Posts Tagged ‘Entrepreneur’

5 Tips For Business Growth

Wednesday, November 4th, 2009

How Can I Achieve Steady Business Growth?

Sustaining business growth in a down economy is not a simple feat to achieve. But believe it or not, that is exactly what some businessmen in Nigeria are doing. While some Nigerian businessmen are busy lamenting the poor manner the government is handling the current economic crisis (they do have a valid point though), some wise entrepreneurs are making steady business progress and getting fantastic returns on their various investment in the different sector sof the economy.

Truly, one man’s misfortune can be another’s fortune. If you doubt ask the undertaker, the more people die as a result of epidemic or natural disaster, the more his business booms. So, it is actually possible to be celebrating while others are lamenting, it simply depends on where you position yourself.

Every entrepreneur desire that his or her business should grow. Nobody wants to have the same turnover at the end of each financial year. However, just like most things in life, it is not about wishing for result, it is about taking the right steps to achieve the desired result. So how can an entrepreneur sustain business growth during an economic crisis? I’ll share with you five proven tips for steady business growth.

5 Proven Tips For Business Growth

1. Keep Your Current Customers Happy – A bird in hand is worth more than 1million that you are dreaming of getting with your marketing gimmicks. Keep your current customers. Do everything feasible to keep them happy and loyal to you. Don’t neglect complains or ignore their suggestion. If you’ve not been doing that, it is time to overhaul your customer care service such that it truly portray that you believe that the customer is king.

Get creative and devise ways to make it seem difficult and uneconomical for your customers to switch to  your competitors. Add value to your products and services at no extra cost to your customers. Some of those addons can actually be done without you eating into your profit. It just require a little brainstorming with your team to bring out ideas you never thought possible.

Give personalized services to each customer making him or her feel that he or she is the most important client you’ve got. Everyone appreciate being treated as a VIP. Give your customers that special touch of royalty. It won’t cost a dime to insist that your staff should treat each customer like a king. Just remind your team that it is the customer that pays the bills.

2. Increase Your Market Share –  There is an adage that the best form of defense is attack. Go after the customers of your competitors. Woo them with better offers and customized packages. Give them sufficient reason to consider ditching your rival and pitching their tent with you.

It is business war out there, so map out strategies on how you will gain more market share at the expense of your competitors. Go brainstorming with your team on how to provide higher quality product/service at the same price or lower than your competitors.

Don’t say it can’t be done. Keep working at it and soon, you and your team will figure a way out. Then you can go full swing into raiding your competitors of their loyal customers. Be tactical though, especially when dealing with competitors that have financial muscle.  If they get wind of your strategy, they may launch a counter-attack that you are not prepared for.

3. Be Proactive, Keep Current on Market Events –  Knowledge is power. It is your business to know what is happening and what is likely to happen soon in the market you belong. You need to keep tap on developments in the market that can affect your position.

Your ability to spot opportunities before competitors will give you an added advantage. Don’t wait until the news is spread on the print or electronic media before taking action. Successful businessmen sniff out information before it is made public. You need to watch industry shifts, changes in buying trends, seasonal changes, technological changes etc. The world is dynamic, what worked yesterday, may be obsolete today, so keep yourself up to date on market trends.

4. Strive to Enter New Markets – Don’t be a local champion in your present market. Look for opportunity to make profitable entry into other markets. Study markets that have potential for your business and plan how you will enter without loosing money to fierce competition in such market. Identify areas where you have an advantage over an existing competitor and ensure you can match the standards of quality and value being provided.

5. Diversify Your Business – Never put all your egg in one basket. Study businesses that are related to yours. Plan on diversifying into some of the simple ones such that you are not tied to a particular channel of income. Dangote Group is a good example of a Nigerian Business that has diversified successfully.

Business Growth don’t just happen. Successful Businessmen set goals, plan and work towards realizing their dream of steady business growth. If you don’t work it out, it won’t happen by accident. So, quit complaining and whining about the poor state of the nation’s economy. It is time to take advantage of the opportunities that have been made available by the economic crises. If you’re determined to experience Business Growth, nobody can stop you, because nobody have a blueprint for stopping you. Cheers 😉

Can You Still Trust Your Banker?

Wednesday, August 26th, 2009

Can you still trust your banker? I know that sounds like a foolish question, but hear me out first. As an Entrepreneur, I agree w to the fact that my business success team will not be complete without a trustworthy banker. Unfortunately, entrepreneurs in Nigeria, are being made to doubt if really the bankers  actually deserve a place in the success team. The recent Home Grown Financial Crisis rocking the Nigerian Banks is a real concern to Nigerian Entrepreneurs especially the small scale businesses.

I was chatting with a friend some weeks back and she asked if a particular Nigerian Bank was financially healthy. To me the question was absurd and I told her so. I even boasted that the era of banks going distressed is gone forever. Oh, how wrong I was. I had believed the lies that were told by my bankers. I believed the false reports tendered by the bankers as proof of health to the general public. The particular bank my friend was making enquiry about was among the five banks recently placed under searchlight by the CBN.

The five Nigerian Banks, according to CBN concentrated too much effort in granting loans to businesses in the highly risky oil and gas sector. As if that wasn’t enough, they set aside the rules governing loan approval and were utterly reckless in granting personal loans to insiders. Much of the loans were not properly collateralize as required by law. Simply put, they were playing lottery with depositors funds and jeopardizing investors funds.

While some people praised the effort of the CBN, some criticize the crude method used by the CBN. Recent information has shown that the CBN didn’t fine tune her findings before rushing to the press. Now the public is in a dilemma of what to believe! Well, I am not interested in the accusation and counter-accusations being traded by the CBN and the affected bankers. My personal concern is the effect of this ill wind on the economy of Nigeria.

Can I still trust my banker?

Until this millenum, small scale entrepreneur in Nigeria were quite skeptical of using banks.  They trusted their ‘Esusu’ ‘Akawo’ and other local cooperative societies better than the banks. However, it is practically impossible to expand ones business and play in the bigger market without making use of banks. So, many were forced to imbibe the culture of using the banking system.

Beside this, the activities of petty thieves and armed robbers have thought many that it is not a wise idea keeping large quantity of physical cash at home. Also, the introduction of ATM machine encouraged many entrepreneurs who are merchants to imbibe the culture of using banks for transfering money from one location to another. Gone are the days when merchants travelling from Onitsha to Lagos or any other part of Nigeria carries money on their person while travelling. The ATM card is safer and more portable.

Unfortunately, the recent activities of the bankers has cast serious doubts on the mind of the small scale entrepreneurs. The reality is that the average small scale businessman in Nigeria is now scared of putting his/her little fund in the bank. But how can you transact business without using the banks. This remains a dilemma! It is common sense to note that the risk of getting robbed while keeping physical cash is higher and more probable than the risk of a bank getting distressed. However, if bankers tells lies blatantly and engage in shoddy deals with depositors fund, should an entrepreneur still trust them?

I’m sorry if I disappointed you by not providing an answer to the nagging question, “Should I still trust my banker?” I really feel bad that the effort to encourage the public to imbibe the culture of keeping cash in the bank and doing less of physical cash transaction has been badly crippled by the dishonest financial institutions. The truth is, people are really getting scared of entrusting their funds with bankers.

Is there no Solution?

I really wish the regulatory bodies (CBN etc.) will wake up to their duties. Their primary assignment is to prevent fraudulent and illegal practices among the financial institutions. Their effort should be concentrated on prevention (not catching culprits long after the loot has been spent!)

I personally don’t give any kudos to CBN for their performance so far. As far as I’m concerned, they are partly to blame for the rottenness in the financial sector. If their inspectors and auditors are men of integrity who prefer good name to bribe, they would have discovered and reported long ago on the anomalies occurring in those banks books. Since they failed to give accurate and honest report as at when due, then I see them as accomplices who encouraged the bankers to misuse depositors funds.

The issue of non-performing loans

The outcry of the CBN on the mamoth size of the non-performing loans being carried by the banks is another issue that deserve closer srutiny. It is a well known fact that the various tiers of government are owning local entrepreneurs working for them. Instead of using the public fund in the coffer to settle contractors who have completed their job, some political office holders embezzle such fund while hiding behind official beureacracy.

Some of the entrepreneurs accused of owing non-performing loans in  those banks have come out to defend themselves and accused the government of being responsible for their inability to repay what they owed as at when due. If the government agencies refuses to pay an entrepreneur as agreed in a contract, then what right has the same government to insist that such entrepreneur should repay loan taken to execute the same contract?

If EFCC is serious about helping to recover the non-performing loans, then they should start by querying the top government officials in those parastatals that are owing contractors. The accountant-generals, commissioners of finance etc of each state and local government should be asked to explain to the public why they are not meeting up with the contract agreement made with the local entrepreneurs. The truth be told, we will have a better Nigeria if our leaders believe in the slogan, Good Leaders, Great Nation!

I’ll love to hear your opinion on this issue. Share with us in the comment section. You can get updates to this post Can You Still Trust Your Banker by subscribing to Nigerian Entrepreneur RSS feed, Cheers.

Increasing Search Traffic While Google PR Drops

Wednesday, June 24th, 2009

Can someone explain to me why my Google PageRank is dropping, while my search engine traffic is increasing? This situation is quite absurd and ridiculous.  I don’t really know whether I should love or hate Google! 🙂

Nigeria Seo

Nigeria Seo

For about three months now, I have been working on building quality backlinks to my site. The result has been a significant improvement in my search engine traffic. Currently, the traffic from the search engines is about 62% of the monthly traffic to Nigerian Entrepreneur. Alexa seems to be happy with me too. I currently rank 71st in Nigeria.

I have worked tirelessly to improve my on-page site optimization and have read widely on the best way to implement SEO (search engine optimization) on a blog without spending a fortune. That has lead to better placement in SERP (search engine result pages).

The result of all the effort has been a steady and consistent flow of traffic from the search engines. Unfortunately, it seems Google is not happy that they have to send visitors my way. Now, my pagerank is being reduced!

When I first had a drop from Google PR4 to PR3 three weeks ago, I didn’t bother because I know that my hosting company changed the server hosting my files. The change resulted in a changed IP address for Nigerian Entrepreneur and to the best of my knowledge, that may have affected the way Google looks at the site.

However, things have since settled down and I was expecting a return to my PR4 with some inner pages having PR2. Well, I got a shock this morning. Nigerian Entrepreneur has been dropped by Google to PR2! To me that is ridiculous. I really wonder what the algorithm robot is using to arrive at such judgment.

I just felt angry, about the whole issue. However, after reading some posts about Google Page Rank dropping, (Some were written as far back as 2006) I decided that I will simply ignore the drop and continue working on writing quality content on my blog and building backlinks. That way, the visitors will keep coming. I really don’t have anything to loose other than the title of Google PR4. If I feel so bad, I may start my own PageRank website and guess what, I will rank myself 10 and rank Big G -10 (just kidding).

Having educated myself with articles written by others, I am just going to relax and continue doing my white hat SEO. The result I’m getting is a better deal than the title anyway. How do you compare a site with PR0 earning 4digit cheques in Google Adsense with a PR7 site that earns nothing but talks about a dying language in my little hometown. For an online entrepreneur seeking to make money online, the PR0 website is much more desirable. By the way, my Google Adsense earnings have been improving too. Thanks to G.

In case you find yourself in a similar situation crying Why is my Google PageRank Dropping? Don’t despair, you may not have done anything wrong (except if you are selling links or your blog has been marked as a linkfarm). If you are being penalize, it will not be a drop, it will be a complete wipe-out. You could be taken from high PR7 to PR0 in one day. If your PR is grayed out, then your website have been blacklisted!

If you have a better thought on why my Google PageRank is dropping, say it in a comment, cheers.

Steps to Starting a Small Business

Friday, May 8th, 2009

What are the necessary steps to starting a small business? What are the things you need to take into account before launching into your entrepreneurship adventure as a small business owner? Starting a small business requires determination, motivation, and know-how. This post does not promise to provide an exhaustive discuss of a successful small business startup. Instead, a concise checklist of the critical steps you need for a successful business launch will be provided with links to articles that gives details of each issue raised.

Choose a Small Business Idea to implement –  You can’t be a jack of all trade in business. Trying to do multiple things and calling yourself a general contractor is not the way to go. Even though there are multitudes of business opportunities, you only need one to succeed. If you are confused on how to create a business idea, read 10 tips for creating business ideas. If you have several and you don’t know how to choose, read Small Business Opportunity. The major factor is for you to determine where your passions lie and do what you enjoy doing as business. Of course that must be aligned with the changing reality in the industry you want to operate in. You should be out to serve others, not to please yourself! Money follows service, not pleasure.

Choosing the Legal Form Of Business – Deciding on the legal form of your business is not a decision to be taken lightly. Whether you choose to run a sole proprietorship, enter into partnership with another entrepreneur or form a corporation; your choice must be made with carefulness. This is because the business structure you choose will have an impact on your business and personal liability, how easy you’ll be able to raise fund as well as what your tax liabilities will be. If you ask for my candid opinion, I will advise you to incorporate your business, my reason for that can be found in a previous post I made, Incorporate Your Business.

Name Your Business – You need to give your business a name that project the right image. The name should be such that will not only distinguish you from others, but such that is easy to remember. Avoid names that are too long or complicated to pronounce. Remember word of mouth marketing is still about the most effective marketing strategy for any business. If your customer can’t remember your business name, something is wrong. If they find it difficult to pronounce it, because it is tongue twisting, then you have a problem.

Develop a Business Plan – A business plan is the blueprint or roadmap that shows how you intend to implement your business vision successfully. It should take note of the nature of the industry you wish to work in, set strategies for handling competitors and spell out the various resources that you will need to invest in the business. Remember those who fail to plan have already planned to fail. Don’t carry your business plan in your head, commit it into writing no matter how small the business is.

Get Startup Capital – The fund for startup is a critical issue to be decided upon carefully. If you are a newbie entrepreneur, I will advise that you avoid as much as possible, the temptation of taking a small business loan from either the government or your banker. You are better off raising soft-loans from several friends and relatives. My reason for this is because the probability of you loosing part or all of your startup capital is very high. Lack of experience is a serious challenge to newbie entrepreneurs, so start small with capital you can loose without going bankrupt.

Select a business location – If you are starting off in your home, then this may not be an issue (depending on the kind of business anyway). When choosing a business location, you need to take into account accessibility to your suppliers and clients. You may need a business mentor to assist you in choosing a good business location.

Get necessary business licenses and permits – Before launching out, it is necessary you get familiar with the government requirement for the kind of business you wish to engage in. ensure you get all the various licenses and permits that are statutorily required for you to operate the business. Playing ignorant in this area can be disastrous. Remember, being ignorance of the law is no excuse from jail term. Getting the necessary paperwork sorted out is always cheaper than hiring a lawyer to prove that you didn’t mean to break the law.

Establish an Accounting System – No matter how small your business is, right from day one, you need to keep accurate record of every transaction. You may not need a professional accountant to keep your day to day record, but you need one to advise you on the kind of record you need to keep so that you don’t get yourself into trouble with the Tax authorities in your locality. If you can’t afford to pay one, make friend with one and ask for his/her assistance. It can be heart breaking when you loose all your earnings or get yourself a jail term just because you fail to handle your Tax matter the way it ought to be. Never be penny wise pound foolish.

Insure Your Business – Wise entrepreneurs share risk. Why must you carry all the risk all by yourself? For a token amount paid periodically, you can share the risks associated with your business with an insurance company. No bother prays for disaster or law-suit, but it does happen. It is better to prepare than to be caught unaware.

Start Your Own Small Business Now!

Now you can’t claim any longer that you don’t know how to start your own small business. This post, has outline in a concise manner all that you need to start your own small business. You can get future updates to steps to starting a small business by subscribing to my RSS feed, that will also provide you more tips on starting up, staying competitive, and taking your small business to the next level.

Email Marketing

Wednesday, April 15th, 2009

What is email marketing?

Email marketing simply put is the use of Email (Electronic Mail) for marketing. It is a form of direct marketing strategy whereby a marketer or advertiser communicates information to current or potential customers. Email marketing is one of the oldest online marketing strategies that successful entrepreneurs employ in acquiring and retaining customers for their businesses. Email marketing, has been and will continue to be for a long while, an effective marketing tool.

There are different types of Emails and marketers send them for different reasons. For example advertising messages inserted as footnotes in ordinary emails. You find a lot of such short advertisements you in emails sent to you by friends especially those using free services like Yahoo, Hotmail etc. Many corporate organizations also add little advertisements as auto-signatures to their corporate emails.

Email Marketing Strategies

The various types of Emails and their goals can be easily classified as follows:

1. Direct Email – This involves sending a promotional message to customers or prospects. For example, an announcement of special sales.

2. Retention Email – These are emails meant to retain and encourage customers loyalty. They usually take the form of regular emails and are popularly refer to as newsletters. A newsletter even though it may carry promotional messages focuses on providing value to the recipient in the form of valuable information or entertainment. Its main goal is to establish a long-term relationship between the entrepreneur and the recipient.

3. Rented Email List – Sometimes, online marketers rent other peoples email list for their advertisement. For example, an entrepreneur who is just starting can put his advertisement in another online marketers Newsletter in other to reach a wider audience than he could possibly do by starting his own newsletter. There are many well established online marketers that sell advertisement space in their newsletter to other entrepreneurs.Emails composed and sent with the purpose of establishing, fostering, retaining or encouraging customer loyalty or patronage.

In several corporate organizations, email marketing is preferred to orthodox marketing tools such as Direct Mailing, Print Newsletter and Placing of advertisements in subscription magazines and newspapers. The reason for the preference is not far-fetched.

Benefits of Email Marketing

1. It provides an entrepreneur the ability to communicate with a large audience at a relatively low cost.

2. The entrepreneur has the opportunity to communicate specific details to a targeted audience.

3. The delivery time is short.

4. The effect or performance of the email marketing campaign can easily be tracked.

5. Unlike a website that requires the audience to visit, Email marketing delivers the message to the audience.

6. More than half of internet users spend more time checking their Emails than any other activity online.

7. It affords the entrepreneur the opportunity to interact with potential customers. Messages can be structured in such a way that upon request by a potential customer, a predetermined series of responses are delivered automatically to the potential customer.

So what’s holding people back from using Email Marketing?

1. It takes some effort to design captivating email messages. Crappy email advertisements or newsletters don’t produce results.

2. It takes some effort to ensure that your email is actually delivered to the intended recipients. Email marketing is the most abused form of online marketing campaign. So there are lots of software that have been created to ensure that unsolicited emails, SPAM, don’t reach the intended recipients. We will talk more about this later.

3. It takes some effort to track the performance of email marketing campaigns. As an entrepreneur, you need to know for certain the return on investment from the marketing campaign. You want to know if the emails were actually read by the recipients.

4. Finally there is the danger of violating spam laws such as the United States CAN-SPAM (Controlling the Assault of Non-Solicited Pornography and Marketing Act) and the European Privacy and Electronic Communications Regulations 2003.

So, what can an online marketer do? If the Email Marketing System provides such fantastic benefits, there must be a way to overcome those hurdles. Well, there is a way.

Opt-In Email Marketing System

The Opt-In Email Marketing System provides ready solution for each of those hurdles listed above while retaining all the benefits of a traditional Email Marketing System.

Opt-In Email Marketing is a system whereby potential email recipients are requested to give permission that commercial emails should be forwarded to them from an online marketer. The email recipients will be requested via an opt-in form (squeeze webpage) to voluntarily fill in their names and email address in order to be added to the mail list of the online marketer. Once such request is made via the opt-in form, a confirmation link will be sent in an email to the email address filled into the opt-in form. The email will request that the recipient confirm that he or she requested to be added to the email list. If the confirmation link is not clicked by the recipient, no further emails will be sent to that particular email address. However, if the confirmation link is click, then the recipient will be added to the marketer’s email list for future correspondence.

The Opt-In Email Marketing System eliminates the issue of your emails being considered SPAM. Also, the Opt-In Email Marketing System ensures that each email sent to customers have embedded an unsubscribe link that will enable the recipient unsubscribe from the mail list. I recommend that you use an Opt-In Email Marketing System provided by a reputable company like Aweber or Getresponse. Even though the service will cost you money, it is better than getting involved in a lawsuit for unsolicited email.

Two Quick Tips For Your Email Marketing Campaign Startup

To avoid getting your Email Marketing Campaign classified as crappy because of poor design or message, get a reliable professional copy-writer to design each email message. He will ensure that the design and content of the email message is professionally done. That will reduce to the barest minimum the risk of your Marketing Emails being deleted without being read by the recipients.

Secondly, get the service of a reliable firm like Aweber or GetResponse to handle the delivery and tracking of your email marketing campaign. They will ensure that your email marketing campaign will be based on Opt-In Email Marketing System.

Ok, the post is getting too long. I will stop here for now and continue the discussion in future posts. If you have any comment or question, please drop it in the comment section. You can get free future updates and more tips on Email Marketing by subscribing to my RSS Feed. It is based on an Opt-In Email Marketing System. You can be assured that you will never get an unsolicited email from me. Cheers 😉