Comments on: 5 Tips For Business Growth

By: NaijaEcash

NaijaEcash — Mon, 16 Nov 2009 12:12:50 +0000

@Adama
The essence of providing opportunity to comment is that readers of this blog can add their own opinion to whatever is been discussed. So, your comment is welcome even though I’ve not been convinced by you that I was wrong in what I wrote. Thanks for visiting. Cheers.

By: ADAMA J. ADAMA

ADAMA J. ADAMA — Sat, 14 Nov 2009 12:56:08 +0000

I totally disagree with you on some points.
When there is economic down turn, it is not advisable to woo your customers with price bcos when a better offer comes he will run away like a prostitute.

Don’t enter into a new market that you will be #2… Being a local champion occupying your number one position is better than struggling to find a place in a new market.

Diversification doesnt mean business growth. What matters is your profit margin. Keep enlarging your sales force. This is how you grow. If you become Dangote, you will be in a corporate battle with Otedola for intruding into other peoples’ territory rudely. Don’t dilute your brand!

I think the war here is Management Vs Marketing! Who will win?

By: NaijaEcash

NaijaEcash — Thu, 05 Nov 2009 07:04:29 +0000

You’re right Paul. I should have added that especially for our Naija brothers and sisters. I forgot that bad reputation we have of eating up all the business profit as if there is no tomorrow. Some foolish businessmen even go as far as eating into their capital just because they want to satisfy relatives or impress friends.
That is why it is rare to see businesses that are transferred from one generation to another.

For a business to enjoy steady growth, the entrepreneur must be willing to delay gratification. He must consciously plug back a significant percentage of the PROFIT into the business. This is so much necessary especially in an economy like ours where the cost of borrowing is pretty high.

You will be better off as an entrepreneur if you use your RETAINED EARNINGS to expand your business instead of using borrowed funds or bank loans.

Thanks Paul for pointing this important fact out. I appreciate your continuous contribution to discussions on this blog. Cheers

By: Paul Onwueme

Paul Onwueme — Thu, 05 Nov 2009 01:45:35 +0000

Insightful article. However let me add my point to your 5 listed. You should also remember to plough back a significant amount of your profit for your business to grow especially when borrowing from banks is expensive and cumbersome.