SHOUT OUT (Week 1)

We informed you that starting from this week we will be giving free SHOUT OUTS to companies in Africa that have done good business, businesses that have changed the game in Africa and improved the look and feel of their location. Our very first SHOUT OUT goes to a Nigeria online store that has done much to change how we see online business. KONGA ONLINE SHOP since 2012 have been great in the way they have gone about their business, they have proved that doing business online is the new big sector in African business. Please support their venture the more. Have u tried online shopping? this online shop will move you to try it. With a well designed website as shown below you cant go wrong finding your products.

Konga.com Online Shopping Limited

40A, Town Planning Way Ilupeju , Lagos State , , , Nigeria

www.konga.com

Phone: 234 1 460 5555

Industry: Retail - Internet & Catalog Order

SIC: Retail-Catalog & Mail-Order Houses (5961)

NAICS: Mail-Order Houses (454113)

Description: Konga.com Online Shopping Limited operates an online fashion and lifestyle retail store for men, women, and kids. The company was founded in 2012 and is based in Lagos State, Nigeria. As of February 26, 2013, 

CEO- Sim Shagaya
Entrepreneur of the year 2013
All African business leaders award

Please submit any business in Africa you think fits our description for a free SHOUT OUT

Starting a boutique, simple approach.

While starting a boutique is somewhat easy, running it and improving on sales is a bit complex. ADEMOLA ALAWIYE writes on how to start one and keep it running

Many people dream of opening their own business. The freedom to have your own schedule and to do things your own way is very enticing.

For fashion lovers, there is nothing more exciting than opening a clothing boutique. With proper preparation and a lot of hard work, you can make your dreams of opening a boutique a reality, and improve your chances for success.

Boutiques are small stores that usually have a specific sales focus. For most, a boutique will sell clothing or accessories. Put differently, boutiques are small businesses that offer personalised customer care and a more thorough shopping experience than a larger store.

Experts say before opening a boutique, it is important to figure out what type of items you’ll be selling. This will determine the location of the store, what financing you’ll need and who your competitors will be. In-depth research of these areas will be necessary at the business planning stage.

Of course, a boutique like any other business, will have a better chance of succeeding with planning and research. Whether done by yourself or a consulting firm, the business plan is essential to organisation and financing. A full plan will include licensing information, tax identification forms, financial projections, mission statements and examinations of nearby competition. Experts say because a boutique is small and more vulnerable to economic upheavals, good research can be a security blanket in the face of uncertain times. According to them, the following steps should be followed to set up and improve the sales of the business.

Learn everything you can about your industry

The best way to do this is to work in the clothing industry, either at a boutique, a design house or a clothing manufacturing business.

Decide what kind of clothing you’ll sell in your boutique

Will you design and manufacture your own clothing, or sell items designed and made by others? If you plan to feature your own designs, begin researching where you will have these items made, and what the manufacturing costs will be.

Choose your location

Make sure you choose an area that will provide the type of traffic you expect to shop in your store. If you plan to sell expensive, designer clothing, you’ll want to set up shop in an area that can support this type of store. It’s also useful to look for locations that will allow for lots of walk-in traffic, such as in strip malls or downtown shopping districts.

Secure the financing that you will need for your business

This could involve getting a business loan from a bank, borrowing money from family, or utilising your own savings. If you plan to apply for business loans, you’ll need to prepare a business plan with solid financial projections.

Set up your boutique

This will require either making the clothing you will sell or arranging manufacturing by others. Get any required business licenses from your town or state. This is also a good time to set up sales and income tax accounts. Open your doors for business. Let all of your friends and family know about your boutique and have them spread the word.

Stock the boutique

Once you’ve planned the store, the next step will be stocking it. The buying process sounds like fun, but it can be complicated and easy to mess up. When first opening a boutique, it’s better to under buy than over buy. Most retail items have a shelf life, especially clothing, and discount sales to get rid of extra items can eat away at profits. Purchase sparingly, unless the manufacturer has a very limited production run of a particular line. Find wholesalers at reputable trade shows or through trade associations and merchant groups.

Experts say that after you must have set up your boutique, you will then need to improve on your sales. Having growing profits is the backbone of any company, but especially for boutiques. Since these small business ventures specialise in items such as clothes, perfumes, bath products, wines, special occasion gifts and other specific items, they say improving business sales would allow a boutique to expand operations, but only if the business owner knows what to do in generating more sales while keeping the established customers you already have. According to them, a solid marketing strategy will allow you to focus the necessary resources on the operational areas that will help your boutique succeed. They say the following steps should be followed to improve sales:

Analyse your business operations

Develop a marketing strategy plan that outlines all your sources of income, competition and market area. Track business sales to understand your best customer base. Pass out boutique surveys to understand customers’ opinions concerning pricing, availability of products and service. Improve business operations, such as late vendors not delivering products on time, slow production procedures or poor customer service handling. Streamline business operations to promote efficiency by consolidating or removing repetitive or unnecessary business functions. By updating your boutique’s internal productions, you will be able to offer more quality products to customers at a faster rate, which will increase sales.

Expand your boutique’s operations into other selling avenues

Create a website to improve sales on the Internet and offer a wide variety of payment options. Contact other local retailers and forge business agreements and relations to sell products on their shelves to draw customers to your boutique. Book concession and event stands at local conventions or outdoor public events to offer a sampling of products while passing out promotional flyers.

Offer reasonable sales to move stock on the shelves that might not be selling well

Give away door prizes to establish customer relations and good word-of-mouth advertising. Review your competition’s selling tactics and pricing so that you can adjust your pricing strategy to stay competitive and draw in more sales.

Ways to find the best deals in properties

      I believe you know a few individuals who seem to easily connect with the right opportunities at the right time. They seem to have the right and most profitable information. You may call them fortunate or lucky but if the pattern is consistent, know that they may be following, consciously or by instinct ,a clear set of working principles.

The same goes for those who seem to be able to get properties at  great locations whenever they desire. We’ll examine seven simple but profound ways to find profitable properties anywhere and anytime.

But first, let’s define what we mean by ‘profitable properties’. In real estate investment,you make money when you buy and also after you have bought. However, if you lose money when you buy, you’ll pay dearly for it before you can reverse the loss.A profitable property purchase should be a property that has a good location and is bought at a discount,that is,a little less than its actual market value.This means ,technically,that you have made money buying.The subsequent appreciation in value, is your next phase of profitability.This  presupposes that you already know what you you want and where you want it. Those who do not know what they want often engage in a wild goose chase.

When looking for properties to buy in an area, you need to find out the average or median selling price of properties in those areas. Making use of the several resources available and that will be discussed in this write-up should give you the price range within which you ought to plan. This consideration when viewed against your current budget should give you an insight as to where you can afford.The wisdom of these preliminaries is to make it easier to reach your goal.As it is said,if you know what you want you are likely to get it faster.

One of the first places to look is in the newspapers.Most of the daily newspapers  feature  real  estate  adverts on specific days of the week.Find out which of the days.There are also magazines  that are specifically for real estate agents where advertisers  advertise their properties for sale. These adverts contain the contact details of the estate agents in charge of the transaction.You can call them and find out more details on the property. And don’t forget to carry out your due diligence before you part with your money.

You can also advertise for the properties you want, using any of the newpapers or property magazines. A simple ‘box’ advert titled ‘request’ is sufficient for this purpose. But get prepared for an avalanche of phone calls .This method will give your request maximum visibility and hopefully the right person or agent with the right property will call.

Another effective method of sourcing for properties in a specific area is to drive round the neighbourhood and take note of signages with ‘For Sale’ or ‘Enquiries’ on them. In some more developed and active real estate markets you can also find ‘FSBO’ For Sale By Owner on some properties. Sometimes you can extend this to those with ‘To Let’ on them.

The essence of this is to contact estate agents operating within the area and who may possess information on the properties available for sale.Even if they are not directly in charge,they may know of colleagues who have the type of property you desire for sale.

And sometimes by making discreet enquiries about who owns any vacant or dilapidated property in the neighborhood you may come across a willing seller.

Although this has not yet gained popularity in Nigeria,another source of profitable real estate deals is foreclosures.Foreclosures are usually bank sale of properties whose owners defaulted on a loan and the bank has the authority to sell. Since the bank is basically interested in the recovery of the loan,they often sell such properties less than the actual market value.

In addition to the above,online social platforms are becoming more popular in sourcing for and advertising properties for sale.The large number of people using these platforms,their diversity and the spread of information at a click of a button makes it attractive and convenient.Using major search engines could lead you to good deals.Placing your request on some of these medias gives it a spread that could prove highly effective.

Another good medium is using property professionals whose vast network of contacts makes it easier for them to get you what you want faster.

Experienced real estate professionals will help pre screen properties and narrow down to the ones they consider most appropriate to your purpose.They also have access to professional networks that circulate such information regularly.You will also be able to tap into their knowledge and experience in analysing such properties during or after inspection.

Finally,if you belong to a co-operative society or an investment club of likeminded people, share with those likely to know, what you are looking for. The more you spread the information of the specific request you have the more likely you are to find it.In the words of the good old book ‘every one that asks receives and he that seeks finds’.

Starting a successful business. How?

According to experts, approximately 90 per cent of businesses fail in the first five years. ADEMOLA ALAWIYE explains the necessary things that are needed to prolong the life span of companies, especially new ones

Poor administration and lack of a good business plan can cause an early death of a new business. According to the Small Business Administration, 33 per cent of all new businesses fail in the first two years. Businesses succeed as much as they fail. To run a successful small and medium scale business in Nigeria, apart from adequate capital investment, some basic criteria must be strictly adhered to by the entrepreneur. Experts note that the neglect of these criteria contributes to the failure of most businesses.

Entrepreneurs, especially those just starting out in business must appreciate the fact that shrewd businessmen treat business failure as a milestone on the road to success. They must try to bounce back notwithstanding the fall. Experts note that real entrepreneurs count on learning from their mistakes, and use the experience to move to the next idea. Owners of start up businesses should learn from the mistakes of others to avoid the pain and suffering associated with business failure.

Below are major things an entrepreneur should consider when setting up a business, according to experts.

A good business plan

Many young entrepreneurs often neglect the essence of writing out a business plan for their venture. Experts note that you should not believe the myth that a business plan is not worth the effort.

The Managing Director, Netrack Limited, a small scale business, Mr. Sola Adeleye, says no matter how small a business might be, the entrepreneur must take the pains of writing out a plan.

He notes that the time and energy put into writing a plan shows that the entrepreneur truly wants to transform his idea into a business.

Proper execution of ideas

It is one thing to come up with a business plan and another to astutely execute the idea. Experts note that an idea alone is really worth nothing.

According to them, the idea is useless if not executed. They note that the entrepreneur must be a risk taker and one who takes strict business decisions in order to do well.

Unlimited revenue sources

It is worthy of note to understand that even some non-profit organisations generate revenue or donations to offset operating cost, not to talk of a business outfit established for the purpose of generating income.

Experts note that if your product is free, or you lose money on every sale, it will be hard to make it up in volume.

According to them, your product must be one that will attract customers with adequate purchasing power. They note that if your customers have no money, your business won’t last long.

Passion

This is one reason why many young entrepreneurs give in too early. Experts say the most common cause of start-up failure is when the entrepreneur just gets tired due to lack of passion for the venture and shuts down the company. Despite setbacks, many successful entrepreneurs like Aliko Dangote – Africa’s richest man, and Steve Jobs – founder of Apple Incorporated, remained committed to their vision until they found success.

Business opportunities

Another reason why first-time businesses fail is as a result of limited business opportunities for their products or services.

The Manager, Peers Events, Mrs. Omobolanle Peers-Adekunle, notes that some good ideas may not succeed in the end. She notes that customers at times are indifferent to some products, whether such product is great or not. Experts say that is why it is vital to conduct market research before manufacturing a product.

Strong competition

Too much competition for customers may signal danger for a growing business. Budding businesses which have so many competitors may find it hard to penetrate the market. Experts say this is why it is important for the entrepreneur to embark on thorough research before starting up a business.

Working with experienced people

An inexperienced team will drag a business aground. Experts note that investors fund people, not ideas. So a first-time entrepreneur must get workers with requisite experience if he desires funding from investors.

According to experts, investors look out for people with real experience in the business domain of the start up. Investors want to invest in people with real experience when it comes to running a start up business. Hence, it is important for young entrepreneurs to partner individuals with sound experience of the venture.

Important tools

Some young entrepreneurs underestimate resource requirements for their businesses. Experts say a major resource for any business is cash funding. They, however, note that other resources such as industry contacts and access to marketing channels may be more important for certain products. The tools needed for the marketing of these products are also vital, otherwise the venture may collapse. According to Peers-Adekunle, having too much cash and not managing it shrewdly can be just as devastating as too little cash. She says that entrepreneurs must get the right tools to succeed.

Marketing skills

First-time entrepreneurs must embark on aggressive marketing for their products and services. Experts say the word-of-mouth marketing strategy is not enough to make your product and brand visible to a larger market. Take advantage of the media, advertise on classifieds and adopt other channels to make your product known and appreciated by customers. Without effective and innovative marketing across the range of the media, you won’t have customers and this might lead to business collapse.

I will shortly be elaborating on the mentioned points. Stay tuned.

Nigerian business opportunities

Valuable advice on real estate riches

 

It was Orison Swett Marden, who said, ”we starve ourselves in the midst of plenty, because of our strangling thought.” But I think Harvey S. Firestone stated it more forcefully when he said   “Thought, not money ,is the real business capital, and if you know absolutely that what you are doing is right, then you are bound to accomplish it in due season.” To succeed in life, you need to have and apply accurate information.

Although you cannot allow others to do your thinking for you, you definitely need information from several sources and perspectives to enrich your thought. To improve your chances of succeeding in real estate investment, we’ll consider several valuable advice that has worked for some and hopefully will work for you.

Seek and you shall find           

Whatever you’re looking for, be it property to buy or lease, someone somewhere has it just where you want it. Your job is to find that person and that property. You may need  to read through several property adverts for several weeks, make several calls to make enquiries and carry out several physical inspections but ultimately you will find. And that is what counts.

Start with what you have

There is always a real estate investment that suits your pocket. Often, you need seed capital to start your journey to real estate riches but this capital need not be several millions. A few hundreds or thousands might do. And a cutting back on your cost of living and savings could provide you with this money.

Surround yourself with trusted professionals

There is a limit to what you know. You need others to succeed but not just anybody. Your success team should have a real estate agent/valuer, a legal practitioner, a surveyor, a banker and several real estate related professionals.

Buy low, sell high

This phrase that is often associated with the stock market is equally applicable to  real estate investment. If you buy low and allow your investment to grow, it will make you a millionaire. In a certain area of Nigeria the price of a parcel of land was N500,000 ten years ago. The same land is now N10m.

Focus on high growth areas

Location, location and location. A high growth area is an area that is either close to a commercial or industrial area or one in which a nearby development is stimulating its growth. People normally go to where their jobs are and ultimately most of them will chose to live and settle down close to where they work. The population growth that will result from these trends often affects the prices of property positively. For instance, the location of a university in a community would definitely attract people to that community and usually affect the value of the real estate in that area.

Negotiate

Everything is negotiable. And in every negotiation there are three potential outcomes: win/lose, win/win and no deal. Whether you are negotiating with a buyer or a seller the potential outcomes are the same. Win/win means that the parties were able to reach a compromise and both were satisfied with the deal. In a win/lose deal the parties believe in a winner takes all. Often one of the parties in a win/lose deal is grieved by the deal and considers it one sided .But in a win/win all the parties mutually benefit.

Higher and better use

When you buy a property always explore ways to maximise the value of that property. This can be achieved ,for instance, by turning empty spaces into sources of cash flow. A person could turn a bungalow that has few rooms facing one another into a modern two three bedroom flats with the rooms en suite and getting more income and better tenants in the process. With a little creativity and observation you can dramatically increase the value of your property.

When selling, be careful of prolonged holding out

Sometimes sellers lose a lot of money by being unnecessarily rigid with their sales price while ignoring the market trend. A seller should know how to strike the balance so that he or she does not end up losing out. For instance ,a seller lost over N20m by repelling buyers with unreasonable demands until the information got circulated and people stop turning up for inspection until he had to settle for one of the several low prices he started getting. Always review your position in relation to the reality of the market place.

Cash flow, cash flow and cash flow

It is not enough to buy properties but you must be satisfied with the income they are putting into your pocket. Many astute investors understand that cash flow from properties is one of the most reliable means of securing wealth and retiring well. And it is easy to estimate the potential income that could be generated on a property. The basic system is to find out the current value of the property and calculate an annual percentage increase per annum. Knowing that real estate increases in value, you can be sure that your annual cash flow from your real estate investment will take care of your needs.

 

                                                                                               By Abiodun Doherty

Errors business owners should avoid

 

Running a new business is demanding in many ways and start-up entrepreneurs often make mistakes that bring the company to an end. ADEMOLA ALAWIYE highlights some mistakes that must be avoided

Avoiding some of the most common mistakes made by small business owners can help a venture’s chances of survival in a competitive marketplace. The challenge of growing a small business often frightens some entrepreneurs. Avoiding some common sales mistakes will go a long way toward boosting the performance of your business. Experts say learning sales skills take place in many ways. Most often, we introduce something new or we learn by imitating a best practice, step-by-step.

Sometimes, however, we can make the most progress just by learning to avoid mistakes. That’s especially true when it comes to sales performance. Everyone has something to gain from correcting errors — even veteran sales-people, who often and without realising it fall into habits that are detrimental to their success.

Below are some sales mistakes which an entrepreneur must avoid in his small business, according to experts:

Judging by mere physical appearance

Experts say that entrepreneurs who judge their clients by their mere physical appearance may lose out in certain deals. According to them, a small business entrepreneur is a salesperson and if he prejudges prospects by the car in the driveway or the condition of the home’s exterior, he may end up losing some of his best clients.

They say instead of making judgments based on appearances, rely on a consistent sales process to inform your opinion. This will enable you get the client and complete the deal which may pay off in the end.

Neglecting certain businesses

The Managing Director, Setex Company Limited, Mrs, Seline Adedejo, says some entrepreneurs often ignore certain business.  She notes, “It is important to know that clients want to work with people who genuinely want their business. Customers may have no way of evaluating your level of interest. So you don’t have to assume that just by showing up and assuring that you have made your interest clear.”

She adds that the entrepreneur must ask for the opportunity to work with his clients and must not neglect any business.

Not quitting wrong clients

Experts say that a considerable per cent of your clients will not allow you to make the much desired-profit which you want. With these people, it takes more guts to walk away than it does to agree to proceed. With right clients, you make money, reduce everyone’s stress, and build your reputation.

Not listening

Entrepreneurs should not talk themselves out of a sale, according to business experts. The 80/20 rule applies: You need to spend some time talking about your company, but you should spend 80 per cent of your time listening. Clients love to talk about their problems and ideas. They did not call you to hear you talk about yours, experts say.

Selling up instead of down

Experts say in the architectural community, for instance, only about 30 per cent of what is designed gets built. If you let the prospect’s idea grow into a fantasy project, it may forever remain a fantasy. A better strategy is to allow the fantasy discussion, but try to close on a realistic project.

Not having all the decision makers at the initial visit may make your potential close rate to drop by more than half, experts add.

Not distinguishing yourself

Sales Manager, Gradit Limited, Mr. Chuks Anyanwu says, “As an entrepreneur, you must communicate the differences not the similarities which your product or service has when compared to others. Try writing it down. If you don’t know how you are different from other competitors, don’t expect your prospect to know.”

Not involving clients

Experts say your selling process should be designed to get commitment from a client, not the other way around. You may not get the major contract, but you should get something — a design agreement, a visit to your office, or a specific time for a second meeting.

Failing to use visual aids

It is important that you learn how to draw flowcharts or outline your process on paper or sketch an idea, while your clients watch. They will not only understand more, they will be less fearful and more confident in their decision to proceed, experts say.

Poor display of enthusiasm in your project

According to professionals, enthusiasm sells, and passion is contagious. So if the entrepreneur shows enough enthusiasm for both the prospects and project, his clients will return the favour.

Ignoring customer data

Every sale is an opportunity to make another sale down the road. The entrepreneur must remember that his existing customers are his best source of revenue. You can only tap them if you have a method for keeping track of them. Sales people should try and collect all the names and addresses of their customers that came to their stores over a certain period of time. Experts note that there is great benefit in keeping a database of clients.

                                                                                               By ADEMOLA ALAWIYE