12 Money Questions You Must Ask Your LOML Before Saying “I Do”
How will you feel if, after your wedding day, you discover that your partner is strongly addicted to Bet9ja or Baba Ijebu? Or a shopping addict?
How will you react if you later find out that you are starting your marriage in debt your partner owed?
In every loving relationship, money and marriage go hand-in-hand. Before you finally walk down the aisle with your LOML, there are tough discussions that must be made.
I call it tough because it is not a romantic topic for intending couples. Your partner may feel humiliated or feel that you are asking very private questions. Your partner may feel that it does not worth discussing.
This discussion may feel awkward or uncomfortable, but it can get worse if you procrastinate. Even if your partner is a successful Chartered Accountant or a First Class Economist, still ask these questions. Don’t assume. Ask!
Don’t be blindfolded by love. Listen with caution and look out for the warning signs. Don’t be too overwhelmed with your wedding plans that you forget to plan your financial future.
Before you tie the knot, you need to have a significant degree of financial confidence in your relationship.
No one who has the ring on their fourth finger ever wishes for a divorce, but it does happen.
Reports show that money is one of the top causes of the high rate of divorce and relationship stress in today’s world.
This is why you need to discuss money issues deeply with your partner before finally getting into the marriage journey.
You do not need to feel shy about it. Until you have this discussion with your partner, you are not ready for marriage.
If you are not sure about how to start the conversation, a simple question like, “Honey, if you win ₦10 million today, how will you spend it” will help.
Before making that long term commitment, there are 12 important money questions that you need to ask your partner.
- What was your financial upbringing like?
Why you need to have an open dialogue regarding your partner’s upbringing is because oftentimes, your partner’s family background will have a significant impact on how they think about money or plan family finances.
For instance, if your partner was brought up in a home where they eat out more often than they cook their food, this question will serve as an eye-opener for you.
The way your partner was brought up will shape their financial goals and perspectives about marriage. It has been observed that partners often make the same money mistake that their parents made too.
If your partner’s parents were not so good with money, the chances are that your partner may not too. A good way to begin is to ask your partner about their biggest money mistake or regret.
2. How much money do we need to live comfortably?
You may discover that your combined salary is not sufficient to cover your living expenses as a couple.
At this point, you need to be realistic with your finances and planning; else, you may end up with no savings and take debts to cover up.
3. How will we spend, save and invest our money?
If your partner is an aggressive saver, and you are the enjoyment minister, you and your partner must decide beforehand how family finances will be spent, saved and invested.
In your journey to financial freedom, marriage should make you better off, not worse off.
If you are intentional about building family wealth, then saving and investment should be a deliberate act. Decide a suitable investment depending on your risk tolerance. Preferably, seek investment advice first.
Saving too much is as bad as spending too much because it will affect your relationship in the long run. You need to have some money set aside for fun.
Your partner should have some liberty to spend some of their hard-earned money without seeking your permission for every item.
4. What kind of lifestyle do you desire, and what are your financial goals?
Some partners love a luxurious lifestyle, while others want a simple, low-key life. You must understand that you and your partner may desire a certain lifestyle, but your financial goals may be contrary.
If you want to retire early, you may have to sacrifice some expensive lifestyle and vacations. If you want to save up for a home, you need to be realistic with the kind of lifestyle you desire.
If your partner has career ambitions that require acquiring additional certificates, or your partner hopes to leave a 9 -5 job to start a business, living an expensive lifestyle in your early days will be a foolish financial decision.
You need to ensure that your lifestyle and financial goals are compatible.
5. How are we going to divide financial responsibilities?
Before and after childbirth, there are bills to be paid in marriage. School fees, house rent, utilities, foodstuffs – name it.
Irrespective of who earns a higher monthly income, you need to decide who is going to be responsible for some of the household bills or how it is going to be shared. This will prevent disagreement.
Also, if there are children from a previous relationship, who will be financially responsible for them?
If you don’t discuss these issues before marriage, you may be shocked to later discover that your sweetheart belongs to the class of “My money is my money, but your money is our money.”
6. How much income do you earn, and how many assets and debts do you have?
This is the time to get financially naked and brutally sincere with one another. No hiding place. Be plain. Never hide your monthly income from your partner.
Don’t ever feel it is none of your business. How much your partner earns is your business. Don’t feel embarrassed or intimidated to ask. It is not taboo to ask. It is not disrespectful to ask.
As intending couples, you need to know how many assets or outstanding debt each partner owns before marriage and how they plan to repay their debts.
Before vowing “for richer or for poorer,” know your partner’s financial status. Don’t hold back any secret regarding your financial history.
Although your partner’s debt is their personal responsibility, it could still affect you too. Sometimes, it may become a marriage debt that both of you will end up paying together.
7. How much money should be in our emergency fund?
An emergency fund is highly recommended for every family. It is a fund set aside to cover unforeseen family expenses that may arise.
Ideally, you should set aside an equivalent or at least 3 – 6 monthly expenses as your emergency fund.
As couples, each partner will have to contribute to the fund and keep it in a family wallet that is easily accessible.
8. What kind of purchases must we both agree on before getting married?
Can two walk together except they agree? Every successful marriage needs joint planning. When it comes to family finances, you need to discuss with your partner before making some major purchase decisions.
Knowing the maximum that you can spend before consulting your partner will help you to prevent future disagreements about overspending. With a family budget, you will be able to keep your spending in check.
9. What is our financial responsibility towards other family members?
As partners, you have to agree on how much will be set aside from your income to take care of extended family responsibilities.
One of these is how your ageing parents will be taken care of and how you will support other family members.
In a situation where your partner is the more generous one, you need to set boundaries about how much money you can give and which circumstances warrant your generosity.
If you or your partner intend to ever have any of your parents or siblings live with you, the best time to discuss this is before marriage.
10. Do we keep our money in individual or joint accounts?
Although marriage is a partnership, having a joint account as a couple is not a must. In marriage, what works for others may not necessarily work for you.
There are advantages and disadvantages of keeping a joint account. Just ensure that you have an agreement with your partner and do what works for you.
11. How many children will we be having?
The number of children you intend to have will affect your family financially in a huge way.
You need to know the financial cost of having children. You need to know when you are financially buoyant to have more kids.
When you keep having children without any corresponding increase in family income, you may indirectly be giving birth to potential prostitutes and armed robbers.
The cost of quality education is increasing every day. If you want your children to go to a public or private school, discuss it before marriage and start planning towards it.
12. How will we resolve financial conflicts?
Generally, people get very emotional when money issues are being discussed. Interestingly, most financial disagreement is not really about money.
They are often about equality, being listened to, being respected and being loved. A recurrent financial disagreement may not be about money but about fundamental issues about power and cooperation.
I cannot guarantee that there won’t still be some arguments regarding money in your marriage; having these money-related discussions will help you to reduce financial conflicts and bad surprises.
In conclusion, if you are not comfortable with the answers you are getting from your partner, or you and your partner are unable to reach any meaningful agreement, seek the counsel of a Personal Finance Coach.
Premarital financial counselling is cheaper than a divorce process.
© Kingsley Ndimele
Your Reliable Consultant
15 Ways to Know Ponzi Investments
In Nigeria, Ponzi schemes are camouflaged as investment companies such that anyone can fall victim. After MMM crashed in December 2016, one would expect that Nigerians would have grown wiser. But No!
Many Nigerians have become more stupid, including me, so stupid that they even borrow money to invest in Ponzi. Nigerians don’t always have money until it is time to put ₦30,000 to get ₦150,000.
After MMM, I lost money in three subsequent investments. So far, I have been scammed four times.
Every week, I receive emails and calls from clients who have lost money in different investment schemes, crying hot tears and requesting how they can get back their money.
Others have overwhelming debts that they are still paying to date. Some people’s financial life has never gained balance after a major investment loss. RIP to the many investors who committed suicide after a huge loss.
From 86FB, Imu Ovaioza, Gloria Osei and Muyiwa Folorunsho, Ink Nation, Ovest, Wale Kingdom Capital, Tradera, Chinmark, RackSterli, MBA Forex, Quintessential Investment – name it.
Elizabeth and Bamise Ajetumobi (Imagine Global Solutions Ltd.) relocated abroad overnight after running away with investors’ money.
Even some of the Fintech companies you envy are sophisticated Ponzi investment companies that have brought tears to their investors.
As much as I encourage people to invest money, I do not blame people who have decided to use their money to eat asun and drink Goldberg.
These Ponzi companies have become so guerilla that they even hire celebrities to influence their businesses and push their brands as legit.
They have Head offices and erect big billboards all over the big cities. They partner with legal insurance companies. They issue signed MOUs and agreement documents. They even do live videos with their investors to consolidate their credibility.
The difference between a Ponzi investment and an investment company is that a Ponzi investment takes the funds of new investors to pay old investors, while an investment company pays investors from the profit they make.
Little wonder, most Ponzi investments crash around December because every investor wants to cash out, and nobody is putting in money.
Although some investment companies are built to fail, the truth is that investment companies don’t fail because they hire influencers or because they did not follow government regulations.
Some investment companies fail because they take short-term loans and invest in long-term businesses.
Some investment companies fail because they invested in something that didn’t yield any profit or a very high-risk investment where they lost money heavily.
Some investment companies started operating legitimately, but along the line, yam pepper scatter scatter. One thing led to another, and their bank accounts got frozen.
Do you know that there is a public list of licensed investment companies and authorized operators on the SEC website that interested investors can verify?
My only annoyance is that SEC usually shows up late after investors have lost their funds and when SEC eventually clamps down on an illegal investment company, there is usually no plan for investors to recover their funds.
Although Joshua Adeyinka Kayode (CEO of Quintessential Investment) spent some days in the EFCC custody and was eventually granted a court bail, the investors never got back their money. That was the end of Solomon Grundy! Òpin sinimá!
Before any investment company can pay you 25 percent ROI monthly, it means that they generate higher profit to cater for staff salaries, rent, logistics, marketing and even make a profit themselves.
If not because greed blocks the logical part of your brain, you should have asked, “What exactly are they investing in that could be so profitable within a short time?”
If that is how easy and profitable doing business in Nigeria is,Nigeria should have one million unicorns by now, and the CEOs of these investment companies should be competing with Elon Musk.
Before you invest;
- Ask logical questions. If you do not understand what they invest in, don’t risk your money. Dem dey pay no be due diligence. If their accounting books can’t show the cash flow, it is most likely a Ponzi.
- Acquire some basic financial education that will help you detect Ponzi investments easily.
- Check your own greed. You fit be your own problem.
- Don’t invest because other people are doing it, no matter how much you trust them. If it is a trendy or popular investment, it is most likely a Ponzi. These Ponzi companies try to win their investors’ trust by paying the promised ROI regularly at the initial stage of the investment so that they can get more investors through referrals.
- If you are asked to make a small investment and then recruit others to make small investments too so you can go higher up the ranks, run! Provide Help to Get Help always end in tears.
- Stay away from opportunities that present themselves as ‘now or never.’ One wrong investment decision can ruin your financial life. Poverty is too stubborn that it takes patience to grow wealthy.
- If the ROI is too crazy or illogical and their offers are too mouthwatering, run. If it looks too good to be true, investigate. Trust your guts!
- Watch out for any investment company that do giveaways or give out prizes lavishly on their social media platforms. They do this to make their investors believe that the CEOs have so much money already and can never scam investors of their chicken change.
- If they have to show you a receipt of credit alerts to convince you, run!
- Haven’t you noticed that most of these Ponzi investments often hide under FOREX, Real Estate and agricultural schemes to entice investors? This is a more reason to question the huge ROI in a short time.
- Even if they are registered with the CAC and in partnership with an insurance company, but they are not licensed and registered with the SEC, don’t invest your money.
- If they use celebrities to influence their investment schemes, think twice. We can never forget how Davido and Rema promoted RasckSterli.
- If they tell you that ‘You can never lose your capital,’ run! There is nothing like NO-RISK INVESTMENT.
- If the CEO ends every of his sentence with “By God’s grace,” it is most likely a scam. Most Ponzi investments hide under religion to perpetrate evil because they know that an average African is very religious. Quintessential Investment was always playing religious songs in their backgrounds before and during live Instagram videos.
- It can be very confusing to know a Ponzi investment these days. This is why you should consult an Investment Advisor (not just anyone who has an accounting or law background) for more inquiries. Beware of aspire to perspire investment coaches. They are very dangerous. They are branded dullards with no content or knowledge about finance and investment. No professionalism at all. They use noise and branding to confuse everyone. They themselves are potential scammers.
Please note;
That you lost money in an investment does not mean you should not invest again, else you will work for money all the days of your life. You only have to be smarter, not fearful.
I offer consulting sessions that will help you make the right investment decision. Reach out to me today.
© Kingsley Ndimele
Your Reliable Consultant
Your Graphic Designer is NOT a Content Creator
When it comes to creating super unique content, Sterling Bank is nobody’s mate in this Africa. I say it with my full chest.
Beyond the controversial “Like Agege Bread, He Rose,” with the quality of content Sterling Bank pushes out consistently, you can be sure that this is not the handwork of a graphic designer only.
If you really want to stand out from the millions of junk contents and have significant returns for your investment on social media, you need to start posting unique content consistently.
Don’t be a copycat on social media. Sometimes, those you are copying are as clueless as you are. Besides, your business may need a different or better strategy appropriate for your audience.
Because you saw other businesses posted content for the Christmas season, you quickly called your Graphic Designer, “Muniru, I need a design quickly to post for Christmas.” No be so.
It does not work out that way. The best Muniru can do for you is to use your brand colour and insert some texts or images of Santa Claus or a Christmas tree. Lobatan!
I can confidently tell you that the creative team at Sterling Bank spends months drafting its contents. They try different ideas before coming up with mind-blowing content. Anything quality takes time.
David Oligilvy wrote one of the best adverts ever for Rolls-Royce. “At 60 miles per hour, the loudest noise in this Rolls-Royce comes from the electric shock.”
It took three weeks of intensive study to come up with this 16-word advert. E shock you?
Lazy content creators and sharp sharp graphic designers like Muniru do not get this kind of result. The creative industry demands that you think outside the box. Creative works are not done hurriedly.
Creating content is not the responsibility of your graphic designer. You need a content creator.
The best Muniru would have done for Rolls-Royce was to make use of a coloured background and the logo of Roll-Royce with something like “Buy a Rolls-Royce today.”
Being creative with content is not the same as being a good graphic designer.
Munirus can design anything just to make quick money from you. But they can never give you a unique and compelling content. Wetin concern agbero with overload?
Content is King, and Content Creators Are Kingmakers. If your content cannot catch the attention of your audience, you are wasting money.
There are so many Munirus out there calling themselves brand strategists because they can design a logo, business card and use mockups.
There is more to branding than graphic designs. The logos and mockups are only the visual representation of your contents; they are not the core of branding.
A brand strategist defines the kind of language or tone to be used. A content creator conveys the marketing message in this tone. While the graphics designer makes the message visually appealing.
If your brand strategist gets it right, your content creator will flow in that direction, while your graphics designer will be able to come up with a visual representation for your social media manager and digital marketer. It’s a value chain. It is a hierarchy.
There must be synergy between your brand strategy, content creation and graphic design.
If your brand strategy is not well defined, your content creators will be drafting a different message and your graphic designer will be designing a totally different visual. Guess who gets the blame eventually? The social media manager.
It is only confused businesses that hire a social media manager who can create content and design graphics too, with a knowledge of digital marketing. Haba! No be juju be that? You are not cutting cost; you are wasting money.
If you are very observant, you will discover that most GT Banks do not have gates.
It is an intentional branding strategy that shows that GTB is open, accessible, and walk-in for everybody. No class! No discrimination! The GTB brand strategist defines this for the building architects. Interesting!
In the building industry, the architect defines for the builders to build. But in the creative industry, the brand strategist DEFINES, the content creator DEVELOPS and the graphics person DESIGNS.
A graphic designer is NOT a brand strategist. A graphic designer is NOT a content creator. A content creator is NOT a social media manager. A social media manager is NOT a digital marketer.
© Kingsley Ndimele
Your Reliable Consultant
Why Your Customers Screenshot, But Never Buys
More than ever, the marketing space is content-driven. Content can be anything like videos, pictures, infographics and audio.
Although many people are obsessed about content creation, only few actually understands content marketing. Content creation is not the same as content marketing.
If you sell on social media, you must understand that only 3 percent of people who come on social media are in ‘buying mode’. Most people who come online either stroll through the internet or come to get information.
Majority of the organic audiences you have on social media are not immediate buyers. They are either there to interact, window shop or while away time to get information.
The problem is that most online sellers treat everyone online like the 3 percent who are ready to buy now. Stop expecting them to patronize you instantly.
To reach the 97 percent who are not ready to buy now (but could be very soon), you have to educate them. The more they know, the more likely they are to buy.
If you want to shift many of the 97 percent of prospects from ‘not buying right now’ or ‘not even thinking about it’ to becoming customers right away, educate them so they know more about the process of solving their problems and they are empowered to make a better buying decision.
To do this, your message must be powerful, insightful and education-based. This is all content marketing entails. Content marketing involves using content strategically to provide solutions to problems your audience have.
While a sales copy delights the reader so that they can take action, content marketing informs, educates and engages the reader.
The essence of content marketing is to segment your target audience and engage them in order to convert them into buying customers.
Rather than constantly annoying your audience with adverts, content marketing helps you to craft contents that talks about topics which interests your audience.
Plan your content. Tweak your content. Be creative with your content. Keep it simple and interesting.
Stay away from big grammars and terminologies. Story telling is the best and easiest form of content marketing. If you are too busy, hire a content marketer.
There are ten reasons your business needs content marketing.
- More sales. More Customers. More Money
The whole strategy of marketing is focused on getting more sales, more customers and consequently make more money.
When you look at the ROI of content marketing compared to other forms of marketing, you would see why everyone is obsessed about content marketing.
Content marketing has proven to be a very profitable and effective marketing strategy.
There are several customers roaming about in the cyberspace, it is content marketing that pulls them closer to you and converts them to loyal customers.
There are many people that did not know that your business exists. The only way to reveal your presence to them is to create contents that resonates with their needs.
2. It is cheaper
When you think about the cost of marketing via contents, it is relatively cheaper than other forms. This is not to say that content marketing is very cheap. No!
When you quantify the time and effort invested in content marketing, it is not as cheap as you think. Mind you, you are sharing your experience and knowledge in your niche. Content marketing is a worthy investment.
3. It builds Relationship
One way to build relationship with your target audience is to creatively create high quality contents. The more quality contents.
The more quality contents you post and create, the more trust you gain from people. In other words, content marketing creates credibility. This trust helps you to build loyal customers. There is a personal reach that is made possible through consistent content creation.
It is not just about the content; it is about the quality of the contents the content you create either builds more valuable relationships or erodes it. Customers want to relate with you on a more personal level.
The once overlooked need for relationship is now the core of content marketing. It is not just about creating contents. It is about building relationships.
4. Content marketing is a creative strategy to win your competitors
Check out this illustration; in a certain industry, there are Firm A, Firm B and Firm C. If Firm A creates high quality contents that engage with their target audience, prospective customers will most likey choose to buy from Firm A.
This is how Firm A creatively wins over from Firm B and Firm C. Content marketing gives a winning edge for any firm that does it strategically. Winning over competitors directly means an increased customer base, an increased sales and an increased revenue and profit.
5. Content Marketing is universal
One interesting feature about content marketing is its versatility. Irrespective of the industry you belong, there are quality contents that you can produce and dish out to your target audience.
6. Content Marketing Attracts
Content marketing is very effective in attracting prospective customers who are interested in the solutions your service or product can provide to them. People hate marketers. People hate to be sold to.
However, they love to brands and businesses that offer services and products solutions that solves their problems. One content marketing does is that it attracts people without annoying them.
7. Content Marketing guarantees long-term audience
Content Marketing guarantees long-term audience. If every relationship of your customers with your business is about complains, kudos and query, you may never be able to keep a long-term relationship with them.
This is why it is important that you create contents that brings clarity to some issues, doubts, questions and fears that they may have.
One of the great advantages of content marketing is that it is able to generate new followers and convert visitors into long-term audience.
This means is that the newer followers you get, the wider you chance of reach and the stronger your customer base.
8. Content Marketing help the purchasing decisions of your prospective customers
One of the reasons why everyone is obsessed with content marketing is because of its potency to influence the purchasing decisions of a prospective customer.
Your prospects need to be well informed and guided before they can decide whether or not to buy from you.
9. Contents can be reused severally
One of the reasons why many people are obsessed with content marketing is because it can be reused in diverse ways.
You can twist your contents into downloadable PDFs, videos, slideshows, infoguides and infographics. There are several creative ways of reusing any content.
10. Content Marketing improves customer’s experience
Not only must you make your contents personalized, educative and entertaining, you must ensure that it creates your customers like it. If your content marketing is not improving your customer’s experience, then you are not doing it well.
Don’t wait till it becomes too late before you join the moving train.
© Kingsley Ndimele
Your Reliable Consultant
Why Your Competitors Sell More Than You Do
Whenever I tell people that I am a pure Ngwa breed from Abia state, the next response is, “Is that not the tribe that eats human beings?
I have been privileged to travel to various parts of Nigeria. I have met with people of various tribes and cultures. There is a way Nigerians perceive people of different tribes.
Sometimes, we like them even before they talk. Sometimes, we hate them, even before we meet them. This is why some parents have vowed that their children will never marry from certain tribes.
In Nigeria, we believe that Ijebu people are stingy. Ondo people are full of agídí. Ijesha sabi curse well. No tribe has sugarcoated mouths like Ibadan. Ìbàdàn tí ò jálè, ojú lóró.
Hausa okada riders are the most reckless. Oshogbo is the home of herbs. Calabar women are good in bed. Kogi is the headquarters of juju and charms. Ekiti people too sabi book.
Ile-Ife people are very lazy and extortive. At 9 am, most businesses in Ile-Ife are yet to open. Before Lagosians started selling a sachet of pure water for ₦20, Ile-Ife took the front seat.
In most Nollywood movies, there is usually a poor guy struggling in the village. His uncle, who stays in Lagos, visits the village during Christmas.
In one of the visitations, this uncle decides to take him along to Lagos. After some months, this poor guy becomes tush and very rich. We see these scenes often in most Nollywood movies.
Permit me to say that Nollywood is one of the reasons Lagos is highly populated. The perception they have created for most Nigerians is that once you get to Lagos, your own don better, and you will become rich after some months. Is that not how Lagos has been branded?
Whether or not you intend it to happen, people form their perspectives about you and your business. This is why you need to shape and control how you brand your business.
People buy your brand before your product. This is why a fairly used iPhone is more expensive than a new TECNO phone. Branding affects your price and sales. Sales affect your revenue.
Branding is the reason why people that are not as good as you are or businesses that do not offer quality products or services like you do, make more sales than you do.
Branding is beyond logo, colours, hashtags and fonts. Branding is more about PERCEPTION. There is no successful business without a strong brand. As you grow your business, build your brand too. Build a strong perception of your business.
A friend of mine was hired by one African restaurant to design flyers, logos and all of that. The young man who owned the restaurant thought he needed these elements to drive more sales.
Of course, his decision was right. Notwithstanding, despite all the money that went into improving the brand and advertising, he made no significant sales. My friend was worried as well. So, he consulted me.
We continued struggling and encouraging ourselves until we discovered that he had an underlying problem that was sabotaging all of our efforts. Most of those who visited the restaurant often complained about the quality of food they sold.
We did not notice this until one celebrity visited the restaurant. She complained about their fried rice and shawarma. She even took pictures of these stale foods and posted them on her social media pages. We were lucky enough to view one of her posts.
Here the problem lay. While we were displaying beautiful pictures, glamorous fliers and adverts, the perception of people towards the restaurant was directly opposite. The brand visual identity did not commensurate with the brand perception.
Can you answer these riddles?
- I am a network provider in Nigeria, my customers often have free excess internet data, but there is usually no strong internet network to use it. What am I?
- I am a Nigerian artisan; I am mostly known for disappointing my customers, especially during festive periods. What am I?
- I am an olive cooking oil, but Africans have turned me into a prayer oil. What am I?
Sometimes, the location of your business may be creating a wrong perception of your business. Sometimes, the name, colour, or logo of your business may be creating a wrong perception of your business.
© Kingsley Ndimele
Your Reliable Consultant
Why Your Business Ideas Often Fail
I have had beautiful ideas but not all came through. I am sure you too have. Having a great idea is the easiest part. Translating that idea into a valuable offer for a market is the hardest part.
I have been behind brilliant ideas that never saw the light of the day. Irrespective of how beautiful your business plan may be, not all your business ideas will succeed because you have the financial resources.
Every day, I meet people who share their great ideas with me with great excitement. While listening, I can predict with high precision that most of those business ideas will fail. My experience as a Business Consultant has helped me to get a clear picture of why most business ideas often fail.
- Ideas fail when it does not solve market needs
An idea itself does not create a successful business. Stop fantasizing about your business ideas. Sometimes, what you call or think is a business idea may just be a feeling. Most of the I have an idea are not often real needs. An Idea is a phase that stays in the brain. It always looks beautiful but rarely solves a need.
You must be driven by the market need and not necessarily by your own opinion or taste. Your business should be centered on a problem, not the idea. Don’t build first and look for the market later. It is the surest way to fail.
Every business idea must be validated by a market need. Every successful idea is an innovative solution that taps into market demand. It is not enough to develop an idea, research the potential market and competitors, and evaluate your results. If your results say NO, kill it. If it says YES, proceed.
If your market is too vast, your idea is going to fail. At first, you need to target a niche and expand with time. It is not enough to have a market need, there must be a significant number of potential customers for your business ideas, else there is still a chance that your idea may fail.
2. Ideas fail when you complicate them
It turns out that every industry has the same basic rule of not getting married to or falling in love with your favourite ideas. In Hollywood, when writing a script, it is called “killing your darlings.”
If you have a character in the script or a plot twist that you fall in love with and the whole movie seems to be revolving around it, you are going to destroy your movie.
In engineering, it is “keep it simple.” Do not complicate what you are building. Do not stubbornly cling to something just because you are enamoured with your creativity.
Building numerous features and differentiators at the same time will not necessarily make your idea distinct from your competitors. Besides, it takes money and more time to build a feature-rich product. keep it simple and basic at first and add other features with time.
Be married to the problem, not the technology. If you are married to technology, you might easily give up due to stress induced by setbacks or boredom. Being married to the problem will motivate you to have the perseverance to continue through hard times or tedious work. Falling in love with your startup idea is both important and dangerous at the same time.
3. Ideas fail when they are not well-marketed
Every idea looks good but even the best idea often fails if it is not well marketed. Every business idea must offer value to be accepted in the market. Whenever you pitch your idea, talk about your ideas as if money is not an issue.
For some ideas, you have to show enough conviction first. The greatest innovations in the world came out of people who had a strong conviction about their ideas.
To market your idea, you need to write it down with clarity. Call it a business plan. A good business idea must be supported by a business plan.
You may have a business idea that no one has ever thought of, but only a well-detailed business plan helps you to communicate this idea effectively. It does not have to be a 60-page document.
4. Ideas fail when you have only ‘yes members’ in your team
An idea itself is worthless; it is the team behind it that matters. You need the right partners. Growth never happens in your business if you only have ‘yes members’ who never counter your ideas.
They just accept whatever you bring to the table hook, line, and sinker. When people criticize your idea, don’t take it too personal. A criticism may help you to change your direction and see your idea from another perspective.
5. Ideas fail when you make them all about you
You may have the business idea, but you may lack the needed business knowledge and managerial skill to direct a team. That you own the idea does not mean that you have to be the CEO or the leader of the team.
Having an idea does not qualify you to lead the team. Know your strength and weaknesses. Some people are good are strategy while others are better at execution.
6. Ideas fail when you delay execution
Ideas are deceptive. Too many ideas flying in your head can mess you up. The moment an idea hits you, write it down else you may forget. If you think that you need to execute every idea flying in your head at the same time, you may end up executing nothing eventually.
Take one simple idea and run with it to fruition. If you do not run with your idea, others will run with it. There is no monopoly of an idea. Na who first come market get the idea.
7. Ideas fail when you copy and paste wrongly
There is nothing wrong with copying an idea that worked somewhere and implementing it in another place. But you should understand that not all oyinbo ideas will work in Africa.
That it worked successfully in America does not guarantee that it will work in Africa. Africans think differently. Africans do business differently. Before you copy an idea that you worked in another location, evaluate it with the market that you want to sell to.
Check their culture. Check their mindset. Do not ignore the reality of the community. A good idea, executed at the right time can fail when the market is not the right one.
For instance, building a freelancing platform or an app that help people to find different type of skilled persons may not succeed in Nigeria. This is because many Nigerians do not hire human skills online, we hire by referrals.
Most Nigerians do not go on a website, click and order a cleaner, electrician, or lawyer. The element of Know, Like and Trust (KLT) is earnestly needed when a Nigerian want to hire a human skill as a service.
8. Ideas fail when the timing is wrong
The current reality in the market matters. If your idea is only valuable for the future, it will fail today. Sometimes, you may have a good idea but it may not be the right time for that idea.
9. Ideas fail when they lack funding
Ideas die when they are not being nurtured and supported. It is difficult to make any meaningful start or progress without funds. Lack of funds can kill even the best idea. Where are those great inventions made by many young Africans yesterday?
I have lost count of the times that I saw innovations initiated by some secondary school students and university undergraduates. I have seen a solar-powered car innovated by an African.
Some years ago, a 26-year-old guy innovated a smokeless stove that could cook as well as charge phones. He may as well end up like many innovators whose ideas never received beyond media attention.
10. Ideas fail when you give up too soon
Every great idea is welcomed by persecution. Robert Fulton who invented the steamboat displayed his new invention on the banks of the Hudson River. Among the crowd who had gathered to observe the steamboat were some skeptics.
They commented that “It would never start.” Surprisingly, it did. As it made its way down the river, they shouted again, “It would never stop.” Incredibly, it stopped. Never choose to quit because somebody does not agree with you.
Somedays, it will feel as if you are making great progress. On other days, it will feel as if you have not accomplished anything. These are days when you can get easily discouraged.
One of the things you will notice on your journey towards your goal is a roadblock. This obstacle may seem to jump out of nowhere in an attempt to halt your progress.
© Kingsley Ndimele
Your Reliable Consultant
Your Business Needs A Lawyer
Few years ago, I was speaking at an event in Oduduwa Hall, OAU. Everything I said within those few minutes, I backed them up with some quotes in the Nigerian constitution. I quoted some parts of the Nigerian constitution offhand.
Not long after I handed over the microphone to the moderator of the event, three law students came to me with the constitution (the digitized copy on the phone). They asked me to show them the section and subsection I just quoted.
Mehn…I collected the constitution and started searching for it. I nearly urinated in my body when I couldn’t find the exact place it was written in the constitution after five minutes. My village people were at work again.
The looks on those guys face were already saying “Alaye, don’t fall our hand oo”.
I went back to the table of contents and I was able to trace through till I found it. You need to see the smiles on their faces when I finally showed it to them.
If there is any part of law I love so much, it is Business Law. I understand the legal implications of some actions that most Nigerian entrepreneurs often ignore; contract, terms and conditions.
What does your business say regarding warranty and refund policy? Do you even issue receipts? What if someone dies or develops a reaction after using your product or visiting your restaurant?
Who bears the risk when your employee gets robbed of his personal belongings in the course of carrying out his job duties?
Do you have a lawyer for your business, abi na only faith and Insha Allah you dey depend on?
If you have a business in Nigeria, get a lawyer or have lawyer friends. Don’t wait until your ‘kasala’ burst. One legal problem can ruin your business and investment.
Before you sign that partnership or investment deal, get a lawyer. No let your matter be like Tuface Idibia and Kenny Ogungbe.
If you think that your business is too small to have a lawyer, ‘your mercy is doing me’ (translate to Yoruba).
Whenever I teach photography at the NOVEL Nigeria Event Academy, I take my time to explain to my students the basic legal knowledge every photographer must have.
I also have an unpublished manual that explicitly explains Copyright and Image rights for all Nigerian Photographers.
© Kingsley Ndimele
Your Reliable Consultant
When, Why And How Should You Rebrand?
From the kampala-wearing Adekunle Gold to the earring-wearing and hair-plaiting AG Baby, what else is a perfect illustration of rebranding?
Whoever rebranded the old military Muhammadu Buhari into a stainless saviour fit for a democratic president deserves some accolade.
If you don’t understand rebranding, try to look out for Eniola Badmus – before and after.
If you follow the new Who Wants To Be A Millionaire? or the new Gulder Ultimate Search, you will have a better picture of what rebranding means.
The BCOS television I watched while growing up has changed to something more modern. Cabin Biscuit also did a remarkable rebranding.
If you observe closely, you will discover that Deeper Life Bible Church is rebranding; even their new logo indicates liberty.
At a point in your business, you may need to examine what is not working and what is working in your brand strategy. You may need to create a new look or perception for yourself or for your business.
A rebrand may be full or partial. It may be as simple as a change in the brand name from GTB to GTCO. I guess you didn’t take note of that.
From Total Filling Station to Total Energies, from Taxify to Bolt, during a rebranding, there is usually an underlying change in the company’s vision and mission.
Before you think of rebranding, consider the brand image you want to portray. Rebranding may also be necessary when you want to launch a new product or service line.
If your current brand is not achieving its purpose or performing as well as you needed, rebranding is needed. In 2019, after KudiMoney became a digital No-Fee bank, it rebranded as Kuda.
Some businesses rebrand so as to stand out more from their competitors, while others rebrand to appeal to a new market or audience, just like Union Bank rebranded to appeal to a younger market.
If your customer base is changing, a rebrand is necessary. The main goal of rebranding is to reposition your business in the marketplace.
After some time in your business, you may find that your brand name and identities have become too limiting and do not accurately tell your current brand story.
When you choose a brand name that is specific to one product or service, you may have to rebrand when you have outgrown your brand name.
Kentucky Fried Chicken had to rebrand to the KFC acronym. Why? They wanted to take out the descriptive “Fried Chicken” so that customers could know that they offer other foods apart from Fried Chicken.
Besides, to attract many health-conscious consumers, they had to remove the word “Fried.” Which is faster and easier to pronounce – Kentucky Fried Chicken or KFC?
The original name was Apple Computer, but when the Apple Company started producing more products apart from computers, they had to drop the word “Computer.”
This is similar to the branding evolution from BackRub to Google, from Bourbn to Instagram and from Twittr to Twitter.
Chidinma rebranded after she announced her switch from secular music to gospel music. She now refers to herself as Mummy G.O because her music message has changed. Her new brand no longer reflects emi ni baller.
You may have to rebrand if you are changing your business structure or considering expanding your business scope. Access bank had to rebrand when it acquired Diamond Bank.
Konga rebranded after a merger with Yudala. The change from Skye Bank to Polaris Bank was coupled with a rebrand.
A brand can become unpopular over time because of a scandal or reduction in quality. However, it is possible for a business to become stronger and better after a major market failure that affected its reputation negatively.
Businesses who rebrand, for this reason, do so to present a new image and distance themselves from problems of the past. Can you remember that sometimes ago, La Casera drink was considered unsafe and unhealthy to drink?
Nigerians were afraid to buy the La Casera drink because of this rumour. Hence, rebranding and repackaging were necessary.
This is the same effort Hilton Hotels, Ile-Ife will have to go through to regain its reputation or pursue a fresh start.
It is NOT MANDATORY for you to stick with a brand that is affecting your business negatively.
Sometimes, a legal reason may compel you to rebrand, especially trademark issues. That is, if a competitor is already using similar brand identities, you may be compelled to rebrand.
There are two popular Nigerian fintech companies; Kudi (a payment platform) and Kuda (a digital bank). If you are a newbie in the fintech space, you may confuse both brands. In April 2022, Kudi rebranded to become “Nomba.”
Also, if there is a cultural or symbolic interpretation of your brand identity, please you need to rebrand immediately.
Rebranding is NOT about changing your brand identities, although oftentimes, rebranding may include a change in your brand identities or a complete redesign of your packaging and image.
In other words, rebranding may come with a change in the brand name, such as from Facebook to Meta. From Kanye West to Ye. Buju rebranded as BNXN (meaning Benson).
Rebranding may come with a change in the logo like that of Flutterwave or MTN.
Changing your brand name, logo, brand colours, brand voice, font and slogan are only visual representations of your rebranding, NOT the core of rebranding.
Changing your brand identities without a corresponding change in your market status or perceived value is synonymous with changing from NEPA to PHCN without an improvement in Nigeria’s power supply.
It is the same as changing the uniform and name from SARS to SWAT without any internal police reform.
Don’t wake up overnight and start to rebrand because you feel like it or because you are pressured to.
To be on the safe side, test your strategy against the opinion of your target audience so as to come up with a perfect strategy.
It is also important that you consider your competitor’s brand. This will help you to see the good innovations that you can copy and the bad ones that you can avoid.
When rebranding, think about your core values and the personality you want to portray to your audience. Sterling Bank shows the funny side of their brand. They crack a lot of jokes, whereas everything about PwC is strictly professional.
Preferably, think about many adjectives that can describe your new brand and pick your favourite. For instance, Kuda Bank is free, fast and digital.
Mind you; rebranding has consequences. Firstly, it can be expensive. It is usually more difficult to market a rebranded product, especially if your business already serves numerous customers.
Rebranding takes intensive research before beginning the process. It takes time to build a brand and a longer time to do a rebrand. Also, your business may appear suspicious to some customers who may question your motive.
It takes time to communicate your new brand message to your potential and existing customers.
As much as rebranding can mark a new beginning for your business, it can also become the downfall of your business if you are not strategic enough or if you attempt to shortcut the process.
Rebranding is often very risky because there is a high chance that you may lose your audience.
Returning to the market with a new brand identity can create a lot of confusion. The greatest disadvantage is that it is difficult to go back to your initial brand after rebranding.
In all you do, rebrand with a purpose and plan. Until you have done all these, do not launch your new brand to the public yet.
© Kingsley Ndimele
Business Consultant
What Really Happened To Mr. Biggs?
Expanding or scaling your business is beyond opening branches in various locations.
Expanding your business without putting proven and duplicable processes and systems in place can be the end of your business.
Where is Mr. Biggs today?
Mr. Biggs has hit menopause. The one-time household name is now a fading memory. Although it has not been forgotten, it has been relegated.
It has been cutting back on its locations and shutting down outlets.
The one-time most sought-after fast food restaurant is gradually winding up and now being deserted by Nigerians.
Mr. Biggs had a strong brand and popularity. It had the resources to expand. It also had a strong market demand, yet it failed.
Why?
Mr. Biggs was able to use the franchise model to break new grounds faster and meet the growing demands in its early years, but it was unable to maintain the quality assurance that it was known for.
The rice was said to be tasteless, while the meat pie has been dubbed ‘Air pie’ in some locations.
Mr. Biggs started losing the market even before its competitors that arrived, not because it franchised to the wrong people who eventually brought a drop in the food quality and a gradual decline in interested consumers, but because there were no systems in place to check the quality of food produced at its various franchise outlets.
These franchises did not maintain the standard.
They were not able to recreate the same sumptuous and mouthwatering experience across their branches.
There was a lot of inconsistencies in their food quality and taste.
If you cannot successfully duplicate the same recipe or systems that made your business successful initially, you will fail at the point of expansion.
© Kingsley Ndimele
Your Reliable Consultant
The Dangote I May Never Become
Aliko Dangote is powerful not because he has access to huge capital, but because of his political history. If you want to go far in business, you need to be involved in some politics.
Dangote is a brand, but Aliko Dangote is a politician. He funds the campaign of many African presidents. It is called the Politics of Business.
What he does not have, he can never give you. He comes from a wealthy family with a strong political history, yet he claims that he started from the scratch. Aliko Dangote, teach me something else but not how to raise capital for my business.
According to Wikipedia, Aliko Dangote’s Uncle was the wealthiest man in West Africa as at the time of his death in 1955.
₦500,000 in 1977 is not a scratch. In case you don’t know, ₦500,000 in 1977 can buy 100 Mercedes Benz cars. Calculate the current value of that ₦500,000 and tell me how many entrepreneurs today in Africa started with that kind of capital.
₦350 million is the current value of ₦500,000 of 1977. Even as at now, ₦500,000 for an average entrepreneur in Africa is a little above scratch. If you dreamt of becoming like Aliko Dangote, please sleep again.
Do you have an uncle that can loan you ₦350 million? Ok! Do you have an uncle that can loan you ₦500,000? Ok! Do you have an uncle that can loan you ₦350,000? Ok! Do you even have an uncle?
If your dream is to become like Aliko Dangote, please wake up. The reality of many African entrepreneurs today is that we Start Small, Dream Big, but Remain Small.
There are many potential Dangotes today with beautiful business plans and ideas that may never see the light of the day. There are many potential Dangotes today selling boxers on their WhatsApp status.
There are many potential Dangotes today selling bread and akara in OUI roundabout. There are many potential Dangotes today selling sausage roll and bottle water on the Third Mainland Bridge. ENTREPRENEURSHIP IS HARDER FOR THE POOR AND POWERLESS.
I know you are passionate about entrepreneurship and business, but if your passion cannot pay your bills at the moment, please put it on hold for now. Go and make money. Go and get a job. Then, come back to pick up your passion. Nigeria is real!
© Kingsley Ndimele
Your Reliable Consultant