90% of all new businesses fail within the first five years. You can remain standing.

Statistics show that 90% of all new businesses fail within the first five years. A lot of reason have been proffered as to why this is the case, however I find myself disagreeing with those reasons.

People want to blame external factors for their failures every time. People rarely stumble and choose not to blame the path for been so treacherous.

People would rather blame government, the market, a powerful competitor or even their staff members when the business collapses.

That is not the way of the wise.

If your business will remain standing in 5 years time, I have determined that you need 2 vital traits: MISSION and LEADERSHIP.

Did you find that weird? Please let me explain.

Most people, easily the 90% that will fail, they start their business out of necessity to make money (and this is totally cool), but you cannot survive in business for the long run if your only motivation is to make money.

If you prioritize making money over having a solid mission, you will make poor decisions that will eventually bury the company.

The reason Facebook went from University hostel project to global phenomenon is because they built it around a mission and they stuck to the mission. Do not join the bandwagon of people who think Facebook survived because they got investors money and they are not based in Nigeria… how many companies who got investors money survived 5 years? Not so much.

So, start your business anyhow, and for whatever reason. However, if you want long term success, develop a mission.

I am confident I will still be here in 5 years time because my mission to help Entrepreneurs and Professionals like you build systems to rapidly scale their business – impact, influence, income – into MultiMillion Naira Empires cannot be done in 5 years time.

I have actually been around for over 10 years and going stronger.

I hope you understand that. You can re-read or drop me a message to explain further.

The next trait of a business that survives is exceptional leadership.

To grow your business and remain in business, you must become a leader. If you cannot lead yourself, you cannot lead your staff and your business will suffer.

It is easier to blame your staff and fire them rather than admit to your own incompetence and so, you want to look inward and ensure you are all good before you blame your staff for incompetence.

Leading people is never easy. It is such a challenging trait to develop and it is extremely rewarding.

If you can develop MISSION and LEADERSHIP around your business, even the big blue sky cannot limit you.


Interested in building innovative business ideas?

Since 2014, #TMP has been empowering people to learn, collaborate & build out innovative business ideas. #TMP is an online innovation hub.
Sign up today and get access to our private community of innovators.

Can you do better than Bisola the Tailor?

There is Bisola the Tailor who works 8am – 6pm everyday and can never go on holidays while barely making enough money to keep her head above the water… On the other hand, you have Bukola who runs a fashion company with 5 fashion designers and up to 20 tailors working with her. It seems like her only work is to count the money that is flowing in.

You see where I am going with this?

There is a cap, there is a limit to which you can grow your business. The good news is that the limit is dependent upon your own capacity and your decision to build a business system.

It is all a decision.

You must decide to build a business system around your skill or talent that will facilitate the kind of business you want.

I am tired of contract-preneurs and freelancers (and fundraisers too, BTW) posing as legit business builders.

The defining trait of a business are the processes and structures that are in place to facilitate a smooth running of operations every single day. If you do not have systems in place, you are an artisan… a freelancer. And just like Bisola, you will work round the clock without huge returns.

If you are serious about growing your business into millions, you have to start taking these things to heart.

Prepare your multi-million Naira business plan, start setting up defined processes to handle separate areas of the business and then you can genuinely scale up the business into the sky!

N.B.

The Business Builders Hangout will hold in Lagos on January 27 and Akure on January 31. We will be glad if you could join us in any of the cities. Ask me for full details.


Interested in building innovative business ideas?

Since 2014, #TMP has been empowering people to learn, collaborate & build out innovative business ideas. #TMP is an online innovation hub.
Sign up today and get access to our private community of innovators.

Business plans are dumb. Here is why you should write it anyway

When I started my first couple of businesses, I was definitely not as business savvy as I am today. I actually started out as a Tekkie, building out website platforms to offer services I thought people would find useful.

I was so naive that I even did all that without any serious business model. Oh! Those naive days!

As a Tekkie, the one thing I despised so much was the conventional idea that I needed to prepare a business plan for my work. It looked like a silly thing to do, foolishness of the highest order. I wanted to invent cool web services and get investors hand me millions of US Dollars, just like I read everyday on TechCrunch.

I thought Business plans are foolish, dumb and not useful because as you may or may not know… most business plans never work out in real life.

In fact, very few business plans and business models survive intact after you go to the market.

So, from my point of view, I felt business plan was a waste of time, the 2 weeks I would invest into making a decent business plan is better spent programming or marketing for customers…

Just like you, I was carried away and genuinely thought that my passion and optimism are enough to build a successful company. I just wanted to get to work and start building up something worthwhile.

I was wrong.

When a mentor FORCED me to write up a business plan, that was the first time I had to ask myself a lot of tough questions I had been avoiding and also got me asking the right questions about the business aspect of my work for the first time.

Writing the business plan was transformative for me.

The business plan I produced was not implemented blow-by-blow, of course. Like I said… business plans are next to useless in the real marketplace. However, writing a business plan forces you to think through your business and further develop your business structure.

I am challenging you to write a business plan for your company today. If you have written one before, revise it and update it accordingly.

I also recommend that you do it yourself, do not hire a third party to do it for you, your business is your baby and you need to begin to obsess over your business and take charge of it. If you cannot write it yourself, you can work closely with someone to get it done for you. When I am tasked with preparing business plans for a client, I always make it a point of duty to ensure that I really involve them in the process.

The finished work; the final business plan should contain the intellectual output of the business owner/visionary.

Writing a business plan does 3 key things for you.

It brings clarity. A business plan defines what a business is and where it is headed, this along makes it super easy to take key decisions about the business in the future.

Business plans makes it easier to attract financing. No investor in her right senses will give you 1 kobo without asking for your business plan. The plan might not work, but it shows them that you are disciplined enough to have one and that you have spent quality time to think about what you are doing.

Business plans also helps to communicate more effectively and develop action plans.

The pros of having a plan outweighs the cons.

The business plan is important.


Interested in building innovative business ideas?

Since 2014, #TMP has been empowering people to learn, collaborate & build out innovative business ideas. #TMP is an online innovation hub.
Sign up today and get access to our private community of innovators.