"Occupy Nigeria" - People, Politics, Power and Entertainment

                                                        
I am not sure anyone anticipated the events that followed the removal of petrol (PMS) subsidy in Nigeria on the 1st of January 2012.  The street rallies, protest marches, etc. that played out in Abuja, Kano, Kaduna and some other Nigerian cities were predictable because they followed historical patterns in many respects. 

What i never dreamt about was the intense drama that played out at the Ojota Square in Lagos State.  It was the biggest carnival of the decade.  No political party or movement had ever pulled such a stunt, ever.  There were hundreds of thousands, if not millions of people at the Square, everyday for a little over a week.  They even planned and took  a weekend break and attempted to resume but for the forestalling actions of government agents.

                                              

The Ojota rallies were an odd mixture of people, power, politics and entertainment.  The people have completely re-defined how rallies are organised and managed for maximum impact, and i must add entertainment.  The people were of course the drivers of the event and even though it must have all began with a handful of civil society organisations in collaboration with organised labour, i saw more people sucked into the rallies like it was the work of a clever enchantress. 

                                          

The music, the drama, movies and the numerous side-shows were used to energise and convince the people that the rallies were the best places to be for that period.  Skilled orators came and spoke politics, the politics of the petroleum industry and the politics of poor governance in Nigeria.  These masterful speakers informed, provoked, needled, stirred and goaded the mammoth crowds.  However, noticed that each time it appeared that the people had been overtaken with fever of some sorts and was going to run amok, entertainment in the form of popular music was used to douse the tension and to rein in the masquerade.  I could hardly believe all of these as i watched it live.

             


The power plays that went on for that week was really curious.  The highlight of it for me was when strange bed fellows, the CSOs and the organised labour, fell out and went their various ways at some point.  It was a classical lovers quarrel.  Labour yielded to the logic of "national security" or insecurity and suspended the strike action but the civil society determined to carry on with the project.  Of course, the formal pronouncements and action that initiated the movement was made by Labour so the CSOs at this time were like the proverbial house built on sand.  How can it stand the fierce four winds of security agents, legal actions, betrayals of trust and conflict fatigue? 

                            

It was also interesting to note how the subjects of discussions or issues in contention kept changing.  The government kept talked about saving the economy from imminent collapse, saving money for the future, fighting corruption, etc.  On the other side, a cacophony of voices spoke about maintaining the cost of petrol at  N65.00,  about better governance, about corruption, about the ordinary man, etc.  i believe someone must have deliberately led everyone into this impossible shouting match.  There was no way any meaningful conversation could be had because every one was talking about everything until we all got weary.  Then it stopped and we relocated the debate to a committee room in the national assembly and a carefully selected group of persons now invited to participate.  What a way to transform conflict?

                                           

Let stop by sharing a few thoughts on how the "Occupy Nigeria" movement is already and may still affect businesses in 2012.

1. The petroleum industry in Nigeria has probably started the last lap of its journey to becoming truly transparent, responsible and accountable.  These are indeed the last days of easy money in the industry.  So, if you a service provider or contractor of any kind, this is the time to cleanup and get ready for serious competition, dispassionate enforcement of regulations and for washing your linen in the arena of social responsibility, hopefully, yours are clean enough.  I think these things will happen quickly - within 2 years.
2. Organising and managing large, and i  mean really large open events such as political rallies has just become big business.  So if you are in the events management sector, please get ready for the next round.  Prepare your proposals and submit them to the various governors getting ready for re-elections this 2012.  By all means send to their opponents as well.  The next big and predictable one will be in the 2015 general elections.  Small businesses, get ready to supply and feed the big fish in the ocean.  in my rough estimation a minimum of 25,000 micro, small and medium scale businesses were involved in the Lagos rallies and hundreds of millions of Naira exchanged hands in just a few days and at one location.  You need to get plugged in deep to this boom economy next time around.
3. Government expenditure in capital projects and in the delivery of social services is likely to improve while expenditure on overheads may begin to dip.  This calls for a change in strategy because the ways of securing business from overhead budget of a Nigerian public institutions are quite different from how to get business from the capital budget.  The degrees of flexibility that the institutions enjoy vary slightly but significantly.  So prepare to make some adjustments to ensure you remain competitive.
4. Government is going to get more serious about creating enabling environment for small and medium scale businesses to emerge and to thrive for the simple reason that unemployment is a major reason for the ready availability of "unhappy people", the most important element anyone needs to start another "occupy Nigeria" movement.  So, get your business plans ready and look out for the next opportunity to submit it to a government programme.

I hope you have found this piece useful.  Please send me your feedback.

More to follow soon.

Regards,

Uzo Nduka

CONTRACTORS, SUPPLIERS AND CONSULTANTS CAN NOW RECEIVE CONTRACT & TENDER PUBLICATIONS ON THEIR COMPUTERS EVERYDAY

You may now subscribe to the Tenders Toolkit apps to have Nigerian contract & tender publications from private companies as well as federal and state governments delivered to your computer every single day.

All sectors and industries are covered.

Life is made easier because you can search and find contract & tender publications based on the location of the job, by industry or by dates.

Subscribe for one month now at N4, 000 only.  Get 20% off when you do this before end of November 2011.

We guarantee your money back if you are not satisfied and wish to cancel your subscription within 1 week.

You can also earn free subscription by helping us share this email and the attached product brochure with your friends, contacts and associates.  You get one week free subscription for every successful referral.

Call us 24/7 on +234 (0) 816 626 3567 and +234 (0) 816 651 3608.

Or send an email to info@dominoinformation.com; onome@dominoinformation.com.

How to test new business ideas before you start

The most common thing people say about starting a business is that it is risky.  I am not convinced paid employment is a safer way to earn a living than starting a business.  You can get sacked! Just follow the business section of any news report to know how easily this can happen.  You might also be forced to take a salary cut with all the attendant frustrations.  There is a lot that can go wrong there.  Being employed has its own risks and they are just as daunting as the risks associated with starting your own business.

The nice thing about starting a business is that we now know nearly all the reasons why they fail and what to do to avoid that failure.  Here are eight ideas for testing you new business idea, before you start.  “Be bold but, look before you leap.”

1.       Conduct a random survey. Stop people at a convenient and safe place and ask them what they think about your idea.  Be very polite and gentle about this please.

2.       Ask consumers of the product or service you want to offer what they think. Ask them what improvements they would like to see.  Ask them why they buy and pay so much.  It will help if you show them mock-ups or prototypes.

3.       Convene a small group discussion.  Gather a few people together preferably people that do not know each other but all have a good head on their shoulders.  Tell them about your idea and then ask them to give you feedback.  You might have to pay for lunch or dinner.

4.       Ask friends and other people around you that you can trust to tell you what they think, honestly.  Make sure the people you ask can be blunt and can explain why they take a certain position.  People who just endorse or criticize your idea without any explanation are not really helpful.  The explanations will help you decide what improvements to make, how to manage risks, etc.

5.       Find out who has tried what you are about to start and go talk to them.  You can almost bet that someone somewhere has gone ahead of you.  Please go learn from their mistakes if they will let you.

6.       Talk to advertising, marketing and branding experts.  These professionals spend their lives think out ways to sell new products and services.  The good ones will tell you what might sell and what might not sell, almost on the spot.

7.       Blog you idea.  Invite feedback on the internet.  Do not be too afraid someone will steal your idea and start it.  This fear is usually unfounded but very incapacitating.

8.       Publish your idea in a trade journal or other publication that consumers read and invite comments from readers.  If your idea newsworthy, editors might publish it without charge.

END.

Staffing problems and ideas for solving them

Most small businesses have major staffing challenges that can actually be managed with careful planning and action.  These challenges arise from weaknesses that are inherent in the typical small business.

First, they cannot afford to compete with the larger companies for the most qualified employees.  While a multinational company can afford to offer a fresh graduate an annual compensation package ranging anywhere from N3m to N7m, most small businesses will struggle to offer half of the figure at the lower end.  This is not because small business operators are mean people.  They simply cannot afford to pay much more.  To complicate matters, small businesses may not be able to invest a lot of money in the training and personal development of their employees, compared to the larger companies.  Thirdly, they are not able to offer long term job security because the future is too uncertain and the failure rate too high for that. 

These are the three main reasons why most qualified job seekers will accept an offer from a multinational, even if it is for a lower position.  The end result of this unfair contest for talent is that entrepreneurs often have to find their employees from a pool of less qualified, less competent or poorly trained job seekers because the preferred ones won’t even bother to submit an application.

My conclusion is that when it comes to staffing issues, the right question for small business owners and operators to ask is “why should anybody want to work for me?”  It is not, “why can’t I find competent and committed employees?”  The shortfalls are obvious and job seekers can see them. 

Here are seven ideas that may help the small business owner or operator overcome the staffing challenges.

1.       Develop a practical and employee focused value proposition that makes it clear to your staff what and how they will benefit (besides the take home pay) by working for your small business.

2.       Consider offering profit sharing arrangements or even partnership or co-ownership of the business as a way of rewarding excellent performance.

3.       Have a policy of treating staff with dignity and respect.  This must include processes and procedures for employees to air grievances and to have them adequately addressed.

4.       Include something that is important to your employees (not necessarily money) as part of your reward package.

5.       Keep your management and leadership style as “impersonal” as possible, especially in your communication.  Talk more about what the business needs and requires staff to do rather than what you as an individual want them to do or not do.

6.       As much as possible ensure they get paid on time.  Communicate as soon as you know there will be a delay in payment of salaries.

7.       Ensure everyone has a job description and a clear career progression path.

END.

2011 - A Promising Year for Nigerian Entrepreneurs



A Small Holder Organic Tropical Banana Farm in Lagos, Nigeria



The Year 2011 promises to be an excellent one for Micro, Small and Medium Enterprises (MSMEs) operators and entrepreneurs.  It appears particularly promising for those whose visions and growth plans had been discouraged in the recent past by the lack of access to credit or finance.  The President Goodluck Jonathan Administration and Mallam Sanusi led Central Bank of Nigeria (CBN) appear very determined to offer them practical solutions to the problem.  Their public pronouncements on the issue lead me to believe that this is a “must win battle” for these two leaders.  Perhaps this is one field in which they wish to leave their footprints in the sands of time.  

Some of the common reasons why MSMEs operators and entrepreneurs are not able to secure finance or gain access to credit include:

1.       A pervasive perception that it takes a “miracle” to access credit from a Nigerian bank.

2.       The enduring poor credit standing or rating of MSMEs in general by lending institutions.

3.       The inability of most MSMEs to provide collateral and credit guarantees.

4.       Weak business plan documents and proposals.

5.       The high cost of MSMEs credit administration and management.

I find a lot of hope in the on-going efforts of CBN, Bank of Industry (BOI) and their partner organizations to address these issues using a multi-pronged approach.  I believe the solutions to these problems are nothing like rocket science.  The bigger part is “political will” and the present crop of leaders seems to have that in good measure. The MSME operators and entrepreneurs must also play their roles in this regard because it is simply not enough to remove the supply-side obstacles.  The demand-side challenges also need to be overcome and this has to be done by the MSMEs operators and entrepreneurs themselves.  Sources of finance and credit to MSMEs that should be seriously and carefully considered in 2011 include:

1.       The Small and Medium Enterprises Equity Investment Scheme (SMEEIS)

2.       The National Automotive Development Fund

3.       N100 Billion Cotton, Textile and Garment Industry Revival Scheme

4.       CBN N500 Billion Intervention Fund

5.       USD 200 Million Fund for the Entertainment Industry

6.       N200 Billion Re-financing and Restructuring of Banks’ Loans to the Manufacturing Sector.

7.       N200 Billion Small and Medium Enterprises Credit Guarantee Scheme (SMECGS) for Promoting Access to Credit by SMEs in Nigeria.

Let me conclude by warning fellow entrepreneurs that a key consideration in choosing a source of business finance or credit is to strike a balance between equity and debt in order to ensure that the funding structure is appropriate for your particular business.  There are no one size fits all in this regard.  Please remember that Mallam Sanusi (CBN Governor) is a professional risk manager!  The overall objective in raising finance is to ensure that the financial risks carried by your MSME are maintained at an optimal level.

Uzo Nduka

Lagos, Nigeria

What does the failure of any one entrepreneur represent to a nation?

The failure of one entrepreneur represents a great loss to the nation and society.  A loss of opportunities to create wealth. A loss of opportunities to create new jobs. A loss of opportunities to improve GDP and also to improve the quality of life of some citizens if not all.

"The failure of one entrepreneur is a national tragedy."

Uzo Nduka
Lagos, Nigeria


    An entrepreneur's fish pond at lunch time.

Innovation: The Spirit of Entrepreneurship

There is no arguing that innovation is the spirit and soul of entrepreneurship. 

My intention in this short piece is to highlight four fail-proof opportunities for the serious minded entrepreneur to innovate, and be successful.

1. Production technologies and processes that are very efficient: These are sure winners, especially when supported with robust management and marketing systems.  It means that the entrepreneur can beat other players in the market place in terms of production volume and price - you can deliver more and cheaper too. The entrepreneur that has innovated this type of technology may consider selling the patent rights if they do not wish to live with the hassle of day-to-day management of the enterprise.
2. Personal charisma or persona: It might surprise some people to learn just how many entrepreneurs succeed and become fabulously wealthy, simply because of one individual's charisma or persona. It is particularly important for entrepreneurs in the entertainment, hospitality and specialty products or services industries to explore opportunities and to innovate a "strongly emotive and unique selling point" for their business in this area.  Be careful though! You must have the right "face" and "personality" to pull this off.
3. Quality that surpasses customer expectations:  The entrepreneur that can innovate and create products or services that surpass customer expectations will most certainly do well in the market place.  Customers are bound to become your self-appointed sales representatives and will market your products or services to their friends and contacts, at no direct cost to you.  Please bear in mind that customer expectations are dynamic and that you have just signed up for a marathon race that has no finish-line, if you elect this pathway to entrepreneurial success.
4. Making luxury goods affordable to the masses: A determined entrepreneur should always scan the market to identify various luxury goods and services that he or she can make put within the reach of the masses through innovative production, packaging and marketing.  You are not likely to miss target if you go this route, and the masses will thank you for it, after all you are letting them enjoy some product or service that had been exclusively for the rich.

With best wishes.