Union. The downturn started in 2017 when its flight from Lagos to London was disrupted due to operational reasons, leaving its passengers stranded and embarrassed at the Lagos Airport. Air Peace is already
IPO is not a first aid in a price war. Raising funds quickly to win the foreign competitors at this sensitive time may be wrong. Going public may be too early.
Although Air Peace is West Africa’s largest carrier, it is just entering international operations and it needs to firstly stabilize its position. Foreign airlines may buy major shares secretly and have greater voting rights before proceeding to a hostile acquisition of Air Peace.
7. Seek the support of the Nigerian government
Many Nigerian airlines cannot compete with big foreign carriers because of a lack of access to finance and the high-interest rate charged by banks on loans. Foreign airlines get a single-digit interest rate for loans to buy aircraft whereas Nigerian banks charge around 26 percent interest rate on loans.
This isn’t good for any business. This has made it difficult for Nigerian airlines to buy aircraft outright or lease rentals. Nigerian airlines do not have access to aircraft on the same terms as other big foreign airlines.
The Aviation Working Group said that until the Nigerian laws and practice directions are amended from granting injunctions on aircraft on dry lease, aircraft will not be brought in dry lease into Nigeria. If the Nigerian government can support Air Peace through policies, incentives, subsidies and tax reduction, Air Peace can stand a chance of surviving the price war in the long run.
I have discussed more about how to price your product and services in my book SELL OR DIE POOR. I also explained how to creatively win sleeping giants in SATURN. Grab Your Copy Now.
© Kingsley Ndimele
Your Reliable Consultant
How To Increase Your Price Without Losing Customers
Business owners are facing one of the hardest economic times, amidst rising inflation, currency devaluation and decreasing purchasing power. The cost price of yesterday is not the same price of today and most likely not the price of tomorrow. Owing to this, many business owners are barely making profits.
They are only struggling to preserve their business capital. While this seems like a more ‘understanding’ time to increase the selling price to make a profit, there is a fear that some existing customers may go and some new ones may never come.
If you listen to your fears long enough, your prices may stay the same or keep going lower. However, evaluating the current market condition is not a sufficient reason to raise your price. Increasing the price of your product or services is a tough business decision that should be done strategically.
- Evaluate your value
After weighing the content of the books and training that many of the big names I admire versus the depth of the value I offer in my books and training, I began to know my worth. I knew it was time to raise my price. Increased value equals increased pricing.
Money is the measure of value and the conviction of the value of the service stems from you, the provider. You are the first person you have to convince of your value, not your customer. If you have all it takes to help someone from point A to Point B, don’t be afraid to charge your worth. Your price is never too high if the value you are offering is higher.
2. Evaluate your mindset
During the first closed-door training I facilitated for CEOs and startup founders in Abuja, I shivered as I mentioned the price of my books. I sold my books to them in dollars (naira equivalent). But to my amazement, all copies of my books were bought. This was the boost I needed to tell poverty that ‘the battle is over.’
Pricing is psychological. You charge what you believe you deserve. Poverty has a powerful way of affecting your mindset negatively to harass you that you don’t deserve more. It places a benchmark price in your mind and it reminds you that “nobody will ever pay you beyond this amount.”
As you begin to step out of poverty, some amount may sound too big to mention. You may be tempted to charge a customer based on your circumstance or background, rather than the economic value you offer.
Where you deserve to charge in millions, poverty will suppress your mind and mouth to charge in thousands. Poverty breeds fear and steals your confidence. Poverty is too dangerous; it makes you appear beggarly, even when you deserve to be paid honourably. Stop charging what poverty makes you feel people can afford.
3. Evaluate your positioning
I struggled to put a price on my books because I was selling like an average author. The breakthrough started happening when I began to delve deeper into solving real business problems as a Consultant. I shifted people’s perspectives from “you are buying a book written by an author” to “you are buying a book written by a Business Consultant.”
This move alone increased the price of my books and service 10 times. Position yourself as an expert and people will pay you like an expert. Charge what your expertise and impact deserve!
4. Evaluate your brand
I attended an event where a popular Investment Coach facilitated a training. Even though all he said was the usual ‘aspire to perspire,’ his books were quite expensive, yet participants rushed to get autographed copies. Although the investment book was full of motivational quotes, he still sold more copies. One thing was obvious; his branding was top-notch.
I decided to work more on my brand identity and brand perception. Building a brand is expensive and continuous. I hired a Brand Strategist. I was featured in television and newspaper publications. I attended high-level events. I acquired more reputable certifications. I shared evidence-based thoughts as an expert in the industry.
With all these, anyone who wants to hire me presumes that I am not cheap. When my profile is being read in any event, participants already have a clue that this Consultant is not cheap. Till date, I am not afraid to invest in my brand. You cannot go to Mai Atafo’s website and expect to buy a suit of ₦50,000. Never! Brand yourself as a professional if you want to be paid as a professional.
You cannot serve and sell to everyone. If you continue to charge lower to appear nice, you will soon be out of business. As you build your brand, you will understand that not everyone should be able to afford you. Some prices are insults to your brand. Branding sets boundaries.
5. Evaluate your results
When you know that you have a valuable product or service to offer but you don’t have the traction to convince potential customers yet, you may choose to offer your products for free or discount for some time to prove your excellence.
You may choose to start charging lower rates at the onset because you do not have the experience and credibility to convince your customers. When you have gathered enough traction and testimonials, you should stop.
As you gain more traction and testimonials, you can charge the same rates as other industry experts or even higher. Nobody doubts proof. Only those who have built confidence can charge any price with confidence.
6. Evaluate your audience
Those that are your target audience will not stress you. Your product is not expensive, your problem is that you are not selling to the right audience. Your product is not too expensive for people who can afford it.
Some products or services are built for the bottom of the pyramid and that is fine too. The same bottle of water that is sold for ₦200 during traffic at the Lagos-Ibadan Expressway is sold for ₦1,000 at Transcorp Hilton Hotel. There are local gyms for street goons and there are standard gyms for the middle class. The prices vary. Same product, different prices, different target audience.
© Kingsley Ndimele
Your Reliable Consultant
What Nobody Told You About Personal Branding
I used to think that Arsene Wenger owned Arsenal because his name is “Arsene”. Don’t mind me.
United Bank of Africa commenced operations in Africa since 1949 as the British and French Bank Limited (BFB).
UBA was founded over 10 years before Tony Elumelu was born. Tony Elumelu was NOT also the founder of Standard Trust Bank that later merged with UBA. Tony Elumelu said he was given a chance to work at STB as a graduate with a Second Class Lower. So, how could he had founded STB? (Story for another day)
Tony never found any bank. He bought a distressed bank (Crystal Bank) in 1997 and change it to Standard Trust Bank which later merged with UBA. Standard Trust Bank did not buy UBA.
The UBA History also makes it clear that UBA existed for decades before the STB team came on board. It was not an outright acquisition. It was a merger that happened during CBN Governor Charles Soludo’s Bank consolidation of 2005.
The name of UBA was retained for its size and years of banking record while STB’s logo was retained. Before the merger, UBA brand color was yellow, when they merged with Standard Trust Bank it became red and the new logo was introduced. UBA’s logo today is a combination of STB and UBA logos when both banks merged in 2005.
STB management was dissolved and TOE was elected as the new CEO of UBA. In a scenario where two companies merge and retain their legal identity, the new owner CANNOT be called a founder.
Just like Madam Kuforuji Olubi was the Chairman of UBA between 1984-1990, Tony Elumelu is the Group chairman of UBA (as the highest shareholder), not the founder. Tony Elumelu is not the Founder of UBA.
Personal branding has made Tony Elumelu the UBA hype man!
7 years ago, I was nobody to be reckoned with. I was just lost in personal development.
6 years after, I have a name that can be ‘Googled.’
Hardly can I walk into a place today without at least one person saying, “I think I know your face somewhere.” Sometimes, before I introduce myself, “Who doesn’t know you?” is the next response I get.
What changed? My Personal Branding.
What is Personal branding?
1. Branding is not trying to please everyone or make yourself acceptable to everyone.
Branding is trying to make yourself the most acceptable in your industry.
2. A beautiful neatly dressed lady without a good character is most likely to find a ‘Moses Bliss’ faster than a dirty, smelly poorly built lady with a good character. She needs to be ‘packaged’ or ‘tushed up’ to be firstly attractive.
Branding is building an attractive container for your content. Your content is the value you carry.
3. Branding is the reason why people who are not as good as you are GET HIGHER PAY and MORE REFERRALS than you.
4. Branding is about consciously closing the gap between what people say or think about you (perception) and what you truly are (identity).
5. Branding is not faking it. It is projecting your authenticity.
6. Branding is not to seek fame. It is about standing out in a market full of solution/value providers.
7. Branding is about building your life around one mission and be known for it. Tunde Onakoya is the face of chess in Africa – a mission connected to help slum kids. Prof. Ndubuisi Ekekwe is sold out for technological innovation.
You cannot talk about affiliate marketing in Nigeria without mentioning Toyin Omotoso.
8. You don’t have to wait till you ‘blow,’ before you start building a personal brand. Start today and keep tweaking it. Branding is a continuum.
9. Whether or not you are conscious about it, you already been known for something. How do Kanayo O Kanayo convince an average Nigerian that he is not a ritualist in real life?
Branding is about INTENTIONALLY and CONSCIOUSLY changing your brand perception to match with your identity.
10. You lose your authenticity when your brand values do not align with brand perception. You cannot be a perpetual latecomer or a chronic debtor and claim that you have INTEGRITY.
11. Wearing white suit and red tie always like Bishop David Oyedepo or Ankara outfit like Ngozi Okonjo Iweala or bow tie like Akinwumi Adesina or black outfit like Peter Obi or head turban like Sola Allyson can form a part of your personal brand.
Although you should not start this if you can sustain it, always remember that you are free to evolve whenever you want to. Branding embraces flexibility.
What makes up your brand?
1. Personality
Controversial – Daniel Regha
Professional – Taiwo Oyedele
Confidence – Seun Okinbaloye
Humourous – Ojy Okpe
Simple – Chioma Ifeanyi-Eze
Poise – Tony Elumelu
Extreme Privacy – Mike Adenuga
2. Values – Kingsley Ndimele (Integrity personified)
3. Story – Hilda Baci
4. Vibe – Funke Felix Adejumo
5. Expertise – Dr. Ola Brown
How to build a personal brand
1. Quality – It is better to increase your price and maintain quality than to reduce your quality and maintain your price.
2. Visibility – Use social media to enhance your visibility. Nobody knows who is not seen. Dr. Dipo Awojide is good at that.
How would Zacchaeus have been seen if he had not climbed the tree? That is what POSITIONING is all about.
This is where many First Class graduate miss it. They only show up to announce themselves on the day of their Convocation and disappear.
Meanwhile there is a Third Class graduate showing up every day with valuable contents, high-level branding and mind-blowing contributions on social media.
Life only favours the courageous, the diligent, the valuable and the visible. Firstly, be valuable. Secondly, be visible.
3. Consistency – Aproko Doctor is another name for consistency. Tunde Ednut has been posting consistently for the past 8 years for at least 4 times daily.
© Kingsley Ndimele
Your Reliable Consultant