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The art of starting and staying in business
Casmir Igbokwe
A beautiful bride is the pride of her husband. He takes her to most functions and proudly introduces her to his friends and associates. When he notices other prying eyes around her, he becomes highly possessive.
In business, you are a beautiful bride if you master the art of entrepreneurship. People will court you; they will imitate you; but they will never be like you.
Developing this art requires some discipline, some method. The Managing Director/Chief Executive Officer of IBFC Agusto Training Limited, Lagos, Mr. Dima Oruene, gives some of these key success factors.
The first one is vision – the ability to see. But instead of the eyeglasses, what you need here are business glasses to see beyond the normal boundaries. Oruene says you must be able to share this vision with your team.
You must also be able to translate that vision into strategies, see a supply gap in the market and then determine what type of customers to focus on. When the Federal Government banned the importation of fruit juices in the country, for instance, some of the producers did not go to sleep. They repackaged their products such that they now produce locally.
One big challenge entrepreneurs face in growing their businesses is capital. For start-ups, this is a serious problem. Experts advise that if you are in this category, you start by sourcing finance from family members and friends.
Oruene notes that you will never have enough money to start your business. What happens, he says, is that when intellectual capital meets financial capital, a child is born. That is to say that if you have a good proposal (intellectual capital), there will likely be somebody willing to finance your business.
You need to know how to get money from people. Older people, experts say, are more careful with giving out money. Younger people, however, give more because they have more leverage for taking risks. They still have time to make amends if they make financial mistakes. So, make your financial requests more from younger people.
You also need to be bold. Entrepreneurs, Oruene avers, are risk takers. You need to align with people who are like you. You also need to remain focused, disciplined and passionate about your business.
As you grow in the business, don’t be too greedy and proud. Know your strengths, weaknesses, opportunities and threats. Don’t compromise your knowledge capital, as it is your biggest asset. Train yourself and build mentors that can guide you.
A good case study of a progressive approach to entrepreneurship is the Vic Lawrence & Associates story. The company, which was established in 1993 as Newage Communication Limited, changed its name to Vic Lawrence & Associates in March 1998. Then, it provided executive training and development services to the private and public sectors of Nigeria. In 2000, the company increased its range of services and client base.
In 2002, the Managing Director of the company, Mrs. Mo Abudu, says she approached SME Manager Ltd. to provide the required financing for growth. SME Manager is a consortium of about 12 banks. They are venture capitalists.
SME Manager provided VLA with the capital it required and, thus, bought a share of the dream of Abudu. This also led to the creation of The Protea Hotel and Oakwood Park. The hotel, Abudu submits, cost about $9million. The lesson here is that it is better you have five per cent of a big organisation than having 100 per cent of a small, struggling enterprise.
Partnering with SME Ltd. provided VLA with some benefits. Abudu says it gave her company additional credibility required to attract high potential human resource and penetrate blue chip customers. It also led to the institutionalisation of business processes such as a robust accounting department and due process and structure.
“Three years after the investment, not only has Vic Lawrence been able to increase and further improve the quality of its service delivery, its customer base has also increased significantly. It has been able to increase turnover by over 400 per cent and staff strength by over 500 per cent,” Abudu stresses.
What you need to make the process a success, she adds, is to focus on the big picture, have lofty vision, drive and believe the mantra, “Together, Everyone Achieves More (TEAM).” While selecting a venture capitalist, select one that understands your business, the industry and shares similar values with you.
Part of the challenges VLA faced with the coming of the venture capitalist were opening the business to third parties, long-drawn-out negotiation and expensive exit of the capitalist.
Recently, VLA did what is known in business parlance as management buy-out. That is, the company paid off the venture capitalist. It then brought in directors who had a track record of excellence and who could buy a sizeable stake in the business to add value to it.
This partnership of three women is changing the way entrepreneurship is practised especially among Nigerian women. It has increased the competences, business networks, capacity, commitment, stability and strength of the organisation.
It intends to be the number one company in Nigeria offering outsourcing services and personal development services. It also intends to be one of the top 10 companies in Africa offering human resource solutions. And it is targeting $50million as turnover in the nearest future.
Staying in business, Abudu summarises, requires focus, determination, innovation, entrepreneurial flair, leadership skills and gut instinct.
When you are able to combine these factors and build your business to the required standard, you will become a beautiful bride.
The PUNCH, Tuesday, December 06, 2005
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