Before You Resign from Your Job to Start Your Business
It has never been this easy to start a business. This is one of the reasons the rate of resignation is increasing geometrically.
That you had a successful career does not guarantee that you will build a successful business.
Dropping a stable income to launch your own business is a risky move. This is why you have to look very well before you leap. You have to be brutally honest with yourself.
Nine out of every ten businesses fail. In other words, there is a 90 percent probability that you will fail in business. This is why leaving a steady income to start a journey of uncertainty is not a hurried or careless decision.
Before you resign from your job to start a business;
- Count the cost of resignation
Just like entrepreneurship, a 9 – 5 job has its own advantages and disadvantages. Interestingly, the grass looks greener on the other side. What do you stand to lose if you resign from your current job?
2. Clarify your reasons for starting a business
From frying pan to fire is when you resign from your 9 – 5 job to start a business because you want freedom and leisure. Are you resigning from your job to start a business because your salary is small or because you hate your toxic boss?
Entrepreneurship is not a get-rich-quick scheme. If your plan is to start your business today so as to buy a G-Wagon tomorrow, you are already defeated. Are you resigning to start a business because other people are doing the same?
3. Read your employment contract again
If your business is going to compete directly with the company you work for, then common sense demands that you keep mute until you tender your resignation letter.
You need also need to check your employment contract carefully for competition clauses that could lead to legal problems if you choose to launch your own business.
If you are going to work in a similar industry or niche like your present employment, make as many connections as possible.
4. Save enough money to operate your business for at least two years
Make sure you estimate how much startup capital you need bearing in mind that every project takes twice as long and costs twice as much as you expected. From the first day, you will start spending money, whether or not your business becomes profitable.
Oftentimes, bootstrapping takes the lead before angel investment, or venture capitalist shows up.
5. Save enough money to maintain your standard of living
Before you resign to become a full-time entrepreneur, save enough money (at least two years of your salary) to maintain your standard of living, especially if you have people depending on your monthly income.
6. Start a service-based business before selling a product
Try to offer services before selling a product. It is easier and less capital-intensive to start a service business than a product business.
7. Start your business as a side hustle
Resigning before starting your business may seem like a good plan, but it is not. Don’t wait to leave your current job before starting your own business; start it while you still have it. If your side hustle is not profitable, there is no probability that a full-time business will succeed.
I know it is not often easy combining a side hustle with a 9 – 5 job. Besides, your steady income will help you foot the bills and startup costs.
Please, don’t allow your side hustle to affect your productivity at work. Don’t do your business during work hours. Don’t use your company’s resources, data and contacts for your side hustle even if your employment agreement is silent about it.
8. Test your business idea
Start working on your business idea while you still have a job so as to know if it is a problem-solving idea or a shining stone that solves no real problem. Great ideas fail too.
9. Have some paying customers first
Before you resign, make sure that you have some paying customers already. This is because getting new customers for your new business may not come faster than you think.
10. Plan your time well
Manage your time well, especially if you have other important obligations and responsibilities or operate a time-sensitive business. It is foolish to sacrifice family time with the excuse of building a business.
11. Leave your job a good note
Exit with honour and dignity. Don’t burn bridges. Don’t slam the door on your past employers and colleagues. Don’t conspire with others to leave the company.
Don’t become enemies with your employees or employer because you want to start your own business. Oftentimes, they are your first set of loyal customers and unpaid marketers.
Besides, if, for whatever reason, you want to exit your business and go back to a 9 – 5 job, you have already built connections that can make that happen faster. Having a fallback plan is a wise decision. Tí iwájú ó bá sè lọ, ẹ̀yìn á sé padà sí.
12. Come up with a simple business plan
There are competitors who have gone ahead of you. They have loyal customers already. You have to devise a strategic means to ‘snatch’ some of these loyal customers, get new customers and have your own share of the market.
Your business plan will help you to predict how long it will take you to break even and start making a profit. Your business plan should be as simple as possible. There is no rule that says that your business plan must be written in English language.
13. Have a mentor
Look for a mentor who is doing what you want to do or who has gone farther than you. Follow who sabi road, not necessarily your Pastor or Imam.
Experience is not bought in a bookstore. You may even have to serve first as an apprentice to gather real-life experience before you jump into the risk.
You either serve your way to mentorship or you pay your way. If you can’t find a mentor, pay a business consultant. By all means, run away from motivational speakers and family and friends who give free business advice.
14. Do your own analysis
If you are waiting for people to tell you which business is right for you or choose the right business for you, you will most likely make a wrong choice of business and a regretful mistake.
Entrepreneurs don’t wait for direction; we figure it out ourselves. Before you choose a business or niche, assess the market need. Assess your own strength and weaknesses. Pick a profitable niche with less competition. Assess your skills and resource.
Assess your personality. If you are shy to market your business shamelessly, a 9 -5 job is not for you. Ẹnu kìnìún lowó wà. Shey you get mind? How well can you multi-task? Are you a people’s person or a one-man mopol? Are you a thinking person or a workaholic?
Are you a reckless spender or very prudent with money? Do you have the right skills and resources to get your business running? Can you leverage tech tools and social media for your business?
Do you have a financial backbone to bankroll you or a safety net to support you financially? Entrepreneurship is harder for the poor.
Are you self-motivated and emotionally strong? You must know how to draw inner strength in this lonely journey. Because starting a business is like living like an orphan. You will cry hot tears, pat yourself on the back and move on.
15. Read, study and learn
Know the latest trend in your industry. If you cannot mention at least 5 top businesses in your field, you are not ready yet. Sit your ass and learn.
The business world is no respecter of anybody. Do your homework. Ask questions. Study your industry and competitors. Study your market and potential customers.
Learn about branding, pricing and customer relationship. Learn how to shoot strategic shots. Learn how to hire rightly. Learn how to manage crisis in your business. Learn how to determine the appropriate salary for your employees.
I wish you all the best in your decision.
In my book, SATURN (A Business Book for African Entrepreneurs), you will learn the A – Z of doing business in Africa.
© Kingsley Ndimele
Your Reliable Consultant
After Choosing Your Brand Name, Logo And Registering Your Business Name With The CAC, What Next?
Building a business means that you have to cross every Ts and dot every Is. Anything you fail to put in place today may crash your business tomorrow.
In one of my previous posts, I explained the differences between a Business Name and a Brand name. After choosing your brand name, logo and registering your business name with the CAC, what next?
TRADEMARK! TRADEMARK! Go the extra mile by registering a trademark. A trademark is any word, phrase, logo or symbol used to differentiate your brand/business/product/service.
Whenever a business owner asks me, “I have been in business for a short time, why should I trademark my brand name and logo?”
My response is, “if another business registers your brand name and logo, will you be bothered?”
A brand name and logo are not by who started using it first. It is by who first trademarks it. Na who first trademark the brand name and logo, get am.
When you trademark your brand name and logo, you get an exclusive commercial right of ownership. No other business dares use a similar brand name or logo.
Most importantly, if your brand name is different from your registered business name, you need to protect your brand name against unauthorized use by third parties.
Amala Skye is a popular restaurant in Ibadan (although their signboard reads Ose Olorun Food Canteen). They got the suffix ‘Skye’ because it is located beside Skye Bank (now Polaris Bank) in Bodija, Ibadan.
Unfortunately, Amala Skye is just a registered business name, not a legal brand name.
The mistake they made was that they did not trademark ‘Amala Skye’ as their brand name. Now, e don happen. A Lekki restaurant has taken the name ‘Amala Skye.’
According to a search I conducted myself on the CAC website, the restaurant in Ibadan has its business name as “Amala Skye Lolo Restaurant” while the one in Lekki was incorporated as “Amala Skye Lagos Limited.”
No matter how much you label anyone of them as fake, the law only recognizes the one who has trademarked this brand name as the real, authentic Amala Skye.
What you do not know is that when you register your business name with the CAC, it only prevents other businesses from using a similar business name to yours.
It does NOT guarantee any legal protection of your brand name and logo from your competitors.
A lot of popular brands in Africa are not trademarked. After registering your business name, go and trademark your brand name and logo as soon as possible.
A trademark is the greatest property asset of every business. As much as possible, protect the intellectual assets of your business from your competitors.
If you care about your brand name or logo being stolen, you should care enough to protect it.
Big brands know how a trademark protects the reputation they have built over the years. A trademark is a mark of standard and quality.
If someone else maximizes this opportunity before you, even if the trademark they register sounds or looks similar to yours, it is over for you. C’est pon kanye.
As your business grows, your brand becomes more valuable. It does not matter how small your business is today, trademark your brand name and logo to avert legal issues in the future. Interestingly, trademarks no dey expire.
12 Reasons Most Student Businesses Die On Campus
Few days ago, I found a paper in my file documents. It contained all the media brands that partnered with me when I convened the maiden edition of YES! Festival as an undergraduate in 2017. Guess what?
Out of the 12 media brands, only one is still existing till today. So, if they tell you that 9 out of every 10 startups fail, don’t doubt it.
I went to a university that has the largest number of student businesses, brands and startups in Africa. Although, there is no official statistics to prove this, it is almost unarguable.
Almost every student of OAU was/is either a co-founder, or has/had a business, brand or side-hustle.
More than ever, there is a geometric increase in the number of studentpreneurs across African tertiary institutions.
No doubt, few of these businesses have turned out to be successful, while many failed even before the founders graduated.
Whether these businesses were just trial-and-error businesses or wannabe businesses, the fact remains, BUSINESSES DON’T JUST FAIL.
Success in business is no respecter of B.Sc. You either follow business principles or your business becomes a guinea pig. Irrespective of your current level, before you say Jack Robinson, you are already a graduate.
There are many graduates carrying around the portfolios and business cards of a failed business. I get am before, no be property. This should not happen to you. Why do most student businesses die on campus?
- No Long-term plan
When you don’t have a long-term plan for your business after school, you are likely to drift away and flow along with every shinning opportunity that comes your way.
The frustration in the labour market alone is fierce enough to make your forfeit the business you nurtured all through your campus days.
Don’t just have a plan in your head. WRITE IT DOWN where you will be seeing it every day with your korokoro eyes. Only those without a goal will wander like a goat.
2. Award Maniac
I am not an award freak; neither am I desperate for plaques. I never received an award or got nominated for the “Entrepreneur of the Year” all through my days on campus.
Some people protested against it. I saw how several WhatsApp CEOs canvassed for votes and won these awards. Most of those businesses today have become history.
Believe it or not, awards are one of the distractions for studentpreneurs. If you need an award to stay motivated, you are on the losing side already.
3. No collaboration
I am one of the few African entrepreneurs who believe more in collaboration than competition.
If you are just starting your business, you need more of partnerships. You need to leverage on businesses that have gone ahead of you.
My greatest secret in business is COLLABORATION. I partner with big and small businesses.
I partner with private and government organizations. Wait first…Who are you to compete as a student business? Na pikin wey don sabi run dey participate for inter-house sport.
4. Square peg in a round hole
The way you run your business on campus is different from the way you will run a business in ‘real life’. I rebranded my business when I was approaching my final year on campus.
I knew that many things needed to be upgraded, changed and re-strategized. I had to separate myself from my business as much as possible.
Your friends and fellowship members may patronize you because they like you, but the African market does not forgive your inability and unseriousness to meet up with the standard demand.
The market will never lower its standard to accept your mediocrity. You have to work hard to be like the ‘big fishes’ out there.
If you still want to sell zobo and chin-chin after graduation, you must package your business well to meet the market standard.
5. The reality of loneliness
I have a bad news for you. When you graduate, “every man for himself” becomes the new slogan. Maybe you were lucky to have roommates and friends who encouraged you and cheered you all the way.
After graduation, you will realize that ENTREPRENEURSHIP IS A LONELY JOURNEY.
When you look back and can’t find anyone to encourage you, would you still continue? Building a business is like living like an orphan: you will cry, pat yourself and move on.
6. You limited yourself to your WhatsApp status
One of the reasons I was called a noisemaker on campus was because I was in over 350 WhatsApp groups and I also had over 1100 WhatsApp contacts. You can imagine the wide audience I covered.
But the truth is, for my type of business, it was a wrong audience. My business was only popular, but not profitable.
One truth we cannot deny is that serious businesses and brands don’t operate on WhatsApp status. Your WhatsApp status is for your families and friends who most times may never patronize you or even refer you to others.
WhatsApp noisemaking may work for you in the short term, but never in the long term. WhatsApp is too lousy and restrictive.
7. Your ignorant friends and families
In the multitude of ignorant families and friends, there is confusion. Most of the free advice from your families and friends are only mere assumptions and deadly suggestions.
Yes! You father may have a successful bakery, but you cannot apply his strategies to you fashion business. Ko le werk!
8. You never had a mentor
Elon Musk, Bill Gates and many other successful business owners in all their mightiness, still have business mentors, yet ‘ordinary’ you that just started business wants to do it alone.
It is better to use your business capital to drink Orijin and eat Nkwobi, than to run a business without a mentor. Is it that serious? Yes!
9. Read good business books
During our final exams, some of my classmates said that they were done with books. One of them said, “I won’t even read a signboard, not to talk of a book.”
Well, I have read more and had more sleepless nights ever since I wrote my final exams than all my 5 years at OAU.
Building a business is like going back to school. There is still A LOT to learn.
Building a business is like driving a car in Lagos: nobody will give you free space. You have to be at your best every time, while competing with several expert drivers.
10. You could not penetrate the Jagabans
In every industry, there are Jagabans. These are the people you will be competing with when you graduate. Some of them are pioneers in your field. Some of them have more resources and customer base already.
If you can’t beat them, you just have to join them. The only way to get a seat in the throne of these Jagabans is to know what they do not know and BE AN AUTHORITY in it.
Creatively position yourself as an Èrùjèjè and they will give you audience. There is something that Indomie noodles know that Dangote noodles didn’t know.
11. You chose a competitive location
Don’t position your small business where your market leaders are located. If majority of the market leaders in your industry have their businesses based in Lagos. Don’t be stupid. Move to Ibadan.
There are some businesses that you can never outshine in Lagos. It is better to be a king somewhere else than to be an underdog.
There are many tertiary institutions in Ile-Ife, but OAU outshines them all. There are many camps along Lagos-Ibadan expressway, but Redemption Camp outshines them all.
There are many business teachers on Twitter, but Chioma Ifeanyi-Eze dominates on Facebook. There are many event planners with massive followers on Instagram, but Asy Darlyn rules on YouTube.
Who born you well to compete with Seun Risky or BestBrain on OAU Campus? When we go to the zoo, it is the lion we want to see. To hell with other animals. You don’t put a peacock in the same location with a broiler, else na jealousy and low self-esteem go kill the broiler.
12. Financial handicap
As a student business, your priority is how to grow your business, but when you graduate, your priority becomes how to scale your business.
You need money! You need funds! Your dreams may forever stare at your face if you don’t have money to actualize it. Even Dangote still dey find money.
Please note, that your business failed on campus does not make you a failure. It does not mean that you cannot start all over again and build a successful business.
That you decided to quit business and follow another path does not make you a failure.
Entrepreneurship is not for everyone. On campus, we don’t only discover what we want to do, we also discover what we do not want to do.
© Kingsley Ndimele
Your Reliable Consultant
10 Mistakes to Avoid When Borrowing Business Loans
Would you take it if I offered you a business loan of ₦1 million to pay back ₦1.3 million within a year?
Most African entrepreneurs will rush at this offer but wait till it is time to pay back; they will start running helter-skelter.
Well, let me break it down for you.
This loan offer means that you will be paying back at least ₦108,000 monthly or ₦3,600 daily.
In other words, you are paying back the ₦1 million plus 30 percent interest within 12 months (or 2.5 percent interest rate monthly).
Mind you, you are making a profit to pay your rent (if you have a physical office), pay your staff and buy inventories/running costs. You are making a profit to pay back the loan principal plus interest.
You are making a profit to pool back into the business. You are making a profit to pay yourself (no matter how small). If that is solely your source of income, you no go chop ni?
If you are making ₦4,000 daily to clear your debt, you must be making a profit of at least ₦8,000 daily.
For most African small businesses, making a net profit (NOT REVENUE) of ₦8,000 daily is the most challenging part.
With a ₦1 million investment, what business will fetch you at least ₦8,000 daily? Imagine always being in debt of ₦4,000 every day, even before waking up. That alone is scary and stressful.
Now, think about the offer again. Is it realistic? Is it achievable?
Well, the duration is long enough for an already established business to run with. It can be achievable by existing businesses with a solid customer base.
Since you have laid a foundation, a loan will only serve as a boost or catalyst. It also depends on the nature of your business.
This is why most lenders and financial institutions prefer to loan already established businesses rather than new businesses.
The problem is when you want to start a new business with a ₦1 million loan. It will be tough for a startup because you do not have a foothold in the market nor a payback means yet.
Startups shouldn’t take high-interest loans accompanied by pressure on the local currency with a short payback interval when you are not yet established in the market.
Taking a loan to start a new business is a significant risk. Imagine taking a loan to start a private school in Nigeria.
If you know how loan defaulters are often embarrassed, you will think twice before taking a loan. Some of these loan companies go to the extent of defamation and invasion of your data privacy.
If you have not experienced their invasive calls and texts, then you probably know someone who has. Recently, a loan company posted the obituary of a guy who missed payment.
I’m not saying this to scare you from taking loans. No! In fact, without a business loan, it might be challenging to scale your business, which could hinder your business’s growth.
A loan is one of the greatest assets in the hands of an intelligent entrepreneur. Most of the successful entrepreneurs you admire are in one debt or the other.
With a loan, you can achieve your business goals faster. As your business grows and develops, borrowing might indeed become inevitable.
For example, you might need to borrow money to expand the operations of your existing business, venture into a new business, or maintain your company’s day-to-day spending.
Every loan is neutral; it is either sweet or sour. It all depends on how intelligent you are.
While you may argue that a 2.5 percent interest rate monthly is not too bad, a loan interest rate should not exceed a single-digit yearly in an ideal business environment.
So far, even solid and existing businesses can fall victim to unforeseen circumstances inhibiting their ability to repay a loan.
For existing businesses, when it comes to borrowing loans for your business, there is some basic knowledge you must have, else you will make mistakes that will cost you your business.
Get SATURN (A Business Book for African Entrepreneurs) to learn the 10 Mistakes to Avoid When Borrowing Business Loans.
© Kingsley Ndimele
Your Reliable Consultant
Five Questions To Ask Before Choosing Your Selling Price
Before you launch fully into the market, you must get your pricing right. A customer’s physical appearance or the number of social media followers should not determine your selling price. You don’t determine your selling price based on your feelings or how desperate you are for profit.
Remedying a pricing error is easier said than done. Price is a major factor that the average African consumer considers before making a purchase decision. Even in emergency situations, many Africans are still price-conscious.
If your price is too high, you will scare away your prospective buyers. If you are not adjusting your prices as the market changes, you may run into financial troubles too.
Pricing determines how customers perceive the value of your product and the legitimacy of your business. If your price is too low or cheap relative to your competitors, prospective buyers will become suspicious of you and your product.
This does not mean that you cannot sell at a lower price. But you must ensure that you don’t undercharge your products or use excessive discounts to win every customer.
There are 13 pricing strategies that can be applied when determining the selling price for your product or service. Nevertheless, there are major factors that must be considered before deciding on a strategy.
- Are you targeting multiple customers?
If you want your product to appeal to various segments of customers, you have to clearly adopt a tier-pricing model. Even five-star hotels still have rooms that are affordable to stringent-budget customers. In most bars and beer parlours, there are packages for regular customers and an exclusive package for the high-net-worth segment of customers.
Businesses that want to serve both trenches and rich kids should make use of the tier pricing strategy. Mind you, the rich kids are not necessarily paying for luxury, they are paying for a premium offer (additional benefits).
There must be a significant range of difference between your regular price and your premium price, or else your premium price may become the new regular price.
If your premium customers enjoy laundry pickup and delivery services for a ₦100 extra price, sooner or later, all your customers will switch to the premium package.
In pricing, different customers value the same product in different ways. In a country where over 120 million people live in poverty; I am sure Don Jazzy was not targeting the hungry man on the street who cannot afford one meal per day to patronize his ₦12,000 Jazzy Burger excluding ₦4,500 delivery fee.
₦12,000 to buy a burger seems too much for the average Nigerian low-income earner. That same ₦12,0000 burger is neither a premium nor luxury price for a particular segment of target customers. It is a regular price for those who can afford it. Most of those complaining about the burger price are not his target customers. And this is fine too.
- How strong is your brand?
You may decide to choose your price based on cost, based on marketplace price, or based on customer’s perception of value. Branding increases the perceived value of your product or service.
Branding is the only reason why customers will pay a higher price for an average product. Branding is the reason why sellers or service providers who are not as good as you are charged a higher price than an unbranded business.
This is why as your build your business; you should also grow your brand. Branding is beyond names, logos, colours, and fonts. The caliber of customers you serve can increase your brand. This is the secret of Yinka Ayefele.
The location of your business can increase your brand. If you have your head office in Victoria Island or New York, the perceived value of your business will increase.
Your online presence can increase your brand. This is the secret of Aproko Doctor on Twitter. What people say about your business can increase your brand. This is the secret of PiggyVest.
Certifications, awards, recognitions, membership, and licenses increase your brand. A CFA charterholder will charge higher than an uncertified Finance expert.
Winning the Grammy Awards will increase Angelique Kidjo’s brand and performance price. Being a member of Forbes’s Coaches Council will increase your perceived value. NAFDAC-licensed honey will cost more than roadside honey along Ife/Ibadan Expressway.
How long you have been in business can increase your brand. Tope Alabi is a household brand in the Nigerian music industry because of age long presence, consistency, and evolution. Alibaba is a stronger comedy brand than Woli Arole because he maximized the first mover advantage.
TECNO is a strong brand with respect to centrality. The iPhone is also a strong brand with respect to luxury. Although both are strong brands, a luxury brand is more expensive than a central brand. It does not mean that the central brand is a weaker brand.
Ololade Asake ticket sold for ₦70,000 for VIP standing in December 2022. Wizkid’s ticket sold for ₦30,000 and Victony sold for ₦3,000. Despite the higher price, Asake’s concert was sold out first.
Even if Asake charges ₦1 million, some people will still pay. Although Asake is not the biggest African artiste, his brand was the rave of the year 2022 and this was reflected in his ticket price.
Learn to reject some offers no matter how broke or desperate you are, especially if you have built a brand of excellence. Charge with your full chest. You deserve to be paid well for building a strong brand.
- What is your motive for selling?
Not all businesses exist purely for profit. Some businesses are focused more on the impact than monetary gains. This is why your pricing decisions must align with your business goals.
You have to know what exactly is your motive before choosing a price strategy. It will be foolish for a profit-focused business and an impact-focused business to engage in a price war. Their motives are different.
The Life Series is an event organized by Mrs. Ibikun Awosika to discuss personal growth, business, and career. One would expect that the entry fee would be $10,000. No! She charged ₦10,000 for physical entry and ₦7,500 for virtual access. It appears too cheap for her worth. Right?
While other high-ticket businesses focus on massive profit, Ibikun Awosika focuses on impact. Those who run a premium model should never talk down on those who run an impact model.
Some businesses want massive impact plus massive profits. Some businesses want massive profit only. Some businesses want to impact very few only and make massive profits. None of these models is wrong or superior to another. It’s first about your selling goals and motives.
- Where is the location of your target customers?
A Chinese restaurant located in Nigeria will cost more than a Chinese restaurant located in China. A textbook sold at Covenant University will cost more than a textbook sold at Obafemi Awolowo University.
A shirt sold in the Airport Boutique will cost more than a shirt sold in the Dugbe market. Most hotels on the Island cost more than hotels on the mainland. Location is a major factor before determining your selling price. Considering where your target customers are located is a wise pricing decision.
- What is the prevailing economic condition?
At the peak of the recession in 2016, Coca-Cola and Pepsi hiked their 50cl plastic bottles to ₦150. Bigi Cola launched into the Nigerian market and sold its 60cl bottle for ₦100. Coca-cola responded by launching the 35cl Solo Coke bottle for ₦100 and 60cl Bigger Boy for ₦150.
More Nigerians switched their loyalty to Bigi Cola. Coca-cola hit back with its 60cl Zero Coke for ₦100. More consumers found more value for their money in Bigi Cola’s 60cl for ₦100. Coca-cola dropped the price of its 50cl to ₦100 and Solo coke was gradually withdrawn from the market.
Pepsi also launched 60cl “Long Throat” bottle for ₦100. All these moves were because they wanted to win the hearts of many Nigerians who have become more impoverished due to the crashing economy. It takes a tactical approach to raise your price without losing your customers.
In 2022, when the economy dwindled more, Bigi Cola introduced a 35cl bottle for ₦100 and changed from 60cl to a 50cl bottle for ₦150. The market embraced it. La Casera and Maltina lately joined the queue.
Customers are not loyal to any brand, especially when the economy is down. All they want is the same quality at a reduced price, even though the quantity may be reduced a bit.
When the economic condition is bad, business owners are left with the option of increasing prices or reducing quantity. Only smart entrepreneurs maximize the third option of reducing quantity while retaining price and quality. Many businesses launch a sachet version of their product during an economic recession.
When you have the option to either increase your price or reduce your quality during an economic downturn, choose the former. When you increase your price, you lose some customers temporarily, but when you reduce your quality, you lose most of your customers forever.
In conclusion
Before you increase your price, notify your customers ahead of time. If you are not offering quality and satisfying your customers, raising your price may have a negative effect on your customer relationship.
Provide options that will suit their budget. Customers are usually more likely to accept higher prices if they believe they are getting something extra in return.
If you raise your price without a prior explanation, your customers may be angry and conclude that you have become greedy or extortive. But if you take your time to clearly communicate to them the reason for the price increase, they will embrace the change easily.
© Kingsley Ndimele
Your Reliable Consultant
How To Run a Business Successfully as a Single Mum
It’s a lady’s world, but it’s a different world entirely for single mums – emotional cravings, bottled-up sexual urges and burdened mind.
Life happens. Husbands abandon their families. Lawyers put couples asunder. A girl-child gets pregnant out of wedlock. Death strikes and turns the woman into a helpless widow. Surrogacy is the new COVID.
According to Gallup World Poll, Sub-Saharan Africa has the highest percentage of single mothers worldwide, at 32 percent.
Entrepreneurship is a lonely journey. Sometimes, a loving spouse can be the best emotional partner you can have as a business person. Not having anyone to rant to can be frustrating. You either find yourself talking to yourself unconsciously or to your innocent child.
Building a business as a single mum is like living like an orphan. Severally, you will cry, pat yourself on the back and move on. You need an emotional partner to stand by you and reassure you that you are not alone.
Motherhood, just like entrepreneurship, is not a 9 -5 job. Single parents are nearly often working parents and this may mean a parent who is more away than at home. Motherhood is hard. Entrepreneurship is not for the fainthearted. Combining both is like solving Chinese Mathematics. But this is the reality single mums live in for the rest of their lives.
Entrepreneurship is harder for the powerless. Living as a single mum is akin to living without a defense. Combining both makes you much more vulnerable.
Social Service Statistics says that single mums are five times more likely to be poor than married couples. Raising a child alone will drain your purse. Building a business alongside is financially demanding.
While you are making plans to restock your inventories, your child suddenly falls sick. Your profit or part of your capital will be spent on medical bills. You carry the financial burden of a father, mother and an entrepreneur.
Unending bills with no financial support can be a nightmare experience. This is the silent battle that single mums fight daily.
Knowing that you are neither living your best life nor giving your child the best life nor satisfied with the growth of your business can affect your mental health negatively. Sometimes, you may slide into depression and regret. Being a single mum can be psychologically stressful.
Nevertheless, being a single mum is not a setback. Interestingly, the skills you will need to cope as a single mum are the same skills you will need as an entrepreneur – multitasking, creativity, problem-solving, time management, and money management.
Although there are no magical solutions to the travails of mompreneurs, there are proven tips that can be valuable for single mums who want to build successful businesses.
1. Take responsibility
If you are waiting for someone to pity you, then you are not ready to succeed. No one will share the responsibility with you. Stand up and take full responsibility for your life. After all, life happens to us all in different ways and proportions.
You won’t get it right from the onset. The key word is to start…today. You’ve cried and complained enough. The status of a single mum is a new normal that you have to live with courage.
2. Draw strength
To stay focused and motivated, you must draw strength from the inside of you. To stay motivated, keep a record of your little accomplishments.
3. Market your business shamelessly
Your business is your main source of livelihood. Be shameless about it. Open your mouth and market your business. Write about it. Talk about it. When you introduce yourself, briefly talk about your business.
If possible, carry some samples of your products around. Have well-designed business cards or flyers that you give to people. Don’t let anyone shame you for marketing your product.
4. Look for role models and support groups
Your life is a product of the contributions of other people. Many single mums have successfully built businesses. Their journey and progress can inspire you.
Join support groups and communities of single mums and widows and draw insights from collaborative learning. Your problem is not peculiar to you alone. Don’t build your business in isolation.
5. Be productive
The key to success as a mompreneur is not just a mindset shift, but also hardwork. Bills will not stop coming because you are a single mum. Expenses do not discriminate. Therefore, you should only be involved in productive activities that will increase the value of our business.
Read books. Watch YouTube videos. Take online courses. Attend and organize training. Acquire high-demand skills. Acquire another degree. Apply for grants and loans. Never be caught idle.
6. Be organized
If you do not have a to-do list, you will most likely be overwhelmed with the tasks. Consider your daily tasks and prioritize them according to importance. Your life, your child, and your business should come first.
7. Be smart with money
Whether you are a full-time business owner or you have your business as a side hustle, always remember that you are the breadwinner of the family – the only source of income.
This is not the time to lavish money on every aso-ebi and the latest iPhone. Learn to manage money. Build an emergency fund. Invest in yourself. Invest in your business. Invest in your child.
8. Your mental health matters
Building a business requires significant amount of mental energy. Therefore, you need to prioritize and protect your mental health so that you don’t slide into depression or bitterness. When life gets overwhelming, learn to take some rest, take time off, see a therapist or counsellor.
9. Prioritize your family
Make your child a part of your entrepreneurial journey. Put your child before a man. Your relationship with a man may end, but your relationship with your family is eternal. At the end of the day, your child will be the only one left – a solace and comfort in your life.
When everyone turns their back on you, your family will still be there. Your husband’s family may show pseudo-interest in you primarily because you have their child. But your own family will always stand by you through thick and thin. They are more likely to babysit your child occasionally while you away doing business.
These are alternative emotional partners on whose shoulders you can lean and cry whenever you feel down. Why languish in loneliness when you have a family who is ever-ready to give you listening ears? Don’t also forget trustworthy friends who stick more like families.
10. Your integrity is your defense
Build integrity. It will save you when you least expect it. Be a woman of your word. Deliver on your promises to your customers. Pay your suppliers. Pay back your loan; your integrity is an investment. A good name is as important as silver and gold.
11. Do whatever makes you happy
If you can afford to buy a car, build your house, or go on vacation don’t hesitate. You are not immune to enjoyment.
Learn to celebrate your small wins. Have a budget for fun. You worked for your money, so enjoy your money. You deserve a soft life too.
If getting married again will make you happier, be open to love.
Your happiness is your responsibility. Nobody else will make you feel good about yourself. You can live your dream life as a single mum.