Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Thursday 17 December 2015

HOW INNOVATION WILL BENEFIT YOUR BUSINESS

If you are conversant with the foreign exchange market in Nigeria, at least you already know that the Naira is exchanging for as much as 260 for 1 dollar. It will be so easy to blame the government for poor monetary policies, but look around you, how many ‘made in Nigeria’ goods are people buying? Nigeria spent about N1.6tn on importation alone in Q1 of 2015. At this rate, there is no reason why the naira will not continue to fall as long as Nigerian businesses give consumers reasons to patronize foreign products. For instance, to fix tiles in the house, we rely on foreigners because most Nigerian businesses do a poor job.
The problem is not just in people not patronising made in Nigeria products, but their lack of confidence regarding the quality of the product, poor creativity and occasionally, high price compared to the quality. I can make excuses for highprice, but not quality and creativity of a Nigerian product.
Many small business owners in Nigeria are yet to compete because they lack the creativity and innovation required to be successful in business. Small businesses should be the champions of innovative thinking because what they lack in terms of capital, they made through innovative ideas. As we enter the New Year, here are few benefits of managing an innovation-oriented business.
Innovation creates more value for your business
Customers buy value, not product. Innovation helps you to create and add more value to your product at a relatively lower cost. When you manage an innovation focused business, your primary assignment will always be to make available improved product or services at a cheaper price. 
Innovation helps you make a balance between quality and cost. Small business owners should devote time to producing quality products/services with additional features, and the problem of lack of patronage for locally produced goods will be taken care of. Spend more time reviewing your product/service with the aim of identifying potential values that customers will be willing to pay for.

It gives you a Competitive advantage
Innovation gives you an edge in business. Take innovation away, no small business will be able to compete effectively in the market. Innovation whether in terms of products, services or even processes distinguishes you from the lot, and gives you a unique identity and position in the market. 
While some big businesses compete based on innovation, others like Dangote group are only surviving not because there is anything innovative about their products, but they have the capital and government backing. If you don’t have the capital or government backing to compete in the market, identifying areas your product or service can provide better solution can help you gain a competitive advantage in the market, because nothing places any business above board like innovation.

It enhances your business reputation
Innovation wins your customers’ confidence. I know of people who are addicted to anything with the Apple brand on it. They don’t question it, they just buy it. This is possible because Apple Inc has built an expectation in their customers, so they don’t have to question their products. 
When customers see how innovative your business has been over time, they develop confidence in your brand, and stick to it. Your business reputation is more important and valuable than the quick profit you want to make. Innovating in business doesn’t come easy but with persistence, you are certain of a great outcome.

Embedding innovation as an integral part of your business activities is the most challenging task; however it is your only choice for growth and competitiveness in the coming year.

Monday 19 October 2015

3 Considerations Before You Push the Autopilot Button in Business

           
The ultimate aim of any small business owner is to get to a stage where the business becomes self sustaining or what I refer to it as ‘putting your business on auto pilot.’ That is allowing your business to run with little or no supervision from the owner. This is an error I have discovered recently from some small business owners who have a lot of ideas they want to explore. They are so enthusiastic about their ideas that they want to take all of them to the market at the same time.  While it is good to hands off, as it shows that the business has matured enough to do without you, an entrepreneur must get the timing right.

A friend recently launched a new business. The quality and features of his product was his major selling point and customers loved it. 6 months later, I was invited to assess the business performance and make recommendations. Amongst other things, I observed that my friend never stays around to monitor the activities going on in his business. When I asked, his response was that he wanted to allow the business to run on its own so that he can focus on establishing other things. Great as that may sound, I told him it was too early, and the move was wrong. As usual, he told me “I know what I am doing”
Recently, he told me he was not breaking even and cost was driving him out of business. He then said, “I am not losing customers, but I can’t explain why I am not making profit.”  He couldn’t explain ‘why?’

The early stage of your business is not a time for exploring other business activities, it’s a time to consolidate on what you have, identify the direction and learn more about your current business. Like my friend, you may not be losing customers, cost is going up, and you are not gaining new customers because you are yet to learn the uniqueness of your business. You are yet to identify means to efficiently and effectively satisfy both new and old customers.
The early years of your business is a time for
·         Building a system
There is no better time to put a structure in place than the early days of business. You have to build a structure that will distinguish you in the market and set you on the path of growth.
·         Strengthening strategy
As you grow daily in business, so does your strategy grow older. Handling the activities in your business helps you reinforce your strategies, and better define your business vision.
·         Knowing your customers better
If you are not losing customers, and it cost you more to service the same customers, then there is something about your customers/client that you are missing.


The airways of business are too rocky for you to put your business on auto pilot as a young start-up. The early days of your business are too important to be left under the care of someone else. It should be a time of learning and experimenting, testing strategies and bringing in of creative and innovative ideas into your operation. This cannot be achieved without continuous and systematic innovative activities by business owners.

Tuesday 8 September 2015

3 Challenges of converting your Ideas to New Product Development

Businesses are always in constant search for new ideas that will sustain them in the market, and deciding on a particular idea is usually very challenging for entrepreneurs. As an entrepreneur, various things can slow down the rate at which you convert your ideas to eventual new product.
For every successful new product development, dozens of promising ideas have been considered by an organisation. The essence of the consideration is to determine which of the ideas is good enough to be introduced into the market at the right time. Timing is key in business decisions, and every idea must be considered along this line. Businesses prefer a business idea that can move into the market faster before that of the competitors.
However, there are delays entrepreneurs will likely encounter before they make that decision to create a new product.

Too many disjointed ideas:
It is good to have a pool of ideas on the table before making a decision, but the more ideas you have for consideration, the slower you will be at picking one. When you have a large number of promising ideas that you are considering at a time, it becomes more difficult to pay attention to any particular one. Each business idea is a process with its own chain of activities, so it is important to consider early which of the ideas is more promising/important, at what cost, and what experience do I have to execute it? The fewer the promising ideas you have, the better your chances of converting one into a finished product.

Capacity of resources:
Every business idea requires resources to make it achievable. Resources help bring ideas to fruition however; when these resources are shared among various promising ideas, it weakens the speed at which you come up with new products. You must understand the capacity of your resources to sustain an idea or group of ideas per time. Taking all ideas with your limited resources will only lead to a crash even before you develop any product

Lack of Experience:
When exploring ideas, it’s important we focus on ideas around our areas of competence. It’s easier to develop ideas around website/App design if you have knowledge in programming than if you don’t have at all. We have alot of aspiring entrepreneurs who go into an industry where they don’t have the needed experience and capacity to breed ideas that can lead to new products hence; they remain stuck in existing products. If you want to convert ideas into new products, begin by considering ideas in your field of experience.

When selecting business ideas, focus on the ones with technical and commercial values, and that has the capacity to keep you motivated into a new product development. New product development is all about speed – getting into the market faster. No business wants to introduce an obsolete product into the market; they make effort on minimizing delays from ideas to new products.


Tuesday 14 October 2014

Starting a Business: Between Desirability and Financial Resources


In both developed and developing countries, entrepreneurship has been advocated as a means of bridging the gap between the poor and the rich. It been the driving force for economic development especially in capitalist countries. However, the rates of growth of entrepreneurship between developing and developed nations have raised some concerns that seem to suggest that poverty prevents people from starting a business. The implication of this is that poor people who are predominant in developing nations lack the financial resources to engage in entrepreneurial activities. Again, from studies done especially in Nigeria, most people believe that the reason they can't be entrepreneurs is because they lack the financial resources to do so.

For obvious reasons, this argument/believe is faulty. First, starting a business or being entrepreneurial is more of an attitude than it is of financial resources. Those who engage in entrepreneurial activities are driven either by the strong desire to succeed or to meet needs within the society. Secondly, there is no empirical evidence yet to suggest that being rich or having a rich background guarantees success in entrepreneurial activities. Moreover, many entrepreneurs in Nigeria succeeded through determination and hard work, although this two factors seems to be fueled by the desire not to be poor.

No doubt financial capital is important for starting any business, but the desire to go into business and the attractiveness of the business opportunity that exist is more important hence, aspiring entrepreneurs must focus on their psychological needs rather than their financial needs. Entrepreneurs need to have the right mindset, ask the right questions, develop a business plan, and implement a strict business strategy in order to start and succeed in business.

When a good opportunity is identified, it paves the way for financial resources. With the right perception, attitudes, and beliefs an entrepreneur is set to launch out. 

The Briefcase: Changing a Winning Strategy



Sustaining a winning strategy in business is good, however, a time comes when dropping such strategy becomes a necessity even when it is still profitable to the business and the reason is simple – every stage of business growth requires a new strategy, and when a business gets to maturity, it’s an indication that a new strategy is required to sustain the organization in business.

An entrepreneur can reinvent a business by employing deliberate and conscious strategies that will help the organisation compete effectively, and the only way an organisation can maintain its growth is by launching new growth business strategies when the core units are still strong.


Don’t stay too long on a business strategy, you must learn to adjust in a dynamic business world.

Sunday 15 December 2013

A Short Business Walk with Nelson Mandela

Today December 15 2013, Nelson Mandela is finally laid to rest in his home town Qunu. He is a Legend, and the face of freedom in Africa and indeed the world. An iconic leader that earned world respect because of the values he represents. However, beside his personal life and struggles for freedom, there is a business perspective to his name, and there is a lesson for every upcoming entrepreneur who wants to add value to business.
It is in your hands
The decision to make a difference is in your hands irrespective of your challenges. The success of your business is in the choices you make, the diligence you put into work and the values you represent. Take charge, and take action to grow your business.
Perseverance
Taking 27 years out of a man’s life is enough to discourage and kill his dream of a free South Africa, but he refused to give up his ambition. Set your business goal and determine to stand by it. Never give up, and be confidence that you would walk out of that ‘prison’ (Struggles) successful. Successful businesses became achieved success because they hanged on even when it was not convenient. Business will not always go your way, but you have to persevere hoping that the good times will come.
Turning adversity into a brand
46664 is the prison number of Nelson Mandela. However, today this number is not just a prison number but an emerging brand in Africa for a cause. Businesses are set up to pursue a cause – meet needs. Don’t dwell on your problems, always think positive about the challenges you face in business.
No enemies in business
He won the noble peace prize with his former ‘enemy’  and even raised his hand in public. Don’t consider any competitor as an enemy because you are all pursuing the same goal from different perspectives. Think cooperation, think partnership, think welfare of the consumers.
Madiba is no longer with us, but the values he left behind are a great asset for any entrepreneur to imbibe in building a successful business.
Rest in peace Madiba!

Wednesday 4 December 2013

3 Most Successful Entrepreneurial Marketing Strategies that can Change your Business



Marketing strategies are becoming more aggressive, innovative, inexpensive, intuitive and proactive. Innovative marketing is redefining business as entrepreneurs adopt new strategies to product promotion. Innovative entrepreneurs create unique identity for their businesses and as well promote their products.

Entrepreneurial Marketing is marketing with an entrepreneurial spirit. It is a type of marketing strategy that is innovative, risky and proactive. It focuses on opportunities and can be performed with less resource.

Here are the 3 best known and most successful Entrepreneurial Marketing strategies
·         
     Guerrilla Marketing
This is a ‘crazy’, low cost, high impact and a one-time (rarely repeated) marketing technique that springs surprises and that ‘wow effect’ about your business. E.g. The TV drama series ‘Vampire Diaries 2’ was promoted with ‘Blood-like liquid’ dispenser at strategic locations.
·      
            Buzz Marketing
It is a form of word-of-mouth communication which uses internet, e-mail, or BBM to generate a buzz around your business or product. Get opinion leaders in social networks to help disseminate information about your business. Buzz marketing strives on credibility, else it will be counterproductive.
·    
            Viral Marketing
This is about a customer spreading marketing messages or rumors about a product to create brand awareness. The best form is to create messages that appeal to individuals who can forward the message. 

No matter the form your marketing strategies take, a little creativity can get you ahead of others.