Dumb Things Start-Ups Do (And Don’t Even Realize)

It’s not easy to run a start-up. It’s not easy to start a business from nothing, build it up and take it to market for the world to criticize and knock down. But there are things that many start-up founders do that are not helping them gain traction and success. Some of the things they do are just plain dumb. Here are my top picks to avoid!

The Health Insurance Scheme 2

In the first part of this post, we highlighted the genesis of the program, the parties involved, the various services/products available under the scheme and the coverage. In this second post, the roles of all the parties involved, modus operandi for the scheme and the process for accessing the scheme for the end users and Healthcare Facility owners will be reviewed.

The Health Insurance Scheme 1

The health Sector has been inundated with challenges of patronage, poor service quality, revenue generation, recovery of cost of treatment for emergency patients and accident victims and most importantly cost of keeping the facility running. Like every business, most healthcare practitioners are at a cross road of which one comes first: financial gains or their core value of saving lives. Most prefer the financial gain! I fully agree that bills will have to be paid while giving sufficient return to the operators. However, providing stabilization and the joy of saving a life I believe should give better satisfaction and sense of fulfillment.

Insurance: The Compulsory Five

The National Insurance Commission (NAICOM) is the statutory body established in Nigeria to implement all legal provisions as they relate to Insurance in Nigeria and derives its regulatory and supervisory powers from the National Insurance Commission Act 1997 and the Insurance Act 2003.

Don’t you think it’s time?

What is the hope for our youth after spending so many years to educate themselves without a clue as to how to reap the fruit of their labour or the parents who have spent so much only to watch their children waste away at home all day or the nation that have failed to tap into such an army of young, talented and enterprising individuals?

 The recent Nigerian Immigration Service recruitment cataclysm that happened recently is a clear indication of the chaos and decay in our economy and the degradation that our leaders of tomorrow are made to go through.

6 Stern Truths You Need to Know Before Becoming an Entrepreneur

Expressing your desire for entrepreneurship 15 years ago would have created laughter and an assumption that you’re crazy. The tables have turned. Entrepreneurship has become one of the most respected and intelligent paths to take. It’s saved our economy and moves our culture forward.

Dream ‘jobs’ are disappearing fast. Creating your ideal opportunity is the new normal. A lot of people are getting into entrepreneurship but with a blurred perspective. They think all they need is passion and work ethic. Those people are in for a rough ride, unless they understand these five powerful truths.

DEATH BY CHOICE

Leaning on others when in need is a way of life but we often confuse WANT with NEED. Our list of wants can be as long as it can be but accepting the reality that our resources are limited is panacea to financial discipline. Focusing on what is necessary or our immediate need is crucial.  It’s true that to grow our business, start that new venture, expand the existing line, buy that new house or car, etc. we might need some support to bridge funding gap or to ensure smooth running of the business.

Life Insurance: Dead or Alive

Death is part of life’s process that is definite and has nothing to do with choice! Most people often say “God forbid” as nobody wants to die. It’s a debt that all must pay but when is what no one can determine. The fear of death becomes overwhelming when there are several unfinished tasks that we keep procrastinating about and putting off for a later day. One of such is task is providing for our families and leaving a legacy when it eventually occur. Remember, death does not give notices and it’s usually sudden without time ctrl Z.

BUILDING YOUR TEAM

A team is made up of a group of people linked in common purpose. A group does not in itself constitute a Team but the members must have expertise, skills, abilities and experiences that complement one another towards the completion of a given task. There must be synergy where 1 +1 = 10 i.e. benefits derived from the sum of the various units will be higher and better than individual efforts. This synergy must allow the members maximize their potentials and convert individual weaknesses to strength.

WHAT’S NEXT?

Have you ever reflected on your past and wish you can go back in time to reverse some decisions or make better choices, avoid/change some others or take actions, etc.? I was reflecting on my life after almost 2 decades in the banking sector and realized that with the good pay and all the drama, employees can be likened to a programmed robot deployed to carry out instructions and make the owners richer.

MOTOR VEHICLE INSURANCE

Motor vehicle insurance, governed by the Motor Vehicle Ordinance of 1945, is the most abused and unappreciated insurance product in the country as at today. Most people see it as a means of avoiding the troubles of the law enforcement operatives. It is basically seen as “let my people go” documents. The concern is having one to flash in the face of the operatives and are not bothered if it’s genuine or not.

UNDERSTANDING THE 5 CANONS

I have heard several business owners complain about the uncooperative attitude of operators in the banking sector when it comes to supporting and providing necessary funding for their operations. Requests for support or funding are usually turned down for reason that could have been avoided if the operations and processes of the sector are well understood and appreciated by the business owners. Running your account with the institutions for a while with good activity does not guarantee an approval.

Start-ups: Avoid Wastages

Entrepreneurs in setting up their business often seek to enter the arena with a bang, to create an image all in the name of “Branding” or doing something different to set them aside from the rest.  The expectations and zeal are so high, the adrenalin is pumping, and dreams are high but with low budget. Most of the time, the limited resources are expended on non-income generating activities and assets with the high expectation that income will start rolling from day 1.

Marketing

Marketing and Sales are synonymous and are crucial to the success of any establishment. No matter the volume of money, time and effort invested into a venture, it will soon fold up if it fails to generate sufficient revenue. Revenue can only be generated from selling your product and services.

THE PRINCIPLES OF INSURANCE

WHAT IS INSURANCE?

Insurance is a device for reducing risk by combining a sufficient number of exposure units to make their individual losses collectively predictable. The predictable loss is then shared proportionately by all units in the combination. Insurance is based on the law of large number. In essence, Insurance allows the individual insured to substitute a small but definite cost (premium) for a large but uncertain loss under an arrangement whereby the fortunate many who escape loss will help compensate the unfortunate few who suffer loss.

FINANCING YOUR BUSINESS

A lofty business idea or projects without the necessary resources to put the plan into action is more or less “day dreaming”. It is as good as wonderful business plan on paper without execution destined to collect dust and buried. One of the key resources that are required is FINANCE. Finance as the name implies means providing necessary liquidity for the smooth take-off and running of any business idea. It is often referred to as Capital or Funding.

5 SECRETS TO SUCCESS part 2

      In this concluding part of this post, focus is on you, the business owner, the leader, motivator, authority, management, decision maker, etc. This part highlights your role and qualities you must possess to succeed.

5 SECRETS TO SUCCESS part 1

Success is relative and its meaning differs from one party to another. Success is subject to our individual drives, aspirations, experiences, background, etc. "The only limits on human achievement are self-imposed" (Dr. Denis Waitley, a motivator) and "The only lack or limitation is in your own mind" (NH. Moos). Be that as it may, the following 5 secrets will assist in achieving our goals.

THE BUSINESS OWNER

Over the years, I have been privileged to work with some small business owners or what is generally termed “One-man Business” especially where everything about the organization revolves around one man, the business owner. The experiences have been mixed depending on the traits and leadership style of the owner and the reactions have been mixed. The experiences of most of the people who have or are working in similar establishments were unpleasant and one tends to believe all small businesses are the same.

Five Challenges: Every Small Business Owner Faces

By Angie O’Shannessy

I am sure that you have heard that small businesses are the backbone of our economy; and it's true. Some 98.6% of all businesses are considered small, so they're significant. And let's not forget: every large business was, at one point, small.

Mistakes to Avoid When Starting a Business From Home

By Entrepreneur » Launch » November 15, 2012

Launching a business from home can provide tremendous flexibility and the kind of work-life balance that we all crave.

The reality is that home businesses bring their own set of challenges, says Caroline Daniels, lecturer for entrepreneurship and technology at Babson College in Massachusetts. For example, “doing your business on your own from home can get stale. It’s hard to keep feeding the imagination all on your own.”

13 Start-up Red Flags to Avoid

This article was initially posted by George Deeb on Linkedin and I believe we can all learn from it. It contains 13 critical issues he identified in the over 500 start-ups he has consulted for over the last few years that every entrepreneur must address for the business to grow and remain a going concern.

UNDERSTANDING THE CASH FLOW STATEMENT (part 2)

This is the concluding part of the post where effort will be made at interpreting the 3 core areas of the Cash flow statement and its effect on the business. some questions also need to be answered honestly and corrections made to remain viable, liquid and successful..

UNDERSTANDING THE CASH FLOW STATEMENT

Cash flow, as the name implies, is the movement of funds/cash in and out of a business, project, venture or individual. It has to do with all the movement of funds and measured over a period of time. It highlights the value or the situation of an individual, business or a project. It also determines the liquidity (measures the ability to meet maturing obligations as they fall due), viability and sustainability. In essence, it measures the availability of cash/revenue to finance your needs.

It is used to test the ability to remain a going concern. The Cash flow must be positive, sufficient to meet capital expenditure, pay returns to financiers and can stand the test of time. Being rich does not necessarily mean liquid. The riches might be in assets that are not easily convertible to cash.

FEASIBILITY STUDY VS BUSINESS PLAN

Though similar in structure, content, operation and synonymous with the business world, their purposes and applications are different. Most of the time, there is the confusion in differentiating which should be applied to a particular situation. It could also be a daunting task to explain to clients on which to adopt, the demand is usually for a business plan. There is therefore a need to highlight the differences for clarity which I will try to do based on my own knowledge and experience.

From my interaction with some would be entrepreneurs, Small and Medium business owners, I’ll strongly suggest that you are fully involved in its conceptualization and execution. Your mission and business philosophy should be fully integrated in the study and in compiling the report.

Secondly, it would amount to share waste of resources and energy if the report becomes a mere academic exercise and left on one of the shelves to accumulate dust. It requires constant review to determine variations and deviations from the initial aspiration and philosophy, market conditions, etc.

Seven Life Lessons for Start-Up Success

Providing for your home or business is not easy and nobody said it would. Your success is hinged on your willingness to enhance your knowledge base, determination to succeed, learn from others' mistakes/successes and your adaptability to the changes in your environment. The following article by Andrew Bahlmann on start-up advice posted 12 April 2013 shared some of the lessons he learnt over the years, positing that you can make your own light at the end of the tunnel.

 

 

The journey is hard, really hard. Over time it gets even harder. You keep telling yourself that ‘if it was easy, everyone would do it!’ This is what separates the big dogs from the puppies.

WHEN SHALL I PROVIDE FOR MY HOME

The reality is that nothing of importance can occur except we take charge of our life and accept responsibility for achieving our dreams. Stephen Covey in his book (Everyday Greatness) puts it that “the key is in our decisions, not our conditions”. Jacob realized this in

his decision to start preparing for his home after serving Laban, his Uncle for several years in Genesis 30:30 when he asked his Uncle the pertinent question “……………. when shall I provide for my home…..? I also put it to you, after several years of active service, when will you provide for your home?

 Home in this context means providing for life after active service though it might connotes different meaning to different people; migrating from being a tenant to a house owner, employee to employer, self-employed to a business owner, etc. The major challenge is when the change is suddenly thrust into your path without adequate preparation. Some might never overcome the change like an ex-banker in my estate that committed suicide when he lost his job because he just couldn’t see himself beyond the present and adjust to reality. It’s therefore pertinent to start the process NOW!

THINGS TO NOTE IN RUNNING YOUR BUSINESS-PART TWO

In the part one of this write up, I mentioned key things any organization desiring growth must not ignore. This concluding part has more to say about the approach that guarantees growth and employee loyalty.   

Separate personal funds from that of the business

Most business owners have violated this and can't seem to differentiate. Most treat all income as theirs and spends as it comes without consideration for the liquidity of the business. When the need arises for funding a transaction or the operation, pay salaries, etc it becomes difficult to meet up due to the gap that has already been created. My personal advice all employees should have a salary including the business owners and effort should be made to limit personal expenses to the salary.

THINGS TO NOTE IN RUNNING YOUR BUSINESS

Running a business and running a successful business are two sides of a coin. From personal experience as an SME Solution Provider, some common mistakes that companies, especially small or one-man business operators make are highlighted below as a learning point.

·        Pay right

The pay should provide for the basic needs of the staff after deducting transport fare with sufficient savings else you have employed a potentially unhappy staff. Eventually, the focus will be how to cut corners and make some extra more money at the expense of the company. Pay peanuts and you'll end up with monkeys.

MAKING YOUR VISION WORK FOR YOU

VISION

V

ision is a widely used term but not well understood or appreciate its importance. Vision is a

realistic, credible and attractive future of an individual, organization and society at large. In essence, Vision must be real, measurable, achievable and relevant to all stakeholders else it loses its purpose and source of inspiration. Most importantly it will not be able to stand the test of time.

Vision attracts commitment and energizes all concerned, gives meaning to the efforts and living, establishes standards of excellence to measure performance and identifies variations and also serves as the bridge between today and tomorrow.