6 top tips you need to crowd fund well!
When you’re ready to crowd fund, at first, it might seem like a lot of math and very little reward, but that is not always the case. After you read this, you will be one step closer to creating a campaign that will achieve great things. In this article, I will help you pin down some key tips you need to do well in this often techy, jargon-wrapped industry. 1. First, break it down! “What are you doing and who is doing what?” What exactly is your product? Many of us tend to think of the beautiful things we want to create but have no idea how to put pen to paper. And certainly, no idea on how to make it work in a format that fits the crowdfunding world. My suggestion is to break it down into bite size pieces. If you want to be the next JK Rowling, remember she started with just one book. Start with a bite-sized chunk and make sure it is something you are able to do. You have the knowledge and the connections to make it happen! That goes for the campaign as well. Make sure you have the right team around you; everyone has to know exactly what their job is and how that fits into the big picture. For the basic team structure, I recommend as follows: The administrative lead ensures that you get the most out of the chosen crowdfunding platform and keeping with their regulations. The creative director, depending on the platform, may need a campaign video, or snazzy graphics to make campaigns stand out). The logistics lead handles all the costing and shipping of rewards (more on this later). The marketing and communications lead should be two. One for press and influencer marketing, another for social media and community marketing. Yes, you should already have a supportive community of “fans” before you crowdfund. Successful campaigns are coordinated by successful teams. Remember that. 2. “Will your second favourite Aunty support your campaign?” This may seem like a no-brainer because you are passionate about this thing. But don’t forget, only your friends and family can primarily support your campaign. The first 30% of money raised will come from your close, first degree connections. The rest will come from second and third degree connections. If you are even remotely shy/embarrassed about talking about this to the people closest to you, or you know they will disapprove of your efforts, I suggest you save some money and start smaller than you planned to with crowd funding. Crowd funding isn’t for everyone. There isn’t an imaginary crowd living in the cloud somewhere. It is the people you see everyday —your work colleagues, your friends and your family that are going to make or break your campaign. 3. “Build it and they will come” doesn’t work here No matter how much people like you, they tend to like their money just a little bit more. Remember that friendliness counts. We live in a heavily-networked society, so you are going to have to go even further to encourage people to part with their money. Make phone calls, meet people for coffee, drop your product idea into these conversations. Make sure they can hear your voice and they can feel your passion when you are talking about what you want to do. Asking someone out of the blue to support your campaign to create a line of high quality stationery, when they haven’t spoken to you for three months is not smart. If someone did that to you, how likely would you be to support them? P articularly when they have never mentioned stationery in the history of your friendship? 4. Making your rewards count Depending on the type of crowd fund you are aiming for (donations with or without rewards, investment and equity based or debt based), and the platform you are have settled on, you may or may not need to think about rewards. If you are listing your campaign on a reward-based platform, please do your homework. There is a good amount of math involved in this so if that isn’t your strong suit, ask someone for help. There are number of things to consider —shipping costs, printing/manufacture costs, the admin and follow-up time, and whether or not what you are offering is what people want and are willing to part with their money for. Every type of product requires a type of reward that is unique. Try to keep your rewards cost under 15% of your fundraising amount —especially if you are shipping items (check the weight, plan your packaging, know your postage cost). At Do it Now Now, we have a universal perk system. That means we handle all the perks for all of our campaigns. We realised this was a major pitfall for members of the Diaspora in the UK when in came to crowd funding, so we decided to take it off their hands, releasing them to do what they are truly passionate about. 5. Have an open evening. Share your ideas! When we were starting on our journey with Do it Now Now, we had a mini-party that has turned into monthly open evenings. We invite potential advisors who have shown an interest in what we do to join us for coffee. They ask as many questions as they want about our plans, ideals and practices. I suggest you start doing this as early as possible. Invite people who are going to be a benefit to you on your business. Tell them what you are doing and what you think the pros and cons are. Invite them to have their say. Invite them on the journey. Make sure to invite people who have crowd funded before; their insight will be priceless. If you don’t know anyone who has been on this journey before, contact campaigns that are similar to what you want to do and ask to meet them for a coffee separately —most people will oblige you, especially if you are buying! 6. Identify your Mariahs in advance
Let’s pitch your business, shall we
A pitch is a 30 seconds monologue of what you do, why you do it, and how your work is innovative or unique. People have short attention spans and busy calendars, so you want to have a clear, brief, and enticing pitch prepared. Your pitch will ensure that you make the most of every opportunity, and present your commitment and yourself in the best light possible. You may be wondering what an elevator pitch is. An “elevator pitch” is a concise,carefully planned, and well-practiced description about your business that your grandmother should be able to understand in the time it would take to ride up an elevator from the 10th floor to the ground. Wherever you are networking; meeting with funders, writing a grant application, or riding an elevator with someone you want to impress, you should have a pitch prepared. To create a pitch, imagine this… You meet Glenda on the 10th floor. Glenda is a potential partner and she asks you about your business, describe it in a way that is unforgettable and stands out. Now, follow these steps. Condense Select 4-8 specific keywords that describe your business. When you select, be authentic and original. Don’t try to be who you are not or use words with unclear meanings. Organize The simpler the sentence, the better. How can you organize your keywords into an idea in the least number of words? Inspire The sentence should remain at the heart of your pitch. However, to effectively engage your audience, start with a brief description of why.This can be useful if the issue you are seeking to address is complicated, the listener will understand why as you explain what you do. Expand (a little) You can add several sentences to your pitch that answer who, what, when, where, why, and how, but remember to be concise. Practice The only way to ensure that your pitch goes smoothly is to practice (a lot). Record yourself while practicing to make sure you’re presenting yourself and your commitment well. Practice with friends, in the end they should be able to echo the key points. Think about the questions people may ask, and prepare your answers. Now, here’s what to do when delivering a pitch. Audience/Objective The first thing you need to do is figure out who you are talking to and what you want them to do for you. Are they potential funders, volunteers, or partners? This will guide your pitch. Problem statement The challenge you intend to address is important, but you shouldn’t dwell on it extensively. Quickly outline the issue, then explain what you are doing about it and why. Competitive advantage Explain the aspects of your commitment that differentiate you from everyone else. Address how your commitment is new, specific, and measurable, and why you are positioned to tackle the challenge your business addresses. A business needs to clarify what sets it apart; its own “purple cow”. Something that is unique in a crowded market. Storytelling Humanize your work. Pick an inspiring and engaging story that supports your pitch, steer clear of jargon, and demonstrate why your commitment matters. Always have stories ready when networking. Next steps You didn’t spend all this time preparing for nothing. Ask for a business card, a follow-up call, or an opportunity to send along more information. Think of a way to continue your engagement after the conversation ends. Always follow up promptly, within three days at most. In conclusion, determine what success looks like to your business and leverage the right communication tools. Small businesses often think they need to be on every social media platform to keep up. Businesses should first define what it considers to be its success; and then pick the tool that best tells this success story. This tool may be a monthly newsletter, a slideshow of impactful images on your website, or a blog post or narrative video that can be shared on Twitter and Facebook. Don’t be caught without your pitch ready!
4 lessons Tiwa Savage taught us on comebacks
It now seems so long ago. Sometime in April, we woke up to a rather unexpected hot-button topic —the messy detail of troubles in Tiwa Savage’s marriage. There were mind-blowing accusations on social media by her estranged husband. A tell-all video from Tiwa was to follow the next day. We already knew the 36-year-old Nigerian pop diva could make any song sound heavenly. But for someone who seemed well put together, we didn’t exactly see this coming. In case you’re one of the handful who hasn’t realized yet, Tiwa has got her groove back and she’s clearly on her grind! I have gleaned from her setback and triumph, 4 hard-hitting truths. They are guaranteed to stick with you for a long time. Challenges have a way cooler purpose than you ever thought. This is probably relative but this attitude is the most important you can develop in life, business or marriage. Seriously, challenges can sneak up on you and make you feel like the worst person alive. The idea is to realize that though it might take a lot of courage to look pain in the eye, it’s best to trust that it is a learning opportunity. If you’ve never had to crack some tough nut, have you really lived? I don’t think so. Know when you’ve had enough… and start talking like Tiwa. Like the message in the ‘If I Start To Talk’ song, off her RED album, maybe it’s time you realized you’ve had enough and started talking. You’ve probably been silent for too long. You don’t have to talk to anyone but an extra set of ears can be very useful. You probably think no one would appreciate, understand or help your plight (I find that pretty rare), but it can be a lifesaver to have someone know your story. Dust yourself off Tiwa’s got some interesting deals and endorsements going on, right now. The most recent and coolest, of course, is her being signed to Jay Z-owned Roc Nation! That’s some great trick for moving on —deliberately re-enact your own story. It makes for good business and helps you avoid having to obsessively dwell on something you cannot help. You can always decide the turning point in your own narrative. It is that moment when everything changes or catalyzes. Play the stingy one if you must Maybe you’ve been doling out cash to that lazy business partner, spouse, friend, family member or people whose link to you, you can’t fathom. No sweat girl, the giver tag to your name is fine. But the broke, unappreciated and unhappy tag is not so fine. If you find yourself in a position to offer help, by all means, do but it should really be worth it.
Lingerie, going viral and Beyoncé: 10 tips for building a global brand
The first #SheHive London event took place this August, with inspiring talks from some of the most interesting speakers in the city. One of them was Ade Hassan, founder of Nubian Skin. From starting her career in banking to running one of the most popular new lingerie brands for women of colour, Ade’s journey is just beginning. At #SheHiveLondon, she talked about making the shift from corporate life to entrepreneurship, going viral and having her products worn on Beyoncé’s Formation World Tour. Not bad for a brand that’s only a few years old, huh? 1. Even if you’re not in your dream job, there’s still so much you can learn… Ade started her career in banking and management consultancy. While she enjoyed it at the beginning, her mind was always filled with new business ideas. As she started to pursue her Nubian Skin dream, it got more and more difficult to concentrate at work but she soldiered on. Looking back, starting her career in the corporate world taught her lessons that remain relevant as a founder: professionalism and the ability to work hard no matter what. When you’re building a global brand, challenges and mistakes are part of the territory; so being able to keep your cool, avoid burning bridges and perseverance pay off. 2. But eventually you have to put your money where your mouth is Making the move from employee to entrepreneur isn’t an easy one and for a long time, Ade bounced between the ‘should I’ and ‘shouldn’t I’ question: can I really exchange the comfort of a safe corporate job for the stormy waters running my own business? It wasn’t an easy question to answer, until a friend reminded her that putting your dreams on hold only leads to regret. And that’s what helped her leap into the unknown and pursue the Nubian Skin vision. So far, it seems to be paying off. No risk, no reward 3. Invest in yourself Although Ade was a fashion-enthusiast, she had no formal work experience or education in the industry. In order to fill that knowledge gap, she made what she describes as one of the best investments so far: hiring a lingerie consultant. The consultant gave her a crash course in the industry, complete with best practices and things to avoid along the way. She also advised her to attend a trade show which would gave her exposure to potential buyers and stockists. But remember; always be smart and protect your brand through confidentiality agreements. Imitation might be the best form of flattery but it’s also the best way to kill your business before it ever gets off the ground. 4. Never compromise on your vision When Ade started, creating lingerie for women of colour wasn’t exactly the most tried and tested thing in the world. There’s was no rulebook on which shades worked best, so Ade had to get creative. She took trips to beauty counters to understand which brown hues were the most popular, and spent hours improving samples from manufacturers by staining them with teabags to get the shade just right. She didn’t take the first outcome as the final one. She tried again and again until the final product met her standards. 5. Get social Unless you’ve been living on Mars, you have probably heard about the ‘power of social media’. But what does that really mean? After Ade finished her very first photoshoot, she posted one of the pictures on Twitter and went on holiday (#jetlife). Within a few days her phone was blowing up, the picture had gone viral and the Nubian Skin fanclub began. When asked whether her social media strategy has changed since then, Ade said not so much, the strategy remains the same: produce high-quality, exciting and relatable content. When you do this the support comes rolling in and in the case of Nubian Skin, it caught the attention of Queen Bey. Yes, you read right, BEYONCÉ. Nubian Skin was worn on the Formation World Tour. THAT’S the power of social media right there. 6. Playing in the big leagues ain’t easy Not only did Nubian Skin go viral with customers, but it has also ended up on the radar of major retailers like ASOS and Nordstrom. It’s easy to get excited by those household names and think it’s all fun and games… but it ain’t. Whether you’re a startup business or not, large retailers have strict rules on how much you can produce but the money isn’t always immediate. This can be tough on startups who don’t have loads of cash to make large stock; so you have to think creatively about what you can offer and negotiate where possible. 7. Make sure all bases are covered, and get help where it really matters Speaking of money, the mula, those dollars, all businesses need to keep themselves cash flow positive (i.e. have spare cash for major purchases and emergencies). Ade knew that she couldn’t do it all, so she hired a friend as her CFO, someone to sort out her accounts and help her avoid bankruptcy. Admitting that you don’t know it all isn’t always easy, but it is the first step to success: once you’ve identified your strengths and your weaknesses you can take steps to make sure that you’ve got it covered. 8. Don’t underestimate yourself While investing in the essentials is important, doing as much as you can by yourself will also help you save those precious coins. By moving distribution and packing in-house (i.e. doing it within the company, instead of hiring another company to do it), Ade was able to save, save, save. We tend to underestimate how much we can do, but if we challenge ourselves a bit and take responsibility we’d be surprised by just how much we can achieve. Also, think about what other sources there may be that can help you out. For example in the UK, organisations like UKFT (UK Fashion & Textiles Association) and UKTI (UK Trade and Investment) provide all sorts of advice and financial support. While its not always the same on the continent, there are so many accelerators around to
“You create your own luck by working hard”: Lessons from international fragrance and body care brand, Malée
If you’re part of the SLA community, it’s likely that you have big dreams just like Zeze. Enormous dreams. Huge ones. The “I want to be Africa’s answer to L’Oreal” kinda dreams. That was Zeze’s dream for her healthy luxury fragrance and body care brand Malée, and over the last few years she has taken major steps to pursue that vision. Go girl. But how do you get to that point? How do you give yourself the right tips and stretch yourself? We know, it sounds quite overwhelming right? That’s why Zeze came to #SheHiveLondon to break to down for us, and lucky for you —we’ve got some of the best snippets from her talk. (By the way, nothing beats hearing all the gist for yourself in person —so try and make it to a #SheHive event near you, we’re in Lagos this October, so don’t dull yourself and get your ticket now). First of all, Zeze wouldn’t take no for an answer Even when pros like her college marketing professor told her that there was no real opportunity for a brand like Malée, it didn’t stop her. She was relentless from day 1, travelling across South Africa to find hotels that she could partner with to stock her brand, and giving them products on consignment. Zeze took a step of faith and learned the ropes as she went along, looking for every opportunity to get her high-end, value for money product into the hands of her customers. She also went to major trade shows in the beauty and fragrance industry, such as Top Drawer in order to meet potential retailers who could stock Malée in their stores. Looking back, Zeze knows that no experience goes to waste From working in the stockroom of Faith Shoes, she learned the ropes of retail and running the store. She reminded us to “count everything you know today as something that will prepare you for tomorrow”. We create luck by working hard, and within a few years her hard work began to pay off. Malée was featured on CNN in 2011, giving it some major exposure. But that was just the beginning. By 2011 Malée had won two awards, and by 2012 it was featured in one of the world-leading trend forecasting websites Trend Bible, confirming that Malée would be the next big thing. But building a successful business doesn’t come without its challenges In the same year, Zeze launched Malée’s first physical store and manufacturing facility to help other small businesses create new products. Shortly afterwards, she had to rethink her business model, and make some major changes. That included closing the retail store and manufacturing facility, which was difficult, but it was the right thing to do for Malée. It be like that sometimes; things change. Accepting that you don’t know it all is part of being a successful business woman, and it keeps you humble. Shortly afterwards, Zeze invited four of the smartest people she knew to South Africa to give her what felt like her own personal Business School crash course. Ladies, this point is key —build on your strengths but also make sure you’ve filled major skills gaps, there’s nothing wrong with needing a bit of help. A true mogul never stays down for long After two years of hustling hard to bring Malée into the UK, it will now be stocked at some of the largest, most influential retailers: Harvey Nichols and Fenwick. A good hustle isn’t enough to get your products in stores though, you also need a unique product, and for Malée, their high-quality, healthy, authentic African-inspired range is what made all the difference. Get to know desperation Sounds crazy right? Get to know desperation, so that you can ignore it. Too many times we let desperation drive us to making the wrong choices. Being able to tell when desperation is driving you instead of passion and common sense will save you time, money, and maybe some tears too. Stay inspired and completely focused on your goal: that is what will sustain you when things get really tough. We couldn’t leave this post without talking about the CA$H Capital is one of the major things on any entrepreneur’s mind, after all there’s a lot we can do with money. We all dream of getting that magical cheque that will sort everything out, but Zeze suggests it’s best to start with what you have now. Save all that you can, be smart with your money and even if you can only make one product, one is enough to sell and test whether people actually want to buy your stuff. One sale might just lead to someone pre-ordering a large quantity, but you never know unless you try. It’s called bootstrapping my friend, and most times, having limited resources actually helps us to make better choices.
Advice from the Accelerator Moguls: Keeping your business afloat
Keeping your new business afloat is not easy. The first year after you launch your business can also be referred to as the battlefield. This battlefield claims the lives of many young businesses. For some it’s the first few months, for others it’s a year and yet for others it’s five years before the light at the end of the “break even” tunnel emerges. Keeping your business afloat can be tasking, you’ll mostly definitely lose some money and maybe some friends too but the idea is that after all the stress and drama, you’ll be rewarded for your effort. So how exactly can you keep on top of things and make sure that your business emerges from the battlefield unscathed? We thought the best way to find out more on this topic would be to speak with other young business owners in our networks. After all, it’s better to hear it from other people in the same boat. BathKandy, Medsaf and Koko’s Kitchen are among the companies chosen for SLA’s Accelerator program, here they share advice on how they manage stay afloat. 1. The importance of re-invention For Blondie Okpuzor, founder of BathKandy, the best way to keep your business afloat is to keep re-inventing. This will give customers something to look forward to. “Customers love to get value for their money and if they feel they are getting that with you, they will keep coming back. The only thing that should be consistent in a business is excellent customer service!” Blondie says. Re-inventing here doesn’t mean a complete overhaul while your business is till taking baby steps. Once you get the excellent customer service thing down pat, focus on little ways you can define your brand. If you’ve noticed something isn’t working, go back to the table and look at your strategy. What can you do to improve things? Don’t be afraid to make changes early on in the game. 2. Have a flexible plan Motherland Moguls know that when starting a business, you need a plan on how you are going to reach your targets and achieve your mission. Vivian Nwakah of Medsaf, let us know that a flexible plan is key to staying afloat in the first year of business. “A good amount of research and planning should have been done to lay the groundwork for the business.” Vivian says. Consider where you want your business to be in a year, three years and ten years. Think strategically about your business aspirations and write down how you plan to get there. You could spice things up by writing a letter from the future you to the you of today informing you of how she overcame challenges to become a bombass mogul. Once you’ve drawn you plan, you know the next thing is to gather a team that will make sure you achieve your goals. 3. Invest, invest, invest The importance of investment cannot be overstated. We’re not just talking about money here but also resources and time. Vivian also advises that, “Founders should invest an equal amount of money to get the business going to prove their financial dedication to the success of the business. The founders should also throw as much of their resources and time to dedicate to business strategy, and execution. They have to believe wholeheartedly in the mission and value of the company.” After you’ve poured your heart, soul and money into your business, the next step is to be positive. If you’re starting already expecting that your business will not succeed because of all the horror stories you’ve heard, you won’t get very far. There will be many roadblocks and challenges but if you’ve invested in your dream and are dedicated, the chances of overcoming them and keeping your business afloat increases. 4. Everyone will hate your product You’re gisting with your friend and you have a brilliant idea that you’re both 100% sure it’ll be viable and that everybody will love it. According to Sifa Asani Gowon, co-founder of Koko’s Kitchen, this isn’t the best way to start out. “Make sure you have feedback from strangers and people who aren’t afraid to tell you the truth. Your business will be all the better for it.” Don’t rely on what your friends or family say about your business. They may think you have the greatest idea on earth but on the flip side they may also think your idea is useless and will fail. Overcome this by getting opinions from people who don’t know you but know enough about the market you want to break into. The information you gleam from this could just be your armour during that trying year. 5. Master your market One of the many reasons businesses don’t make it past the initial stage aka the battlefield is that they find it difficult to draw in customers. “You may have a wonderful product…but no marketing structure to get it into the hands of customers. Creating a proper and reliable marketing and distribution network is absolutely crucial.” Sifa says. Building on this network will ensure you have what you need to draw customers in and bring in the money you need to break even. Do you have a plan for how you’re going to market your products? Are you connected with the people who will move your goods/services from producers to consumers? If you’re still clueless about your market even after you’ve started officially launched your business, then you have a code red situation.
7 entrepreneurial myths standing between you and your empire
The non-profit and even the for-profit scenes are booming across different industries. They are helping to strengthen communities in rural and urban areas across the motherland. It is pleasing to note that some of these budding entrepreneurs are women. Sadly, a lot of companies, organisations, and partnerships never go past their formation stages. Some of these ventures go bankrupt, are debt ridden and unfortunately, wonderful dreams die. Now, how do we encourage entrepreneurs, especially women, to venture into the unknown well-armed to outgrow the incubation stage? How do we get them disciplined enough to endure the initial pains required to become giant corporations? Well for starters, let’s try eliminating the myths connected with being your own boss. 1. You will have more time on your hands Yes, more time to rest! Or not at all. Don’t be fooled, ladies. You’ll have to work ten times more than the average employee working in an established set up. Remember that this is really about your dreams and aspiration. Getting the planning stage and everything else right should be your hobby. 2. You will make more money Of course, the ultimate goal is to increase your paycheck while being the next Bill Gates. But the honest truth is, you’ll not go above your budget without proper diligence. Don’t get me wrong, I believe in your ability to make money from your venture but it takes lots of discipline. There’s just no hard and fast rule to getting rich. 3. You are passionate about what you do and that spells excellence Contrary to popular belief, this is not a recipe for success. Sometimes, the things we’re most passionate about do not bring us financial gain. Finding ways to make your passion or hobby profitable is a skill on its own! 4. Your product/service will be sought after because you are popular This is another myth that has led to disappointment, especially for people with a wide network. People will not buy from you simply because they know you. If you’ve not proven to be an authority in your field with quick solution strategies, you may need to start thinking of ways of utilizing your own product or service. 5. Good entrepreneurs never fail As with everything, it is okay to fail. In fact, countless entrepreneurs failed repeatedly before succeeding at an idea. A perfect example is Evan Williams, co-founder of Twitter who failed at a podcasting platform called Odeo. Vera Wang also failed at different professions before becoming a fashion icon. Another famous example is Jack Ma of Ali Baba, the online shop. The list goes on and on. Be open to failure and keep trying! 6. The power card is all yours Refusing to be an employee and running your own empire is great, especially if your intentions are true. But if you’re driven by the desire to ‘lord’ over others, then you’ll be disappointed. Great empires are built on teamwork, shared ideas and collective effort. Mind you, though, you’ll need to work smarter than your employees. After all, it’s your idea. 7. A large capital investment with a great team makes a great company It’s true that capital and a great team are good tools for growth. But remember, some great companies started out in warehouses and backyards. Others started with less than five employees while investing in skills for their dream companies. The way forward Apparently, the best way forward for eliminating a stress-free work environment is by designing yours. Passionate people now lean towards innovation and job creation. It is the new cool to be called an entrepreneur as you can be the boss and set the rules. It’s no secret that in the last decade, new professions have emerged and improved existence and livelihood. Due to the needs of our dynamic environment, more intriguing jobs have evolved in the field of web app developing, blogging, SEO specialization and so on. Interestingly, women are at the forefront of challenging new fields in the service industry, science and engineering. Recently, the youngest female pilot, Zambian Besa Mumba made her maiden flight and she is only nineteen! In the end, Motherland Moguls, entrepreneurial myths or not, we can do this! Let’s begin, shall we?
Lessons from the demolition of small businesses in Lagos: Three steps to protect your small business
Last week, we woke up to the news that Nuli Juice Company, Nuts About Cakes, The Drug Store —all small businesses in the upscale Ikoyi area of Lagos— were on the verge of being demolished. The Drug Store had only opened for business a week earlier and Nuli Juice opened six weeks earlier. The owner of Nuli Juice only became aware of the demolition when the bulldozer showed up ready to reinstate her shop to what was once her imagination —she did not receive any prior notice. She was shocked, as like most savvy entrepreneurs, she had obtained all relevant permits, licenses, paid her taxes, etc. In the midst of the chaos, she found out that the demolition was as a result of the landlord’s failure to pay N40 million in permit fees. The landlord was given prior notice before her lease term commenced. Within a few hours, the only evidence of the stores was rubble. Unfortunately, Nuli Juice, Nuts About Cakes and The Drug Store represent a few of the many businesses that experience this issue on a yearly basis. Given the recent trends, it is evident that applying for a business permit, registering the business and registering with the tax authorities are not sufficient to safeguard businesses. Business owners must take additional precautionary steps to further protect their businesses from unexpected disruption or in this instance, demolition. Below are a few additional precautionary tips. 1. Dig deeper Treat your store lease like you would treat the purchase of new land. Before signing a lease, conduct a thorough search on your potential landowner, the land, and the building. Tips: Not every alleged landowner is indeed the true landowner. Ask people in the neighborhood about who owns the building. Investigate to make sure that the alleged landowner indeed owns the building. Ask about the landowner’s reputation. Has the landowner had any brushes with the law (personal or otherwise)? If the landowner has a multitude of legal cases (personal or otherwise), it may not be wise to lease from him or her as the building might become subjected to legal processes. Ask whether the property has been subjected to any extraordinary visits from government officials. Such regular visits could be a sign of disaster waiting to strike. Confirm from the landowner that all relevant permits have been obtained. Thereafter, negotiate his or her assertion into the warranty section of the lease agreement. Do the same for licenses, permit fees, etc. If the store has been recently renovated, ask the landowner to confirm, in the lease, that all renovations are in compliance with all relevant laws. Ensure that there is a valid certificate of occupancy for the building. Check with your local government officials to make sure that the neighbourhood has indeed been marked for business purposes and not strictly residential purposes. Your business will most likely be kicked out of the neighborhood if the area is strictly a residential area. 2. Negotiate Many small business owners ignore the importance of negotiating the content of their lease agreements. Despite the fact that as a small business you may not have much bargaining power, you still owe it to your business to take all necessary steps to protect your investment. So, before you sign the dotted lines, negotiate! Tips: Include a clause in the lease agreement that covers you in the event that your store is destroyed or damaged as a result of the landowner’s act or failure to act. Such provision will allow you to seek damages (i.e. seek payment for losses) from the landowner in the event that something the landowner did or failed to do caused disruption to your business. Most business owners assume that the landowner pays for repairs and often skim through the repairs provision of the lease. Please do not be one of those. Do not assume. Ask! If the lease contains a provision that requires you to pay for repairs, try to negotiate an exemption for normal wear and tear of the premises. Under such arrangement, the landowner will cover repairs for damages that are not caused by you. Also, pay close attention and negotiate who will be responsible for big-ticket items such as plumbing, roof leaks, air conditioners, etc. Review your lease agreement to make sure that it includes a clause that states that the landowner does not owe any duty to any other persons or third parties (e.g. taxes, liens, restrictions). That way, you will be protected contractually should there be any third party interference on the property. 3. Ensure your business is covered Many small business owners underestimate the importance of business insurance. Business owners should ensure that their businesses or their buildings are covered by insurance. Such coverage will minimize the impact of a disaster to the business cash-flow. Tips: Consider obtaining business insurance that covers material damage to your business premises and their contents. This should cover malicious damage, strike, riot, flood, storm, burglary, and litigation. Alternatively, consider requesting that your landowner purchase a building insurance that will cover your business in the event of a business disruption (such as a fire incident, obviously, not a fire you deliberately caused). Such insurance policy should be able to provide an alternative store location in the event that your current store is inhabitable. This process might seem daunting. However, as the saying goes, “its better to be safe than sorry.” These steps, though not exhaustive, can add an additional layer of protection from undue external business disruptions. If you would like insights on a particular topic, write to us! We are listening.
The Empretec program is in Kenya. Here’s what you need to know
By now, it is no secret that the prestigious program, Empretec is now in Kenya. This came about after an intense week of the United Nations Conference on Trade and Development (UNCTAD) in Nairobi last month. After the formalities, it was announced that the Kenyan National Chamber of Commerce and Industry would be partnering with UNCTAD on this program. Mary Muthoni is the chairperson of the Women In Business committee at the Kenya National Chamber of Commerce. Empretec will mean a lot to Kenyan women as they get to benefit from the perks that come with being a part of the program. Some of these benefits are already being enjoyed by women in other African countries, like Zimbabwe. This will bring many benefits too Kenyan Motherland Moguls and we share some of them below. Capacity building Empretec offers a rich training program with a pool of 64 international trainers and 160 trained local trainers. These trainers are all about impacting personal development and business skills to participants who include women from the formal, informal and the employment sectors. Their curriculum is also tailored to international standards. Creating of life bonds amongst Empretec trainees Once a part of Empretec, you’re in it for life. The program follows up on its participants even after training as part of a lifelong relationship. Empretec sponsors follow up to see how the lessons learnt impacts the businesses of participants. It gets even better because you can always find a shoulder to lean on in the Empretec family. Networking and mentorship Ladies love conversations and it’s never a dull moment you can open up and create bonds. Empretec takes in women of all ages and orientation. So hanging out with other women in the program will always mean something new will be learnt. Also, Empretec has trained a large pool of women over the years since its establishment in 1988. Empretec’s presence in 37 countries means that when you join this community, you get to build a network with women from not only your home country. You’re part of a network of women from the rest of the thirty-six countries including Ethiopia, Ghana, Jordan, Botswana, Argentina, and Algeria. Smart girls know that their network is their net worth. Here you’ll need to be ready to establish contact with people from all walks of life. Be it the Motherland Moguls who have already established their businesses and are looking to offer seed funding for great business ideas or intelligent young women with brilliant ideas and that are looking for persons with expertise to partner with. Empretec is a well that keeps giving but never runs dry. Here, you get everything you need and all that’s required of you is to make it work. You’ll get to see that women from various developing countries face the same difficulties as you. And that the only way to emancipation is in finding long-term solutions for entrepreneurs. Locally certified trainers The availability of local trainers certified by the UN body means that members have access to the very best. With Empretec, you can have access to trainers with the know-how to get you through business challenges. This will help you confidently experiment with new ways of doing business . Obviously, the business field can be tricky, filled with uncertainties and other stress. You will need to have your hand held by the right people to navigate through these scenes and come out successful. Identifies and enhances personal opportunities Empretec’s training is personalized and depends on what stage you’re at in the business world. There will be people looking to venture into business for the first time and those with great business ideas needing guidance on breaking even. In addition, there are others already in the business scene and seeking to expand their visibility. Empretec will be a great space for Kenyan women to get answers and to learn how they can use their talent to make money . Eradication of poverty and social problems. Empretec encourages women to be social entrepreneurs. This means establishing businesses that seek to solve social, cultural and environmental problems. The purpose of these businesses is not just to make money but to also leave a positive mark on the society. Empretec encourages entrepreneurs to work towards achieving sustainable development goals even as they make their money. Awards and recognition Empretec honors her alumni at the Women in Business Awards. A Vietnamese lady, Tran Thi Viet won gold at this year’s awards for her company, Viet Trang Handicraft. Her company makes basket-woven goods from banana leaves, water hyacinth, corn leaves and bamboo. The company had a humble beginning but now exports goods worth $1000 million to the European Union. Viet Trang Handicraft went on to create employment for 250 weavers. This is the spirit of Empretec, to solve societal problems in our countries and at the same time make money for the entrepreneur. In summary, Empretec is the place to be for any woman seeking to make it in the business arena. The opportunities here are immense and ladies up for first dibs will definitely have more than enough to carry home. With all this said, it’s time for Motherland Moguls in Kenya to grab this opportunity!
Negotiating your way to financial success: 4 essential steps to effective negotiation
Women often shy away from negotiations for fear of being perceived as aggressive or of losing the offer. However, we tend to forget that the people we negotiate with are, sometimes, merely doing what they are hired to do – secure a deal at the best price possible! Indeed, at other times, the negotiator may be just be sticking to a strict budget or testing the waters. For example, I spoke to a Ventures Capitalist who stated that he could not trust an entrepreneur who never attempts negotiating an offer because such a person would most likely attract a lot of “lemons”, i.e. deals that no one wants. As such, when a potential business partner or employer offers a seemingly ridiculous price, do not take it to heart. Instead, Pause. Breathe. Negotiate! The goal of every negotiation process should be to negotiate effectively. Effective negotiation involves these key elements: Research Before commencing on negotiating a price, it is imperative that you conduct a thorough research. For example, if you have been offered a new job, you should embark on a prevailing salary research on the said job role. This information would come in handy and serve as a backdrop during your salary negotiations. On the other hand, if you are negotiating with a potential business partner, your pre-negotiation research might focus on determining your potential business partner’s interest and positions in relation to yours. This would greatly help create value during negotiation. Understanding your best alternative to any negotiation This is a great tool for preventing an undesirable outcome to a negotiation and guaranteeing financial success. For example, have you ever had those moments when just moments after agreeing to something, you blurt out, “why did I agree to that?” or “what was I thinking?” While this may be okay when negotiating with your siblings about who should do the dishes, this (hopefully) should never be the case when negotiating with a new employer for that dream job or with that new business partner. To this end, it is critical that before any negotiation, you determine your options (i.e. substitutes to your ideal negotiation outcome). To begin the process, first, determine your minimum threshold for the object of negotiation. For instance, if you are preparing to negotiate a new job offer and you are not willing to accept a salary below the current one, then your current salary is your minimum threshold. Secondly, on identifying your minimum threshold, determine your alternatives in the event you are unable to negotiate this with the new employer. Write these alternatives down in an order of preference. Your best option on the list should be one you’ll be happy with. Active listening It is also critical that you show some flexibility during negotiation by making a sincere effort to understand the other party’s points. This is can be achieved through an active listening habit. Active Listening ≠Hearing. John M. Grohol states that, “active listening is all about building rapport, understanding, and trust.” Active listening requires that you understand and make a genuine effort to understand the other party’s point of views. It requires: (a) Rephrasing what you believe you heard from the other party: This involves using phrases such as “to make sure I understand, you would like…”, “I understand you feel…” and “to make sure I capture your concern…” (b) Seeking clarity: During negotiations, it is also imperative that you seek clarity on fuzzy points. For example, if the other party has drawn a conclusion and you are unable to determine the logical steps to such a conclusion, seek to understand the underlying assumption. Examples of helpful phrases include: “You concluded XYZ, please can you explain the rationale?”, “what factors did you take into consideration in reaching that decision? etc. (c) Acknowledge the other party’s effort: It is good practice to acknowledge the other party’s sentiments during negotiations. This can be captured by using phrases such as “I understand you feel…”, “it appears that you are…” By implementing the different elements of active listening, you will capture the other party’s attention and help break down resistance (if any). Growing the pie (a.k.a. problem solving or value creation) Indeed, despite showing off superb active listening abilities, negotiations could still end up in stalemates. Even with a lot of patience, this is usually the time where people throw in the towel. But wait, not so fast! Do not give up yet, not without injecting a good dose of creativity into the process. So what exactly does injecting a good dose of creativity mean? This means looking for creative ways to make an unattractive deal attractive. The key here is to determine other factors outside your negotiation points like factors that the other party may be willing to consider (and vice versa). For example, assuming you own a sports drink company and currently seeking investors. On evaluation, your financial statements reveal the need to raise $60,000 and based on valuations, $60,000 equates to a 5% equity stake. Of course, you’d be confident to offer a lower equity stake for $60,000 as the minimum threshold for that percentage of the equity stake. If during negotiations, your preferred potential investor, who owns a sports club, offers $60,000 for an 8% equity stake. This counteroffer falls below what you’d expect but you would really love to have this investor onboard. Rather than end negotiations immediately, you could consider asking if she may also be willing to make your sports drink one of the choice drinks at the sport clubs or introduce you to other sports club owners who might be interested in serving your drink in their sports clubs. This could create publicity and boost sales for your sports drink. Some good phrases for these starting conversations may include “what if…”, “suppose we were to…” The agreement Once you have successfully completed negotiations, it is imperative that you put your agreement in writing. Writing an agreement is an essential step in ensuring that all parties are on the same page (indeed,