Posts Tagged ‘Financial Intelligence’

The Shark Tank Formula For Startup Success

Monday, November 24th, 2014

Have you ever wondered what it takes to launch a successful startup? ABC’s reality TV show, Shark Tank, demonstrates what it’s like for entrepreneurs to go through the process of pitching their business ideas to investors (otherwise known as sharks).

Over the course of five seasons, there have been 337 pitches and only 186 deals. Out of these deals, only one-third them actually closed! You’re probably wondering, why is this such a low rate?

The reality is, it’s tough to keep your startup afloat after launching. Since 2012, only one in 17 business ventures have actually experienced a profit. Unfortunately, not every entrepreneur has the opportunity to become the next Mark Zuckerberg.

Despite the challenges of launching a startup, there are a few things entrepreneurs can do to increase their chances of success. First, it’s absolutely necessary to know your product inside and out. Regardless of how cool you think your idea is, it won’t be valuable to investors unless it serves a real purpose for your target audience.

When preparing to launch, it’s also important to perfect your pitch. Entrepreneurs need to approach investors with a goal, a business plan, and also know their numbers very well. Investors only care about how profitable your business will be in the future. Make sure you understand your numbers and can identify the information about your business that will important to investors.

Finally, it’s important to build a strong network of investors. Remember, you want these people to take interest in your business and provide you with the funding you need. Spend time building relationships with investors and learn about what they’re looking for in potential startups.

These are just a few of the takeaways you should know from ABC’s Shark Tank. To learn more about launching a startup and what it takes to be a startup success, check out the infographic below:

Shark Tank Formula

Shark Tank Formula

Your feedback will be appreciated. Cheers.

Author Bio – Ivan Serrano is a business and social media journalist living in the Bay Area of California.

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Posted in Entrepreneur, Financial Intelligence, Guest Post, Investing, small business | 1 Comment »

Understanding the Full Potential Of E-Commerce In Nigeria

Monday, April 14th, 2014

Nigeria, now known as The Giant of Africa, was recently declared as the region’s biggest economy, surpassing South Africa. Almost overnight, Nigeria was increase by 89% its current GDP, which is now worth USD 510 billion. This follows a recalculation of the GDP to include the rising “Nollywood” industry, as well as the banking, telecoms, and e-commerce sectors.

E-commerce and online trade make up two of the biggest contributors in the increase of the nation’s GDP. Over USD 1.3 billion has been invested in the retail industry, with USD 15 million of that channelled to the online trade industry.

Retail in itself is a major driver of economic and employment growth. With over 80 million Nigerians residing in metropolitan areas, the country has great opportunities for existing and new investors to take advantage of the online retail business.  A report from the Oxford Business Group indicates that foreign and local investors are already expanding their domestic retail footprints in the country.

Nigeria’s population alone makes the country the largest consumer market in Africa. With the introduction of more Internet providers and the availability of mobile devices in the country, e-commerce businesses in Nigeria can easily reach their full potential, if business owners know how to take advantage of the ripe market.

One of the biggest hurdles to e-commerce in Nigeria, however, is online accessibility. Despite the increase of mobile telecoms, broadband capacity still isn’t widely accessible. In 2012, only 32.9% of the Nigerian population has Internet, despite the increase of Internet service providers in 2013. Most of the population can access the Internet via their mobile phones though, thanks to the introduction of GPRS and EDGE connectivity.

Nigerian E-commerce

E-Commerce in Nigeria on the Rise

Despite this, a handful e-commerce companies have won significant investments and are now considered rising stars in the online trade business. Jumia, an online retailer that began only with three employees in 2012, currently has USD 35 million in investments, over 150 partner brands, and more than 500 employees. The company was awarded as Best New Retail Launch in 2013 by the World Retail Awards, proving that e-commerce in Nigeria can be profitable and successful.

Similarly, Konga is another Nigerian e-commerce and online retail company, which has won investments of more than USD 24 million. Launched in 2012, Konga is currently the 16th most popular website in the country, according to Alexa.com.  HumanIPO also selected Konga as one of the African technology start-ups of 2013 due to its impressive and consistent service. Konga also recently launched a buy-and-sell platform where users can set up an online storefront with Konga.

Thanks partly to the success of these two e-commerce sites, online trade and retail in Nigeria maintains a positive outlook. Online retailers have been luring shoppers from physical stores, offering convenience and a greater variety of products offered. Online retail customers have the option to pay for their items on delivery, or through online payments via credit cards.

Analysts are actually optimistic that the upward trajectory in online retail will continue to rise, as more Nigerians start to see that local online shopping will be faster, more convenient, and cheaper. Add to the fact that more and more people are connecting to the Internet via their mobile phones and tablets, the dot com business is a viable way to profit in Nigeria.

Plans are also already underway to improve and increase Internet and broadband connectivity in the country. More accessible Internet access can pave the way for other online businesses aside from e-commerce—banking, services that offer online credit card comparison, affiliate blogs, consultancy blogs, and so on—to enjoy better opportunities for not only for business owners and investors, but also for local consumers.

Nigeria is still a developing country, despite the increase in its national GDP. With the proper investments both offline and online, and a consistency in government efforts to improve infrastructure, Nigeria is well on its way to joining the exclusive club of emerging economies in the world.

Author’s Bio

Ryan Del Villlar is a content strategist for MoneyHero. He is also a freelance writer for an Online Reputation Management company. He writes ORM articles for various clients.

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Posted in Investing, small business | 2 Comments »

Why Economists Love Cloudsourcing

Saturday, April 6th, 2013

“The cloud” is the phrase on everyone’s lips this year, but not all new ideas stick with us—Segways, zip drives, and HD-DVD were all the hot new tech at one point, and they’ve all gone the way of the dinosaur. Will cloud computing wind up on the scrap heap of tech history? We don’t think so, and neither do many economists. Here’s why:

1. Cloud computing massively lowers fixed costs

Drumming up initial investment is one of the biggest hurdles that small businesses face. The larger fixed costs are, the harder it is to get started—and the more likely entrepreneurs are to get stuck in an exploitative contract with investors. All startups endure a zero-profit phase while they build customer base and pay down their fixed costs, and the longer that period is, the more likely a business is to fail. Cloud innovations like virtual desktops, storage, and money management lower the need for startup cash, shortening the window of zero-profit, and allowing more good ideas to turn into successful businesses.

2. Global cloud networks spur investment in developing countries

Until quite recently, people in developing countries had very few opportunities to connect with the world of global business; if you couldn’t afford to go to college overseas, you were stuck. Now, cloud networks connect hospitals in Europe with x-ray technicians in Bangalore, and American corporations consult with engineers in Nigeria; the human capital of the entire planet is increasingly connected in an efficient, wealth-generating network that is far more than a passing fad.

3. Cloud services give small firms access to economies of scale

Most production processes get cheaper as they get larger, and in the past, that fact has strangled small businesses who attempted to compete with the bigger players in their industries. A mom-and-pop grocery store simply can’t match the massive, fine-tuned supply chain of a global supermarket franchise. For services like data storage, web hosting, and accounting, the cloud has given small firms the same “bulk discount” that big companies receive—which makes markets susceptible to disruption and innovation on an unprecedented scale.

4. Comparative advantage is everything

Comparative advantage is the first principle of economics: it states that economies run better when everyone concentrates on their strengths, instead of trying to do everything themselves. Until recently, most entrepreneurs would have to serve as accountant, lawyer, analyst, customer service, and IT, all at once—a very inefficient and exhausting way to do business. Today, cloud services allow entrepreneurs to focus on idea-creation and execution where they have expertise, and use cloud services to store their data, track financial goals, and hire customer service and tech support at minimal cost.

5. Cloud networks broaden the labor market

Only fifteen years ago, companies were limited to the workers they could hire in-town, or persuade to move. Now, about three-fourths of businesses in the US hire part or full-time telecommuters, meaning they can select the best employees from all over the world to meet their company’s needs. Cloud file structures like Dropbox and Google Docs allow firms to collaborate seamlessly across the world. Not only does this allow for firms to save money and run more efficiently, but it also allows workers to find employment without the massive cost and commitment of moving across the country or the world.

 Tara Wagner is a staff writer for TechBreach. She has worked from home for over a decade, and loves sharing news and advice with fellow telecommuting moms and dads. She’s fascinated by new tech and new ideas; and when she finds time to unplug, she enjoys long hikes in the mountains near her home. She lives in Denver.

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Posted in Entrepreneur, Guest Post, small business, Tips & Tricks | 1 Comment »

How To Protect Yourself From Fraudsters

Tuesday, July 29th, 2008

Online scams, con artists and other fraudsters poses a great danger to the success of any  online business venture. Too many start-up online entrepreneurs have lost huge amount of money or indeed their entire business to criminals who disguise as genuine online businessmen.

Of recent, I have been receiving lots of unsolicited emails from complete strangers. They use differs kind of tricks and make lots of fantastic promises. They always pretend they want to do business with me. While some of the emails sounds genuine some are outright ridiculous. I guess the con artists are unaware that I constantly educate myself on how to protect myself and my business online.

Like it or not, you cannot shy away from using the internet for business. So the only option left for you is to get yourself educated. You must learn how to protect yourself from online scams while carrying out your legitimate business. (more…)

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Posted in Entrepreneur | 15 Comments »

Stop Looking For Job, Create A Business!

Thursday, June 5th, 2008

How long have you been looking for a job? Probably months or even over a year! How long will it take before you get your dream job? Have you ever thought of starting a small business instead of spending all your time and resources looking for job in a market where supply is more than demand?

It is a painful thing to be un-employed (as it translates into no-income or living on charity). It grieves my heart when I see able bodied young men and women in Nigeria going from one company to another looking for job. Often they are made to queue for hours under hot sun before they take a job-test or are interviewed. The job market is so saturated that it is common to see 100 applicants queuing for a vacancy for 2!

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Posted in Entrepreneur, Financial Intelligence, Nigerian | 13 Comments »