Best Of naijapreneur 2012
The year 2012 ends today!
It’s surprising to see 365 whole days gone by almost in a flash. Without doubt, 2012 has been a very rewarding year for me, both business-wise and personally. On the business side, I spoke in more events than all the previous years combined, my writings gained more global recognition, two new products/services were introduced, my client base increased and so did my revenue!
How about you? Hope year 2012 was spectacular for you? Tell me about it in the comments 😉
Best Of naijapreneur 2012
In the spirit of retrospection, below are 10 of the most popular unusual articles featured on naijapreneur this year. These are based on the total number of views each of these unusual articles attracted this year according to my google analytics.
Enjoy!
1. 7 Reasons Why Most Entrepreneurs Fail in Business — 18,234 views
Entrepreneurship is a way of life that offers unlimited possibilities to those who truly believe in it and live by it. But at the same time, entrepreneurship is a way of life that can totally alter the course of your life if misunderstood. Entrepreneurship is not something you can fake your way through; you are either doing it right or not doing it right simple. There are no ways around it. To help you better make that choice, here are 7 Indicators of entrepreneurs who are headed for doom. As you go through the list, be sincere to yourself and tick each of the signs currently present in your entrepreneurial life. Read more…
2. BUSINESS GROWTH 101: How To Increase The Market Share Of Your Business — 14,903 views
In business, profit goes to the company with a sizable chunk of the market. In most cases, this is usually the companies in the top 3 position; first, second and third. This position is not determined by a regulatory body, but by their market size – the number of customers these business serve on a consistent basis. Market share is a numbers game. You are only as profitable as the number of client/customers patronizing your business. Read more…
3. How To Choose A Unique Brand Name For Your Business, Product Or Service — 12,803 views
“How do you choose a brand name for your business, product or service?” When it comes to choosing a name for your business; here are the 3 essential principles you need to obey.
1. Functionality
2. Memorability
3. Simplicity
Let’s look at each one of these principles more closely. Read more…
4. Why Did You Become An Entrepreneur? — 11,437 views
Are you really an entrepreneur; a person who takes risks to create change? Or are you just one of those multitudes who hide under the title of an ‘entrepreneur’ to make ends meet? So much fuss about entrepreneurship, yet so little impact. Why? Because many people going about with the title of an entrepreneur are not really in it to create change (significance); they are in it to make a living (survival). And when survival is the FOCUS, then mediocrity becomes the OUTCOME. Read more…
5. Customer Psychology Marketing: WHY Do People BUY? — 10,205 views
People don’t care about you, how much success you’ve achieved or even what you have to sell. People care about themselves first, second, third and up to infinity. People are naturally selfish; including me, including you! If you want customers to buy what you have to sell, here is what you need to do; Forget about what you want or don’t want and focus on giving them what they want and getting rid of what they don’t want! Read more…
6. 5 Strategic Ways To Beat The Competition — 7,851 views
Business is a game and only the team with the best players will win. To beat the competition will require everyone’s collective effort. It’s not just a task for the marketing department or top management; it’s everyone’s responsibility. So as the leader of your business, it’s very important you enlist the support of the whole organization once you’ve agreed on the strategies to adopt in dealing with your competitions. Read more…
7. The 4 Elements Of Effective BRANDING — 5,920 views
Branding is the difference between a business and a company. The irony is that a lot of so called entrepreneurs don’t know such a difference exists. For many, a business and a company may as well be the same thing. But are they really the same? This article is about pointing out the winning difference. Read more…
8. BUSINESS GROWTH 101: What To DO When Business Is Slow — 5,843 views
Business will be slow whether you like it or not, so get used to it! Sometimes, if the cause is within your control, you could do something about it. At other times, when things are outside your control, there may be nothing you can do. Fortunately for you, this unusual article is about the things you can do when business is slow. Read more…
9. 10 Rules Of Business Success — 5,624 views
Jean Paul Getty (December 15, 1892 – June 6, 1976) was an American industrialist who founded the Getty Oil Company. He was named in 1957 by Fortune magazine as the richest man in America. At his death, he was worth more than $2 billion. These rules were extracted from his legendary book “How to be Rich”, I have added footnotes to each of the rules to make it more relevant to our age and time. I hope you find this as useful as I did and make a commitment to apply these rules to your business. Read more…
10. The 3 Essential Roles Of Successful CEOs — 4,592 views
The role of a CEO is a 3-dimensional one involving three major responsibilities. So just as everybody else in your company, you as the boss also have certain key roles in which you have to function. Below is an overview of your work description as a CEO. The whole idea of being your own boss is about to go sour if you are not prepared to do the work that comes with the title. Read more…
See You In The New Year: 2013!
I want to use this opportunity to say a big thanks to all of you unusual entrepreneurs out there who make the naijapreneur community a success. Without your consistent readership and feedback, none of this would have been possible. Expect more in the coming year.
Happy New year to you!
- Published in Thought Bank
MANAGEMENT 101: Structuring Your Business For Sustainable Growth
This is the second unusual article of the Management 101 series, in the first post we looked at how to organize your business for sustainable growth using 3 key managerial principles of culture, structure and execution.
I discussed the first managerial principle of culture in the first post, in case you missed it, you can read about it by here; MANAGEMENT 101: How To Organize Your Business For Sustainable Growth. In this unusual article, we’ll be discussing the second managerial principle; structure.
Structure: How To Systemize Your Business For Sustainable Growth
The word structure within the context of management is often generally associated with organizational design [organogram] only. While this is true, structure does involve organizational design but is not limited to it.
The word structure fundamentally means a system of parts; a way of linking different parts together into an integrated whole.
Structure refers to the preservation of culture. The arrangement, building or organization of different parts into a whole such that the core essence [DNA] of the organization will still be retained. It refers to the creation of systems and processes that are specifically designed to reflect the organization’s DNA; purpose, vision, mission, values and brand.
Structure doesn’t exist for itself; it exists for the benefit of preserving and reflecting the fundamental guiding principles of the organization. The structure of a business is made up of culture [core ideologies] and other factors that shape how and why people do their jobs the way they do them. You cannot build a structure without a foundation.
Culture is the foundation on which structure is developed. If you can think of structure as everything in your business that directs, controls and influences the behaviour of your people, the flow of energy and activity, only then will you get the true picture.
Structure is the systemization of culture in order to achieve synergistic results.
This involves the creation of a systemic view of the entire business; a way of seeing the organization as a whole. Without a systemic view of the business, it’s impossible to direct, control and influence the flow of resources and activities, towards the fulfillment of set objectives. We will not know what is to be done where, why and how. If an organization is a social organism [living entity], it can only thrive and function based on a given system.
What’s A System?
A system is a combination of interrelated parts or components [inputs] that are brought together [process] for the purpose of achieving a particular objective [output]. A system in the most basic form is simply a way of doing things. The manner or technique through which a problem, goal, task or activity is being approached. There are four key elements in a system; inputs, processes, outputs and outcomes.
These four key elements form the basis of every system that exists or that is being developed.
The input refers to a set of interdependent variables that constitute the necessary ingredients needed for the development of a system.
The process refers to the set of activities, steps or task that must be undertaken in order to direct the interdependent variables [input] towards the creation of a particular thing [output].
The output is the actual thing or object that the system was developed to create.
The outcome is the original intent of the system developer. It refers to the predetermined goal, objective, purpose or end result that the output was meant to achieve. In systems development every part is necessary to ensure that the purpose for creating the system is achieved. Let’s now look at how to apply each of these four key components of a system in the creation of a working business model.
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Inputs:
In creating a working business model, your first step is the identification of the necessary ingredients [inputs] required to make your business work. These are a list of all the necessary resources peculiar to your particular business without which your business cannot begin operations. The simple interpretation of inputs is this; “what does your business need in terms of people, materials, capital, facility, etc. [resources] in order to effectively and efficiently function in alignment with the organizational culture; purpose, vision, mission, values and brand?”
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Processes:
Inputs all by their self are still inputs. Processes are where inputs are put to creative use. Processes are what make inputs meaningful by creatively combining them together to create something which never existed before. Processes represent the different core operational disciplines of a business; marketing, finance, HR, production, administration, etc. They are the traditional functional departments of a business organization.
Processes are what define the hierarchical flow of relationships and responsibilities [organizational chart/design] in a business enterprise. Each of these core operational disciplines requires the development of a sub-system within the overall system as they involve the execution of highly specialized and technical duties, activities and tasks which also need to be broken down.
Marketing for example, in order to carry out its core functions will require a system with its own inputs, processes, output and outcomes that are related to how the business intends to find, keep and grow potential customers. The marketing system will cater for functions such as; sales, market research, product/service development, customer relationship management, distribution channel, etc. The same thing applies to other functional areas of the business too; production, finance and the rest. In essence, each processes of the organization’s working business model constitute a sub-system of the entire system. This explains why an organization is often described as a system of systems.
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Outputs:
They constitute the actual products/services that were created through the interaction of inputs and processes. These are the goods the business sells or the service it renders to members of the public. The output serves as a form of feedback that allows for the evaluation of the entire system. Without the inclusion of outputs as one of the key elements of a system, all that happens within a working business model will be regarded as cost incurred and efforts expended.
Customers don’t buy costs or efforts; they pay for outputs that allow them to achieve specific outcomes. Until outputs are created, a business has no place in the market and therefore must return to the drawing board to modify her system. A system is only as good as the quality and quantity of outputs it can consistently create.
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Outcomes:
Goods/services created in the form of outputs have specific needs for which they were made. These are the needs or problems being solved in the lives of the people who buy these products/services. The contributions and impact of the organization as a result of the goods/services it provides to the society is what constitutes outcomes.
For example, the outcome for a Pharmaceutical company manufacturing Malaria drugs [output] will be the actual number of malaria patients cured as a result of using the drugs. Outcomes, just like outputs, also serve as a form of feedback that allows for the evaluation of the entire business model. The outcomes achieved must be exactly the same as the one stated in the organizational DNA. If not, the entire system must be re-engineered.
If systems are the foundation of a working business model, what then are the key systems that must be in place and are necessary for the successful creation of a business model that works?
- PEOPLE SYSTEM: how do you get, develop, retain and maintain a constant supply of the human resource needed to create your products/services?
- DISTRIBUTION SYSTEM: where is the product/service being sold to the ultimate consumer? What middlemen are involved?
- SALES SYSTEM: how will the product/service be sold? Who is doing the selling for you and how will they be compensated?
- PRICING SYSTEM: how much will the product/service cost? What would wholesalers, retailers and consumers eventually pay for the product/service and how would you arrive at that price?
- PRODUCTION SYSTEM: how and where would you get what you need [raw materials] to create what you sell? How do you or would you make your product/service? What is your value chain? [the processes that a product/service goes through before it reaches the final consumer].
- MARKETING SYSTEM: how do you intend to find, attract and keep profitable customers for your product/service? How would customers know about the existence of your product/service? How will you survive when competitors arrive?
- GROWTH/EXPANSION SYSTEM: how do you intend to get bigger at what you do?
To be continued…
The next unusual article of this management 101 series will focus on the third managerial principle for sustainable business growth; Execution –the application of an organization as a tool. Make sure you don’t miss it; click here to subscribe to our email list to avoid missing out!
Your turn
Structure is all about systems; an organized way of doing things. Small businesses remain small primarily for lack of structure, so what structures have you put in place in your business to ensure its sustainable growth? Are there any particular challenges holding you back from putting structures in place in your business?
Would really like to hear from you, share your thoughts and comments below, can’t wait to hear from you!
- Published in Management, Thought Bank
Unusual Entrepreneur Interview With Sandra Berbee Of EventPlannerSpain.com
In a world where women entrepreneurs are rare, most especially in Europe where only 10% of women are entrepreneurs compared to their 90% male counterparts; some unusual women still manage to keep their heads high passionately in pursuit of their entrepreneurial dream. One of such women is 50 years old Sandra Berbee, the founder of EventPlannerSpain; an online directory of Spanish event industry suppliers which she started 6 years ago.
Join me in this exciting edition of the unusual entrepreneur interviews as I invite Sandra to share her unusual entrepreneurial story and business insights with you. Enjoy!
If you are just joining us for the first time, this is the unusual entrepreneur interview series. It is a parade of unusual entrepreneurs who are changing the world and profiting from purpose. Profiting from purpose by changing the world isn’t an impossible dream as many tend to think of it, but a realistic one as many unusual entrepreneurs have extraordinarily proven. Click here to read more unusual entrepreneur interviews.
Take it away Sandra!
Interview Questions Part One
ENTREPRENEURSHIP: Awakening the Spirit of business
1. Can you please tell us a little about yourself and your business? What do you do?, how do you do it?, why do you do it and who do you do it for?
My name is Sandra Berbee. I am Dutch and was born in Amsterdam 50 years ago. After studying and working in Germany, France and Switzerland, in 1986 I decided to go south, to Spain, the year it entered the European Union. I then spent 20 years working for others before setting up my own business in 2006, www.eventplannerspain.com, which is an online directory of Spanish event industry suppliers and an interesting information and news resource. Available in 8 languages, international event organizers can find all they need to organize meetings and events in Spain and Morocco. Event Planner Spain currently has 750 event supplier members. Per month, the site receives 250,000 visits from 160 countries, 1,000,000 page views and generates around a 1,000 business leads for its members.
2. How would you describe your entrepreneurial journey into the world of business? Were there any key incidents or life changing events that inspired your decision to become an entrepreneur?
The most important reason for setting up my own business was to be able to do the job in my own way. Before setting up my own company in Spain, I worked in different marketing positions both in private and public companies in Malaga, Andalusia, the most southern part of Spain. But the 12 years I spent working for the public sector were a bit deceiving because, strangely enough, in the public sector politics are more important than customer satisfaction. Working for private Spanish private sector was not too motivating either because of a general lack of entrepreneurial culture and superior management. That’s why, sadly, most Spanish people want to get a job in the public sector because they think it’s safer and better paid (not anymore, though). I suppose that I could have taken the plunge earlier but, as they say, better late than never!
3. When you started out in business, what specific idea, purpose or vision was your key driving force?
Key driving ideas have always been to be independent economically, while selling a useful product/service that helps other people do business. And maybe also bringing a bit of order to the Spanish and Moroccan MICE industries by centralizing information on a logical and attractive international b2b platform, useful both for sellers and buyers.
4. What is your take on the general notion that entrepreneurs should build a business around what they naturally love to do?
I think people should always try to work in what they naturally love to do and it is essential to start thinking about it when you are young. And if no one stimulates you, try to stimulate yourself. I say this because I feel I should have started sooner with my own business. As soon as you feel you should quit your daily job and start your own business, go for it!
5. What is your personal life mission as an entrepreneur? That is; what contributions do you want to make with your life or what would you like to be remembered for as an entrepreneur through the businesses you create when you die?
I have to admit I have always been terribly idealistic about how to make the world a better place. Also, I have always thought that successful businesses should actively participate in achieving a better world by being exemplary and acting responsibly. But, lately, I have become more pessimistic and I don’t like the way politicians and the others that rule the world behave at home and abroad. Successful businesses are too often just shamelessly greedy and there is an enormous lack of “real” democracy, and not only in Spain.
The crisis has shown us the division between classes has not been solved. On the contrary, social divides widen every day and the poor and defenseless, or just “normal” people, are definitely loosing quality of life. Through my business, my aim is to contribute to improving this world, by being useful, helpful, humble, honest, responsible, stimulating and respectful towards people and the environment. For instance our website is the first event portal in Spain that is already offsetting its CO2 emissions. Furthermore, we also publish a lot of articles encouraging the event industry to shift to a more sustainable path in which corporate social responsibility should play a more important role.
6. What would you describe as the purpose of entrepreneurship? That is; what role do entrepreneurs play in the world?
Entrepreneurs, especially when they are successful, can stimulate others to create new businesses and help people to be more independent economically and emotionally and to live life in a more creative and satisfactory way. Entrepreneurs should act in a responsible way and be exemplary both socially and professionally.
Interview Questions Part Two
STRATEGY: The unusual execution of business best practices
7. How do you identify business opportunities and what metrics do you use to measure their viability?
To identify business opportunities, I read as much as possible and to measure viability I do market research online in different countries. Long live the internet, search engines and knowing 5 languages! Then I discuss my ideas with my business partners, friends and family, but in the end it is basically down to your own intuition.
8. Do you have mentors, business coach or external consultants that you work closely with to grow yourself and your business? If yes, to what extent would you describe their impact on your business? If no, are there any particular reasons?
My best mentor was my mother’s second husband. When I met him he was 50 and had just sold his former business, which had been a great success to start another one from scratch, just because he wanted to work with his hobby. It turned out to be a very successful business.
9. How do you strategically use your time as an entrepreneur? What key activities would you recommend entrepreneurs use their time for?
I think the best strategy to use time is to find a balance between learning from books and learning from people, between being alone and being social, sitting behind the computer and doing sport or be in contact with nature, between under-eating and taking time to make a delicious dinner, between variety and boredom…
10. How do you generate profitable customers for your business? What unusual approaches do you adopt for marketing your products/services?
In order to generate profitable customers, our company has to be able to generate new business leads for them. Instead of limiting these to Spain, where due to the crisis, corporate and private event budgets have been drastically slashed, or Morocco, Event Planner Spain is available in 8 languages, enabling member sites to reach top positions in several search engines, such as Google, in 8 languages, helping sellers and buyers to communicate and overcome cultural and linguistic barriers.
11. Many entrepreneurs complain about not succeeding in business due to lack of adequate funding, what is your take on this matter and how do you cope with funding issues in your business?
Today, in Spain it is very complex to get funding from banks. Anyway, the last 25 years it has been more interesting for banks all over the world to invest in other types of more lucrative opaque bubble money-businesses that have nothing to do with stimulating the birth and growth of new SMEs. I think banks should be obliged to go back to that core business. It’s interesting to see how new fundraising initiatives arise online, although for now they seem to be limited to the new technological startups of younger people. Micro credit schemes (most of them geared to women, curiously enough) are another great initiative. It could be a good idea for Spain as well right now where, as in most countries, entrepreneurship is a word that is mostly associated with men.
12. When starting out a new business, who are the likely possible partners or professional service providers you would recommend every entrepreneur work with?
Try to find the best professional suppliers, but never depend totally on them. I think it is really important to be as self-supporting and expert as you can be in all the aspects of your business, in order to not lose control and get the most out of your suppliers. The more you know about your business, the better the service they will deliver.
13. The pricing of products/services is always an issue for entrepreneurs, what unusual approach do you take when it comes to pricing?
The most important factor in terms of pricing is not just to know the value of your service, but also to understand at every moment the changing environment and market. For instance, as we are facing times of crisis we innovate offering special offers, discounts and combined packages, while at the same time improving our website and services. It is always important to be flexible.
Interview Questions Part Three
MISCELLANEOUS: Resourceful Recommendations, tools, books, and ideas for entrepreneurs
14. Since you became an entrepreneur – someone who solves problems for people profitably; what has been your most outstanding accomplishments in the context of business?
Our most outstanding accomplishment maybe has been giving more value to the event industry in Spain and Morocco, promoting these countries and their companies and professionals all over the world, while striving to offer quality content and service. Despite having a very small team, our website is already the most visited event web portal in Spain and our traffic continues to increase every year. We strive to provide a top-quality service and pay great attention to detail as regards both our website and our external and internal communications. I am very proud to say that most our clients are very happy with our service.
15. What would you describe as your major setbacks and what lessons did you pick from them?
My major setback has been the crisis that started in 2007/2008, when marketing budgets started to decrease and we had to adjust our expectations accordingly. The lesson I learned is that prosperity is very fragile and that we always have to be flexible and capable of reacting immediately. In our particular case, we have managed to overcome the financial crisis thanks to a detailed control of overhead costs, which we always try to keep as low as possible.
16. Were there any particular questions you expected me to ask that is beneficial to entrepreneurs and I didn’t? Kindly share with us such questions and their relevant answers here.
I think your interview was well structured and covers the most important aspects of my business and entrepreneurship. Overall, I would like to encourage everyone to attempt to start their own business. In the worst case, it is a great learning experience both professionally and personally. Besides, despite the crisis, there are a number of advantages: everything is cheaper and everyone is willing to work for you.
Your Turn
What more would you like to know about the Unusual Sandra Berbee? You can ask her further questions below in the comment section and I will be sure that you will get an answer directly from her.
Also, what did you learn from this unusual entrepreneur? What lessons, what philosophy of her strike you the most?
Sandra has shared her unusual story with you, now is time to hear from you. Can’t wait to hear what you have to say!
- Published in Interviews, Thought Bank
MANAGEMENT 101: How To Organize Your Business For Sustainable Growth
Every business has a way of operating that makes it completely different from any other business in the world. Ever wondered how some companies keep attracting and retaining high performing workers while others struggle to keep just a handful?
Have you ever walked into some business premises and without being told, you could feel a sense of intense energy in the air? How come some workers find fulfillment at their place of work and others don’t? How is it that some businesses in the same industries do better than others?
The answer to all these and so many more is management. As individuals are unique such that there are never any two people one hundred percent alike, the same is true of businesses regardless of whether they produce similar products or serve the same market. What makes the difference? Management.
Management: Putting The Pieces Together
After all is said and done, the day-to-day activities of a business purely rest on the competence of management. It’s possible for a business to have a great leader and a great product, but without great management practices in place, the business cannot exist for long. It’s possible for a business to be started by an unusual entrepreneur, but without great management in place, the whole business can easily fall apart!
Business is like a puzzle, the entrepreneur paints the whole picture but management is how you arrange the puzzle one after the other, putting each piece in its rightful place. Entrepreneurship focuses on creating a business that matters [purpose-driven]; the focus of management is the creation of a high performance environment [systems-driven]. An environment where people are effective and work is productive.
The responsibility of the CEO as a manager is centered on preserving the core; that is helping everyone know what to focus on and how to focus. Management puts the whole pieces together and brings everything into proper perspective by creating an organization. Management takes everything the business is about and weaves it into one big and integrated whole known as organization. The creation of an organization is management’s core task.
The fact that people congregate everyday to work in a particular business doesn’t necessarily make it an organization. To make a business into an organization is what management stands for. This is the essence of the CEO’s role as a manager.
The organization of a business
Managing a business begins with the creation of an organization. The organization of a business is the essence of management. Without organization through management, a business is only a mob; a group of people coming together for their individual interests.
The business becomes defined by the expectations of the people who work in it rather than the other way around. If left unmanaged, the consciousness of a business will be no different than the consciousness of the people who comprise it. If people in a company are living with, for example, unrealized expectations in their personal lives and a history of disappointing relationships with people who let them down, the company will never transcend that consciousness without another force.
This powerful force must challenge them to rise beyond their disappointing past by creating a compelling and extraordinary picture of what they can become. Management through the creation of an organization is the binding force that unites all the resources of a business; human, financial, material etc. together towards the achievement of a corporate end. A business is most effective and efficient when it operates as an organization.
What’s an organization?
An organization in a broad sense is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment, including other organizations. The word organization itself is derived from Greek meaning tool.
As Peter Drucker rightly stated in Harvard Business Review [February 2006],
“An organization is a tool. And as with any other tool, the more specialized it is, the greater its capacity to perform its given task”.
To put it more succinctly, here’s another definition by Dr. Phil Walker
“an organization is a tool designed and put into motion by its leaders to accomplish a particular end”.
The key word in all of these definitions is the word tool. Which means the unusual entrepreneur as a manager is responsible for turning the business into a tool [organization]. How does he/she achieve this? What is this tool made up of? How is this tool created? How does one apply it? These and many more is what management as an essential business skill for entrepreneurs focuses on.
To do this an entrepreneur requires three key managerial principles for sustainable business growth;
- Culture – the programming of an organization as a tool
- Structure – the configuration of an organization as a tool
- Execution – the application of an organization as a tool
Culture: Programming Your Business For Sustainable Growth
There can be no organization without a culture. Whether explicit or implicit, the existence of a culture is at the core of every organization. The creation of an organization begins with the establishment of an explicit culture.
Culture refers to the shared beliefs, values, principles and practices of a particular group of people. Culture is the personality of the organization. It is the software that enables your organization to behave in a specific manner. It is the program that determines how your company as an organization will function.
In the world of business, this is what is known as core ideology or corporate, business or organizational philosophy. It constitutes the fundamental principles, standards, rules and accepted practices that guides and inspires every action, decision and intention of an organization. It governs much of how people think, act, interact with others and do their work.
Culture is what defines the popular business phrase; “this-is-how-we-do-it-here”. Most successful companies go a step further to institutionalize it such as; “the HP–way”, “the Wal-Mart way”, “the Virgin-way”, “the Google-way”, “the Nordstrom-way”, ‘the Disney-way” and so on. This helps to instill a corporate sense of how things are done around here into everyone associated with the business.
Culture is what shapes the function of the organization as a tool. The specific purpose, the end for which the tool [organization] was created is defined by the culture at its core. Most businesses fail as an organization because they lack an explicit culture which gives the entire company the much needed clarity and direction for sustainable business growth.
How do I mean? If an organization is a tool as was explained above, what is the purpose of a tool? Why are tools created? What do we use tools for? Tools don’t exist for nothing; they exist to facilitate the accomplishment of a specific task.
Tools are instruments for getting things done. Hammers are used to drive in nails into any kind of surface; cars are used to convey people and things from one location to another; computers are used to store, process and retrieve information and so on. We all know the essence of tools and our expectations are formed base on how well they function.
In essence, you don’t simply acquire tools for the fun of it; you acquire tools for specific reasons based on your needs. If you didn’t have needs, you wouldn’t be needing tools. Tools exist for specific reasons. What are some of these reasons?
Tools exist for two broad reasons;
1. The satisfaction of a need or needs
2. The performance of a particular task or tasks
So, an organization is a tool whose function is the satisfaction of customers’ needs through the performance of a set of specific task or tasks. Meeting the needs of customers is the purpose of an organization. An organization exists solely to satisfy the needs of the customer. An organization in other words exists as a problem solver [solution] to the target customer it serves.
Performing a set of particular task is the mission of an organization. That is, the primary assignment and objective of an organization is the performance of a set of specific tasks that enable it satisfy the customers’ needs. Without the performance of these tasks [mission], the customers’ needs will be unmet [purpose].
The extent to which the organization aims to meet the needs of the customer is the vision of the organization. That is, how well the organization strives to satisfy the customers’ needs [purpose] through the performance of certain specific tasks [mission] is the vision of the organization.
The combination of these three components; purpose, mission and vision in addition with two others; values and brand, form the basis of an organization’s culture. Together, I refer to them as Business/Organizational DNA and I have previously written an unusual article on it; Business DNA: Why Your Company’s Success Desperately Depends On It!
To be continued…
The next unusual article of this management 101 series will focus on the second managerial principle for sustainable business growth; structure –the configuration of an organization as a tool. Make sure you don’t miss it; click here to subscribe to our email list to avoid missing out!
Over to you
Sustainable business growth is not an accident that you stumble upon, but a deliberate outcome that you have to create for yourself. What steps are you taking to ensure your business is strategically organized for sustainable growth? What are some of the obstacles holding you back from implementing the managerial principle of culture in your business?
Share your thoughts and comments below, can’t wait to hear from you!
- Published in Management, Thought Bank
Unusual Entrepreneur Interview With Adedeji Opoola Of LazyAppetite.com
Welcome to another edition of the Unusual Entrepreneur Interviews and today we have here with us unusual entrepreneur Adedeji Opoola. He is the Co-founder of lazyappetite.com, an online takeaway website that makes it easier than ever before to find a restaurant near you and order a meal directly online. It’s a place to order, recommend, and experience meals from various restaurants in Nigeria.
In case you are not familiar with this business idea of food delivery, here are some encouraging facts according to Silicon Africa;
“Started 4 years ago, Eat24.com, a food-delivery startup in San Francisco has now more than 150 employees, covers more than 850 U.S. cities, gets more than a million unique visitors a month, and will generate more than $150 million in sales by the end of the year 2012.
The food delivery market is growing, and fast. In Europe, Berlin food delivery startup “Delivery Hero” Just merged with Foodik, seeking more access to new international growth opportunities.
In India, BigBite, is growing fast. In Indonesia Klik-Eat can’t handle the demand from restaurants. Innovation is spurring as well. Tacocopter, a new food delivery startup in Silicon Valley, is going one giant step further, using Unmanned Drone Helicopters to deliver the food even faster to its customers.”
Take it away Adedeji!
Interview Questions Part One
ENTREPRENEURSHIP: Awakening the Spirit of business
- Can you please tell us a little about yourself and your business?
I am Adedeji Opoola, Co-founder of lazyappetite.com, an online takeaway website that makes it easier than ever before to find a restaurant near you and order a meal directly from the website. I have an Electrical and Electronics Engineering degree from the University of Lagos.
What do you do?
I am the CEO/Project Manager for Lazyappetite.com and a computer network/infrastructure specialist.
How do you do it?
This is interesting because our role change from day to day but essentially, I work day and night to ensure the Lazy Appetite platform runs efficiently and that our clients, both the restaurants and the customers get value every time.
Why do you do it and who do you do it for?
The desire to see Lazy Appetite cement its place as the leading food delivery portal in the country and provide meals without stress to everyone on demand is the raison d’être for all the sacrifice. I am a strong believer in self-actualization so I guess that’s a great part of what drives me to keep working every day.
2. How would you describe your entrepreneurial journey into the world of business?
I’ll say it’s been equal parts exciting, frustrating and rewarding. There are times you want to pull out your hair and then there are those times when things go through that bring you so much joy but I learn new perspectives every day and that keeps me going.
Were there any key incidents or life changing events that inspired your decision to become an entrepreneur?
No, not really, I just really believe that I can make a difference. I believe everybody has an entrepreneurial spirit in them and it’s just a matter of whether one is bold enough to act on it.
3. When you started out in business, what specific idea, purpose or vision was your key driving force?
I would say my key driving force is the aspiration to reach my full potential and like I said before, I am a huge fan of self-actualization. I also do not really fancy having a boss. Let’s not get that wrong; I respect and learn from all my previous bosses but I generally didn’t feel I could reach my full potential under them.
4. What is your take on the general notion that entrepreneurs should build a business around what they naturally love to do?
From my perspective, building a business around what you love to do is great only if there is a market for it where you intend to launch the business. I don’t see a point in building a business around say television production just because you love it, if nobody in the area has a television. So I’ll say in business, think of the market before passion or anything else.
5. What is your personal life mission as an entrepreneur? That is; what contributions do you want to make with your life or what would you like to be remembered for as an entrepreneur through the businesses you create when you die?
I want to be that entrepreneur that every student, graduate, workers and aspiring entrepreneur looks up to and says “He believed he could make a difference and he did, so why can’t I”. Beyond being simply an inspiration for others to achieve all that they can, I want to affect real life people with the businesses I create. Lazyappetite.com is a firm movement in that direction. By making quality and a great variety of meals available to everyone without stress, we free up time for you to enjoy life’s moments and worry less about where to get your meals.
6. What would you describe as the purpose of entrepreneurship? That is; what role do entrepreneurs play in the world?
Entrepreneurs shape the world we live in; they change the world every day. In fact, I believe entrepreneurship will solve a large part of the economic problems we are currently facing in this part of the world. Entrepreneurs shape economies and this is why many countries strive to create the best working environment for them.
Interview Questions Part Two
STRATEGY: The unusual execution of business best practices
7. How do you identify business opportunities and what metrics do you use to measure their viability?
I am a fan of low capital start-ups, this doesn’t mean I don’t think big, but I focus on these because they are easier for me to setup. I basically sit down and think about what I know people want and write them out.
Then I ask the major question? How many People “NEED” this? (Note that the word is need, not want as there is a huge difference. Those who need your product/service define your loyal market, not those who want it). I carry out real market surveys (Just means getting out and asking people).
The next thing is to create a business plan so you have a very good idea, if you will actually make any profit from the business.
8. Do you have mentors, business coach or external consultants that you work closely with to grow yourself and your business? If yes, to what extent would you describe their impact on your business? If no, are there any particular reasons?
I do not have business mentors but I do have some people I admire. Some of the people in the cast of Dragons’ Den UK version are very instructive- Peter Jones, Theo Paphitis, James Khan and Deborah Meaden. Peter Jones is my favourite because he explains businesses in the best way he thinks they should be run. My advice to aspiring entrepreneurs is to watch Dragons’ Den UK version, I have learnt a lot from it.
9. How do you strategically use your time as an entrepreneur? What key activities would you recommend entrepreneurs use their time for?
I have a tablet that I use to plan my day; it is a life-saving scheduling device for me. I read anytime I get some free time and I play when I need to relax. As for key activities, I recommend that entrepreneurs try to read whenever they can or like me, watch tutorials that will help you grow yourself and the business. Always leave time for playing, for friends and family as they are very important in your life.
10. How do you generate profitable customers for your business? What unusual approaches do you adopt for marketing your products/services?
I am a huge fan of social media marketing and search engine optimization, especially because of the business Lazyappetite.com does. Business partnerships are a good way to market your product. I also employ traditional methods like radio and flyers but all these depend on the product you are dealing with. As I said earlier, in identifying business viability you need to answer the question “Do people need this?” I believe if this was answered correctly and these people know about your product then you will make profit from their purchases.
11. Many entrepreneurs complain about not succeeding in business due to lack of adequate funding, what is your take on this matter and how do you cope with funding issues in your business?
It is true, a dearth of funding is a major setback in many start-ups; in fact this is my reason for concentrating on low capital start-ups. If you had done your business plan correctly though, you would have foreseen the need for more capital at certain stages of the business and made the moves to get it. If you cannot foresee getting any investment at those stages the best thing to do is to not start-up at all than to hope for miraculous money to save you at that stage of the business.
12. When starting out a new business, who are the likely possible partners or professional service providers you would recommend every entrepreneur work with?
Starting a business usually requires a lot of surveys, planning and management. Professional help may be required depending on the business, but generally I’ll suggest getting a business entry consultant and market analyst. These people will give you valuable advice as to whether to approach the market at all and if so how to approach it.
13. The pricing of products/services is always an issue for entrepreneurs, what unusual approach do you take when it comes to pricing?
Pricing is very important in any business as it sometimes determines if consumers will favour your product or competitor’s product. Price can only be arrived at after you have drawn up a business model; the key thing to note is that your price should not break your business model. Don’t sell lower than you can afford because your competition is cheaper as this is usually the case. If you know your market will buy into quality and this is the reason for your higher prices then stick to it. This is the model Peak milk has used over the years and this is the reason for its success.
Interview Questions Part Three
MISCELLANEOUS – Resourceful Recommendations, tools, books, and ideas for unusual entrepreneurs
14. Since you became an entrepreneur – someone who solves problems for people profitably; what has been your most outstanding accomplishments in the context of business?
Well, Lazyappetite.com is growing rapidly and currently concluding partnering with some major restaurant brands in the country. We are currently the leading online food delivery website in Nigeria. We are a dedicated team of five, two hardworking programmers; Kunle Adedayo and Shope Johnson, Social media guru and sales partner; Nubi Kayode and Ahmed Adeyanju. We all work very hard to be the best.
15. What would you describe as your major setbacks and what lessons did you pick from them?
I’ll say that the restaurant recruitment phase for Lazyappetite.com was quite major. It was very difficult to explain the concept to restaurant owners because the platform wasn’t fully ready yet. We have moved passed that phase now though and I now clearly understand the need for a working prototype while marketing new products.
16. Were there any particular questions you expected me to ask that is beneficial to entrepreneurs and I didn’t? Kindly share with us such questions and their relevant answers here.
What is the plan for the future?
Let’s just say I will be taking it one day at a time to build a brand experience for all stakeholders in LazyAppetite – co-founders, team members, restaurant, and of course our users; also looking forward to scaling up to serve other cities in Nigeria, and Sub-Saharan Africa. Until then, if you are reading this, go visit LazyAppetite.com and tell us what you think via twitter – @LazyAppetite, or our Facebook page. You can also contact me at contact@lazyappetite.com.
Your Turn
What more would you like to know about the unusual Adedeji Opoola? You can ask him further questions below in the comment section and I will be sure that you will get an answer directly from him.
Also, what did you learn from this unusual entrepreneur? What lessons, what philosophy of his strike you the most?
Adedeji has shared his unusual story with you, now is time to hear from you. Can’t wait to hear what you have to say!
- Published in Interviews, Thought Bank
COMPETITIVE STRATEGY: How To Win The PRICE War
There is no business without competitions; the days of the monopolist are long gone. Regardless of how relatively new an industry may seem, a careful research will reveal two or more other competitions. So like I often remind entrepreneurs, since very few businesses exist in isolation, what are you going to do about the competition?
The existence of competitions in any given industry changes the playing field. Businesses in an attempt to gain higher market share adopt various competitive strategies to increase their competitive advantage. And one of the most obvious competitive strategies businesses easily adopt in the face of intense competition in an industry is the price war.
What Is The Price War?
According to Michael Porter’s generic competitive advantage strategies, this is known as cost leadership. The price war describes a market situation where the existing competitions struggle for market share by cutting down the prices of their goods/services. It is a race to the bottom; an attempt to win customers by offering lower prices.
The problem with this competitive strategy is this; even though you win the race to the bottom by offering the lowest price in the market, you will most likely end up at the bottom. What does this imply? Winning by cutting prices is more risky to your business than winning by offering superior value.
Very few companies win the price war by offering the lowest prices and they do so because they have lower costs of production as a result of higher efficiency. Such companies are referred to as the low cost leader and examples are Wal-Mart, South West Airlines, Ikea, MacDonald’s, etc.
How To Win The Price War
What’s the best strategic response for winning the price war?
If you are going to win the price war, don’t get into one. The best way to win the price war is to avoid it. How do I mean?
When your competition begins to slash prices in order to win the customer, don’t fight back by also slashing your prices. Rather, take the opposite direction by fighting back with superior value. I offer the following superior value competitive strategies:
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Re-target Your Market
The price war like I had earlier said is a race to the bottom. Choosing to compete on price alone is the recipe for being at the bottom of the competitive ladder. It is choosing to serve the lowest segment of the market.
Every market is divided into three categories/levels; the upper-class, middle-class and lower-class. Going head-to-head with your competitions over price is indirectly going to force you to accept the lower-class as your default target market. By deciding to lower your prices, you must realize that you have also indirectly decided to lose the upper and middle-class segment of the market.
The lower you go with your prices, the more appealing your products/services becomes to the lower-class target market and the less appealing it becomes to the upper and middle-class. The lower-class are the majority in every market, they form the largest segment of buyers. The middle-class is the second largest segment of buyers, while the upper-class forms the minority.
Unless the lower-class is your ideal target market, don’t get into a price war with your competitions. Price is an estimation of quality and the general perception is that the lower your price, the lower the quality. If you can’t find a way of lowering your costs of production, in order to earn profits by offering lower prices, then re-target your market.
Re-targeting your market is how you position your products/services to appeal to a particular market segment. Since in most cases, to offer a quality product/service often costs more in terms of time and resources expended, then you are better off targeting the middle-class and the upper-class segment of the market.
The only time a low price appeals to all three segments of the market is when a commodity or consumer product/service is involved. These categories of products/services are referred to as fast moving consumer goods [FMCGs]. They are your everyday consumables and because of the high frequency of use, they don’t attract high prices since they enjoy higher rates of turnover. Examples are; detergents, toothpastes, food items, fruits, and anything that can be bought at the grocery.
So my question for entrepreneurs battling with the price war is this; why settle for the bottom of the market that is overcrowded when the top is free? Price is an issue because you are targeting the wrong market segment –the lower-class. As for me, don’t know about you, the top is where I want to be. I would rather die raising the bar, than live at the bottom!
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Differentiate Your Offering [Branding]
The decision to re-target your market to capture the upper and middle-class market segment must be followed by a determination to differentiate your offering (product/service). This is what branding is all about. A brand is a differentiated product/service.
This is a conscious effort to establish a perceived meaning in the minds of your target market regarding your products/services. While the competition can be perceived as selling or offering a particular product/service, yours must be perceived as different based on the combination of certain unique qualities peculiar to your offering.
Every of your branding efforts, from product packaging, to customer service, all must communicate the usefulness and uniqueness of your offering to your target customers. The market will not pay for more, unless you have given them both a logical and emotional reason to do so. Branding is what helps you achieve this.
Branding is all marketing efforts to improve the perceived image of your product/services in the eyes of your target market. It must involve the creation of a compelling story that will connect with your target market and the fulfillment of that promise in their lives. A brand is a product/service that means something to the target customer. For example, bottled water is a commodity, but Eva water, is a brand. Get the point?
So, to win the price war, do something different from the competition that will position your product/service in a world of its own, only then can you charge more. The upper and middle-class market segment value quality, so unless your offering has the mark of quality written all over it, you won’t appeal to them.
Many companies offer web design and internet marketing services, to separate our own offering from the competition, we decided to turn it into a brand. First we gave it a very powerful descriptive brand name; differentiate online.
Secondly, we offered more than the average competitions around. They charge per web page created, we charge for unlimited web pages. With others, the more web pages you want your site to have, the more you had to pay. With us it wasn’t a question of web pages, it was a matter of functionality. Regardless of how much you paid, you had unlimited web pages.
Thirdly, we do more than design, we turn your website into a marketing tool that can help you find, attract, convert and retain profitable customers.
Lastly, we bundled our offering with a freebie, we would not only build you a working website, we will also teach you how to make it work for you, for free!
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Sell Benefits NOT Features
One strategic way of differentiating your offering (product/service) is to emphasize the results your target market wants and deliver on that result. I have always believed that the price war is for those who don’t know what they are doing. If you can give people the results they want and help them get rid of the problems they have and don’t want, then price is no issue.
The market is filled with so many people who are looking for the product/service that can meet their needs. They don’t consider price first in their purchase decision, they seek for utility first –the satisfaction/benefits they will derive from the purchase. For such people, don’t start with price, start with benefits. Why? Because price is a feature and not a benefit. The cost of a product/service is one of the features/characteristics of that product/service. It describes how much it costs and not what it does. And guess what, people buy products/services for what it does and not how much it costs.
So, carve your marketing message around a tangible result your target customers lack but eagerly want or around a painful problem they have but don’t want and you will get their attention regardless of price. The major reason price becomes an issue is when you flaunt features of your products/services in front of your target market rather than the benefits.
The moment you do this, you have succeeded in turning your product/service into a commodity rather than making it a brand. And nobody wants to pay more for a commodity, why? Because they believe it’s available elsewhere. But the moment you start with benefits, the things they lack but want (results) or the things they have but don’t want (problems), then you have turned your product/service into something more than a mere commodity and they will readily pay more. Why? Because commodities don’t offer unique benefits, they offer generic features that bring generic benefits. Only a brand can deliver unique benefits based on unique features and guess what, the customers know this!
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Offer Money Back Guarantee
Since the price war is essentially a money matter, why don’t we just get the issue of money out of the way and focus on what really matters; winning the customer. Which is more important; losing the sale because of price or getting price out of the way and winning the sale?
Suggesting that you get the issue of money out of the way doesn’t mean you give away your products/services for free, no. It only means you make the offer a risk-free proposition to the target customer. How? By offering a money back guarantee!
You see, very few people offer money back guarantee. Why? Because very few people can specifically identify the tangible benefits associated with their offerings [products/services] and so they can’t vouch for what they are asking you to pay for. The fact that you are bold enough to offer a money back guarantee tells the target customer that you are sure of your offering. This has already given you a competitive advantage over the numerous competitions who don’t offer money back guarantee.
As soon as money is out of the way since you offer a money back guarantee, the customer is willing to make the purchase knowing that they have nothing to lose. Then you can focus on delivering on your brand promise and if you don’t, then you are better off fighting the price war!
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Offer A Free Trial
Another flip side to winning the price war by offering a money back guarantee is to offer a free trial for your product/services. This works a great deal because it allows the target customer to have a taste or preview of what you are asking them to pay for. And when they eventually do, if it’s something that delivers a result they currently lack or solves a problem they currently have, then money no longer becomes an issue to making the purchase.
When we ran our cyber cafe business, this was one of our most effective competitive strategies. It totally eliminated the barrier to winning the customer as a result of our higher prices. We had a tradition of offering first timers 10 minutes worth of internet access to assess our quality of service before paying for it. Again, this is a classical case of a risk-free proposition to the target customer. Since they had nothing to lose, they eagerly accepted this trial offer and because we were so sure of our quality of service, they came back to pay for more internet access time after the free trial elapsed.
Conclusion
The end of the matter is quite simple; if you don’t want to be at the bottom of the market fighting over prices with your competitions, then be prepared to raise the bar above the usual or general playing level. In other words, if you want to charge more, be ready to give more and do more!
Your Turn
What other competitive strategies have you adopted in your business to win the price war?
Also, which of the ones mentioned above are you most comfortable with and will readily put to use in your business and which are you less comfortable with and is scared to implement in your business and why?
Kindly share your answers in the comment section below. This is a collective learning community; your feedback is highly solicited. Thanks and can’t wait to hear from you!
- Published in Strategy, Thought Bank