Entrepreneurship; super-smarter-savviest

Lala, my darling friend dropped by yesterday afternoon. She sells sewing materials, original pearls, stones etc. She had just fired her sales girl for non-compliance with rules; she refused to wear her uniform. But of course, she pilfers, misbehaves and comes late to work.

By the way, Lala loaned her money for WAEC and she borrowed herself that of Jamb from the company’s account, without asking Lala. But how are you going to cope without your sales girl? Lala reminded me of her ability to cut, stone, press and sew. Lala used to be a banker, who went to learn all these things. But she also told me she is experiencing lots of burnout – she is the driver, the salesman, the accountant and now she just became the shop attendant. I know the woes! We talked about the unreliability of staff and she mentioned something very pertinent, keeping the books. Lala can have up to 15 shades of blue lining in her store, just one colour, multiplied by the number of other colours and their different shades, and then the tiny pearls, stones, zippers, buttons, thread…..how does she account for them? By the way, Lala’s sales girl has become light-skinned, sumptuous and very fashionable.

Lala’s story is the story of most start-up entrepreneurs, those who start from clearing the field (if you know what I mean). This is also my experience and some of the major challenges I still face as I struggle to find my feet. One of the most heartbreaking Nigeria factors is that after going through the odds and ends, government appointments rarely recognize entrepreneurs as suitable pegs. They will appoint technocrats (whatever that means) who don’t know how to multiply money to manage the economy. The reality of entrepreneurship is beyond being super- smarter-savviest. It is a combination which requires divine wisdom and grace. Lala’s story only reinforced my thoughts for start-ups;

Put in some structure: Build a structure and some processes that guide your activities. Invest in certain infrastructure such as a small IT solution that helps your entire process – some accounting/CRM solutions are free on the internet. Recruit some multi-talented trainable staff. Be responsible to a board of directors (either formal or informal). Get very social on the right platforms. Professionals need LinkedIn, Trade requires Instagram etc.

Understand profit and loss account, get an accountant: Read more financial reports. Look for the naira, pounds, and dollars in small narratives. If figures bore you and you can’t read profit and loss account to know the implications of the figures, get educated! Businesses crash daily because of this. Like Lala, I ran into plenty accounting issues when I first started out. I ran after the business, got them, paid staff, had informal records but didn’t keep the books professionally. A few of the major disadvantage of not keeping the books is that (1) Tax Statutory (2) Reduces your chances of getting good investors (3) It will be difficult to get a loan from any bank (4) You can’t truly determine your profitability and grow the business (5) Doesn’t help your professionalism too. Please get an accountant (not a bookkeeper) on pay-as-you-need basis. You don’t need them on your payroll.

Know your customers, know your cash cow: Most entrepreneurs rob Peter to pay Paul. In my first major entrepreneurship venture, my supply business was paying for the professional side of things. As a geologist, I decided to pretend I had an oil company, yes I was selling diesel and engine oil (stop laughing, will you!). To be honest and genuine, it was the cash cow. The margin was quite small, but it was regular. I was supplying automobile companies and manufacturing concern. It had it intricacies but I learnt the ropes – rice &beans, poor density, locally refined deep brown dirty diesel, irate diesel tanker etc. No one taught me those things in school. And when training and management consulting projects peep in casually as they do, we dust our jacket, wear our professional badge, speak the grammar, and get the dough. These were big projects which were time-consuming sometimes far and in-between. We needed to keep chewing while we work – our cash cow, our delight.

Pay salary from an investment account: I was with my HR turned investment professional friend a few days ago and we had an extensive chat on business sustainability. If only I knew a lot more, when I was younger. As a young girl – I was in my mid-twenties, armed with my shallow knowledge from JSS business studies; I wanted to invest in Treasury Bills. All I heard was you don’t have the kind of money for treasury bills. After a while, I gave up, took my money to shares and bang, the shares crash a few years after. None of the people I met at the customer service desk of this banks (customer service just took off, late 90’s, early 2000’s) told me about mutual funds. When you start out as an entrepreneur, cash flow may be tough. If you have some cash starched in investment, you can pay salary from it till your business is mature to bear that burden (I am also learning). Don’t re-invest all your profit. Open an investment account and keep them there. There are investment companies who give free “Financial Planning” Education, look for them.

Get a mentor, join communities: It’s tough to act in isolation. It limits your potentials to only what you know. I tried getting a mentor some 10 years ago but it didn’t work. I went to her office, hinted her about my need for business tutoring but she never reached out after several calls. I have since been mentored informally by bosses, peers and even younger minds. Join communities of masterminds, a small group of entrepreneurs where you meet weekly or bi-monthly to compare notes and learn. I am looking for one.

Take a break: Lala just got back from the UK. She went to rest from all the woes of running a business. But even if tickets are crazy because of exchange rate, explore the Obudu’s and the Erin Ijesha waterfalls of Nigeria. But take a break whichever way, you need to refuel regularly. And if you have some structure around your business, you will find it easier to free yourself. You need to protect your health and family.

Be ready to walk away: Don’t be ashamed to face the reality if it’s not working. Damn the shame, face the blame. Quit without a blink. Go back to your 9-5 or start a new venture entirely. Failure is not a permanent phase. And to family, friends and the banks; don’t sneer or mock. Embrace, support and restore these bold lions back to what works. I am an Entrepreneur and I am proud to be one! Be Genuine…..

Dayo Oladele-Ilori an entrepreneur, management consultant, a writer, an author, a wife and a mother. She is the convener of WELEAD –www.weleadnetwork.org