Startuppreneur is a Nigeria media company that focus on helping entrepreneur to start their business
Startup is an experiment, it can fail or succeed, if it fail, the next thing is to analyse the startup and look for the reason, this will equip entrepreneur in their next venture. But why wait till your startup fail before you learn the cause of it failure!!! In this post we list popular Nigeria ......
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I won't bother you with definition of online business neither of physical business, I will just go straight to the points.
It is a trend now, everybody want to have online business; for some they just want to make cool cash while some just want to have it for the sake of having it. Some even go ahead and sell their physical business thinking that they would soon make x100 of what they are making before. What an illusion!!
Having been engage in both physical and online business I can say that both are hard, in fact online business is more harder, because you are competing with a lot of people from deferent geographical area.
For instance bloggers and freelancers compete with people of deferent country and continent. You can be in Africa and hire a designer in America, this is how online business is, it is very competitive, even if you learn all the technical know how, purchase courses and other requirement it is still an herculean task to beat the competition.
To make any tangible money online you will spend nothing less than two years; 1 year to master the skill another year to put the art to work.
But if you are lucky to have a guru who will take you by hand you should earn money in less then a year, but the problem is that Guru will demand nothing less than #100,000 or more before they will teach a thing and I'm sure most people are going into online business because they think the startup cost is less
This take me to my second point, if you care to listen, there is no business that has no cost, you need money to make money online, well that if you are serious, all the cost might not be burn at the beginning but as you move on, you will see that the business will require fund if you can't meet up with the finance, the competition will eat up your business and again the perceive low cost of doing online business drop the barrier of entry, any body can just start an online business anywhere, at any time which further increase the competition.
Of course physical business has it own, huge amount of money is needed before you can set up a standard business that will no fissile out in time; local and state government will frustrate you and if your business rely on light you are in trouble.
For instance there are a lot of pains and depression in agric world, many people have lost their mind because their birds died while some have swore never to enter anything agric again or what will you say to farmer that lost about 1,000 birds to Newcastle disease.
I think I have done good job in confusing you the more, since am not rooting for any one. Well success in both business depend on your state in life.
If you have a deep knowledge about a physical business I will beg you not to touch anything online, don't mind those people showing their dashboard with a lot of dollars in it. It took them years to get there and trust me if you put in the same effort into that your physical business you will soar like eagle, in fact more than the online guy.
If you have no knowledge of any physical business, go ahead and learn online business, but know that it will take you more than a year before you can make anything from it and be ready for roller coaster.
In both business if you are just starting out without a mentor, get ready to sacrifice two years of your life doing trial and error. For physical business you will loose more money in this years, for online business you will lose your sanity.
The best solution to both is to find work in the industry you want to setup business for some years, this will give you the needed experience to succeed.
Conclusion
Both business is good but be ready to sacrifice. In whatever business you chose ensure that it can give you million in the future or you will be wasting years on thousand market cap industry.
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Why startup fail in Nigeria
Out of 100% of startup in the world, 90% will fail. Though there is no particular research carry out in Africa, the estimation of startup that will fail in their first five year is more than 90%.
Why ??
Before we go into the "why", I want you to have it in mind that startup is an experiment and experiment have only two option; to fail or succeed. While startup needs many reason to succeed it only need one reason to fail.
Below are the different reason startup fail in Nigeria
Problem/solution fit
Some entrepreneur just jump to solve a problem without carrying out proper research.
Can the problem be solved?
Can the solution be scale?
Are they going to pay for the solution at profitable price?
These and many question should be asked and answers before entrepreneurs burn their night on the solution.
Some problem may look big, but getting to solve it, you will notice that the problem is not really affecting a lot of people.
Entrepreneur should make sure the problem they are about to solve is really affecting people and not itching them. Infact it is advice to solve problem that you yourself have encountered.
Product/Market fit
Here is another problem
This is one of the major reason startup fail in Nigeria. May be it is naivety or wrong information that make entrepreneur think that if they build their product people will turn up. They've forgotten that they are not building business, it is startup.
Wait, let define startup
According to Steve Blank, "startup is a temporary organization designed to search for a repeatable and scalable business model"
In business you have an already cleared path to follow, but in startup you have to find it yourself by iterating your product constantly to what your customer want.
Forget about the loving what you are creating or your business model. You need to create product for the consumer not you.
Failure to do so result in many startup failure, because the only customer they will be able to onboard is their family and friends.
Scaling
Scaling is tricky, it is hard to know when to scale or not and the most difficult part of it is that, no body is in position to tell you, they can only advice you. It is your business, nobody know it better than you.
To escape failure that accompany Scaling
Make sure you have problem/solution fit.
Product/market fit.
Can you employ quality workers as fast as possible.
Make sure you are loaded with Fund.
If the coast is not cleared, please don't go.
Fund
Haaa
Fund raising is the test of entrepreneur. It is fund raising that shows the ability of an entrepreneur.
We all know there is scarcity of fund especially in Africa, but entrepreneur should know what he has dabble into, you can't use that as excuse, you know before hand it's going to be hard so look for fund Any where.
To start a startup it's advice that entrepreneur should have some money in reserve at least that can push the startup to product market fit, because no investor will back you in Nigeria without having product/market fit , unless you have a proven record.
Team
In term of team, startup must get it right at the beginning or else its doom to fail. People with like minded should come together to do startup, people that have almost the same view about life, because things will go awry along the way. It is only when synergy exist between team that startup will succeed.
If wrong team were the order, it can result in chaos, imaging having lazy bun as team member in a startup, it will slow down the progress of the startup and may eventually kill it, exactly what would have happen to Twitter.
I thought I can sack my Cofounder/ team
You can't sack your team member without uproar in fact team that begin a startup are not just employee, they are cofounder.
Timing
Before YouTube and Facebook was born there were failed ones. They failed not because their product was not good enough, but because the time was not right. In 1990s no body want to waste a lot of money watching online video and likewise no body want to spend fortune uploading video.
One of the startup that know the importance of timing is Netflix. Netflix began as dvd rentals, they would mail DVD to to their consumer, though they have a vision; to show cinema to people online, they couldn't do this because the time was not right. So they waited for more than 10 years, when people are ready to watch videos online.
Poor customer service
While startup is small compare to well establish companies, Consumer don't care, they want to be treated the same way they were treated by large companies.
"Customers are your boss" this phrase is not always the same for startup, they believe they can always get another customer if one leave, since they have enough of venture capital money to burn.
One angry customer represent 100, so if you make 1 angry have it in mind that 100 of your customer are dissatisfied with you.
In the early stage of startup, let part of the customer support be done by the technician, this techniques has worked countless time, tech people can easily decode problem that consumer have and quickly do something about it.
Unlike Normal Customer support that would have to report to already tired technician. Most of the time technician are addicted to whatever they are doing currently so stopping them is asking for trouble.
Market size
This one makes me laugh a lot.
Many entrepreneur are still falling into the erroneous assumption; that Nigeria is a large market, since she houses more than 200 million people.
What they never ask themselves is how much is purchasing power or GDP per Capital of these population.
It might surprise them that they are dealing with 10 million potential customer and 5 million Total addressable Market. (I might have exaggerate).
To not fall into this make sure your figure is correct when making your business plan.
Lastly culture
Culture of a startup should be defined at the early stage. Let every worker and employee know what your startup stand for. Do not employ people if they are not going to fit into your culture even if they are very good, they might break your company at the long run.
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Lending Against Turnover (LATO)
This types of loan is targeted at non salary earners, it does not require collateral or paper work, you can get it by dialing a code on your phone (*909*11*1). The pay back period of this loan is 30 days and you need to have been with Access bank for at least six months before you can be eligible for this loan.
Personal loan
This is for salary earner who have been receiving their salary with Access bank for some months, it is also easy to obtain and the pay back period can last as long as 36 months.
Read more
https://startuppreneur.com.ng/access-bank-loan-code-to-borrow-money-from-access-bank-and-requirements/
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