- Ayoade Adeyemi
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We believe that the economies of the developed nations depend largely on businesses set up by individuals, not the large multinationals with their billions.
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not because he was under capitalised - Robert Kiyosaki
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Businesses failed because “ Most the owner was underskilled
CONTENT
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feature Why Small Business Owners Are Optimistic about 2016
11Grow Your Business This Year 6
interview Running A Barbing Salon Fashion Designing As a 12 Small Business
news Competitions You Can Apply for 14 As an Entrepreneur
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BARBING with Ibrahim Olawale Ayoola CEO NEW IMAGE SALON
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he current state of the Nigerian economy has in no way been a comfortable one for all and sundry with the unrepentant rise of the dollar. The harsh conditions we ď€ nd ourselves points out that the days of plenty gotten from the wells crude oil are over for us. We must now turn to the reality of the times. If we all embrace the ideology of entrepreneurship where every citizen, young and old alike thinks of establish one small business or the other we will in no time see a huge turn around. There are hundreds of small businesses that any individual can venture into and with the right set skill will become successful in no time. It might be surpriseing to know that running small businesses like fashion designing, beauty salon, graphics designing, welding, a food canteen, carpentry, etc have become well appreciated even by young graduates. Howbeit, Many have held the erroneous belief
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that starting a small business is expensive and is bound to collapse at some point or the other. This is not always the case if necessary research and basic knowledge is gathered before venturing into the business desired. In an interview with Mr. Ayoola Ibrahim CEO New Image Barbing Salon, he shares from his wealth of experience how to successfully start the business on a small scale.
WHAT IS THE BUSINESS LIKE? In every business it is highly important to have sound knowledge of all the factors needed for you to run it successfully. When I set out to learn the skill of barbing, I started out as an apprentice at an existing barber's shop around my neighbourhood. I went through the training for three years. While serving as an apprentice, I became good the skill that I was able to earn some money which was a means to support my secondary education. When I graduated, I set out on my own but started out as a stylist. Stylists are barbers who work as freelance barbers in already established salons. I did this to raise fund needed to set up my own business.
business. When you are passionate about your business, you go all out to get whatever skill is needed to make a statement of your expertise. Is spend money on books and this has always differentiated me from all other barber in my locality. I also do a lot of research, surng the internet to see what is new in the business, going into town to see what bigger salons are doing to keep the trend. I also take a look at the structural design of the salons, how they go about their activities, treating customers, so when I bring that to my salon each time I go out like that, I get a positive feedback from my customers. CUSTOMER SATISFACTION: Bad news spread faster than good news and as such, I try to give my customers the perfect service needed for them to broadcast to their friends and relative. This ingratiates them to recommend me to other people around them. I ensure this is done mostly to my new clients You also need to know your customers with their style. This is always a good quality to cultivate as it makes the customer feel comfortable in the knowledge that you are concerned about him and really take his look seriously. Next time he visits and you do the exact style you know he loves, he does not only pay you for the cut, but smiles knowing fully well that he had a great time with a barber that cares.
HOW MUCH DOES IT COST TO START A BARBING SALON? You need to rst list the basic things needed which comprises of the following: Sterilising machine Towelling machine Clippers Furniture A small generator Fan Mirror Accessories like powder, hair cream, spirit, brush, comb, etc When I started I started from the scratch, as the business grows you can add up some necessary things like an air conditioner, bigger generator, HOME SERVICE This is where you go to the home of customers to give better furniture, etc. them a comfortable service. It is mostly requested by the aged, those who can afford to pay more for not HAS IT BEEN WORTH THE INVESTMENT? Barbing has its age limit, it is something to go into coming to the salon, those who may be sick and between the ages of 20-35 years of age. This is can't leave their homes. It is more expensive and because customers tend to be more endeared barbers look out for this service because you make towards a younger barber than an older one. more money this way. Howbeit, if your service is well appreciated you'll still have your loyal customers partronising you, but you'll TEAMWORK need to diversify at some point. And that is why it is It is highly important that customers see you, your highly advised to have a savings if you are to be a stylists (in a case where you have one), and your barber. The proceeds from a barbing salon never apprentices working as one. This has made my comes in one huge prot, it comes in by instalments, customers see my salon as a place where professionalism, human management and wellso there is need to save. coordinated drive towards purpose is of the optimum. CHALLENGE The very huge challenge is the one we have always sung to the ears of the government year-in year- LESSONS LEARNT out… Electricity! Three years ago, power supply got This has made me come to the realisation that so bad that I had to spend over N20,000 on fuel every barbers are beginning to gain more relevance in the month. This could have been better alleviated if country. In years past, barbers were not regarded to be news-worthy, but with the increasing passion of electricity was well in supply. the federal government towards encouraging entrepreneurship we are making some headlines HOW DID YOU ACQUIRE THE NEEDED SKILL? Passion is an important quality to have in the today.
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WHY SMALL BUSINESS OWNER ARE OPITIMISTIC ABOUT 2016
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ntrepreneurship is scary, and small businesses tend to be volatile structures. With a high rate of failure, low levels of stability, vulnerability to market uctuations and new competition, and unpredictable performance even with a great idea in tow, it's no wonder why most new business owners are at least somewhat nervous about their latest ventures. With a major economic downturn in recent memory, as well as questionable developments in the global economic climate, you might think that these worries have only compounded over the past year -- but, in fact, the opposite is true. A Resurgence of Optimism According to a survey conducted by small business lending platform Credibly, 73 percent of small business owners are optimistic about their success in 2016, reporting a "favorable" outlook on the year ahead. The tech industry seems to be the most
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optimistic, with nearly 78 percent of technology company owners expecting their businesses to be successful this year, while even the least-optimistic industry -- manufacturing -- still reported favorable outlooks from over 61 percent of business owners. So, why are business owners so excited about 2016? What factors are making these entrepreneurs optimistic about their businesses' performance? 1. The increased valuation of early-stage companies. Part of this optimism is due to a general rise in the positive perception and valuation of earlystage businesses. Over the past decade, early-stage valuations have risen modestly, year over year, with exceptional leaps forward during the past two years. Investors are willing to invest more in startups, and with so many tech startups achieving billion-dollarplus valuations over the span of a few years, it's no wonder why the public has become obsessed with new companies. Every startup success story makes entrepreneurs a little more comfortable (and a little
more excited) about starting an enterprise from available to modern businesses is staggering. There scratch -- plus, valuations are still rising, increasing are hundreds of marketing publications online giving free information and advice on how to build and capital potential for entrepreneurs everywhere. market a business, but beyond that, there are 2. Greater exibility. Today's businesses are extremely dashboards, apps, and other tools that make the diverse, thanks in part to the technology available to marketing process easier. Strategies like email new business owners. It's possible to open up a marketing and SEO can feasibly be started with zero traditional brick-and-mortar business, such as a capital (just a lot of initial time), and analytics coffee shop, and be successful, but it's also possible platforms like Google Analytics provide practically to develop an app that you manage from your living unlimited, free information about your campaign room. This amount of diversity and exibility makes it results. Similarly, social media platforms are almost possible for more people -- such as new parents or always free (for organic communication use). These people with limited nancial resources -- feasibly to platforms seem to multiply every year, giving more start and manage a business. They've seen success and more free options to small business owners stories of businesses that started in basements, and everywhere. they aren't intimidated by any one shortcoming or 5. A generally favorable economic outlook. The non-traditional approach. general economic outlook is always debatable: 3. Local business emphasis from Google and you'll always nd at least one person claiming that Facebook. Even big players, like Google and the next recession is around the corner, and at least Facebook, are doing what they can to help out small one other who claims that we're on the verge of a businesses (and maybe make a little money doing it). great economic breakthrough. Of course, the reality Both companies offer relatively inexpensive geo- almost always lies somewhere in the middle. The past targeted advertising, giving local businesses a way to several years have seen steady, reasonable levels of be competitive, even with a limited budget or in a growth, and there's no major indication that this year saturated eld, but they're continually working on will prove to be extreme, one way or the other. We're developments to make it easier to connect in the midst of a calm, steady growth period, and that consumers with local businesses. For example, makes small business owners feel both comfortable Facebook is testing (and conceivably launching) a and condent in their future plans. new function similar to Yelp, which allows users to Whether you're a seasoned entrepreneur, or you're rate, review, and research local businesses. Google, just thinking about the prospect of starting your own too, is optimizing its local search algorithm, giving business, these factors have to put a smile on your more convenient options to mobile and local face. Today's technological sophistication, startupsearches (such as one-button phone calls and focused economic climate, and rich eld of directions). The support of these major tech players opportunity make it more possible for business owners mean that local businesses, which are usually small to build something truly capable of thriving. Of course, that's no excuse to be lazy. Original thinking businesses, have more resources than ever before. and hard work are still necessary parts of the 4. Free marketing tools keep on expanding. Speaking equation, but these factors make it just a bit more of resources, the number of free marketing resources comfortable to jump into the scene.
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FASHION DESIGNING I
specialise in the male ou it aspect of fashion designing. I have been a fashion designer for eight years now coun ng from when I started learning the skill at a voca onal ins tute. HOW YOU STARTED Life is in stages and as such we all have our unique approach towards the beginning of any course. I had my peculiar reason for going into fashion designing as a business and it was more of a survival ins nct. I took some me out to device an answer to how I could meet my needs as the years roll by. I considered the fact that to have your needs met, you must meet someone else's need which is appreciated by the reward of cash. The primary needs I looked at were the basic needs of any man; food, shelter and clothing and clothing was more natural for me to consider. So I went to a voca onal school to learn the skill for six months, graduated and took off from there.
with Asubiojo Oladipupo CEO DPGoldsmith
FACTORS THAT AFFECT THE BUSINESS Success in Fashion designing is linked with the kind of society around you; the class of the people your office is situated in, the knowledge of fashion of your clients, their taste, level of quality demanded and a whole lot more. The likes of VansKere, Kimono or Yomi Casual who are situated in more comfortable parts of the city of Lagos have clients around them who can afford to pay as high as N30,000 per ou it. You cannot do that in an area where the clients can barely afford N5,000 for one. The difference in the class structure of the environment is a factor to consider. Howbeit, you just have to keep going one step at a me, because you cannot afford the cost of having an office at such expensive environments. But as me goes on your work goes out into the community and clients who can afford to pay more for your service will patronise you, if you are consistent in your profession. HAS IT BEEN WORTH THE WHILE?
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It has really been beneficial for me being a graduate of Mass Communica on. It gives a whole lot of confidence when you know that you cannot be bo led up in any financial entanglement with such added value. The skill has helped me to foot my bills over the years and I have not had to depend on anyone for my needs..
sa sfac on etc. By the me I got commi ed to offering these services on a be er scale I ended up winning some customers over and having new clients patronise me. ROLE OF THE INTERNET It has been a great influence on business. It has given my business a great deal of mileage – taking you where your feet can't get you. I am presently on facebook, twi er and Instagram. Some of my customers have had to call-in from other countries that I just cannot imagine how they got to see my work – but of course we all know that is what the internet can do for your business. I also get to save some money from buying print magazines. All I need do is surf the internet and I can get loads of new designs, see what be er fashion designers are doing, download the styles and add my crea vity to it and I end up in a be er chance of making more money.
IS IT LUCRATIVE? Well, it's not about how much you earn, rather what you do with what you earn. If you don't have a vision, you end up spending unwisely which eventually crashes your business. I started with earning as low as N500, N700, then N1,000 on and on I was saving to get more needed materials for the business. The more I increased in quality of service delivery the higher I was able to bill my customers and they could see the standard of service they got from me. It is all about taking one step per me if you are a small starter. Whatever is at your disposal should be explored, gradually you will see yourself grow and WHY BUSINESS DON'T OUTLIVE THEIR OWNERS eventually be able to expand the more. This is a common nature of the Nigerian entrepreneur. We set out to establish a business only to meet our needs, and when HOW MUCH DOES IT COST TO START THE BUSINESS? we discover that it has I n t e r e s n g l y fa s h i o n been able to do more than designing is one business just mee ng our basic you can start with as li le needs we fail to upgrade as N15,000! With that the business which in me amount of money you can leads to the imminent purchase a fairly-used collapse of the business machine for as low as when the owner passes N4,000, get a portable on. cu ng table, scissors, When St. Michaels died tape rule, ruler, and some and willed his mul other accessories. For a million dollar clothing starter, you really do not factory to his two sons, need a shop. The most the business had built important thing needed is the skill and a space in your home to carry out your business. such an enviable structure and capacity that it could not be put There are lots of fashion designers who started from the to death by the successors. They ended up taking over the comfort of their homes. They made so much money that it took business as willed but under the rebranded name of Mark & the pressure of their customers for them to get a loca on away Spencer. This is how the typical Nigerian business should from home. Guess what? They did not only moved into a shop, evolve from one genera on to the other. they moved into a store. That only happens when you have a vision. So it is not how nice-looking your office looks in the CONTRIBUTION beginning, rather how good your service is, then with good It is obvious that the government of the day is pu ng in some effort at encouraging entrepreneurship. It is a savings and more clients you can move into a be er loca on. commendable one and that is the only way we can have a turnaround in our economy. Having said that it is also FACTORS THAT MAKE YOUR BRAND UNIQUE When I started out I knew that I needed to do more than my important to note that tax condi ons for entrepreneurs compe tors were doing to make a statement in the heart of should be reconsidered as it has been difficult for start-ups to poten al customers. I began to inves gate into different meet up with the condi ons a ached. In all of these, I factors that I could work on to offer be er service than my believe more Nigerians can become entrepreneurs and end compe tors did. Some of these factors were the quality of up making a good living for themselves. design, level of crea vity, packaging, service delivery, customer
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COMPETITIONS YOU CAN APPLY FOR AS AN ENTREPRENEUR
The Hult Prize Foundation is a start-up accelerator for budding young social entrepreneurs emerging from the world's universities. Named as one of the top ve ideas changing the world by President Bill Clinton and TIME Magazine, the annual competition for the Hult Prize aims to create and launch the most compelling social business ideas—start-up enterprises that tackle grave issues faced by billions of people. Winners receive USD1 Million in seed capital, as well as mentorship and advice from the international business community. See
If you have an idea for a new venture or innovation, African Innovation Prize Business Plan Competition can help you make it a reality. The African Innovation Prize started with a goal of encouraging entrepreneurship within African Universities. It is on the look out for new student entrepreneurs for 2016. Their goal is to unleash the entrepreneurial potential of students to develop their ideas, skills, and experiences through enterprise. The business creation competition, along with training and mentoring events can take you from idea to business in under a year. You can enter in one or both stages o f A I P ' s c o m p e t i t i o n . S e e aiprwanda2015.startupcompete.co
The Global Social Venture Competition (GSVC) provides aspiring entrepreneurs with mentoring, exposure, and $50,000 in prizes to transform their ideas into businesses that will have positive real world impact. In 2015, GSVC received more than 500 entries from nearly 40 countries. Previous years' The Queen's Entrepreneurship Competition is an nalists include Husk Power, Revolution Foods, and international business pitch competition held in d.light design. Toronto, Canada, with +$60,000 in prizes dedicated to helping talented entrepreneurs from around the
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world jump-start their businesses - and their dreams. The QEC is a forum - a place where talented young entrepreneurs from all over the world gather. They are here to share ideas, develop their networks, and learn from out community of professors, entrepreneurs, and advisors It is "One of the longestrunning and best-known business plan competitions in the world." as declared by the New York Times. See http://theqec.com/
Acumen raises charitable donations to invest in companies, leaders, and ideas that are changing the way the world tackles poverty. At Acumen, the passion is to learn about new, innovative models for tackling poverty in various regions including East Africa, West Africa, India, Pakistan or Latin America. If you have a business that meets their criteria, they Development Innovation Ventures (DIV) is an open would like to hear from you! competition supporting breakthrough solutions to the world's most intractable development challenges—interventions that could change millions of lives at a fraction of the usual cost. See www.usaid.gov/div
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