Business of Africa - BOA

Business of Africa - BOA GREAT BUSINESS IDEAS OF AFRICA

07/06/2016
02/06/2016

@ I can feel the pain and the honesty of this your class mate : my greatest worry is the present generation of young people who are not willing to work, but just want to get everything free. I heard of a young graduate whose father brought two letters of employment to her at home only for her to turn both down claiming she only want to travel abroad. Another one I heard was asked to manage the parents primary and secondary schools refused, Now in UK, but leaving on the elder brother's handout. Our attitude to work, time keeping and commitment to career is annoying. An HR expert once said many of our graduates are not only unemployed, but are not employable. Many are only working to be paid and not to be made. My wife worked with the Chinese briefly after her University degree, she concluded that the Chinese are more hardworking than the Nigerians. Just last month, three of us from this group chat went to Ibafo to inspect the land donated by a member of this group for tomato farming . When we arrived, another of the residents gave us his land free for farming. I was surprised, I asked a friend why the young people in the community could not use the land. He replied, that is why the Indians and the Chinese are here. They pick money on our street and we don't see it. They see opportunities where we see problems. We fold our hands in frustrating idleness, our ladies are turned into harlots while guys became hackers cm yahoo yahoo experts. When I saw that the GDP of Russia is equal to that of Africa put together I know we are not doing enough. I wonder when Africa will send the first man to the moon, when cancer will be tamed, when malaria and HIV will be reduced to a common cold. When Africa will feed itself without the help of the World Food Program. I imagine when millions of Africa youth will rise up to create enormous wealth and make cultural poverty of Africa a thing of the past.

02/06/2016

A must Read!!!
LETTER TO ALL NIGERIAN PARENTS

This is from a friend.
Dear All- Let's be real.

I wish to start by adding the benefit of my time as a student and then resident in the UK. Living in Abuja now. The first thing that I discovered about UK-born, white, English undergraduates was that all of them did holiday or weekend job to support themselves – including the children of millionaires amongst them. It is the norm over there – regardless of how wealthy their parents are. And I soon discovered that virtually all other foreign students did the same – except status – conscious Nigerians.

I also watched Richard Branson (owner of Virgin Airline) speaking on the Biography Channel. To my amazement, he said that his young children travel in the economy class – even when the parents (he and his wife) are in upper class. Richard Branson is a billionaire in Pound sterling. A quick survey would show you that only children from Nigeria fly business or upper class to commence their studies in the UK. No other foreign students do this. There is no aircraft attached to the office of the Prime Minister in the UK. He travels on BA. And the same goes for the Royals. The Queen does not have an aircraft for her exclusive use.

These practices simply become the culture which the next generation carries forward. Have you seen the car that Kate Middleton (the wife of Prince William) drives? VW Golf or something close to it. But there’s one core difference between them and us (generally speaking), they (even the billionaires among them) work for their money, most of us steal ours

If we want our children to bring about the desired change we have been praying for on behalf of our dear country, then please, please let’s begin now and teach them to work hard so they can stand alone and most importantly be content and not having to “steal” which seems to be the norm these days.

We have Nigerian Children who have never worked for 5 minutes in their lives insisting on flying “only” first or business class and using the latest cars fully paid for by their “loving “ parents.

I often get calls from anxious parents”my son graduated 2 years ago and is still looking for a job, can you please assist!”

“Oh really! So where exactly is “THIS CHILD?” is my usual question. “Why are you the one making this call dad/mum?

I am yet to get a satisfactory answer, but between you and me, chances are that the big boy is cruising around Abuja with a babe dresses to the nines, in his dad’s spanking new SUV with enough “pocket money” to put your salary to shame. It is not at all strange to hear a 28 year old who has NEVER worked for a day in his or her life in Nigeria but “earns” a six figure “salary” from parents for doing absolutely nothing

I see them in my office once in a while, 26 years old with absolutely no skill to sell apart from a shiny CV, written by his dad’s secretary in the office. Of course, he has a driver at his beck and call and he is driven to the job interview. We have a fairly decent conversation and we get to the inevitable question- so, what salary are you looking to earn? Answer comes straight out – N250,000.00. I ask if that is per month or per annum.

“Of course, it is per month”

“Oh, why do you think you should be earning that much on your first job?”

“Well, because my current pocket money is N200,000.00 and I feel any employer should be able to pay me more than my parents.”

No wonder corruption continues to thrive. We have a society of young people who have been brought up to expect something for nothing, as if it were a birthright. Even though the examples I have given above are from parents of considerable affluence, similar patterns can be observed from Abeokuta to Adamawa.

Wake up mum! Wake up dad! This syndrome – “my children will not suffer what I suffered is destroying your tomorrow. You are practically loving your child to death.

I learnt the children of a former Nigeria Head of State with all the stolen (billions) monies in their custody, still go about with security es**rt as wrecks. They are on drugs, several time because of the drug, they collapse in public places. The es**rt will quickly pack them and off they go. What a life! No one wants to marry them.

Henry Ford said “hard work does not kill.” We are getting everything wrong in Nigeria now, including family setting. It is time to prepare your children for tomorrow, the way the world is going, only those that are rugged, hard working and smart working that will survive. How will your children fare?

24/05/2016

How To Be Rich Farming Tomatoes From Any Part Of Nigeria
Tomato is no doubt one of the world’s highly consumed vegetables as it is found in a lot of meals across the globe.
In Nigeria, particularly, with a population of over 160 million, tomatoes command a huge demand especially in the urban areas where it is sought after by households to prepare their favourite meals.
Currently, most of the tomatoes supplied to the country’s markets come from the Northern parts of the country where it is grown, as well as from neighbouring countries, including Ghana and Benin Republic.
According to the renowned farmer and consultant, Afioluwa Mogaji, who is also popularly known as Africafarmer, there is still a huge market for new tomato farmers to become rich as well in the lucrative tomato farming business.
He also disclosed that contrary to the belief that tomatoes can only thrive in the Northern part of the country; the vegetable can be grown successful in the Southern part too. All that is required is the right information on how to achieve it.
In this interview, Africanfarmer shares his many years experience in tomato farming, revealing very important things you should know about successfully farming the crop.
Can one become rich by farming tomatoes?
Yes, but I will like to share with you the challenges people from Benin Republic and Ghana had some years ago which caused some of them to start thinking out of the box and to discover opportunities in the challenge.
The summary of what happened is that the tomatoes farming business was very profitable in Ghana and Benin Republic in 2006 and all the farmers went into it massively for commercial production.
Some of them went on borrowing and went into the production the following year. The farmers that were not used to using tractors began to use tractors and at the end of the day they produced so much tomatoes, such that there was no one to buy. The prices crashed from $50 per box to about $3 per box. So, from that challenge, the opportunity to bring it to Nigeria opened up - Nigerians and Ghanaians, especially the ones who are not educated began to embrace the opportunity.
Since then, the industry has been expanding, as people go and bring it to Nigeria and make lots of money. But it is even more expensive than the Hausa tomatoes, produced from the Northern part of Nigeria.
The idea of giving you this information is to let you know how many borders between Ghana and Nigeria - it takes an average of like three days to move those products to Nigeria, yet when it gets to the market it's still the same tomatoes that people prefer over the tomatoes produced in Nigeria.
But the good thing is, we can produce the type of tomato, I have planted these same tomatoes and they did very well here. The seeds are not even of Ghanaian or Republic of Benin origin, they are from developed countries which are also doing well there.
How can I go about farming tomatoes successfully?
Anyone who is interested in farming tomatoes can really do it successfully, the opportunities have always been there and some Nigerians, since 2006 been bringing tomatoes from Ghana to Nigeria, yet we in Nigeria fold our hands, busy complaining about government, while people from Ghana are bringing tomatoes to us.
Presently, if you go to the market and you find tomatoes in wooden crates, it's from Ghana - sometimes in September you will see tomatoes in a kind of basket that is not Hausa basket that is coming from Benin Republic.
All the big hotels, from three to five star hotels use Ghana tomatoes. Most caterers also use Ghana tomatoes.
The question now is that, “Why is Ghana tomato having such attention?” It is purely a hybrid that does not drip water easily. The “Hausa tomatoes”, which is the tomatoes produced from the Northern part of the country, even though we celebrate it is still not of the highest quality.
So, you will need to pay attention to see the opportunities in tomato farming; to know how tomato is grown; to know the things we need to pay attention to, such that we will be able to take good position to make the money.
One of the things that I like to learn from those foreign farmers is the fact that farming does not make you rich, it is the business side of farming that makes you rich.
That is where a lot of people get it wrong, as they focus on the production, while they forget about the business side of it. So, the information I will be sharing with you will take you from production - the farming aspect, to the business side of it.
During the raining season between 100 and 150 trailers get to Mile 12 everyday from the North with tomatoes, and as they are emptied, you won't find them again in a couple of hours. But some of us in the South-West especially are already tapping into tomato farming and I must say there is nothing special about it.
There is a thinking that tomatoes do not do well here in the South, but that is a very wrong notion, as I grow all varieties of tomatoes - everything does well here.
What Drives Tomato Industry
The tomato industry is shape driven - meaning that they have different shapes, three different shapes to be precise.
One is long, another is oblong, and the third is a little bulky. To take a decision on which one to produce and the purpose of the tomatoes, you need to first ask yourself, “What do I want to do with the tomatoes when I harvest them?” Know the purpose of the kind of tomato you want to plant and that purpose will influence your decision on the seeds and the shape you buy.
I will like to tell you something that happened to me some years ago, I went to a seed company in Coutonu, Benin Republic, where I saw in the catalogue some tomatoes that had very exceptional qualities, each 50g tin was being sold for N6,000, and another 60g tomato seed sold for N10,000.
So, I bought them and planted them - I have been in tomato farming with my dad and we have been planting about a hundred to a hundred and fifty acres, way back in the '80s with irrigation.
So, I basically know tomato production well. So, we planted and everything was okay, up until we had so much rain - a heavy one so to say. Eventually, the tomatoes survived, other farmers tomatoes had died, but when the tomatoes matured and we were to sell them in the market, we now discovered that the market was shape driven.
The quality of my tomatoes was better quality, in fact the seed of the Hausa tomatoes was about N2, 500 for a 100g, while the local ones planted by the rural people was like N500 for a milk tin.
When we took it to the market, the Hausa and local tomatoes attracted better price, it wasn't that they did not know that it was of better quality, because it was firm, but because they just wanted to cheat, which they eventually did because we could not take them back. We also did not understand that it was shape driven. It was a bit flat, had like four lobes by the side, just like the traditional old tomatoes.
Beautiful production, beautiful harvest, but the return did not justify it and that was what led me into this research with a view to studying the market. We came into the market with quality, but discovered that it was shape that determined the price.
So, in a nut shell, tomato industry in Nigeria is shape driven - mostly it is the oblong shape that is mostly demanded, not the straight type, not the ones with flat base, but the ones with egg-like or ball-like structure.
The moment it has a flat surface and base, you are sure that you are selling at the lowest price, irrespective of the quality. So, you must pay attention to that.
How can one get the right seeds?
The quality and source of your seed would determine the reward of your labour. If you invest in low quality seeds, after you have invested all your time and effort, you will discover that the yield will be low. Before you take a decision on what seed to buy, you should be ready to answer these basic questions. Are you producing for fresh market? Are you producing the tomatoes for processing?
There are primarily two types of tomatoes targeted at different markets - the fresh market and the processing market.
Fresh market tomatoes are big and firm tomatoes, the type you slice or blend with your pepper for stew and soup. The other type is the one used for processing, which are smaller sizes and they can be processed into pewries, pastes, among others.
Meanwhile, the end product you eventually use it for determines which type to buy, in terms of seeds. For the fresh market tomatoes, the average woman goes for it in the market because it looks big, firm and very reddish.
If it is not really red here, the average woman would not buy, except there is no tomato in the market and she has to compromise. So, here in this part of the country and in Ghana, it must be red. The processing tomatoes are smaller.
What type of tomatoes seed is profitable to plant and why is it so?
There is what we call hybrid and pollinated, these are the various seeds that we have but then, another question you need to answer again is that, “Are you buying what you call hybrid or open pollinated?” Hybrids are tomatoes seeds that have been processed or improved upon, mostly for yield and disease resistance. So, you have some hybrids that will do well only in the raining season - if you plant it outside raining season, you just lost your money.
There are some other varieties of hybrids that are planted only in the dry season, if you plant it in the raining season, it will be firm, big, but it will begin to crack. These are things you need to know when buying the seeds and these are questions you need to ask the seller - is it dry season, raining season or all purpose? If I must tell you, I have been into this kind of mistake of putting so much in buying the seeds and later discovering that it is not meant for the season in which it is planted.
There are some other hybrids that are all purpose; you can grow them from January to December. But what has been discovered is that the ones that are bred for specific seasons are actually bigger. For instance, the ones bred for raining and dry seasons are bigger than the all purpose. There are some exceptions, but most of the hybrids focus on diseases and yields - which is a major advantage of using hybrids.
Also, most of the hybrids have thick covering, which makes them very good for transportation, especially in the developing countries where you have bad roads. So, once the covering is thick, it withstands the rigors of transportation, but the seeds attract a higher price.
The other type of seed is the open pollinated. Open pollinated seeds are seeds that require insect or bees to pollinate them.
Firstly, open pollinated is prone to disease and by buying open pollinated seeds, you may lose 50 percent of your harvest, if you have insect attack and you do not pay attention to it early enough.
Secondly, most of them are not strong enough to be transported through long distances and difficult terrains. Recently, varieties that can endure the rigor of transportation have been found, but they have a longer maturity days, while the hybrids mature faster.
Nursery Preparation
For any tomato crop, developing in nursery is very important. You first nurse the seeds and when they develop to a certain stage, you now transplant. For hybrids, it is ready for transplanting within 15 days. For open pollinated varieties, it is about 21 to 30 days - if it is well managed, it is 21 days. The beds should be straight, elevated, more like a ridge but bigger.
Ideally, you incorporate very dry poultry manure. If you are planting in the dry season, you must wet the land for it to get really soaked for 24 hours. So, if you put water on the beds today, you will not start your nursery till tomorrow evening, because the land is very dry and whatever you put in will go deep down but if the surface is dry.
By the time you are doing it the next day, you will be adding more water and the soil will be moist. If you forget that and you spread the seeds on it, the heat would destroy the seed. Spreading the seeds, your hands must be very close to the beds, if not the wind will blow off the seeds and you have it scattered and unevenly distributed. I have to tell you this, because most of us are not agric professionals - this is what everybody can do, either schooled or unschooled, educated or uneducated.
Then, after making the bed, you raise it with palm fronts, putting sticks by the sides to create a platform where you put the palm fronts on. The palm fronts are primarily suppose to reduce the intensity of the heat to the seeds, creating a cool atmosphere between the palm fronts and the beds.
So, as you are applying water daily, you put it on the palm fronts, so it drips on the bed as against pouring water straight which washes it off. But the palm front reduces the impact and you have a good harvest from the nursery. You have another type of nursery bed, which is covered with mosquito nets. Instead of putting palm fronts, you stack sticks and cover it with mosquito nets or any clothing materials that will still allow air. This is just to protect it from insect.
After about ten days, depending on the varieties, you begin to, weekly, reduce the palm fronts on it. For hybrids, you remove it totally at 10 to 12 days, so that it can subject it to the heat it will be used to the open field. For open pollinated, you remove it totally, five days before transplanting, so that it can adjust to the heat.
How can one prepare the farmland for tomatoes?
After clearing the land and you want to engage tractors, the tractor must work on it twice, depending on the level of w**d – well, there must not be w**ds on the plot, it should be plain ground and nothing green should be on the soil.
Preferably, if you are using tractor, there is what is called harrow, equipment attached to the tractor that breaks up the soil and makes the soil lose; this will help the tomato root to go deep down into the soil without stress.
Transplanting
Note, transplanting is mostly done in the evenings, except you have heavy rainfall in the morning. So, if you are transplanting in the evening, you apply a lot of water in the morning. This is because when you are picking the tomatoes, the soil must be moist so as not to break their root. When you are planting, it is very important you use a stick to drive it into the soil, so that the root will not fold - if the root folds, it will create a measure of shock before the crop recovers.
Also, when transplanting, make sure the plant is erect and not bending. You must cover the soil or plant to the first leave - the branch closest to the soil should be touching the soil or just a bit above the soil. That way, it would shoot up and develop more branches. Once tomato is erect, it grows straight, if it is not erect, it bends and once it is bending, it will be difficult for some other operations.
Staking
This is just providing a platform for the tomatoes to rest on. It could be erect or imposed.
A. Benefits of Staking: You would harvest less damaged tomatoes, because the more the tomatoes rest on the soil, the more bacteria attack it and affect the fruits. So, when the plant is raised and it is not touching the soil it grows better, the fruits are hanged, as it is supported because if you have very good tomato fruit yields, it might be so heavy for the plant. But when you stake it, you won't lose the fruits and you can harvest longer.
B. Disadvantages of Staking: After you have completed the operation, what would be left is removing those stakes to be able to plant something else. But if you have made enough money, you can engage people to do that.
What is the profit returns like based on the land and inputs, cost of production?
Well, some may be brooding that how much does it cost to plant and produce one hectare - which is two and half acres. I will say it depends on your seeds, location and on a lot of other factors. However, staking takes some amount of money because you have to do it well with wood or bamboos.
So, what I have experienced over the years to set up is that, it may cost you about N250,000, depending on seeds because, if you are using 300g - a full milk tin for the hybrids that is relatively affordable, let's say 5,000. That is 5,000 multiply by six, which is equals to N30,000. You can use other open pollinated seeds that are also good, but will mature just a bit late, 75 days; you can buy for like N2,500, which is 50 percent of the hybrids, it will still give you a good yield if you have good management.
You have to spray more to protect the disease from coming in, unlike hybrids which has been improved upon, such that the major diseases affecting tomatoes don't affect them. So, for open pollinated, you are using N15,000 worth of seeds.
I like to budget very well and sometimes over budget, because all things don't get equal in the environment we are. Today, the seeds might be available, but you might not get them easily tomorrow. Some might decide to pay attention on seed business. So, I plant 300g, the ones that are very healthy - people just do the nursery and plant everything, but everything will not give you the result you are looking for.
So, when you do your nursery, you only pick the strong ones. What happens is that most hybrids mature in 60 or 65 days, even if you don't transplant them, they begin to flower at about 40 to 41 days, irrespective of the bad condition. If you use a crop that is probably not healthy - very thin, when you transplant it, it will first take some times to regain stability and later begin to grow, while the healthy ones will be like two weeks ahead.
If I may say this, the labour you use are w**ding; they w**d the farm per space or size of the farm, not per number of the plants. So, if it is one acre, they charge for the same, likewise spraying, among others. If you don't have healthy crops you are losing, as you are paying more money to do other things and the crops would not come as the best. So, it is better to spend more money on the seeds, pick the good ones and you can now have a backup. I use to backup with another one acre, where the remaining seeds without good vigour will be planted. Well, sometimes, those seeds perform really good.
One other thing I need to mention is a "Principle 2-2-2" - if you miss this principle, you might miss the profit. Principle 2-2-2 simple means: "2weeks-2weeks-2weeks." Now, in the tomato business, if you want to plant like six acres, divide your nursery bed to three plots and your plot to three plots. Now you have the first nursery, so you have to start the second nursery two weeks after and you start another one two weeks after.
This is because the way it works is that, tomatoes have the highest consumption all over the world - it has the highest demand on equal consumption all over the world. So, the existence of nature - climate change has defiled the knowledge and experience of professors and researches. So, the new syllabus is, if you raise your nursery bed two weeks, if it affects the first batch, the second batch will survive - most times the climate change don't last for more than two weeks.
If it affects the first batch, don't forget that it is not only you, other farmers are there as well and it means the price in the market will be shooting up. So, if the second batch is the one that hits the market, then you make the money. It is just that the price of tomatoes goes from about 30 percent to 100 percent.
But we have been able to study to find out that it happens in two weeks interval. So, there was a year I didn't plant because I saw that the trend of the weather the previous year is even getting worse and because I knew I wasn't going to have the time for irrigation. Well, irrigation is not what you think it is - not the perception of irrigation that you need millions.
Irrigation has been demystified, as some of us have decoded it. Now, with as much as N40,000, you will have a good irrigation system. When I say system, I mean the equipment you need. What I say is that irrigation is not a big deal anymore - yes, the more you advance, the more sophisticated it gets to.
So, that Principle 2-2-2 can mark the difference between profits and losses. Tomatoes would always give you profits, but leveraging on market, you need that principle. Never put all your eggs, in tomato production, in one basket. Tomato can make you and can break you - the higher the risk, the higher the profits, but it is not as risky as people say it is. If you follow what I have been saying, you would not have disease, because you have taken care of it, but if you don't pay attention and you miss any of the steps, you are on your own!
What is your expected yield?
What should you expect from your tomato cultivation on a hectare of land? If you do it well, the standard yield you should be having, give or take, is 20-30 tons. I say again standard best practice, when you try to make all things equal. But to be realistic, may be you didn't find labour, you didn't find the right fertilizer needed or it is not applied properly, climate change set in, because of the approach and behaviour of most farmers to tomato farming, Nigerian tomato farmers don't get more than five tons.
Meanwhile, in the developed countries, they all use growth booster, but we don't use it here. Even, most times here we don't fertilize and when we fertilize, we don't do it at the right time. When we suppose to spray, we don't spray at the right time. This is because the knowledge that brought us into the business was not knowledge based on sound practice.
A basket of Hausa tomato is about 40kg or 50kg, so they celebrate when they get 100 baskets - two tons to five tons. But ideally, if you have adequate rain and every other thing is left to management, you should be getting about 10tons - 10,000kg.
For me, that is standard, but you really don't find people getting that result, but most Northern farmers get this result. This is because the same way cattle is like the baby of the Fulanis, so is the farm to the Hausa man. They w**d, spray when they ought to and do everything needed to be done - if you get to the North in the dry season, they will dig deep into the land under dry bridge, put in what is called tube-well with some pump in it and pump out water to irrigate their farm.
What I am presenting to us is for us to do the right thing at the right time and the profit will come. That is why you see loads of trailers coming here because it is in abundance. The difference between farming in the North and South is the mindset of the farmer and how much time and resources he is willing to spend on the farm.
The market to sell and pricing
The market determines the price. However, if you have a good crop, in terms of firmand appealing tomatoes, you can increase your price in the market.
How does the market works? When you grow your tomatoes and you are selling to the open market, your products should be targeted at such market as Mile 12, Ketu, Ile'po close to Iyana Ipaja, which are the biggest market so far in Lagos, as trailers come there, offload their tomatoes and drive out. There is no other mega supermarket that can take what these markets are taking.

17/05/2016

RAISING MONEY FOR YOUR BUSINESS FROM EXTERNAL SOURCES
Financing a business or project could be a herculean and difficult task if knowledge of business finance is not understood.
Raising finance for your new business is like catching a bird, you don’t catch birds by sitting in your parlour and wishing you will catch one. You will rather identify where the birds feed and live, then equip yourself with the foods birds love to eat most (fruits /grains). You also need a good cage to care for the bird. Above all, you need to be patient, precise and persistent.
To catch/Raise money, some of the suggestion below can be of help:
Integrity of the business- The simplest solution of sourcing finance is that “a good business idea will always attracts its finance no matter how huge the project may cost”. This means the way to finance a good business is already embedded in the business itself if critically examined. a legal, lucrative and less risky business may attract investors quicker than an illegitimate and risky business. For example, a business proposal on Laundry may attract the interest of investors more than a cyber café. Good business naturally attracts investors to itself.
(2a) Integrity of the Business Owner: are you a person of good integrity that people will like to help? Are you honest, do you keep your words? People would not invest in you if they cannot trust you.
(2b) Integrity of Business Proposal/Plan: lack of integrity of proposal and good language may ruin your chances of getting help. To communicate business ideas and proposal to others, a convincing and comprehensive business plan is required Languages like ‘I think, may be, about, incase’ I don’t know etc should be avoided as possible .Avoid using too much jargons, unnecessary grammar, slangs and ambitious words. Keep your language simple; be assertive, open, and straight forward.
Give detail, but be brief as possible most people don’t have time to read lengthy proposal. To combine detail with brevity, use Executive summary.
A good proposal has integrity, simple, detailed and convincing.
Proposal speaks about the company formation, mode operation, industry to operate from, while the business plan speaks more about what the new company intends to achieve and how to achieve it. Its production, marketing, admin, hr, accounting, auditing and public relation strategies are all spelt out in the business plan.
Business proposal or plan could range from 10-50 pages depending on the size of the business.
Go Corporate/Legal: many people make mistake of selling themselves and not the business. Get the company registered, write proposal and business plan in company’s name, asking people to write cheques and pay into company’s account is not only ideal but conform to standard practice. This enhances confidence.
Tell people about your idea. It is discovered from experience that only two out of every twenty five people will be genuinely interested in your idea, but only one will invest. It then follows that if you need two investors, be ready to talk to about fifty people. (Though not always)
Unfortunately, many do not realize this simple fact, they get frustrated after talking to three or five people who may not show much interest in the idea, let alone investing in it.
The same way you finance your wedding, invite people, prepare for it, publicize it, do everything to have a good w**ding, is the same way you finance your idea. At least you will invite one to two hundred people to your wedding, do the same for your business idea. Tell at least a hundred or two about your business.
The reason you have not been able to raise the needed fund is because you have not talked to enough people, the awareness is not enough. Talk to as many people as possible anytime, anywhere, at least somebody will believe in you.
Select your language: do not necessarily beg, do not impose your idea but share it passionately and appeal to the emotion of your investors. It is scientifically proved that nine of every ten decision we make are based on emotion not logic.
Use languages like ‘this secret is not known to many, you are been carefully chosen, I,ve been looking for an opportunity to do business with you sir, you inspire me sir, I like to learn from you sir, I need people like you sir. However do not over use these words so you won’t appear like a sycophant.
Capture the interest of the investors first: people will naturally invest where their interest lies. They will be personate and not tired of waiting because of the interest. Investor’s interest will include, promising future, good management, financial return, growth and sustainability.
Give gift: most people think successful and rich people have everything, we only go to them to take- we hardly give to the rich, and this is a fatal mistake. A billionaire once said one of his town men came to his Lagos country home without the smallest gift, did not ask after my health, business and family. He put his financial problem first. I gave him N15, 000, He never came again. Another one came with fruits, plantain, snail and bush meat, he got a million naira. Give good gift like ampers, fruits etc then present your idea. Psychologist said people in their mind regard gift as a debt; they will always find ways to pay back.
Form a team: people will respect, believe and listen to you more if you come in team. Team work is an indication of strength, power and synergy. It gives investors assurance of success.
Network: research has proved that an average human being has the capacity to know at least 200 to 250 persons. That is why your sim card can take 200 to 250 contacts. Surround yourself with good people .Join social groups like business club, MBA class, Cooperative, NGOs, professional course (ICAN, CIS) .Learn to interact, communicate, relate, share and connect.
Be confident and personate about your idea. This will make investors think you will succeed even without his support; he will want to be part of the success story.
Believe in your idea. Many do not have strong confidence in the idea or in themselves. If you don’t believe in yourself, who will believe in you.
Do not be afraid to share your idea with people nobody can steal your idea and do it exactly like you. Your idea is unique. Remember if you keep quite you won’t get the fund and the idea will die in you. Use every opportunity you have to share your idea. You do not know who will be interested.
Do not be afraid of criticism (they help sometimes) but embrace them, listen to them, but never allow them to kill your enthusiasm, energy and idea.
Be aware of sycophants (praise singers) who tell you only good things and praise your ideas they may mislead.
Thank everyone who took time to listen, appreciate and criticize your idea even if not investing.
Learn to close the door gently even if your idea is criticized and rejected, the same person can still invest later. No does not necessarily mean no.
Understand investors and vary your approach per person- Categorize the target investors. Some will invest in the idea at the beginning even on paper while some will invest later when business show sign of success. They are all important.
Offer good return- you must know that everybody even your wife, brother, friends, cousin, neighbour, in-law, colleagues, church members or pastor will like to invest where they will get good return. Do not take them for granted. They may not invest if good return is lacking in your plan. At least indicate the possible future time they will start enjoying the return if it cannot be immediate. (Please do not promise what the business cannot give, some experienced investors will easily spot this.
Offer security and indemnity - many people will even place security of their money before good return. They need assurance that the business will not fail in order not to lose their investment. They will not invest if this is lacking in your plan.
Offer a generous guaranty. Like tell investors they can get their money back with just three months notice. Many will never ask for the money.
Offer collateral, referee or guarantor as a back up to remove fear and doubt.
Raise your price- never ask for less than what you need neither ask for more than you need. If you need a million naira ask for it let the investor tell you how much he can invest. Avoid using words like if you can give me any amount.
Know what you want. You must know the exact amount you need, avoid word like about or any amount. If you did not know how much you want you cannot get it. Be specific, confident and firm about your ideas. In MBA research, two groups of students were asked to pose like beggars’; the first group was told to beg for a dollar from passerby. The second was told to beg for any amount. The first group got five times more money than the second group. You confuse people when you ask for any amount -Be specific.
Be realistic – to say you want to raise 100 million without collateral may be unrealistic. Avoid unrealistic dream. Base your target on your business plan to convince investors.
Learn to be patient, but never give up.Xrox, Walt Disney, Henry Ford was turned down many times but they refused to give up, today they are success stories.
Follow up- 58% of people never follow up, 25% make 2nd contact and stop, 12% only make three contacts and stop, less than 5% go beyond 3 contacts.
Be persistent- peak performance and mental toughness is the secret of champions.
Raise money through employees, customers and suppliers
Employees- they are stake holders in the business and they can surprisingly assist to finance projects and complete production if given a sense of belonging.
For example employee can assist greatly in selling and marketing of products, they can work at reduced pay, overtime, weekends and public holidays if their contribution is valued by the organization.
Customers- big customers and major distributors some time provide money needed to complete production if relationship is cordial. A major distributor can assist to pay workers salary in exchange for products.
Producer and supplier- they are stake holders in business, they can help to provide raw materials needed in production on credit to keep production alive and be paid later.
Empathy – think from the investor’s point of view. Can I invest in this myself, what return would the investor want, what degree of control the investors will want, what other information will they like to know. Then answer the questioners before reaching out.
Set up competition among investors but conceal this as much as possible. Know that people like to compete especially men. Attach list and short profile of other investors to the proposal. Some big personalities attend events because other big celebrities we be there, some come to a place because big people come there. Use investor A to attract B, C and D.
Secrecy: When bringing investors together, remember they are business rivals, therefore promise to treat them privately and keep all sensitive information secretly. This is a duty and is binding on you.
Time: Raising finance can take time, understand this and allow things to work out. Never be in a hurry to execute the project or finance the idea. Impatience could lead to frustration, lack of faith in people and can make you offend good people
Believe in yourself that you will get the money no matter how difficult it may appear at the beginning, be persistent and never give up.
(By Wale Adeyemo- Business Researcher &Start-up Expert)

The author personally used the above strategies to raise #1.6M from family, friends and other investors between 2010-2012.

SOURCE OF BUSINESS FINANCE IN NIGERIA
1. Self
2. Families and friends
3. Partnership
4. Cooperative Societies
5. Thrift & Savings
6. Banks (Micro Finance & Commercial Banks)
7. Finance houses
8. Ministries, parastatas, NGOs and others

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