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April 5, 2021

Author: Tito Philips, Jnr.

Hi! My name is Tito Philips Jnr, an unusual Nigerian that is MAD – Making A Difference. I'm the Chief Community Leader here and this is where we raise the bar of entrepreneurship. We are a TRIBE of Unusual Entrepreneurs, we are not your every day entrepreneurs who go into business to put food on the table and pay bills. For us, business is more than making ends meet [survival]. It is our means of doing what we love [passion], changing the world [purpose] and being financially rewarded for it [profit]™. Want to become ONE of us?

Unusual Entrepreneur Interview with Walter Emiedafe of SapientVendors.com.ng

Monday, 01 June 2015 by Tito Philips, Jnr.
Walter Emiedafe

Walter Emiedafe

In today’s edition of the Unusual Entrepreneurs Interview, I have on the hot seat one of our clients and also an entrepreneurial friend of mine; Walter Emiedafe, CEO of Sapient Vendors Ltd. We met in 2012 at a business conference and immediately bonded as like minds.

I have been trying to get him on the unusual entrepreneur interview series for over 2 years now, so when he eventually agreed to give it s a shot 2 weeks ago, I was so glad.

Walter is one of the rare unusual entrepreneurs who ‘get it’ and by that I mean who understands what it means to be in business and is 110% committed to paying the price of greatness. He’s not your average everyday entrepreneur who wishes or dreams for things to get better in their business but sit back and does nothing.

No!

Walter is both a big dreamer and a big doer. Like I love to say; “he’s a doing dreamer”. And so, in this interview you will meet an unusual guy who;

  • Has failed over 6 times on different business ventures and yet never gave up.
  • Was forced into entrepreneurship earlier than he would have wanted to because of family responsibilities.
  • Has undertaken projects with zero capital and succeeded.
  • Attended an entrepreneurship training program on scholarship because he didn’t allow his lack of personal funding to deter him.
  • Has implemented every advice ever given to him by his mentors without fail.
  • Understands the immense value of teamwork and the profound competitive advantage it brings to a startup.
  • Has a track record of 22 100% completed construction projects out of 25 projects contracted to his company.

Enough said already, hear from the horse’s mouth yourself; take it away Walter!

Part 1: Walter Emiedafe Unusual Entrepreneur Interview

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 Walter Emiedafe and I am the CEO of Sapient Vendors Ltd. – a Construction based firm I started with two other partners Olalekan Ajani a builder and Adebisi Adewuyi a Quantity surveyor. I had to mention them in that order because that was the sequence of their entry into the partnership, during the evolution of the brand. I studied statistics from the premier university (University of Ibadan).

Our entrance into the construction business was inspired by a growing shortage of quality construction service in the country, especially from indigenous contractors. We noticed that the construction challenges clients were facing with indigenous contractors encompass poor project management (which results in project abandonment, time & cost overrun), unprofessionalism, undercapitalization, poor communication skills and budgetary limitation.

Our clients are corporate bodies within diverse industries (residential, commercial and industrial clients across the oil and gas, banking, real estate, maritime and construction industry in Nigeria).

  1. How would you describe your entrepreneurial journey into the world of business?

The journey started 15years ago in my Father’s tailoring outfit (Vikky Creations Ltd) the go to shop for your tailoring need based in Lebanon Street, Ibadan, due to the quality of stitches you get. I spent four years there, managing all business operations, marketing, customer relationship, procurement of fabrics and other related input that goes into getting a finished fabric, personnel management, general finishes except tailoring itself.

All these were against my will, so I can say that was a reason I never got involved in the daunting exercise of peddling the machine. My Dad and I had diverging management approach to business, so we had a lot of arguments. It was a practical business school experience, I learnt a lot from same experience, especially reputation management, being true to your words, team management, how to calm an angry customer and make him your friend.

Unfortunately for my Dad, who had no plan B for my exit, I still feel bad I left his business the way I left, and it was because I was not seeing a future within that space.

The next phase was my foray into international business, internet marketing of gemstones. I and a few friends Tope Dixon and Musiliu Akanni without capital invited two Indians into Nigeria to buy Gemstones in the likes of Tourmaline, Garnet, Topaz, and Quartz. The venture failed, because we didn’t put in the right legal framework for their market entry, and the sly Indians capitalized on our liberality.

Then I started using my internet skills to sell industrial minerals and Gemstones for Jimmy International Merchants Ltd, but was never encouraged by the way I was priced, because I wasn’t the custodian of the minerals, so had to make do with the paltry sum handed over to me. But I learnt a lot from the industry, and also noticed the industry was too informal and unorganized. Hence, I knew I had to acquire a new skill (administrative skill).

Then I met Mr. Adebayo Olaniyan of Tons Development Ltd, he imparted so much in my life. His organization was the second real life business school I attended. I was exposed to a lot of things from procurement to building a relationship with your bankers, and business development.

During the first year of working with him, I registered ARQUS Ventures with two partners, we closed a few deals. But my engagement at Tons Development Ltd, which was becoming promising never allowed me to project the ARQUS brand, and since it was my first time working within an organized environment, I had to let go of other ambition.

So I got so involved in the organization, that I was perceived a Director in the organization. I spent six years there, before our values and needs shifted. If there was something I wish I could undo, it’s how to mend our broken relationship because of our divergent views, and also because he groomed me to be a better entrepreneur.

A lot of things would have been vague to me, without being under his tutelage, as a mentee and employee. But, what I learnt was to be constantly open to ideas from your employees, never be too far from them.

While I was gainfully employed at Tons Development Ltd, I registered Sapient Vendors Ltd in 2010. I worked for two additional years before stepping out into the fierce business environment. By October, 2015 it would have been three years full time dedication to Sapient Vendors Ltd.

  1. Where there any key incidents or life changing events that inspired your decision to become an entrepreneur?

My experience at Vikky Creations Ltd inspired my decision. A secondary school leaver with no management experience being handed the responsibility to run a family business that feeds a family of six, pay its bills and all other sorts.

And interestingly I survived. Interestingly, I was able to capture a niche of clients for myself, when my Dad and I had divergent views on pricing. We had a few clients who couldn’t afford to pay the company’s standard pricing, I could profitably render same service to these cadres of client but he couldn’t. So I started selling same service to them, and would say I made good cash back then, it was fun and fulfilling.

Secondly, while working at Tons Development Ltd, I enrolled for entrepreneurship training at Fate Foundation (2007). Then, I couldn’t afford to pay the fees (N50, 000). I was sincere with the admission personnel, so she invited me to pitch my business idea.

I quickly went to a Cybercafe, penned, printed and submitted my idea. After review, I was a lucky recipient of Citi Bank sponsored scholarship. So I had my firsthand entrepreneurship training from Fate Foundation. The concepts taught were easy to grasp, because I could easily relate what I was being taught with my experience at my workplace.

  1. When you started out in business, what specific idea, purpose or vision was your key driving force?

  • To become a sector benchmark in delivering innovative solutions.
  • I saw opportunities instead of problems.
  • I wanted to convert my experience into service that could be paid for.
  • The need for a strong brand that would compete with the likes Julius Berger (long term).
  1. What is your take on the general notion that entrepreneurs should build a business around what they naturally love to do?

It is important to build a business around what you naturally love to do. Your business is like your spouse, if you are not passionate about her, the whole relationship would crumble, same with business.

I always had passion for engineering, in fact I wanted to study Mechanical Engineering, but JAMB frustrated me, and really it wasn’t the fault of JAMB. I had to manage Vikky Creations and study at the same time, and if you were ever close to a successful Tailor back in the days, am sure you would understand how time was never enough to attend to personal issues.

I had to bring that up because, somehow the winds of destiny swept me to the shores of my desires (Engineering).

  1. 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?

At a point in this journey, we would start some CSR initiative targeted towards Primary, and Secondary school leavers who were handed responsibilities they never bargained for (especially hawking). We would empower them, because they are having firsthand enterprising experience, but are not aware of its potential and if not well empowered they get sucked into the black hole of street urchins.

  1. What would you describe as the purpose of entrepreneurship? That is; what role do entrepreneurs play in the world?

Value creation which cut across the below listed stakeholders;

  • Customers
  • Employees
  • Investors (Partners and would be equity investors)
  • Environment

Part 2: Walter Emiedafe Unusual Entrepreneur Interview

STRATEGY: The unusual execution of business best practices

  1. How do you identify business opportunities and what metrics do you use to measure their viability?

  • Network
  • Reading of business journals and market research reports.
  • A combination of experience and intuition. And do note that intuition is a catalogue of experience stored in your subconscious mind.
  • Risk analysis (How would you get paid, who is responsible to pay for your service, is the client willing to sign a contract of engagement? If not flee. The last point is a warning sign that you would work for God! Lol!)
  1. 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?

Yes!

The first entrepreneur mentor I had was Mr. Ademola Agboola of Fast Pace Limited through Fate Foundation. He taught me that perception was key; so the journey to re-package our corporate profile commenced from that point and so we engaged an external consultant.

He calmed my steam a bit, especially due to my over ambitiousness, he encouraged organic growth.

He taught me how to manage external business partners; I soon had more practical experience down the road.

I learnt how to network at events via this relationship.

My other mentor, Alibaba – the Godfather of Nigerian Stand-Up comedy, thought me how to appreciate my clients after patronage.

Gave me a better idea on how my logo and call cards should feel to a prospect, and encouraged the use of social media for promoting the brand.

He also shared the Zacheaus Philosophy with me;

  • Know your limitations (Challenges)
  • Work out a solution: using Alibaba’s recommended tools
    • Reading
    • Networking
    • Learn from other people’s challenge.

My third mentor, Ononuju Irukwu opened my eyes to accountability, as it would improve our corporate governance when we finally plan to raise equity. Hence we partnered with Xero. Now we can have our audited account in lesser time.

She also encouraged board restructuring, the engagement of a Legal practitioner to vet all contracts and emphasized the importance of Insurance.

All the above we have implemented.

  1. How do you strategically use your time as an entrepreneur? What key activities would you recommend entrepreneurs use their time for?

  • Executing on business strategy.
  • Attending diverse seminars and forums to network and learn from Industry leaders.
  1. How do you generate profitable customers for your business? What unusual approaches do you adopt for marketing your products/services?

We never started from profitable clients; we started rendering our services to individual clients, and were owed a lot of money. Because there was no binding contract which was enforceable by the law. The same followed with our first corporate client (A typical Nigerian partnership run like a one man business).

Besides attending high profile business events for networking purposes, and submitting targeted proposals to prospective clients, we’ve recently adopted digital marketing through Differentiate Online. And I can proudly say that it was one of the best business decisions we’ve made since late last year; our brand visibility, lead generation and conversion strategy has greatly improved as a result.

  1. 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?

Lack of funding is never the problem; the problem is lack of passion, resilience and lack of value created. Wealth and money flows in the direction of value, and the quality of value you create is a function of the quality of your mind.

We have funded project with next to zero account balance (this is in comparison to the capital required to execute a project). And also to expatiate on value, banks are not the only source of funding, your friends and partners are other sources. How are you communicating the value of their input to them, is it a me thing or our thing (teamwork)?

Lastly, lack of integrity would repel funding. Integrity is another source of capital; can you be trusted with money? Can your suppliers and workers trust that when you get their goods and services on credit you would pay them their bits when you are liquid? When you borrow, do you have the desire to pay back? Or rather prefer to default because you are smart?

Fix the above and capital would come running at you!

  1. When starting out a new business, who are the likely possible partners or professional service providers you would recommend every entrepreneur work with?

  • Accountants
  • Auditors
  • Lawyers
  • Marketing Consultant to help with your personas and target audience
  • Technically competent consultants within the desired industry, this would reduce waste of time and capital.
  1. The pricing of products/services is always an issue for entrepreneurs, what unusual approach do you take when it comes to pricing?

It depends on each individual’s competitive strategy (long-term or short term).

Part 3: Walter Emiedafe Unusual Entrepreneur Interview

MISCELLANEOUS: Resourceful Recommendations, tools, books, and ideas for entrepreneurs

  1. What would you describe as your major setbacks and what lessons did you pick from them?

1).   Niche market created within Vikky Creations Ltd was profitable, but my emotional attachment to the workforce led me to use generated profit to offset owed salaries.

2). Gemstones export with the two Indian companies invited to Nigeria failed, because there was no legally binding agreement guiding their market entry, and the organization we partnered with wasn’t well structured and had no financial resource to back the venture, hence was a self financed venture.

3). Supply of Clay to Lafarge, Ewekoro. Borrowed N80, 000.00 from a senior friend (Pastor Adewunmi Oke The CEO of Heterogeneous Systems Ltd), added an additional N32, 000 saved to start of the venture. On paper the project was profitable, since I was still gainfully employed at Tons Development, had to delegate the supply to a local indigene. The business went bad, but I made sure I paid off the loan.

4). Bulk purchase of granite and reselling to would be buyers. The field sales person gave a couple of excuse, so had to cut my losses. My loss was about 35% of investment capital.

5). Exportation of Zinc ore via cooperative export scheme, organized by 3tImpex. Had the support of one of the company’s present partner (Olalekan Ajani). Total capital injected N700, 000.00 (My quota: N400, 000.00, Lekan’s Quota: N300, 000). Business failed because the essay report provided by the indigenous certifying body painted a wrong picture of the quality of the ore (below the contractually agreed upon specification), hence the Chinese importer paid lesser than the invested sum by all cooperative member. These was my total savings invested in a venture that I thought would have been a bailout from paid employment. So I returned back to zero capital.

6). Was successful in the first Psychometric test and unsecured loan disbursement organized by Stanbic IBTC. I used same loan to execute an individual client’s project (residential). Till date he is yet to pay for the service rendered. Lesson learnt: without a documented agreement, never spend a dime on a client’s project based on blind trust.

  1. Where 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.

Appreciation

  1. Mara Mentors: Providing linkage to Alibaba GCFR + Ononuju Irukwu of Chapelhill & Denhamm
  2. Fate Foundation – Providing linkage to Ademola Agoola of Fast Pace Ltd
  3. Adebayo Olaniyan of Tons Development Ltd
  4. Citi Bank – Scholarship @ Fate Foundation
  5. Ademola Agoola of Fast Pace Ltd

Your Turn

I’m so convinced you had more than you asked for in this interview. But just in case, he missed out something, what more would you like to know about the unusual Walter Emiedafe?

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? What strategies did you pick up from him?

Walter has shared his unusual story with you, now is time to hear from you. Can’t wait to hear what you have to say!

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EXPOSED: The Ultimate Guide to Entrepreneurship

Monday, 25 May 2015 by Tito Philips, Jnr.
entrepreneurship exposed

entrepreneurship exposed

To demystify entrepreneurship, we have to start with the definition.

What is Entrepreneurship?

In the simplest form ever;

“ENTREPRENEURSHIP is about USING your LIFE to MAKE A DIFFERENCE through a BUSINESS.”

This is my personal definition of entrepreneurship. And in this definition, lies the 3 critical components that are necessary to successfully pursue your entrepreneurial dreams and eventually build a business that MATTERS!

The 3Ps of Entrepreneurship

  • The PERSON (who): using your life
  • The PURPOSE (why/what): to make a difference
  • The PROCESS (how): through a Business

Let’s look at each critical component in more details.

  • The PERSON (who): using your Life

The entrepreneurial journey is embarked upon by an individual or group of individuals. And to a very large extent, the success or failure of the business to be created is going to be greatly determined by the founder(s).

This is why it’s imperative for us to start the exploration of this subject matter of entrepreneurship from a personal perspective. Because believe it or not, business and life are both sides of the same coin. At the very fundamental level, business is not separate from life, but an extension of life.

So any attempt to separate one from the other, will ultimately compromise the very essence of entrepreneurship.

The Entrepreneur: Who Are You?

Entrepreneurship is the most unusual journey you will ever embark on in your life, so you’ve got to be absolutely certain it’s how you want to live your life and what you want to use your life for.

Entrepreneurship is not complete without you the entrepreneur. Entrepreneurship is fulfilled through you; you are the one who gives birth to your business.

Your business is whatever you say it is. Your business can and will only go as far as you want to take it.

You and your business are inextricably linked. Your business derives its purpose from your purpose; your business derives its meaning from your life.

So this leads us to the BIG question every entrepreneur or would be entrepreneur must answer; who are you?

Until you have discovered yourself, every business you start will eventually fail. I know this is hard to believe, so I am going to prove it.

According to Bill Aulet, the professor of entrepreneurship at the MIT Sloan School of Management and the Author of Disciplined Entrepreneurship; there are primarily 3 ways of starting a new business venture.

Meaning, there are basically 3 ways of becoming an entrepreneur;

  • YOU have a breakthrough technology
  • YOU have an idea
  • YOU have a passion

Did you notice every one of the 3 ways of becoming an entrepreneur started with YOU? From the above, the only constant element is YOU. It takes YOU to create a breakthrough technology; it takes YOU to come up with a viable business idea; and finally, it takes YOU to have passion.

At the epicenter of entrepreneurship is YOU!

YOU will have to decide based on any of these 3 options how YOU want to become an entrepreneur. And your ability to make the right choice will greatly depend on your understanding of yourself as a person.

Knowing who you are; what you like and dislike; your strengths and weaknesses; your interests, abilities and skills; your character, temperament and values; your experiences, challenges, desires and realities; all add up to determine your success or failure as an entrepreneur.

So going into business without first discovering yourself and understanding who you are, is a guaranteed recipe for failure. Why? Because not knowing yourself will hinder your ability to accurately choose the right business that will suit your person.

In the end, you will find yourself in a line of business you are inadequately equipped for and will eventually lack the personal qualities to scale through thereby leading to business failure. You can avoid this by consciously seeking to know yourself better.

Remember, entrepreneurship is about using your life to make a difference through a business. So this is your life you are using up to create and build a business, don’t waste it on the wrong kind of business.

Self Discovery Tools

Here are a few tools that can help you know more about yourself;

16 Personalities – this is a personality discovery tool. Take the test to find out more about your person.

101 Self Discovery Questions – this is a great list of 101 important questions to ask yourself

  • The PURPOSE (why/what): to make a Difference

The second critical component of entrepreneurship is the purpose. In other words; to what end is your entrepreneurial journey? Or better still; why did you become an entrepreneur? What are you trying to accomplish by becoming an entrepreneur?

This critical component of entrepreneurship is necessary for all existing entrepreneurs and would be entrepreneurs because it serves as a compass to guide your business activities. Without it, many entrepreneurs have derailed and watched their businesses collapse as a result.

There’s only one true purpose for entrepreneurship; to make a difference in the lives of your customers through the products/services you create and sell to them.

In other words, the purpose of entrepreneurship is to add value for customers and ultimately society. If a business is to succeed, it must aim to add value to customers through continuous innovation and finding new ways of making a difference.

The reason many people go into business and eventually fail is because they didn’t clearly understand the purpose of entrepreneurship. To many in this category, entrepreneurship is about making all the money you can through a business.

Consequently, they go into business with a selfish mentality determined to GET as much money as they can without first considering how much they have to GIVE in exchange for the money they seek.

Entrepreneurs with this selfish mentality fail in business because they have violated the very purpose of entrepreneurship, which is to make a difference through your products/services. Thinking about the money [profit] you will get first rather than the products/services [value] you should create is the recipe for business failure.

In the world of business, there’s only one way to make money; consistently creating and selling products/services that add value to humanity. Death is the eventual outcome of any business that doesn’t make this purpose of entrepreneurship their core guiding principle.

  • The PROCESS (how): through a Business

Business is the tool entrepreneurs use to make a difference in the lives of their target customers. Without creating a business, entrepreneurs greatly limit their capacity to make a difference. Why? Because you are limited as a person.

As an individual, there’s only so much you can do to satisfy your customers. Sooner or later, you will be overwhelmed by all the different activities required to provide the products/services your customers demand. So don’t attempt to go down that road, you will only entrap yourself.

The process of entrepreneurship is all about building a business and not about doing business. The reason for the failure of most small businesses can be traced back to this mistake of doing rather than building a business.

Building a business is about creating systems that will power the activities required to create and sell products/services to your customers. These systems will involve both people and machines; through them your capacity as an entrepreneur to make a difference is greatly amplified.

There are essentially 5 core inter-related systems you need to create;

  • Human Resources [HR] – a specific process of finding, hiring, training, retaining and firing workers
  • Finance – a specific process of sourcing, allocating and managing funds
  • Marketing – a specific process of attracting, retaining and growing profitable customers
  • Production – a specific process of converting resources into finished goods and services
  • Distribution – a specific process of delivering products/services to your customers

The process of entrepreneurship is about putting all these things in place in your business. They are the pillars on which you will build your business. The more effective and efficient these core inter-dependent systems are, the quicker your business will grow and the bigger the difference you can make.

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Unusual Entrepreneur Interview Questions With Dave Schneider of NinjaOutreach.com

Monday, 18 May 2015 by Tito Philips, Jnr.
Dave Schneider of NinjaOutreach.com

Dave Schneider of NinjaOutreach.com

Welcome to another edition of the Unusual Entrepreneur Interviews and today I have with me Dave Schneider, a 27 years old Entrepreneur and the co-founder of NinjaOutreach – a content marketing outreach solution for digital marketers, bloggers and small businesses.

In this interview, he shared with us why he decided to abandon a well paying corporate job [$70k+ per year] and launch out on his own to pursue his dreams as an entrepreneur. He also takes us behind the scenes on;

  • How to define a price for your product/service, using the tier method
  • Why entrepreneurs should only pursue an idea that is large enough to grow into something great
  • The essential role mentors play in the life of every entrepreneur and what a mentor will never do for you
  • The importance of knowing your limitations as an entrepreneur and being realistic with your available resources when pursuing new business ideas/opportunities
  • And many more…

What are you waiting for?

Start digging in!

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?

I am 27 years old from Boston Massachusetts. I graduated from Harvard with a degree in mathematics and worked at Capital One as a business analyst for two years.

Afterwards I left my job and went backpacking around the world for two years with my girlfriend. During that time we started numerous businesses such as buying and selling websites, advertising, and SEO, and were able to replace our previous full time income.

For the last four years I have been developing my skills as a digital marketer, and in June 2014 I partnered with two other digital entrepreneurs and began developing and marketing NinjaOutreach, a blogger outreach software for digital marketers and small businesses interested in growing their presence online.

Previously, this would have required several different tools to find the leads, extract the data, and outreach to them. We do this all in one, and do it much faster. NinjaOutreach collects an immense amount of data from a variety of sources into a searchable database, and allows people to email customized templates from within the platform.

  1. How would you describe your entrepreneurial journey into the world of business? Where there any key incidents or life changing events that inspired your decision to become an entrepreneur?

When I started traveling we decided to start a travel blog. This was my foray into online marketing. I learned about blogging, how to generate traffic, how to capture leads, and how to make sales.

Eventually this travel blog hobby spiraled into a fledgling business, and it really opened my eyes that an individual could generate income on his own – without a company paycheck, and have a lot more fun doing it.

Since then I’ve never looked back and it has been my goal to build a sustainable lifestyle business that will allow me to work from anywhere in the world.

  1. When you started out in business, what specific idea, purpose or vision was your key driving force?

When I first started out, I simply had to make money. That was the main driving force. I wanted to show myself and frankly other people as well that I could go a non-traditional path and earn my own living.

Nowadays money is still a factor, but I can be less money driven and more focused on providing value to the end customer. NinjaOutreach is far from a quick buck. Investing in a software startup is a grind and requires patience and years to become successful, but I know it’s a valuable product and will improve the lives of business owners, and that’s what drives us forward.

  1. What is your take on the general notion that entrepreneurs should build a business around what they naturally love to do?

I agree with this 100%.

When you start a business you’re going to have a lot of ups and downs. Some of the downs are often referred to as the valley of despair.

This is where most people fail and quit.

The more passionate you are about what you’re doing, the more able you are to persevere during these very difficult times.

I have run a business before where I was making quite a bit of money, but had zero passion for it, and eventually I just let it fade out of my own disinterest.

  1. 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 think there are two end goals.

Teach people – I believe that entrepreneurs have an inner desire to teach people. I’ve always been a teacher. My dad was a teacher. My sister is a teacher. I just want to teach in a field that interests me – entrepreneurship.

Social Good – Although NinjaOutreach is a valuable product that can improve the lives of business owners, I wouldn’t classify it as a social good, like clean tech. Eventually, I want to transition into more of these types of projects, and have a greater impact on humanity.

  1. What would you describe as the purpose of entrepreneurship? That is; what role do entrepreneurs play in the world?

The purpose of entrepreneurship is to innovate, and therefore allow the world to progress, improving the lives of everyone.

Interview Questions Part Two

STRATEGY: The unusual execution of business best practices

  1. How do you identify business opportunities and what metrics do you use to measure their viability?

Finding a good business opportunity is about finding the balance between the size of the pie and the resources required to pull it off. You have to know your own limitations as an entrepreneur and be realistic about what resources you have access to. Of course this has been proven wrong countless times before, where people who came from nothing dreamed big and achieved big – but I do think as a general rule it helps to be realistic.

At the same time you want to be pursuing an idea that is large enough to grow into something great. I see a lot of people wasting time on very small-minded thinking (like building a small niche site), that could never make more than a few thousand dollars a month, at most.

The fact is the amount of effort these things require is not altogether different, so go big, but be conscious of your resources because if you run out, it’s game over.

  1. 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 have used SCORE as a means of getting one business mentor who I speak with every few months about my business. It helps to be able to speak with someone who is older, wiser, and has been there and can provide hands on advice and support.

That said, most of the day to day activities are between my team and I. Inevitably even with a mentor, you have to be prepared to be the one in the trenches, executing day after day.

  1. How do you strategically use your time as an entrepreneur? What key activities would you recommend entrepreneurs use their time for?

Firstly, if there is anything I can outsource, I do. I have assistants, hired off of oDesk usually, who handle a lot of the minute things like online research, organizing, etc. This helps free up my time to do things that only I can do, like this interview.

I try to balance my time between the product and the marketing. Both need attention and both are closely related, and it’s important not to get overly focused on one or the other. So, when my developer is working, I am probably more focused on product and answering his questions. When he is not, I go into marketing mode.

  1. How do you generate profitable customers for your business? What unusual approaches do you adopt for marketing your products/services?

What’s unusual about our method is that our tool is for blogger outreach and lead generation, so we basically use our tool to sell itself.

Of course, it is not direct. There is a channel involved, which is usually email. That said, I use our tool to find bloggers, affiliates, and general influencers who we can partner with. We do a lot of content marketing like guest posts, product reviews, giveaways, and things like that to get in front of other audiences.

  1. 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?

I think this comes back to my point about resources. I would be very wary about attacking a problem that depends on funding. NinjaOutreach could benefit from funding, but I believe that it can succeed even as a bootstrapped product, so I know that if we don’t get funding, we’re not going to go belly up tomorrow. We’re aware of our costs and what kind of money we have available to invest in the business, and we know that we have the talent on the team to see it through.

If you are having issues getting funding then you need to further prove the business. If you are having issues proving the business, then it may be that something is wrong with it, or you simply don’t have the help. In that case, consider taking on additional founders or employees and giving them equity, so that you can grow the business to become something that’s investable.

  1. When starting out a new business, who are the likely possible partners or professional service providers you would recommend every entrepreneur work with?

Naturally my recommendation is to look at bloggers and influencers in your niche and try to persuade them to partner with you. They have large audiences and this can really accelerate your growth. If you’re not sure how to work with influencers, consider this case study on LeadPages.

  1. The pricing of products/services is always an issue for entrepreneurs, what unusual approach do you take when it comes to pricing?

I’m certainly not a pricing expert but I have heard the following principles:

1.  Always tier your pricing, because a high proportion of the revenue will come from the high end tier, even though it will likely represent the lowest number of customers.

2. Make the tiers different enough to stand out, something like 1x, 2x, 5x.

Interview Questions Part Three

MISCELLANEOUS: Resourceful Recommendations, tools, books, and ideas for entrepreneurs

  1. Since you became an entrepreneur – someone who solves problems for people profitably; what has been your most outstanding accomplishments in the context of business?

So far it remains the travel blogging business I started on the road. This business became around a $20k per month service business, where we were selling advertising on travel blogs to agencies. I ran this with my girlfriend and a few contracted assistants, and we did it while traveling the world full time (over 40 countries). It received zero funding.

  1. What would you describe as your major setbacks and what lessons did you pick from them?

Some of my major setbacks were partly external, for example, the aforementioned business had issues with Google and they basically de-indexed a lot of our websites, which cut the legs out from under the business when it was just taking off.

Personally, I’ve attempted some businesses that I think had the potential to be successful, but I got discouraged too early and gave up. This is what i mean when I say you have to be passionate about what you’re doing. I wasn’t passionate about either of those businesses, at least not to the extent that I was willing to see them through hard times and rough starts.

  1. Where 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.

Perhaps a question about trends, such as: What’s one trend that really excites you?

I really love the growth in blogging, as well as quality content creation and content promotion. More and more there is quality information being put out there and people are taking their blogs more seriously. As a result brands and businesses are coming around and looking at online audiences as effective markets that they want to tap into. Naturally this trend bodes well for our blogger outreach software.

Your Turn

I’m so convinced you had more than you asked for in this interview. But just in case, he missed out something, what more would you like to know about the unusual Dave Schneider?

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? What strategies did you pick up from him?

Dave has shared his unusual story with you, now is time to hear from you. Can’t wait to hear what you have to say!

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55 Strategic Marketing Questions for Small Businesses

Tuesday, 21 April 2015 by Tito Philips, Jnr.
55-strategic-marketing-questions

55-strategic-marketing-questions

Very few activities can help transform your business as much as marketing does. If gotten right, it can take a small business from complete obscurity to industry limelight.

But then, not many small businesses get their marketing right. And that’s why they still struggle.

I have written several unusual articles on the issue of strategic marketing, so instead of loading you with more principles and best practices, now it’s time for action.

Here are 55 strategic marketing questions for small businesses from one of the greatest marketing minds alive – Jay Abraham.

These questions are part of a collection of 99 strategic planning questionnaires he uses for his clients while consulting for them. And by clients, I do not mean some struggling solo entrepreneur, but rather 7 figure monthly income generating small businesses.

 

How to Answer these 55 Strategic Marketing Questions

Don’t attempt to answer these questions as if they were exam questions that must be answered on the spot, no. They are deep questions that will require some deep thinking on your part as well as that of your team.

This is not a one off task, that you complete once and set aside for life, no. This is a reference material, one that must be revisited continuously as you progress in your entrepreneurial journey.

So here’s my suggestion on how to go about answering them;

  • Answer them in parts of 5 questions per week. You will be done in 11 weeks.
  • Try to answer them alone first, don’t involve your team.
  • Not all answers will be applicable to you depending on your business, so focus more on the ones that apply to you at the moment and save others for later.
  • Organize a strategy session or sessions with your team or strategic partners and go over the questions together, writing down all the inputs gathered.
  • Create an excel document with all 55 strategic marketing questions in one row and the answers you’ve gathered for each question in the column in front of the question. Then add another column with action steps to take in order to carry out that answer, or improve on the existing answer. This will take you from just thinking to doing.

Without further ado, here are the questions, enjoy!

 

55 Strategic Marketing Questions for Small Businesses by Jay Abraham

1. Who is your target market and how did you arrive at it?

2. Describe what your business does completely (what you sell, how you sell it, and who you sell to by industry, commercial category or specific niche).

3. What primary method of generating customers was used to build my business?

4. What is your business philosophy as it relates to your customers?

5. How have your methods for doing business or the product or service line(s) you market changed since the inception of your business?

6. What is your vision for your business for the next: 6 months, 1 year, 3-5 years and 10 years and beyond?

7. What or where is your biggest opportunity that will help you achieve this vision?

8. What is your greatest strength, and is it consistent with this opportunity?

9. What are your sales per employee? Is that above, below, or equal to your industry average and what are the steps you are taking [or going to take] to improve it?

10. What is the “lifetime value” of your typical customer [i.e. how much revenue will he/she generate for you over the entire period he/she does business with your company?]

11. What is the biggest customer complaint about your company, and how does your company address this problem?

12. What is your Unique Selling Proposition or USP [why do your customers buy from you – what is it about your product and/or service that distinguish you from your competition? You may have more than one for different product/service lines or segments of your business?

13. Is your USP a consistent theme in all of your marketing and sales efforts? If yes, how, and if no, why not?

14. Briefly describe your marketing program or marketing mix [all the different types of marketing you use and how they interrelate – i.e; yellow pages, spot advertisements, direct mail, direct sales, telemarketing, online marketing etc.].

15. Who are your biggest competitors and what do they offer that you do not offer?

16. What steps do you take to offset their advantage? Are they working? If not, what needs to be changed?

17. What is your competition’s biggest failing, and how do you specifically fill that void?

18. Do you use direct response marketing concepts [those designed to induce an immediate and measurable response?] If no, why not?

19. How much of your time each month do you devote to marketing?

20. Do you have a marketing director? If so, describe his/her primary responsibilities and duties.

21. Do you have a written marketing plan that you adhere to? If so, explain it:

22. Is the plan based on a fixed budget number [i.e. 10,000 per month in the newspaper], or is it a variable percentage of sales?

23. What do your customers really want [be specific, don’t just answer “a quality product or service”]? How do you know?

24. Do customers buy from you exclusively or do they also patronize your competitors? What steps can you take to get the main portion of their business?

25. Do you provide incentive bonuses to your employees for creating new and better marketing methods for your company? Explain.

26. What’s your market potential [universe] and your current share of that market?

27. What are the ways you’ve used to acquire your existing customers [from best to worst]?

28. What does it cost you to get a new customer [ie. If you ran an advertisement that cost 1,000 and you acquired two new customers, your cost would be 500]?

29. What is the average sales and profits generated from a new customer in the first year, and how is that information useful in your overall marketing strategy?

30. What is your biggest and best source of new business, and are you doing everything possible to secure this business? If no, why not?

31. What has been your biggest marketing success to date [defined as a specific promotion, advertising campaign, telemarketing script, etc.] and are you still using it?

32. What is your biggest marketing problem or challenge today? Describe it in its entirety as candidly and directly as possible, including personal, financial, and transactional implications it may impose.

33. How many better ways could you reduce the risk of transaction, lower the barrier of entry or reduce the hurdle for your customer, client or patient to make it easier for that person to do business with you?

34. After the initial sale, are there systematic, formal methods you use to communicate and resell your customers? If so, what are they? If not, should there be?

35. Do you have a systematic back-end [selling your own or others’ products to existing customers]? Describe how it works:

36. What problem does your product or service solve for the customer? Describe your customers’ needs and the positive results your product/service provides?

37. Do you have an adequate supply of customer testimonials, and is there a system in place for their capture? Are they written, on audio tape or video tape, and how are they used in your marketing?

38. In what ways, if any, are the testimonials dramatic, dynamic and compelling to others?

39. Describe the best specific achievement you have produced for one of your customers.

40. Do you actively solicit referral business? If so, how does it work, and if not, why not?

41. Have you ever tried to reactivate your former customers and non-converted prospects? Explain.

42. Have you ever tried selling your non-converted prospects to your competitors? Explain.

43. Do you make consistent efforts to communicate with and educate your customers about what your company is doing to help them? How formal, informal or systematic is the process?

44. In what ways do you try to up-sell and/or cross-sell your customers?

45. Are there other ways or different products/services you could be selling but you are not?

46. Do you need to make money on first-time buyers, or are you satisfied with only making it on the back-end [reorders]? Explain:

47. Does 80% of your sales come from 20% of your customers? What are the implications of your particular ratios?

48. Do you ever barter your products, services or assets with other companies in exchange for their products, services or assets? Explain how it works.

49. Have you used bonuses in your sales/marketing propositions? If so, how did it affect the response?

50. What kind of guarantee or warranty do you give your customers, and how does it compare with your competitors with the industry at large?

51. What is your customer attrition rate?

52. Is that normal for your industry?

53. If it’s too high, what do you think is the reason?

54. If it’s lower than average, why?

55. How can your customer attrition rate be improved (be specific)?

 

 

Conclusion: Want More?

Jay Abraham is still in the business of taking small businesses to the next level. He recently launched a mother lode campaign of educational resources for small businesses which he’s completely giving out for free tagged “50 Shades of Jay” – click here to grab them now!

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  • Published in Marketing
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Unusual Entrepreneur Interview with Jamon Mok of Backstreet Academy

Monday, 06 April 2015 by Tito Philips, Jnr.
Jamon-CEO, Backstreet Academy

Jamon-CEO, Backstreet AcademyBackstreet Academy is a travel social enterprise platform empowering anyone in developing countries to create and sell a tour or activity to travelers looking for a unique, local experience while benefiting the local community.

Launched in March 2014, by Jamon Mok, who personally hates package tours and is always looking for better ways to travel and connect with locals, especially in places where language is a problem.

He got inspired to create Backstreet Academy whilst travelling through Myanmar and seeing how hard the artists have to work to try accessing the tourist market.

Since then, Backstreet Academy has grown on average 39.2% per month, and currently offers more than 300 activities in over 16 cities around Asia.

How Does it Work?

Just like Airbnb, anyone can create an experience, list it on our website and guests can book directly from them. Even people who cannot speak English, access internet are able to do so through our local translator system. Hosts make 50-60% of the listed price, translators take 10-20%, transport operators take 10-15% and Backstreet Academy takes around 10-15%.

Take it away Jamon!

 

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?

Backstreet Academy is a social enterprise travel platform that empowers locals to create their own tour, workshop or activity for tourists, resulting in a very unique and authentic experience and cultural exchange that cannot be found anywhere else. Imagine a boxing class with a local champion, taking an art workshop with a master who practices an art medium that nobody has ever seen before or going fishing with local fishermen on their boats and traditional equipment.

We started Backstreet Academy mainly with the aim of alleviating poverty through empowering local people with the tools and channels to be their own entrepreneurs and access the tourism market directly with proper training and unique activities. We are also avid travelers who are always looking for offbeat experience that allows us to delve deeper into a country’s culture and have a better interaction with locals.

  1. How would you describe your entrepreneurial journey into the world of business? Where there any key incidents or life changing events that inspired your decision to become an entrepreneur?

Richard Branson’s autobiography really inspired me to pursue entrepreneurship and create value for the world and it is only through starting my own business that we could create such impact and innovate to make a difference in the world. CK Prahalad’s ‘Fortune at the bottom of the Pyramid” and MuhdYunus’ books about social business also really guided us in the creation of sustainable and responsible businesses that would not only be profit maximizing but always have a positive social impact.

  1. When you started out in business, what specific idea, purpose or vision was your key driving force?

It was always to empower people in a huge way, and building a platform such as backstreet academy was the perfect idea as it really provided many tools to empower people in poverty to be able to access the tourism market and have a marked improvement in their quality of life.

 

  1. What is your take on the general notion that entrepreneurs should build a business around what they naturally love to do?

Entrepreneurship is tough, and there are so many factors that can break a business, and loving what they do is a small part of becoming the best at what they offer. Loving what they do does help in getting them in being good at it, but I guess the prerequisite is being good at it. Just loving something, however, is purely a hobby.

  1. 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 would like to be remembered as someone who made a difference for people and that the world has been a slightly better place because of me. It doesn’t have to be all grand and world changing, a small dent and a real impact in individual peoples’ lives are all that matters. I like to measure my life with the number of people impacted, rather than by wealth.

  1. What would you describe as the purpose of entrepreneurship? That is; what role do entrepreneurs play in the world?

The purpose of entrepreneurship is really to bring resources together, inspire an explosive reaction from what you’ve assembled as a force for good and pushing the boundaries of human civilization for the better.

Interview Questions Part Two

STRATEGY: The unusual execution of business best practices

  1. How do you identify business opportunities and what metrics do you use to measure their viability?

Business opportunities almost always surface as problems. As long as someone has a problem that they can’t wait to get rid off, that’s most likely an opportunity. Then it’s on to finding out how many people likely have the same problem and how much they’re willing to pay for it. That determines the market size and hence viability.

That’s the traditional way of determining the viability and profitability of any business opportunity, but that’s where many world changing ideas and socially impactful ideas get left on the side because they don’t pass this test.

Sometimes it’s not immediately visible as a big market (i.e. a lot of people may have the problem but it’s rather impossible to determine, like when Thomas Watson said there is a demand for only 5 computers in the world). Technology is probably the hardest to imagine the size and reach right at the beginning to justify building something.

Socially impactful products are probably next in line because your customers often cannot afford to pay for what you develop. Socially impactful products thus should be measured by the positive impact to judge their viability. As long as they have significant positive impact, it can happen one way or another.

  1. 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?

No, there are too many moving pieces and intricacies in any business for a coach to actually accurately recommend solutions, unless he is also as hands-on and deep in the business, which is rarely the case. Unless the problem is very very clearly defined, then it makes sense. However, that is again hardly the case.

 

  1. How do you strategically use your time as an entrepreneur? What key activities would you recommend entrepreneurs use their time for?

Reading widely to keep abreast of developments, reading historically to understand why and how people made their decisions, always learning new skills, and giving generously to whoever might require it.

  1. How do you generate profitable customers for your business? What unusual approaches do you adopt for marketing your products/services?

The core of our approach is to create a magical experience for our customers, making it memorable for people, and that will naturally spread. That’s the best way to market products. We ensure that we’re always attentive, updated and always able to create surprises for our customers.

  1. 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?

Funding is always an issue for companies of any size. The best way is to ensure that you turn a profit as soon as possible, and as soon as you don’t need the money, money becomes readily available. It’s ironic, but the logic sits deep in finance, where banks are always there to lend when you don’t need it and never there when you need it.

  1. When starting out a new business, who are the likely possible partners or professional service providers you would recommend every entrepreneur work with?

Probably outsource everything you’re not the best at or things that are not really integral to the success of your product, such as the accounting, incorporation, logo design, etc. These just burns up unnecessary time and effort without doing anything for the viability of the company, and if not done well will actually threaten the viability.

  1. The pricing of products/services is always an issue for entrepreneurs, what unusual approach do you take when it comes to pricing?

Pricing is never straightforward, especially for new products. The best way is to launch at a pricing comparatively more or less looking at what’s on the market, and provide a signal based on that. If you price more, then you are positioning for premium and if less, then you are positioning for affordability. Always look at what customers are actually willing to pay and then just shift prices accordingly.

Interview Questions Part Three

MISCELLANEOUS: Resourceful Recommendations, tools, books, and ideas for entrepreneurs

  1. Since you became an entrepreneur – someone who solves problems for people profitably; what has been your most outstanding accomplishments in the context of business?

Empowering more than 400 people in developing countries to be able to access the tourism market and directly impacting their lives positively through the income, training and exposure we provide. The numerous stellar reviews we obtain from customers are also something that motivates us the most.

Your Turn

I’m so convinced you had more than you asked for in this interview. But just in case, he missed out something, what more would you like to know about the unusual Jamon Mok?

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? What strategies did you pick up from him?

Jamon has shared his unusual story with you, now is time to hear from you. Can’t wait to hear what you have to say!

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5 Strategies for Reinvesting Profits to Grow Your Business

Friday, 20 March 2015 by Tito Philips, Jnr.
Reinvesting profits

Reinvesting profits

The concept of reinvesting profits is one that every entrepreneur should be intimately familiar with. Especially in your early years in business, the need to pay yourself can greatly impact your capacity to set aside some funds from your profits for reinvestment purposes.

While this is the reality for most growing entrepreneurs and businesses, you shouldn’t conform to it. The ideal situation is that you refrain as much as you can from siphoning money away from your business for personal use. That way, any profits that are generated early on can be reinvested back into the company  in order to upgrade and grow the business.

5 Strategies for Reinvesting Profits for Business Growth

But how exactly should you go about reinvesting profits back into your business? To a great extent, it will depend on the needs of each individual business, but here are five reinvestment strategies that will be helpful to most small businesses.

1. Pay Off Debts

If your business is truly generating profits and you have the ability to allocate them where you please, paying off debts should almost always be the primary focus. It’s certainly not the most exciting option on the table. Also, unlike some of the other ideas we’ll explore, it doesn’t result in an immediate, visible impact on the company.

However, paying off debts helps your business become more financially independent, which ultimately provides you with the flexibility you need to grow and change with success.

In an article about strategies for reinvesting profits, Forbes contributor Sunday Steinkirchner articulates this idea by stating that “paying down debt will save you money in the long term, as well as help your credit score.” Steinkirchner was speaking from her own experience as a small business owner, and she also made the important distinction that paying off business debts is different than paying personal ones.

This may sound like an obvious assertion, but you may be surprised how easily the lines between personal and business can blur in the early days of ownership. Unless for some reason you happen to be on a particularly tight timeline with a personal loan, however, getting the business out of debt should be the first order of business.

2. Maximize Inventory Or Service Capability

Before we delve into this particular strategy for reinvesting profits, it should be noted that these ideas are not necessarily in any particular order. While paying off debts should almost always be the primary consideration, additional methods of reinvestment can be sorted and reordered (or omitted altogether) depending on your specific needs. That said, taking steps to boost inventory and/or service capability is usually a good idea to consider.

This, of course, depends on the nature of your business. If you’re selling products, maximizing your inventory  means investing in additional manufacturing or faster production methods in order to have more products available. If your business sells a service, the equivalent idea could be any number of things designed to maximize your company’s ability to provide that service to a wider range of customers.

Either way, the idea is to use profits while you have them in order to equip your business for growth. Expanding a customer base and improving your company’s brand recognition are important steps and will be covered below. But if you expand your presence in the market before your business is capable of addressing the needs of additional clients or customers, you’re essentially setting up to disappoint.

You may raise concerns about supply and demand with regard to this idea. On a certain scale, it’s a valid conversation. For example, if Apple releases its upcoming smart watch in limited numbers, the public will clamor and wait eagerly for more inventory to arrive. This increases demand and ultimately could benefit Apple. However, things work differently when you’re starting out.

A contributor to the Houston Chronicle addressed the idea while pointing out that having sufficient inventory allows you to maintain prices and consistency in your business. In other words, if you’re short on inventory or service capability and attempting to meet financial goals, you may need to raise prices on what you do have, which is not a good habit to get into when you’re gathering a customer base.

3. Expand Your Brand

This is always one of the most important steps for a budding business, and one that requires a great deal of care, strategy, and attention. Particularly in today’s business culture, where a great deal of marketing is done online and through social media, many companies devote entire divisions of employees to brand exposure and marketing campaigns.

And frankly, it’s never too soon to start (unless, as mentioned, you have a finite ability to serve customers and cannot handle additional exposure just yet).

The trouble with this step is that a lot of small business owners and startup entrepreneurs aren’t sure where to begin. Anita Campbell, who is the founder and a frequent contributor to Small Business Trends, was quoted in AllBusiness.com’s Top 25 Small Business Tips as listing one of the first places she would start as social media presence.

Basically, this means taking steps to make it easier to find the business through increasing visibility through mentions and followings on Facebook, Twitter, etc.

To a lot of entrepreneurs, most of these may sound gibberish. And that’s where the spending comes in. As I mentioned previously, larger companies may hire entire divisions to be responsible for social media. But for a business just starting out, you may be shocked at the benefit of a single, part-time employee in these areas. Finding someone with experience in brand building can not only help get you off the ground with your marketing campaign, but educate you on how it’s done in the process.

4. Invest Externally

The idea of externally reinvesting profits may not necessarily seem to coincide with the term “reinvestment,” but that’s merely due to terminology. The basic concept here is an ordinary investment practice—putting funds behind a given stock, resource, etc. in the hopes of financial gains—on behalf of a business, rather than an individual.

Naturally there is inherent risk in establishing an investment portfolio for business capital, but this can be one creative way to go about generating a “rainy day fund.” Essentially, it’s a more strategic form of savings.

As for where to invest, it depends on your own preferences and the current market. But as an entrepreneur, you should be creative with your strategies for reinvesting profits and seek out alternative sources other than the usual option – stocks. As the saying goes, you shouldn’t put all your eggs in one basket, so diversify your reinvestment options.

Look for ways to invest with low fees and maximum security, ideally in a market with limited volatility but with a strong potential for long-term gains. One of such investment opportunities is the precious metal market, which historically operates with relatively low volatility, and does so on independent investment platforms.

Bullionvault, an online market with precious metal investment opportunities, describes its services as having a commission fee that’s the “lowest around” along with low storage fees and maximum security for client investments. As such, the company manages over $2 billion in precious metal for investors worldwide.

Again, this is not to say this specific strategy for reinvesting profits is necessarily right for your business, but it’s another secure external reinvestment opportunity to consider different from the usual stock market option. A profit reinvestment strategy like this can essentially function as a more productive savings account should you wish to put a small fraction of your profits to use.

5. Hire A CFO

This is a step that should be approached with extreme caution. However, let me put it this way: if the rest of this unusual article has come across as relatively complex, and the idea of managing financial resources seems daunting to you as a business owner, you may want to consider putting these matters in the hands of a paid, trusted employee.

That is basically the function of a CFO. While such a position is not always necessary or specifically defined in a smaller business, it’s worth considering in the right situation. TechCrunch wrote a very thorough article on the topic of when a startup should hire a CFO and made the important observation that the function and perception of the CFO role does change over time.

In fact, it’s more or less open to interpretation and structuring as you see fit, which means there is no right or wrong answer as to when you should make a hire. However, the article does make one very vital point that I would like to emphasize:

“If you’ve held off on hiring that finance guru until the moment you have an IPO or other milestone in your sights, you’ve waited too long.”

In short, don’t assume you have to have a huge business on your hands before hiring a finance expert.

Ultimately, this is a strategy for reinvesting profits that is designed to simplify and streamline future financial decisions. You may well see a notable increase in the attention and care you can devote to the aspects of the business you’re best at once you have someone else managing the money.

CONCLUSION

There truly are almost-limitless ways of reinvesting profits in your company. Every business has different needs, and there is no universal rule sheet for how to advance a company or get the most out of profits. But these core concepts and ideas can apply to a majority of small businesses while providing strategic ways to improve and expand with limited resources early on.

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  • Published in Profitability
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