Building A Successful Business By Bolaji Osime – Small Business Mentor

My Road Map To Success If success means Making God my Cornerstone Praying and fasting hard Establishing a God Given Dream Working very hard 24/7 Empty panadol packs Attending numerous seminars Overcoming several Challenges Then definitely I have a successful business

If success means

Making God my Cornerstone

Praying and fasting hard

Establishing a God Given Dream

Working very hard 24/7

Empty panadol packs

Attending numerous seminars

Overcoming several Challenges

Where Are You Now? Starting a new business? Working to grow current business? Enjoying success in your business? What is the cornerstone of your business ?

Starting a new business?

Working to grow current business?

Enjoying success in your business?

What is the cornerstone of your business ?

Are you Ready? Are you cut out for this? Why are you doing this ? Where will your business be 5 years from now? What makes your business different

Are you cut out for this?

Why are you doing this ?

Where will your business be 5 years from now?

What makes your business different

20 Years Proven Track Record Story of Determination, perseverance, hard work, patience, long suffering Grew Gic From 13 students to 600 students Grew Global Bookshop From one customer to World of fun From to over 200 in attendance Total Turnover for all biz Now N350 million

Story of

Determination, perseverance, hard work, patience, long suffering

Grew Gic

From 13 students to 600 students

Grew Global Bookshop

From one customer to

World of fun

From to over 200 in attendance

Total Turnover for all biz

Now N350 million

Steps to a great Business An Entrepreneurial Spirit (Traits needed) A Sound Business Concept and Vision Growing Market Understanding the Market Capable Management Able Financial Control Consistent Business Focus

An Entrepreneurial Spirit (Traits needed)

A Sound Business Concept and Vision

Growing Market

Understanding the Market

Capable Management

Able Financial Control

Consistent Business Focus

Consider This: Have you chosen your corner stone? Have you prayerfully established your business idea, vision and mission God wants you to succeed Joshua 1v8 Read Word + Obedience = Success Jeremiah 29V11 Deutronomy 18v18 ASK GOD FIRST!! Ask God for an idea, a clear vision.

Have you chosen your corner stone?

Have you prayerfully established your business idea, vision and mission

God wants you to succeed

Joshua 1v8 Read Word + Obedience = Success

Jeremiah 29V11

Deutronomy 18v18

ASK GOD FIRST!!

Ask God for an idea, a clear vision.

Personality Traits You Need I Ambition , Drive and Achievement Optimistic Attitude Calculated risk taker Innovative and Creative Works under stress Skilled Organizer

Ambition , Drive and Achievement

Optimistic Attitude

Calculated risk taker

Innovative and Creative

Works under stress

Skilled Organizer

Personality Traits you need II Goal and People oriented Eye for opportunity Self-confident & Self reliant: High level of energy and Hard worker High tolerance for ever changing situations Disciplined, persistent & Determined

Goal and People oriented

Eye for opportunity

Self-confident & Self reliant:

High level of energy and Hard worker

High tolerance for ever changing situations

Disciplined, persistent & Determined

Strategic Business Vision See into the future A Divine Vision that fills a need necessary capital burning desire Clear picture of how to reach destination Job33 v14-15 Proverbs 29 V18a Hebrews 2v1

See into the future

A Divine Vision

that fills a need

necessary capital

burning desire

Clear picture of how to reach destination

Job33 v14-15

Proverbs 29 V18a

Hebrews 2v1

A Sound Business Concept Is your idea sound? Do you fill a need? Do others fill that need? Will a lot of customers buy it? Are your returns attractive? Are the risks acceptable?

Is your idea sound?

Do you fill a need?

Do others fill that need?

Will a lot of customers buy it?

Are your returns attractive?

Are the risks acceptable?

Business Concept Validation Check your idea for faults Be ready to answer questions from investors and bankers Is the market ready for it? How soon will your idea be put into operation? (Assume delays, worst case scenarios)

Check your idea for faults

Be ready to answer questions

from investors and bankers

Is the market ready for it?

How soon will your idea be put into operation?

(Assume delays, worst case scenarios)

“ I never perfected an invention that I did not think about in terms of the service it might give others … I Find out what the world needs, then I proceed to invent” Thomas Edison, Inventor

Opportunities In Nigeria Unsatisfied needs Transportation, alternative to energy Changing government policies Privatization - telecoms, ban on importation of biscuits, juice, furniture Technological changes Internet cafes, website pages for coys, flash disks, cake graphics

Unsatisfied needs

Transportation, alternative to energy

Changing government policies

Privatization - telecoms, ban on importation of biscuits, juice, furniture

Technological changes

Internet cafes, website pages for coys, flash disks, cake graphics

Opportunities In Nigeria Demographic changes Working mothers - daycares Environmental changes Poverty- breaking bulk, more demand for repair shops & Tokunbo markets -cars, Okadas, clothes etc Trends Entertainment, sports, leisure, eating habits

Demographic changes

Working mothers - daycares

Environmental changes

Poverty- breaking bulk, more demand for repair shops & Tokunbo markets -cars, Okadas, clothes etc

Trends

Entertainment, sports, leisure, eating habits

Growing Market You must attract and retain a sustainable growing market Potential customers Why will they purchase it from you? Identify your market size and locations. How will you reach your customers? How will you advertise & market your products services Explain your pricing strategy Define your revenue streams

You must attract and retain a sustainable growing market

Potential customers

Why will they purchase it from you?

Identify your market

size and locations.

How will you reach your customers?

How will you advertise & market your products services

Explain your pricing strategy

Define your revenue streams

Finding A Niche Market Select specific target market Ensure right configuration: Products/services, Quality, price Least direct competition Know & analyze competition Competitive advantage? Delivery of better quality service

Select specific target market

Ensure right configuration:

Products/services, Quality, price

Least direct competition

Know & analyze competition

Competitive advantage?

Delivery of better quality service

Marketing Strategy Who can you better serve than your competitors? Tailor your product, prices, distribution, promotion Profitably meet unmet customer needs? Determine customers needs by market research Analyze your competitive advantages Develop a market strategy Select specific markets by target marketing Satisfy needs by identifying a market mix

Who can you better serve than your competitors?

Tailor your product, prices, distribution, promotion

Profitably meet unmet customer needs?

Determine customers needs by market research

Analyze your competitive advantages

Develop a market strategy

Select specific markets by target marketing

Satisfy needs by identifying a market mix

Capable Management Look for experienced people Who you like and admire Have good ethical values Have complementary skills Are smarter than you Hire the skills you lack Define your unique ability Seek others who turn your weaknesses into strengths

Look for experienced people

Who you like and admire

Have good ethical values

Have complementary skills

Are smarter than you

Hire the skills you lack

Define your unique ability

Seek others who turn your weaknesses into strengths

Consistent Business Focus People who specialize in a product or service will do better than people who do not specialize. Focus your efforts on something that you can do so well that you will not be competing solely on the basis of price.

People who specialize in a product or service will do better than people who do not specialize.

Explain your source and the amount of initial equity capital. Develop a monthly operating budget for the first year. Develop an expected return on investment and monthly cash flow for the first year. Provide projected income statements and balance sheets for a two-year period. Discuss your break­ even point. Financial Control

Explain your source and the amount of initial equity capital.

Develop a monthly operating budget for the first year.

Develop an expected return on investment and monthly cash flow for the first year.

Provide projected income statements and balance sheets for a two-year period.

Discuss your break­ even point.

Financial Control Explain your personal balance sheet and method of compensation. Discuss who will maintain your accounting records and how they will be kept. Provide "what if" statements that address alternative approaches to any problem that may develop. Have a hands on approach and ensure you monitor your daily income and expense Keep Costs Down

Explain your personal balance sheet and method of compensation.

Discuss who will maintain your accounting records and how they will be kept.

Provide "what if" statements that address alternative approaches to any problem that may develop.

Have a hands on approach and ensure you monitor your daily income and expense

Keep Costs Down

Stay in a field you love. Know your business before you start Work for someone else in it Develop human talent Value your customers Establish a loyal customer base Make your business “process, not people” Dependent Document your business processes Keep a very close eye on your business especially the financials Other Tips For Success

Stay in a field you love.

Know your business before you start

Work for someone else in it

Develop human talent

Value your customers

Establish a loyal customer base

Make your business “process, not people” Dependent

Document your business processes

Keep a very close eye on your business especially the financials

…And Copycat the winners in your business Specialize, even to a single product Find a product or service that is: Needed or desired Thought by customers to have no close substitute Not subject to price regulation Set a cap on your liability Learn computer skills Learn communication skills Have a lawyer, accountant, and insurance agent before you start.

Copycat the winners in your business

Specialize, even to a single product

Find a product or service that is:

Needed or desired

Thought by customers to have no close substitute

Not subject to price regulation

Set a cap on your liability

Learn computer skills

Learn communication skills

Have a lawyer, accountant, and insurance agent before you start.

… FINALLY Prepare a business plan Prepare the site criteria model for your particular business Do "for and against" lists for major decisions Buy when everyone is selling (and vice versa) Deal with those you like, trust and admire Learn accounting Create your own internal control plan Keep going to school in important subjects Give back to the community

Prepare a business plan

Prepare the site criteria model for your particular business

Do "for and against" lists for major decisions

Buy when everyone is selling (and vice versa)

Deal with those you like, trust and admire

Learn accounting

Create your own internal control plan

Keep going to school in important subjects Give back to the community

Rewards of Entrepreneurship You will be your own boss. Hard work and long hours benefit you, rather than someone else. Earning and growth potential are far greater. A new venture is as exciting as it is risky. Endless challenge and opportunities for learning. Independence Satisfying way of life

You will be your own boss.

Hard work and long hours benefit you, rather than someone else.

Earning and growth potential are far greater.

A new venture is as exciting as it is risky.

Endless challenge and opportunities for learning.

Independence

Satisfying way of life

Rewards of Entrepreneurship Work harder, earn more money, and are happier than if you worked for a large company. Opportunity to gain control over your destiny -- achieve what is important to you. Opportunity to make a difference -- combining concerns for social issues with the chance to make a good living. Opportunity to reach your full potential -- situations where your growth is limited only by your own talent and energy. Opportunity to reap unlimited profits . Although money is not the driving force for most entrepreneurs, profit can be a motivating factor.

Work harder, earn more money, and are happier than if you worked for a large company.

Opportunity to gain control over your destiny -- achieve what is important to you.

Opportunity to make a difference -- combining concerns for social issues with the chance to make a good living.

Opportunity to reach your full potential -- situations where your growth is limited only by your own talent and energy.

Opportunity to reap unlimited profits . Although money is not the driving force for most entrepreneurs, profit can be a motivating factor.

Why Businesses fail Uncontrolled cash flow: Run out of cash, you crash. Project cash flow for expansion very conservatively Be sure to: Forecast income (sales) very low Forecast expenses very high Provide for unanticipated contingencies . Insufficient sales: Ruthlessly cut costs. Higher costs: Increase volume of sales? Offset with higher prices?

Uncontrolled cash flow:

Run out of cash, you crash.

Project cash flow for expansion very conservatively

Be sure to:

Forecast income (sales) very low

Forecast expenses very high

Provide for unanticipated contingencies .

Insufficient sales:

Ruthlessly cut costs.

Higher costs:

Increase volume of sales?

Offset with higher prices?

Business failure New competition Business recessions Incompetent managers or employees: Act swiftly to rid yourself of them. Dishonesty and theft. Study your most successful competitor

New competition

Business recessions

Incompetent managers or employees: Act swiftly to rid yourself of them.

Dishonesty and theft.

Study your most successful competitor

Why Businesses fail Slow growing Market Lack of experience Insufficient capital Poor location Poor inventory management Over-investment in fixed assets Poor credit arrangements Personal use of business funds Unexpected growth

Slow growing Market

Lack of experience

Insufficient capital

Poor location

Poor inventory management

Over-investment in fixed assets

Poor credit arrangements

Personal use of business funds

Unexpected growth

Do’s of Business Motivate your managers with monetary incentives tied to their individual success. Copycat the successful marketing and policies of your large successful competitors. Stick with what you do best during downturns in business cycles. Compartmentalize your expanding business into profit centers.

Motivate your managers with monetary incentives tied to their individual success.

Copycat the successful marketing and policies of your large successful competitors.

Stick with what you do best during downturns in business cycles.

Compartmentalize your expanding business into profit centers.

Do’s of Business Copycat the internal controls used by your successful competitors. Prepare monthly financial statements of your individual profit centers. Act swiftly to rid yourself of incompetent or dishonest employees. Take the initiative to keep creditors informed of your problems and needs.

Copycat the internal controls used by your successful competitors.

Prepare monthly financial statements of your individual profit centers.

Act swiftly to rid yourself of incompetent or dishonest employees.

Take the initiative to keep creditors informed of your problems and needs.

…Don’ts Never sign a lease without your lawyer's review. Avoid a "commodity" business (one without pricing power) i.e. Trading Don't burn bridges of job security to start a business if you can help it. Don't become a business zombie: take time off. Don't compete with category killers (Shoprite) unless you have a special niche. Don't even think about your second store until the first one is reliably profitable.

Never sign a lease without your lawyer's review.

Avoid a "commodity" business (one without pricing power) i.e. Trading

Don't burn bridges of job security to start a business if you can help it.

Don't become a business zombie: take time off.

Don't compete with category killers (Shoprite) unless you have a special niche.

Don't even think about your second store until the first one is reliably profitable.

… Don’ts Do not give you personal guarantee unless absolutely required; then limit your liability. Do not let commissioned salespersons set prices. When required for any reason, do not fail to promptly cut cost to maintain positive cash flow. Don't cut the value or quality of your product or service. Do not delegate signing checks (any amount) or making capital expenditures.

Do not give you personal guarantee unless absolutely required; then limit your liability.

Do not let commissioned salespersons set prices.

When required for any reason, do not fail to promptly cut cost to maintain positive cash flow.

Don't cut the value or quality of your product or service.

Do not delegate signing checks (any amount) or making capital expenditures.

Want More Information? See fate foundation email me at: [email_address]

See fate foundation

email me at:

[email_address]

Thank You