Moses Ochekwu

Copyright © 2024 YouWiN! Connect The right of YouWiN! Connect to be identified as the author of this work has been asserted by the organisation in accordance with the copyright law of the Federal Republic of Nigeria. All rights reserved. Except for brief excerpts for reviews and commentaries, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publisher. ISBN:- Journey Into Entrepreneurship i Dedication To the vibrant and resilient youth of our beloved nation, Nigeria: It is our sincere intention to ignite a transformative spark in you, propelling you to reimagine the boundless possibilities and abundant opportunities that await your exploration. Whether through the path of entrepreneurship or the realm of non-profit endeavors, we aim to inspire you to reshape your mindset and seize the incredible potential that lies both within and before you. May this book catalyze your journey towards a bright future. Table Of Contents Dedication / I Preamble / V Message from YouWin / XII Part 1 Foundations of Entrepreneurship 1. Laying the Foundation for Entrepreneurship / 2 2. Entrepreneurial Mindset and Networking / 16 Part 2 Planning and Strategy 3. Business Planning / 21 4. Financial Planning and Management / 35 5. Seven P's of Business / 40 6. Pitching / 47 Part 3 Legal and Financial Aspects 7. Legal and Regulatory Compliance / 51 8. Funding and Finance / 58 Part 4 Growth and Development 9. Innovation and Creativity / 64 10. Branding / 68 11. Successful Nigerian Entrepreneurs / 72 THE PATRICIA STORY: FROM ‘URGENT’ ₦30K TO $50M- HOW HANU FEJIRO ABODJE BUILT PATRICIA FROM SCRATCH / 73 THE FLUTTERWAVE STORY / 96 THE L&Z INTERGRATED FARMS STORY / 122 THE ZARON COSMETICS STORY / 137 THE CHANNELS TELEVISION STORY / 152 12. NYSC and Entrepreneurship / 168 Part 5 Social Responsibility 13. Leadership / 185 14. Community Service/ 190 15. Patriotism/ 194 Part 6 Bonus Chapter The 4 Ws and 1 H of Your Business / 198 A New Nigeria is Possible / 203 Bibliography / 204 Journey Into Entrepreneurship v Preamble YouWin! Connect envisions a Nigeria where youth embrace entrepreneurship as a way of life, contributing to socio-economic development. By doing so, young people become involved directly and indirectly in addressing unemployment and creating incredible opportunities for themselves. Our youth are at the forefront of Nigeria's future. As a young entrepreneur, you are part of a revolutionary movement redefining the nation's economic landscape. With over 40% of Nigeria's population under the age of 35, youth entrepreneurship is crucial to unlocking the country's economic potential. According to the Nigerian Bureau of Statistics, small and medium-sized enterprises (SMEs) account for over 90% of businesses in Nigeria and contribute approximately 50% to the country's GDP. Moreover, a report by the World Economic Forum predicts that Nigeria's economy will grow by 3.5% annually between 2023 and 2027, creating vast opportunities for entrepreneurial growth. Our goal at YouWin! is to inspire a new generation of youth, building a community of innovative, dynamic entrepreneurs who will shape the future of Nigeria's economy. This book is your guide, mentor, and cheerleader. It is a roadmap to navigating the challenges and leveraging the opportunities of starting and growing a successful business in Nigeria. We look forward to hearing your success stories as you unleash Journey Into Entrepreneurship vi your potential and let your entrepreneurial journey begin in the following pages. Note: that about 70% of youth who engaged in entrepreneurial activities during their service year went on to start their own businesses, creating an estimated 350,000 jobs annually (Source: National Bureau of Statistics). Additionally, entrepreneurial ventures by NYSC members have contributed significantly to Nigeria's GDP growth, with a reported 2.5% increase attributed to these activities (Source: World Bank). Furthermore, a study found that every naira invested in entrepreneurial training for NYSC members yields a return of approximately ₦5 in economic growth (Source: African Development Bank). Picture of YouWin Entrepreneurship lecture At Niger State NYSC orientation camp Journey Into Entrepreneurship vii This is why YouWin, a Federal Government program under the Federal Ministry of Finance, has, since 2011, strategically engaged youth in selected universities, polytechnics, colleges of education, and among corps members (NYSC) across the country on the subject of entrepreneurship. Focused on entrepreneurship, this book is designed to serve as a springboard for youth socio-economic freedom. The book is divided into five parts: foundation for entrepreneurship, business plan and strategy, legal and financial aspects, growth and development, social responsibility, and a bonus chapter. Each of the five parts has sub-chapters standing on their own, making up fifteen chapters for easy reading, digestion, and clarity. YouWin! Connect is engineered to create opportunities for Nigerian youth to become self-reliant through entrepreneurship, combating unemployment in an emerging nation like Nigeria, where more than half of the population is comprised of vibrant, dynamic, and ambitious youth. Journey Into Entrepreneurship viii Inspiring Entrepreneurship Story from a Female Entrepreneur in Jos, Plateau State While there is a lot to learn from Mark Zuckerberg (Facebook Founder), Elon Musk (Tesla Founder), and Jack Ma (Founder of Alibaba), we must understand that the environment and economic policies vary between America, China, and, of course, Nigeria. It's important to learn from Nigerian business owners and entrepreneurs because we operate in the same environment. Here is a story from our environment, with much to learn from this beautiful and inspiring Nigerian lady: From hawking tomatoes on the street to owning my own food brand. This is growth. This is my June 2024 project. As I look around my shop today, I remember three significant events in my life, I remember a time when I was ridiculed for starting a food business with almost an empty shop. After deducting my rent from the NYSC allowance I had saved to start the business, what I had was barely enough to get me started. But I was determined to start despite those who thought my dreams were too big to be realistic. Oh Lord, I remember one incident where my former neighbor would make irritating comments after a customer left my shop. ‘Ah, they bought your whole shop in a sack,’ she would say and laugh out loud in a manner that always got to me. Oh Lord, I cried my eyes out in frustration, not just because of her but because it hurt me each time I couldn't meet customers' demands. It hurt me each time they came to me with full hope and left either because they couldn't get the quantity they wanted or couldn't get the particular grain at all. Journey Into Entrepreneurship ix I remember one time when Jos was placed under curfew due to insecurity, and my shop was the only hope people had. From the period of curfew announcement to just an hour, everything in my shop was sold out. The sight of people looking helpless and even fighting over the few measures of grains so they wouldn't starve while waiting for the government to lift the curfew. Ah, I cried myself to sleep. But after each tear, I wiped my tears and continued from where I stopped. After each breakdown, I reminded myself that Rome was not built in a day. After each tear, I went back to God in prayer, praying for Him to bless the works of my hands. At the same time, I sat at the big table in my shop to strategize and make a step-by-step plan on how I was going to build my business. To make this dream come true, I had to give up my comfort and needs for a while, putting every single profit back into my business. To make this dream happen, I joined different savings (adashe) groups to help me expand. Someone once asked me, ‘How can you be in business and still wear worn-out clothes and shoes?’ God, it is not easy building a successful business from scratch. No inheritance, no rich parents, nothing. Just me, my dreams, and my God, and yes, He made it possible. In all of this, I kept my head straight. The more I had problems, the more determined I was to make it. I said a silent prayer each time I passed the biggest foodstuff shop on the main road. I said a silent prayer each time I saw a truckload of grains passing at the market. I knew it was going to happen because I was going to make it happen. Journey Into Entrepreneurship x I knew it was going to happen because I have a God who takes my blessings and growth very personally. June 2024, I am officially launching my own food brand. I have had this dream from the very first day I started hawking tomatoes on my head just to fend for my baby girl. I have had this dream from the very first day I picked interest in the food business, and four years later, my dreams came true. Guys, please help me thank God for bringing me this far. For every single grain and food item you buy in the shop, we have gone the extra mile for you. We have done all the work to take off the stress from you. ADIJA ACHA (Fonio) has already been washed, properly dried, and sealed just for you. ADIJA CORNFLOUR can serve as your corn flour and semo because, damn, we gave it the standard it required. ADIJA SAKI has already been prepared and sieved because we know not everyone can sieve as neatly as it was done in the olden days. Now you don't have to worry about washing your acha before making that pudding, swallow, etc. We have done the work on your behalf. The same goes for tuwon rice, rice, and every other grain. We know you are too busy, so we have decided to handle the stressful part to make your cooking easier and faster. Our crayfish, ogbono, egusi, kuka, and every other food item have been prepared in a way that gives you the confidence and certainty that what you bought will serve its purpose without any Journey Into Entrepreneurship xi heartbreaking stories. Our palm oil and groundnut oil are the best you can get in this part of the country because we source our palm fruits and mill them ourselves. The most beautiful part is that you can get your grains, oil, and even order your vegetables at the same time. You can place your order through her website [https://adijafoodstorage.com](https://adijafoodstorage.com). We have beautiful options for waybill to each state, the cost of waybill, and their last bus stops or pick-up locations. June 2024, my dreams of taking over the major markets in the thirty-six states in Nigeria start now. If you are in Jos, we have our own personal dispatch rider in case you cannot make it to the shop. She said, ‘I am just too grateful that my parents, who have always stood by me, are here to witness this growth.’ Welcome to ADIJA'S FOOD. God did it. Her shop location: Celebridge Tomato Market, Before Tina Junction, Jos. What a story, what an adventure! This showcases the resilience of Nigerian youth. With little or no support, we have seen several youths break boundaries and become trailblazers in various spheres of influence. We want to see more within the business space, which is why we are encouraging entrepreneurship among youth in tertiary institutions and among corps members. Journey Into Entrepreneurship xii Message FROM YouWin! ‘We have a powerful potential in our youths, and we must have the courage to change old ideas and practices so that we may direct their power toward a good end.’ — Mary McLeod Bethune In the complex web of life, there are moments that define us— moments when we stand at the precipice of opportunity and transformation. Youthful age is undeniably one such moment for young graduating Nigerians from our tertiary institutions and corps members. It is a juncture where the promise of youthful strength converges with the duty to nationhood, where idealism finds its path in the real world, and where individuals embark on a journey that holds the potential to shape not only their own futures but also the destiny of an entire nation. This is more than just a book; it’s a beacon of guidance, a roadmap to success, and an anthem of inspiration for those who dare to step into the arena of entrepreneurship with intentionality and purposefulness. It resonates with the hustling spirit of Nigerians, especially our youth, as seen not just in our dear country but across the globe. A chapter of this book is filled with wisdom gleaned from the experiences of many who have walked and worked in setting up their businesses, having emerged as champions of their trade regardless of their humble backgrounds, failures, setbacks, and discouraging moments. It is a treasure trove of insights, a repository of knowledge, and a testament to the transformative power of entrepreneurship. Journey Into Entrepreneurship xiii Our goal is to inspire a generation of young Nigerians who are intentional and purposeful not just in seeking jobs but in embracing and creating businesses through entrepreneurship. We believe the possibilities that lie within the problems in society offer our youth an incredible opportunity to be more dynamic and creative in offering products and services as value, leading to social and economic development. We cannot separate entrepreneurship from challenges, but with the right mindset and the tools at your disposal, you can transform these challenges into stepping stones towards personal and professional success. Indeed, everyone cannot and should not become an entrepreneur, but we all must become enterprising with side hustles that give us multiple streams of income. As you embark on this incredible entrepreneurship journey, it is one of the surest ways to tackle the problem of scarcely available whitecollar jobs. We wish you the very best of luck. Remember to share your story, for in your experiences, others will find inspiration and hope. Let your story be a testament to the power and purpose of entrepreneurship. Let the journey begin! Part O N E FOUNDATIONS OF ENTREPRENEURSHIP Foundations of Entrepreneurship encompasses the essential principles and practices involved in starting, managing, and growing a new business, including idea generation, business planning, resource acquisition, and strategic decision-making. Journey Into Entrepreneurship 2 1 Chapter LAYING THE FOUNDATION FOR ENTREPRENEURSHIP ‘Thinking of how to be mentally and financially independent? If you want to be rich, simply serve more people.’ — Robert Kiyosaki, Author of Rich Dad, Poor Dad! Nigeria, the largest economy in Africa, presents vast opportunities beyond its abundant natural resources. With a population of over 220 million people, the potential for growth and development is immense. To tap into these resources and serve this vast market, we must empower our youth to be selfreliant and entrepreneurial. By fostering a culture of entrepreneurship, we can unlock the potential of our young people to create innovative solutions, drive economic growth, and build a brighter future for themselves and their communities. ‘Everything visible today was once an idea, a thought, an imagination, an inspiration, a hunch, a flash, or an insight brought into existence through determination. Great business empires began as ideas or imaginations flowing from the mind or recognized opportunities that provided solutions to societal problems.’ - Dr. (Mrs.) Ori Obasi ‘Entrepreneurship is the last refuge of the creative and the ambitious. It's one of the surest ways to build a life that's truly your own.’ - Unknown Journey Into Entrepreneurship 3 In Nigeria, entrepreneurship is not just a buzzword; it's a necessity. With a growing youth population and limited job opportunities, entrepreneurship offers a viable path to financial independence and economic empowerment. Entrepreneurship is a tough but rewarding journey for those who are determined and innovative in their legitimate hustles. Friends, entrepreneurship is a call to hard work, late nights, failures, and setbacks, but with the right mindset and readiness to work hard, you can achieve your goal of financial freedom if you don't give up. To experience the magic of the quote above, serve more people creatively with products or services. This is where entrepreneurship comes to the fore. According to Klynveld Peat Marwick Goerdeler (KPMG), Nigeria's unemployment rate in 2022 was 37.7%, and it was projected to rise to 40.6% due to the continuous inflow of job seekers into the labor market. With such alarming unemployment statistics, especially among graduates, one of the major ways forward for Nigeria to tackle the scarcity of available jobs is through entrepreneurship. According to the Global Entrepreneurship Monitor (GEM) report, Nigeria has one of the highest rates of entrepreneurship in the world, with over 30% of the population engaged in some form of entrepreneurial activity. Entrepreneurship is one of the surest ways to increase the number of young people with legitimate means of income, leading them to financial independence as individuals. As a nation, creating an enabling environment for entrepreneurs is key to economic stability and the socio-economic development of Journey Into Entrepreneurship 4 Nigeria. The widespread unemployment problem in our country, particularly among graduates from our tertiary institutions, is alarming. The space for securing a 9-5 job is slim with the annual influx of graduates flooding the labor market. The only way out is to consciously build a supportive environment for young people to embrace entrepreneurship. One quick question that arises is whether all young people can be entrepreneurs. The answer is yes and no! Entrepreneurship is not a gift given to a special few among us like Aliko Dangote, John Momoh, or the CEOs of Zaron and Flutterwave. The more financially independent our youth are through legitimate hustles, the lower the crime rate driven by unemployment will be in our country. Globally, the activities of small businesses ultimately boost national economies. This is a strong reason for intentionally building and supporting an environment where young people can easily start small-scale businesses. We can no longer ignore the importance of youth entrepreneurship. Business orientation and support for young entrepreneurs must be sincerely executed to maximize the potential of our youth. The Nigerian government, through the Federal Ministry of Finance, has been engaging young people both in universities and the National Youth Service Corps (NYSC) program on the subject of entrepreneurship. This is done through intensive lectures and free book donations on entrepreneurship, detailing stories of indigenous Nigerians who have risen despite challenges to succeed in business. This approach is brilliant, as it showcases relatable success stories rather than focusing solely on international figures like Steve Jobs, Elon Musk, and Mark Journey Into Entrepreneurship 5 Zuckerberg, who operate in different environments and under different laws. The Ministry of Finance has creatively and painstakingly documented the stories of Nigerians who have thrived in their businesses to inspire young Nigerians to know that, despite our tough environment, it is still possible to do business and succeed. We must train our minds to see that the problems surrounding us are actually massive opportunities that need creative thinking to convert them into business opportunities, whether in education, housing, clothing, tech, health, agriculture, sports, or more. We have the population, which means we have the market to sell legitimate products or services that can be of value to people. Cross section of corps members during Youwin! lecture in Niger State Nigeria's rapidly growing population, with a majority being youth, underscores the need for a surge in entrepreneurship. To curb our high unemployment rate, young people, particularly graduates from tertiary institutions, need to be taught and encouraged to pursue entrepreneurship. Journey Into Entrepreneurship 6 The intentional encouragement of entrepreneurship among youth in small and medium enterprises will effectively boost our economy as a nation. The dynamics to achieve this can be strategically designed and implemented. While some businesses require significant capital to start, many can be started with little or no capital. The story of a real estate agent in Kaduna is illustrative. The agent was a young and passionate man who didn’t care about people mocking him as he trekked around the city trying to strike deals. He didn’t need money to start, just a willing heart. He moved from site to site, convincing landlords and landowners to entrust their properties to him. It was tough, but he was focused and consistent with patience. After some time, the young man started securing contracts, and before long, he became one of the real estate giants in Barnawa Narayi High Cost Kaduna. He expanded his business by setting up his own block industry. His tenacity paid off. Similarly, a young lady in the eastern part of Nigeria called herself ‘Sexy Akara Seller.’ A trade she learned from her mom as an apprentice. Recently, Tunde Ednut, the social media influencer, posted about her, and she went viral with great patronage and support. She was confident in her game and threw herself into her conviction with the strong drive to break grounds, and she delivered. She gave life to her positive drive attitude. This is how winners emerge! A young man named Emmy Green in Otukpo, Benue State, was struggling to survive financially. Gifted with cooking skills, he conceived an idea that he could cook Indomie noodles well Journey Into Entrepreneurship 7 enough for business. While many young people were searching for scarce jobs, he began with a roadside noodle stand. Today, he owns his own shop, registered his business with the name Noodles Affairs. He acquired new cooking skills and expanded his business by adding fish grilling, powered by the success he was achieving. He knew what he wanted and boldly pursued it. Many young Nigerians with tech skills have created different apps or payment platforms like Paystack and Flutterwave, attracting significant investments. We have seen how Nigerians like Mark Angel, Broda Shaggi, Sabinus, Yawa Skit, and others dominate the skit and comedy industry across Africa, earning thousands of dollars from YouTube, Facebook, and endorsement deals. Some skit makers only need a smartphone and a Gmail account to set up a YouTube channel and become content creators. Content creation isn’t limited to skit making and comedy; it can be in any field you are passionate about and knowledgeable in, or where you are willing to continuously learn to deliver value to your audience. WHAT YOU NEED TO START A BUSINESS AS AN ENTREPRENEUR Conceive an Idea: Unlock your vision: Don't let financial constraints or current circumstances stifle your vision. Dream big, start small, and persistently work towards growing your business or artistic endeavor. Conceiving an idea is free, but turning it into a successful, sustainable, and scalable reality requires hard work and dedication. You don't need a completely new idea; existing concepts can be transformed with innovation Journey Into Entrepreneurship 8 and creativity. Take inspiration from Dangote's success with salt, and remember that it's not about reinventing the wheel, but adding value and making it your own. Add Value to Your Idea: Money isn’t just paper; it represents the value your idea brings to the market. Consider the example of trees, which offer far more than just firewood. They hold immense potential, providing materials for a wide array of products that enhance human life, from furniture like beds and chairs to essential items like doors, kitchen cabinets, and paper. The possibilities for innovation are endless, with countless products waiting to be discovered by those with the creativity and courage to explore. The business opportunities inherent in trees are truly enticing, yet often overlooked by those lacking vision. Only those with bold ideas and determination recognize the wealth waiting to be unlocked within trees, tapping into their hidden potential to create valuable ventures. Surviving in the world of entrepreneurship requires intelligence. While pioneering entirely new ideas is commendable, it’s not always necessary. Instead, consider reimagining existing products and services, infusing them with creativity and innovation. Reworking established concepts can save you considerable effort and frustration, offering a smoother path to success. The image in the next page depicts Mr. Bashiru Adamu, a YouWin! facilitator, illustrating to corps members in Yikpata, Kwara State, how Big Cola Nigeria developed their idea by building upon an existing product: Coca-Cola. They introduced their own unique beverage, Bigi, and despite Journey Into Entrepreneurship 9 facing a lawsuit from Coca-Cola, emerged victorious. Today, Big Cola commands a significant share of the Nigerian market due to their competitively priced and generously sized products. Hard Work Most people want to own their business because they don’t want to work for someone else, thinking it provides the luxury of time to do as they wish. On the contrary, while working for someone is called a 9-5 job, working for oneself has no closing time; it’s hard work and can be very tough. This unfriendly truth needs to be clearly stated because when we mention entrepreneurship, many young people want to see the glory without considering the 'gruesome' story behind most successful business owners. Doing business requires a lot of work, from product development to marketing. Work your business like a hustler on the street, but conduct yourself with decency, knowing that once your business thrives, you will enjoy the dividends of your labor. When you love what you do, hard work becomes enjoyable, though not easy. You may have sleepless nights, but focus and hard work Journey Into Entrepreneurship 10 will help you achieve your dreams. Have Grit To embark on the journey of entrepreneurship, grit is essential to keep you moving. Grit is the combination of passion and perseverance in pursuit of long-term goals. It’s a quality that allows you to stick with your goals even in the face of setbacks, obstacles, and failures. For young entrepreneurs, grit is crucial because building a successful business requires a lot of hard work and persistence. Starting a business is not easy, and many challenges arise along the way, such as lack of funding, tough competition, and the need to constantly innovate and adapt. In order to overcome these challenges and achieve success, young entrepreneurs need to have grit. You need to stay focused on your goals, even when the going gets tough, and persist in the face of failure and setbacks. Having grit also means being able to learn from failure and use it as a stepping stone to success. As a young person venturing into entrepreneurship, having grit creates the capacity to bounce back from setbacks and use the lessons learned to make the business stronger and more resilient. If Possible, Start by Being an Apprentice Starting as an apprentice is an excellent way to gain valuable experience and knowledge in a particular field or industry. By working alongside experienced professionals, you can learn the ins and outs of a trade or profession, gain hands-on experience, and develop practical skills essential for success. Bashiru Adamu, our trailblazer anchor character, has a suya business registered with the Corporate Affairs Commission of Journey Into Entrepreneurship 11 Nigeria as Suya Station. He did not wake up one day and learn suya making on YouTube; of course, there is nothing wrong with that, but he went through the process of apprenticeship, learning by observation, and hands-on work. He faced several failures and injuries on his hands caused by the suya knife while learning how to mix the spices and choose the right type of meat for suya. When he became his own boss as a suya seller, he used the knowledge and understanding he gained from his boss but added some simple innovations to his suya business. First, he registered his idea as a business, opened a bank account in the name of the business, took orders 24 hours before delivery, sold fresh dry ginger, pepper, and garlic well-packaged by the side, and most importantly, his suya is homemade, so he started without renting a shop or space. There are several benefits to starting as an apprentice. For one, apprenticeship often provides structured training programs that offer a mix of classroom instruction and on-the-job training. This can help you learn the skills and knowledge you need to succeed in your chosen field while also allowing you to gain practical experience. Another benefit of starting as an apprentice is that it allows you to build a network of contacts in your industry. As you work alongside experienced professionals, you’ll have the opportunity to build relationships with others in your field. Starting as an apprentice can also give you a sense of whether or not a particular field or industry is the right fit for you. By working in the field and gaining firsthand experience, you can better determine whether it’s something you want to pursue long-term. Journey Into Entrepreneurship 12 As an apprentice, you will need humility and dedication to serve your boss or master well, ask questions, and stay focused by giving your heart to the work. Become a Master at Pitching Imagine you meet Africa’s richest man, Aliko Dangote, and you need to say something about your business that will grab his attention. What would you say in your pitch? According to my father and mentor Dr. Strive Masiyiwa, there are two key principles to an effective pitch: First, as an entrepreneur, you must thoroughly research and understand your product or service so well that you can explain it in two minutes. Second, you need to understand what the investor wants and who they are. The investor is not a donor or a family member. They might find your work beneficial, but that’s not their primary motivation. Therefore, you need to pitch to the right people, telling them what they need to hear and addressing the risks they perceive. This is crucial throughout your entrepreneurial journey. There will be a chapter dedicated to the subject of pitching. Find a Co-Founder or Business Partner Having a co-founder or business partner can add significant value to your business. Unfortunately, many young people are accustomed to a ‘Me, Myself, and I’ approach. While running a sole proprietorship isn’t wrong, you should reflect on your business goals and consider where you want your business to be in 5-20 years. Can you achieve this alone, or do you need a co-founder to help drive the business to greater heights? If you opt for a business partnership, it is crucial to document all agreements regarding shareholding and responsibilities for easy reference. Journey Into Entrepreneurship 13 Be Willing and Flexible to Take Risks Entrepreneurship is inherently tied to risk-taking. Many people haven’t changed their financial status or other areas of their lives simply because of fear. Risk-taking is often avoided because people are conditioned to stay in their comfort zones. However, as Helen Keller said, ‘Life is either a daring adventure or nothing.’ To succeed in entrepreneurship, you must be willing to take risks, start your business, pursue sales, and believe that your product or service will penetrate the market. The business world is full of uncertainties and challenges; businesses can fail, and government policies can impact certain sectors. But this should not deter you from pursuing what you believe in. Not Everyone Can Be an Entrepreneur While we are working on empowering our youth to drive Nigeria's economic growth through entrepreneurship, we believe not everyone may be an entrepreneur. We can encourage many young people to start small businesses, which are the backbone of our economy. And, yes, some will be employees - but that doesn't mean they can't have a side hustle! You can work and still pursue your passion project, as long as it doesn't conflict with your job. The goal is to be enterprising, financially independent, and legitimate in promoting the image of our country both nationally and internationally. Sales Entrepreneurship is a challenging and demanding journey that comes with some rejection and failure, but with determination and the right mindset, success is within reach. To achieve your goal of selling your product or service in the market, it's essential Journey Into Entrepreneurship 14 to develop strong sales skills. Sales is a fundamental skill that everyone must learn; it's not a destination but a continuous process of learning how to persuasively connect with customers and encourage them to patronize and purchase from you. As a young entrepreneur in Nigeria, understanding the art of sales is crucial to standing out in a competitive market. By developing your sales skills, you'll be able to effectively communicate the value of your product or service, build strong relationships with customers, and drive business growth. Remember, sales is not just about making a sale; it's about providing solutions, building trust, and creating long-term value for your customers. With persistence, resilience, and a willingness to learn, you can master the art of sales and achieve success in your entrepreneurial journey. 15 Journey Into Entrepreneurship notes DATE / / 16 Journey Into Entrepreneurship 2 Chapter ENTREPRENEURIAL MINDSET AND NETWORKING ‘Your network is your net worth.’ - Porter Gale An entrepreneurial mindset and a robust network are crucial for business success. Chapter one delves into entrepreneurship in detail, this chapter will highlight key characteristics of successful entrepreneurs emphasizing the significance of cultivating a network of relationships. According to a Global Entrepreneurship Monitor (GEM) report, entrepreneurs who nurture strong relationships are more likely to achieve success and foster business growth. Practical Tips For Developing An Entrepreneurial Mindset And Building A Strong Network. Develop a Growth Mindset and Embrace Lifelong Learning Embrace Challenges: View challenges as opportunities for growth and development. Be Curious: Maintain a childlike curiosity and remain open to new ideas and experiences. 17 Journey Into Entrepreneurship Learn from Failures: Use failures as opportunities to learn and improve. Stay Up-to-Date: Keep current with industry trends and developments through continuous learning. Build a Strong Network of Relationships with Mentors, Peers, and Partners Identify Mentors: Find experienced entrepreneurs professionals who can guide and support you. Connect with Peers: Build relationships entrepreneurs and business owners. with or fellow Collaborate with Partners: Form strategic partnerships to access resources and expertise. Attend Networking Events: Regularly attend conferences, seminars, and networking sessions. industry Practice Effective Communication and Collaboration Skills Develop Strong Listening Skills: Pay attention to others and understand their needs and perspectives. Be Clear and Concise: Communicate your ideas and vision clearly and effectively. Be Open-Minded: Embrace diverse perspectives and ideas. Build Trust: Establish trust with your network by being reliable and following through on commitments. Embrace Failure and Learn from Mistakes Reframe Failure: See failure as an opportunity to learn and grow. Journey Into Entrepreneurship 18 Analyze Mistakes: Identify what went wrong and how to improve. Learn from Others: Study the failures and successes of others and apply those lessons to your own business. Move Forward: Don't dwell on failures; use them as stepping stones for success. Stay Adaptable and Resilient in the Face of Challenges Be Flexible: Adjust your plans and strategies as needed. Stay Positive: Maintain a positive attitude even when facing challenges. Focus on Solutions: Instead of dwelling on problems, focus on finding solutions. Take Care of Yourself: Prioritize your physical and mental wellbeing to maintain the energy and motivation needed to overcome challenges. With the right mindset, embracing these characteristics and cultivating a strong network, entrepreneurs can overcome challenges and achieve success. 19 Journey Into Entrepreneurship notes DATE / / Part T W O PLANNING AND STRATEGY Planning and Strategy in business involves setting goals, developing plans to achieve them, and making informed decisions to guide the organization toward long-term success. 21 Journey Into Entrepreneurship 3 Chapter BUSINESS PLANNING ‘A goal without a plan is just a wish.’ — Antoine de Saint-Exupéry. Business planning is the process of creating a roadmap for your business. It helps you clarify your ideas, identify potential challenges, and develop a strategy for success. Let’s review some key components of a business plan and provide practical tips for creating a plan that works for you as an entrepreneur in the Nigerian market. According to a survey by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), only about 20% of Small and Medium-sized Enterprises (SMEs) in Nigeria have a formal business plan. However, businesses with a written plan are more likely to succeed and grow. In fact, a study by the Kauffman Foundation found that businesses with a written plan are 50% more likely to grow and succeed. A comprehensive business plan includes the components: Cover Page Table of Contents Executive Summary Company Description Market Analysis (Marketing and Sales Strategy) following Journey Into Entrepreneurship 22 Products/Services Budget Organizational and Management Plan Operational Plan Risk Management Financial Plan Conclusion Below are the key components of a business plan, with examples and tips, for creating your business plan: 1. Cover Page The cover page is the first page of a business plan and typically includes the title, author, date, and any other pertinent information, such as a logo or contact details. Example: Business Plan for Letoha Bakery, Abuja, July 2024. 2. Table of Contents A list of the main sections and subsections of a document, along with their respective page numbers, to help navigate its contents. Example: 1. Executive Summary - Page 1 2. Company Description - Page 2 3. Executive Summary This is a brief overview of your business plan, summarizing your mission statement, business goals, financial projections, marketing strategy, and market analysis. It should be concise yet compelling and provide a clear direction for your business. Although it is the first part of a business plan, it should be the last thing you write, as it is a summary of the entire plan. Journey Into Entrepreneurship 23 Example: Letoha Bakery in Abuja is a premium bakery offering fresh bread made from high-quality ingredients, targeting the city's diverse clientele’s growing demand for superior baked goods. With a focus on quality and customer satisfaction, we leverage a robust marketing strategy that includes social media promotions and local partnerships. Our detailed budget allocation enhances our product line, which includes a wide range of baked goods, while implementing a comprehensive operational plan and risk management framework to ensure sustainable growth and financial stability. We project reaching ₦10M in revenue within three years under the guidance of an experienced management team. 4. Company Description This section provides detailed information about your company's history, mission statement, vision, products/services offered, and core values. It also includes your legal structure, ownership, and location. Example: Who We Are Letoha Bakery is a premium bakery, renowned for its high-quality bread crafted with the finest ingredients. Mission Our mission is to deliver high-quality, freshly baked goods that bring joy to our customers' lives while fostering a sense of community and sustainability. Vision We envision becoming the leading bakery in Abuja, known for our innovative products, exceptional customer service, and commitment to excellence. Journey Into Entrepreneurship 24 Core Values At Letoha Bakery, we value quality, integrity, innovation, and community. We strive to create a welcoming environment where everyone can enjoy our delicious offerings. Objectives Our objectives include expanding our product range, increasing customer satisfaction, and promoting sustainability through ecofriendly practices and sourcing. Legal Structure Letoha Bakery operates as a Limited Liability Company (LLC). Ownership Letoha Bakery is owned and managed by Arc. Apeh Harrison. Location Abuja, Nigeria. 5. Market Analysis This section conducts research and analysis on your target market, encompassing customer demographics, competitors, and industry trends. The goal is to inform marketing and sales strategies aimed at reaching and retaining customers by identifying key segments and outlining effective marketing channels. Example: The bakery industry in Nigeria has experienced steady growth due to urbanization, evolving consumer lifestyles, and a rising demand for convenient and indulgent food products. The market for healthy, high-quality baked goods remains strong, driven by increasing disposable incomes, busy lifestyles, and a preference for convenience. Journey Into Entrepreneurship 25 6. Market Analysis Market analysis evaluates the the industry, your target market, encompassing customer demographics, competitors, and market trends. The goal is to inform marketing and sales strategies aimed at reaching and retaining customers by identifying key segments and outlining effective marketing channels. Example: The bakery industry in Nigeria has experienced steady growth due to urbanization, evolving consumer lifestyles, and a rising demand for convenient and indulgent food products. The market for healthy, high-quality baked goods remains strong, driven by increasing disposable incomes, busy lifestyles, and a preference for convenience. However, the industry is fiercely competitive, with established players and emerging startups competing for market share. Our target market includes middleclass individuals and families, with a focus on health-conscious consumers. 7. Products/Services This section details the products or services offered by your business, highlighting features, benefits, unique value proposition (UVP), and pricing. Example: Letoha Bakery offers a variety of artisanal bread products such as whole wheat, sourdough, and baguettes, priced between ₦500 and ₦2,000 per loaf depending on type and size. 8. Budget Budgeting involves forecasting revenue sources (e.g., sales, bank loans, investment through equity, personal savings) and managing the allocation of company funds. 26 Journey Into Entrepreneurship This includes overseeing fixed costs (like rent and salaries) and accounting for variable costs (such as ingredients and utilities) to ensure financial stability and facilitate growth. Using infographics simplifies this complex data, enhancing comprehension and facilitating informed decision-making. Effective visualization of income, expenses, and profit margins is crucial for businesses like Letoha Bakery. Example: Letoha Bakery's budget includes ₦500,000 monthly income, ₦300,000 fixed expenses (rent, salaries), ₦100,000 variable expenses (ingredients, marketing), and a ₦100,000 profit margin. Tip: Use infographics to combine data, design, and storytelling to convey information effectively and engage viewers in a visually compelling way. Always have a backup funds, very important. Fixed Costs 19.1% Backup Funds 36.4% Variable Expenses 6.4% Profit Margin 6.4% Monthly Income 31.8% FIGURE 2.1 An infographics to illustrate revenue sources (sales, wholesale orders), fixed costs (rent, utilities), and variable costs (ingredients, packaging), providing stakeholders with clear insights into financial health and enabling effective planning. Journey Into Entrepreneurship 27 9. Organizational and Management Plan Is a structure outlining the company's organizational hierarchy, management team roles, and responsibilities. Example: Letoha Bakery maintains a hierarchical management structure that organizes Letoha Bakery into key functional areas, including: Owner/Founder: Arc. Apeh Harrison, who owns the bakery, oversees operations, and makes strategic decisions. Manager/General Manager: Responsible for day-to-day operations, including staffing, inventory management, and customer relations. Head Baker/Pastry Chef: Leads the baking team, responsible for recipe development, quality control, and ensuring product consistency. Assistant Bakers: Support the head baker, involved in baking, decorating, and preparing baked goods. Sales and Marketing Team: Handles promotion, advertising, and sales strategies to attract customers and increase revenue. Administrative Staff: Manages finances, bookkeeping, payroll, and other administrative tasks. Front-of-House Staff: Includes cashier, servers, and customer service representatives who assist customers, take orders, and handle transactions. Delivery Personnel: Responsible for delivering products to wholesale clients or customers. 28 Journey Into Entrepreneurship Cleaning and Maintenance Crew: Ensures the bakery premises are clean, sanitary, and in compliance with health and safety regulations. Human Resources: Manages hiring, training, and employee relations. Percentage of Ownership: 100% Extent of Involvement: Full-time Type of Ownership: Founder Position in the Business: Head Baker/Pastry Chef Duties and Responsibilities: Responsible for recipe development, quality control, and overall production in the kitchen. They oversee baking processes, manage inventory, and ensure that products meet the bakery's standards. Skills and Experience: 2 years of experience in the food industry, strong leadership and negotiation skills. Compensation: ₦70,000 Each department is led by a department head who reports to the Manager/General Manager, then the Manager/General Manager reports directly to the Owner/Founder. This structure allows for clear lines of communication and responsibility within our organization. Owner/Founder General Manager Head Baker/Pastry Chef Front-of-House Staff FIGURE 2.2 An organogram illustrating the organizational structure of Latoha Bakery Journey Into Entrepreneurship 29 9. Operational Plan Details of how your business will operate on a day-to-day basis, covering production workflows, and logistics. This section also includes quality control and any other operational aspects necessary to achieve your business goals. Example: Quality Control To ensure that we maintain the high quality of our products we: Strictly use high-quality ingredients sourced from trusted suppliers. Implement standardized recipes and portion control measures to ensure consistency. Regularly inspects our equipment and facilities to maintain hygiene and safety standards. Conduct taste tests and customer feedback surveys to continuously improve our product quality. Production Process Receive ingredient deliveries and conduct quality checks. Prepare dough, batters, and fillings according to recipes. Bake Package finished goods securely and label them appropriately. Store products in proper conditions to maintain freshness. Day-to-day Operations Open the bakery early to prepare for the day's production. Assign tasks to staff members and oversee operations. Manage inventory levels and place orders for replenishment as needed. Interact with customers to take orders, answer inquiries, and provide assistance. Maintain cleanliness and organization throughout the bakery. 30 Journey Into Entrepreneurship Business Days/Hours of Operations Letoha Bakery operates six days a week, from Monday to Saturday. Monday to Saturday: 7:00 AM to 7:00 PM Sunday: Closed Bottom Line At Letoha Bakery we’re committed to delivering high-quality and healthy baked goods to our customers while maintaining efficient operations and excellent customer service. Our dedication to excellence, streamlined production processes, and attentive day-today operations ensures the success and satisfaction of our customers. 10. Risk Management This section encompasses strategies to identify, assess, and mitigate potential risks that could impact the business's operations or objectives. It involves conducting SWOT analysis, (which stands for Strengths, Weaknesses, Opportunities, and Threats) and risk analysis. Example: SWOT Analysis Strengths Weaknesses Opportunities Threats High-quality ingredients sourced locally Limited brand recognition Growing demand for baked goods in the local market Intense competition from established bakeries Unique recipes Reliance on few suppliers Expansion into catering services Fluctuating prices of raw materials FIGURE 2.3 A SWOT Analysis table 31 Journey Into Entrepreneurship Risk Analysis Risk Analysis Probability Impact Risk Level Raw Material Shortage High High High Equipment Breakdown Medium High Medium-High FIGURE 2.4 A Risk Analysis table 11. Financial Plan Is a Comprehensive financial projections, including capital requirements to cover Infrastructure, Operations etc. It also includes Cash flow statements, balance sheets, and Profit/Loss statements, to forecast the financial performance of the business. Example: The 2024 financial plan for Letoha Bakery forecasts a 20% increase in revenue year-on-year, supported by cost-cutting measures and new product launches. Cost Components Infrastructure Costs Value CAC registration fees ₦10,500 Office space rental ₦120,000 Furniture and fixtures ₦70,000 TOTAL ₦100,500 Ingredients Quantity Value Flour 4 bags ₦240,000 Sugar 1 bag ₦98,000 TOTAL FIGURE 2.5 An example of Cost Components ₦ 307,000 32 Journey Into Entrepreneurship Cash flow Statement Cash Flow Q3'24 Q4'24 Revenue 1,789, 000 1,456, 000 Expenditures 1,000,750 1,258,000 Quarterly net cash flow 788,250 197,250 Cumulative net cash flow 788,250 985,500 FIGURE 2.6 An example of a Cash flow Statement Profit & Loss Projections Period Revenues Expenditures Profit/Loss Q3'24 1,789, 000 1,000,750 788,250 Q4'24 1,456, 000 1,258,000 198,000 FIGURE 2.7 An example of Profit & Loss Projections 12. Conclusion A final section that reiterates key points discussed in your business plan, including recommendations, next steps or call to action. Example: In conclusion, Letoha Bakery is poised for growth, backed by strong financial projections with a solid product lineup and strategic market positioning. Tips Font: Arial Chapter Headings: 16 points Subheadings: 14 points Journey Into Entrepreneurship 33 Body Text: 12 points Footnotes: 9 points Captions: 6 points Ensure that the text is justified to the center and avoid using contractions. For example use: “I have” instead of "I've" “We had” or “We would” instead of "We'd" “We will” instead of "We'll" 34 Journey Into Entrepreneurship notes DATE / / Journey Into Entrepreneurship 35 4 Chapter FINANCIAL PLANNING & MANAGEMENT ‘Money is a terrible master but an excellent servant.’ - P.T. Barnum Financial planning and management are crucial components of business success. In this chapter, we will explore key aspects of financial planning and management, including budgeting, forecasting, and cash flow management. According to a report by the International Finance Corporation (IFC), Small and Medium-sized Enterprises (SMEs) in Nigeria face significant financial constraints, with only about 20% having access to formal credit. However, effective financial planning and management can help businesses overcome these challenges and achieve success. Tips for Effective Financial Planning and Management Create a Budget and Stick to it Creating a budget and sticking to it is essential for financial stability and success. Start by identifying your income sources, then list all your fixed expenses (like rent, utilities, and loan payments) and variable expenses (like groceries, entertainment, and travel).