STARTING YOUR OWN BUSINESS FROM SCRATCH A PAPER PRESENTED BY IK ANYANWU OF ARISE AFRIKA DURING UNIQUE ARISE AFRIKA SKILLS ACQUISITION TRAINING
BUSINESS START UPS AS AN ENTREPRENEUR
Good afternoon ladies and gentlemen,
WHY YOU NEED TO START
The world we live in today has changed so much that uncertainties are high. The advanced economies like the United States of America in the last few years has been bad news and panic headlines in boardrooms, Globalization, outsourcing, downsizing, foreclosures, subprime mortgages and credit default swap, ponzi schemes, recession and so on.
In the first few months of 2009, a lot of US companies laid off up to 2,500 per month of people and employment rose to an all time high of 10.2 percent and under employment was far much worse. The frequent drop in number of people gainfully employed was frightening and very few people are immune from this trend. All carder of employed people were affected from banks to retail clerks. Executives, middle managers and blue collar workers were all endangered. The healthcare sector which was considered to be very safe had a fair share at downsizing.
In Africa the story is different unlike in the US were those that loose their jobs earn social security allowance, and live in council apartments, most countries in Africa do not have any provision for the unemployed. As I make this presentation in this quarter, the unemployment rate in Nigeria, which was the fastest growing economy in 2014 and the giant of Africa in terms of economic size , has reached an unimaginable unemployment rate of 48 percent. Many people like me lost their jobs. Be it in the banking sector or other private companies due to changes in policies by the government.
The government was unable to pay arrears, some states had to cut staff salaries by 30 percent and a lot of others were owed over ten months salaries Had outstanding pension of over 12 months arrears, under employment was no longer news as the government minimum was per month was below N20,000
With inflation at 18.3 percent and the economy going through a recession and the G.D.P numbers has moved to -3 percent in the last quarter of 2016 from 6% in 2014.
The truth about all this is that, those that suffer the most in this kind of situation are not the owners of business. The victims of recession and inflation are those who earn salaries because they face the risk of being laid off, salary cuts, and shrinking incomes due to inflation.
During this global financial crisis, the investment port folio of Nigerians suddenly lost their value more than half and the real estate crashed. The investment that people had confidence in and reliable assets turned out to be as solid as water vapor, and the jobs that were considered secure were no longer secure.
It took a big financial crisis to bring the fore how people lively hood has been at risk.
But the truth of the matter is that your income did not become a risk overnight. It has always been at risk.
Most people that live on pay cheques are always on the edge between solvency and bankruptcy, mostly because they have little savings or sometimes no cushion at all.
The pay check trades your time for money, and during a recession, it is the least reliable source of income, because the GDP drops, unemployment will rise and there will be no disposable income to pay for your time.
The biggest economy in Africa in 2014 has gone into recession in 2016, this has caused a lot of other financial challenges that was mentioned earlier in my opinion caused by our educational system failure to adequately provide a realistic financial education programme for students.
The greatest strength of any paper asset is its ability to be converted to cash instantly and that is also its own greatest weakness. The stock market crash is cyclical in nature an we all know this, but how prepared are you when it happens again?
The financial crisis that hit America in 2008 was quite phenomenal, jobs were lost, people could not pay mortgagees, and houses were fore closed, properties sold at less than half their process.
In 2016, Nigeria Economy slipped into recession, the stock market became volatile, the foreign exchange rate of dollar to the Naira worsened by more than 300 percent and prices of almost all goods and services doubles, foreign investors recalled their funds from the financial institutions, credit supply was abysmal and poverty level increased.
TIMES HAS CHANGED
As a child my parents taught me that to be successful, I had to go to school, study hard and get good results to enable me get a secure well paying job. Pursue a career with benefits and earn a pension there after But ties has changes, it was a good formula for success in the industrial age.
In Nigeria in the 80s and 90s people that retires from govt jobs had their gratuity and pensions paid regularly. As I speak my mother who retired as a Civil Servant has not been paid her pension or gratuity ever since by the government and Nigeria economy going into recession. I guess you can imagine what the future holds for her if she does not have investment in real estate. The Civil servants who are in the government jobs are now contributing part of their salary (7.5 percent) and the government contribute another (7.5%) towards a pension scheme.
This money is managed by pension managers, who will invest this money in the money market and capital market with all the uncertainties associated with the financial sector.
The world we live in today has a lot to be angry about, is it corruption and inefficiency in the government or the mistakes made in the past for not taking control early enough?
All these make life tough, the question is, which way forward? Are you going to moan, and groan or blame the government, politicians, stock market or the multinational companies?
The best way to predict the future is to create it. You can take charge of your future only when you take control of your income. You do not have to fear the future but take steps to shape it. You need to develop your own business.
STARTING YOUR BUSINESS FROM SCRATCH
A business takes time to grow, It can take less time if you take the right step and get good responses, getting a business off the ground takes an average of 5 years. Building a business can generate a lot of money for you and free your time.
The trouble of how to start a business can be worrisome, but if you take the following steps you are more likely to be successful.
1. Discover yourself
Do you have the necessary skills required to start a business? To start a business is not that easy. It entails sacrifices. The bad news about starting a business ids that it will require you to invest your time. You may have to sacrifice social life and family relationship in the short run. Despite this sacrifices, most small business will fail between 3 -5 years of operation. But the good news is that if you take the right steps your businesses will survive this trying period. You will get financial freedom, job security and become an employer of labour. To achieve this, you have to discover yourself and know where you have untapped potentials, what is your level of education? Does the job you do currently support your business idea? Do you have an insight of financial risk? Are you passionate about the business? Can you develop a business road map?
2.Discover A Business Opportunity
A business idea mist be able to solve an existing problem which may be a new idea, reducing cost on an existing product or improving an existing products performance, without increasing cost. Identifying the opportunity is not enough, you have to develop the business into a business plan
3.Develop a Business Plan
Developing a business plan is crucial when starting a business because it serves as a road map that will enable you to have a clear picture of your business, the opportunities the business presents enables your business, know your competitive edge, it is also a requirement for accessing grants and other sources of fund.
The details of how to develop a business plan will be discussed in another seminar.
Start by doing a search with Corperate Affairs Commission about the availability of the name, register the business name.
5. Find out what the Government Regulations on this particular business it.
6. Book Keeping
7. Type of Taxes, Duties & Levies
If the business is High risk, you should consider INSURANCE
Starting a business can be challenging but is very interesting venture. If you sincerely want to start a business, you must be determined to succeed no matter the challenges you may face, a lot of people will discourage you, friends, family and colleagues that is why we need passion for your business ideas, if you have passion determine to pass through the first 3 years of your business, believe me that would be your best decisions in life.
If you want to build something great you should focus on what change you want to have in the world, secondly surround yourself with highly successful and motivated people and finally look for people who excel in the area where you are weak or less experienced. You are going to need people that have complementary skills because no matter how talented you are, there are things that you do not bring to the table. You will certainly need COACHING & MENTORING to Success.
8. VISION & ENTERPRISE
That is exactly what we do at Gcfn Consult/ Arise Afrika
You need to have the power of vision and Enterprise
In times when there is no vision, the society decline. The Bible says my people perish for lack of knowledge. The man with vision sees beyond reality.
Vision disciplines you. It helps you with your association. When men with vision, courage and skill seize the opportunity to change things for the better. Build your vision based on your talents.
Vision is having the capacity to see beyond your current reality.
Vision is the ability to create and invent what does not yet exist but becoming that great person you have seen and yet become.
The reshaping of the future is the responsibility of the visionary. Let your vision drive you, not money.
Go to google and search \”how do I produce a business plan?\”
Vision will help you make connection with your passion and potentials.
Vision makes you to know what to do, understand and know how to use the instrument of networking. The more person you have in your business network, the better for it.
Develop your entrepreneurship skills until you gain mastery.
Entrepreneurship is not just about making money.
I was a Senior Manager of a well established business for close to 12 years. Even on the jobs, I was thinking, acting as an entrepreneur.
According to Strive Makiyiwa \”you should be an entrepreneur, whether or you own the business. Everyday you must go to work with the understanding that, first and foremost, your paid for being smart. For idea to innovate and find solutions and help your organization grown. \”
While at this fast food company, I developed several program, events aimed at creating awareness and boosting sales. In fact the first contract job. I got came from my boss, mentor and CEO who entrusted me with hosting children because he knows that I was good with kids and have so much fun with them. That is exactly how my Events management company came to being.
While also on the job working for another, I was part of acting, shooting a video advert for the company. That\’s how my career in the Media industry began. Now I can say that I am a voice over artist, producer of jingles, programmes, script writer, editor, publisher
I wanted to change the world that is why I had major in Sociology/Anthropology.
Unleash the entrepreneur in you. Right there where you work now, in whatever vocation it is.
As an Entrepreneur you must have the Power of Vision & Enterprise
This and many more questions we will be helping you answer in a practical way in our training pragramme on skill acquisition
Enroll because it is an ongoing programme in the following area;
Catering & Confectioneries
Beads and wire works
Candle/Hair Relaxer/Powder/Soap /Air Fresher/Detol production
Ankara Shoes and Bag Making
Poultry/Quail Framing/ Egg Production
Hair Dressing/Makeup artist/Eye Lashes
Photography & Video, editing
Leather works (Shoes & Bags)
Online Entrepreneurship: Blogging & Web creation
Then register for classes to receive
Coaching & Mentoring
Pay the sum of N3,000 and come with your teller
Account name: Global Circle of Friends Network
Account number: 0888625015
About Ikechukwu Anyanwu
He is the Founder of news, leadership and human empowerment blog. Arise Afrika