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How to Know the Right Time to Start a Business

Ideas rule the world. Everyone has at least one brilliant idea on the inside and that’s why Robert Kiyosaki said that “the world is filled with brilliant ideas.” I have a lot of business ideas on paper; and I bet you do. But one sad truth is that many people will die with their ideas, talent and skill; without giving such idea a chance to manifest. I have seen people with great ideas; just sit on their ideas and do nothing. Also, I have seen individuals who are enthusiastic about quitting their jobs or starting a business but year in year out; they never seem to be making headway. Why? The reason is because that most individuals with great business plans and ideas are waiting for the right time to start.

Do you dream of starting your own business? Do you have a good business idea or plan on hand? Are you planning on quitting your job to start a business? Then read on because this article is for you. Now how do you know the right time to start a business?

                How to Know the Right Time to Start a Business

Most people with good ideas and plans believe that there is a right time to start a business. But in reality, there is no right time to start a business. Most people wait till they raise millions in capital before starting, others wait until their idea or product becomes perfect. Some will monitor the political, economic or personal financial situation before deciding if it’s the right time to kick start their business. The simple truth is that there is no right time to start a business. All lights will never go green and all stars will never line up for you; you just have to start anyhow.

“There are three components to starting a business. One is the right product, two is the right people and three is the capital. The sad truth is that rarely do these three pieces come together at once; so you just have to grab one piece and get started. You will have to find the rest along the way. It may take you one, two or ten years to assemble these three pieces. But the point is: just start with what you have.” – Robert Kiyosaki

I believe the statement above has answered this question in its entirety. Using myself as a case study; it has always been my personal philosophy to keep moving forward regardless of the prevailing circumstances. I have never started any business with the exact required capital; most of my businesses were bootstrapped from the scratch. I also don’t need the best ideas in the world to succeed; once I get the urge to pursue an idea or business opportunity, I just do it.  Even when I have a sound idea or plan but lack the capital to execute the idea; I don’t just sit back hoping for a miracle. I will keep learning and making arrangements that are within my capacity; while still trying to raise capital.

“Excuses cost a dime and that’s why the poor can afford a lot of it.” – Rich Dad

So stop giving flimsy excuses, stop waiting for the perfect partner; stop sitting on your ideas. Forget about the million dollar idea or capital; just start with what you have, no matter how small and I will see you at the top.

10 Business Challenges of Starting a Small Business from Scratch

What are the major business challenges entrepreneurs face when starting a small business from scratch? How do successful entrepreneurs and drop out billionaires handle these business challenges? Must an entrepreneur face these business challenges when starting a business?

“Starting a business is like jumping out of an airplane without a parachute. In mid air, the entrepreneur begins building a parachute and hopes it opens before hitting the ground.” – Rich Dad

If any of the above questions is currently running through your entrepreneurial mind, then I will advice you read on as I trash out the top 10 business challenges you will face when starting a business from scratch.

“Without the element of uncertainty, the bringing off of even, the greatest business triumph would be dull, routine and eminently unsatisfying.” – J. Paul Getty

If you are an entrepreneur, then I believe you will be familiar with the business challenges associated with the entrepreneurial process of building a business from scratch. But if not, and you dream of becoming one someday; then I think you will find this article worthwhile.

                “A business has to be involving, it has to be fun and it has to exercise your creative instincts.” – Richard Branson

I am writing this piece to enable aspiring entrepreneurs prepare in advance for challenges involved with the entrepreneurial process. Please it’s never my intention to discourage or scare you from going into business; In fact, I intend to achieve the opposite. I want you to venture into the business world and start your own business with a feeling of confidence.

“He that is prepared has half won the battle.” – Chinese Proverb

                “The biggest challenge you have is to challenge your own self doubt and your laziness. It is your self doubt and your laziness that defines and limit who you are.” – Rich Dad

10 Business Challenges of Starting a Small Business from Scratch

1.            Developing the Vision and Business Idea

                “To have a great idea, have a lot of them.” – Thomas Edison

Developing a business idea is usually the first challenge faced by every entrepreneur when starting a business from scratch. Finding the right business opportunity or creatively developing an idea is certainly not an easy task. I call “Envisioning the idea” the first true task of an entrepreneur. As an entrepreneur, you must possess the ability to see what others cannot see. While others see problems, you must see opportunities.

                “There is far more opportunity than there is ability.” – Thomas Edison

But seeing opportunities is just the beginning. The main business challenge is going to be your ability to forge that opportunity into a business idea. I see this as a business challenge because the process of transforming problems into business opportunities is like trying to turn lead into gold. I call it the entrepreneurial process of “Creating Value out of nothing”; a process that brings innovative products into existence. Below is an illustration of how the process goes.

Identifying a problem > seeing an opportunity in the problem > Coming up with a solution > Forging the opportunity into a business idea > Integrating your solution into a business plan

                “A good businessman must have nose for business the same way a journalist has nose for news. Once your eyes, ears, nose, heart and brain are trained on business, you sniff business opportunities everywhere. In places where people see a lot of obstacles, I see a lot of opportunities. At times, there is something instinctive in me that tell me a business opportunity exist even at a place where others see nothing. That is what makes me different, maybe unique. A good businessman sees where others don’t see. What I see, you may not see. You cannot see because that is the secret of the business… the entire world is a big market waiting for anybody who knows the rules of the game.” – Orji Uzor Kalu

Developing a vision is definitely a business challenge because an entrepreneur must sometimes assume the role of a sorcerer. Let me explain in detail. Most individuals are comfortable with the present way of doing things but it is the duty of an entrepreneur to envision and forecast the future. An entrepreneur must always be ahead of his time or else he will lose his relevance. It is the duty of an entrepreneur to bring into present what is yet to be. It is also the duty of an entrepreneur to bring solutions to other people’s problems. Let me give you some practical illustrations:

                “If you want to be rich, you need to develop your vision. You must be standing on the edge of time gazing into the future.” – Rich Dad

a)            In the late 70s and early 80s, while IBM saw increase in demand for their mainframe computers, Steve Jobs envisioned a personal computer in every home and Bill Gates envisioned the need for easy to use software for personal computers. That single vision made Bill Gates the richest man in the world and Steve Jobs the most famous business person of the 21st century.

                “Business is going to change in the next ten years than it has in the last fifty years.” – Bill Gates

b)            The Wright brothers envisioned a flying machine but they were massively opposed because the thought of humans flying was perceived as impossible. Today, the Airplane is a reality.

c)            Back in those days when cars were custom made and exclusively for the rich, Henry Ford envisioned affordable cars for the masses. That single vision made Henry Ford one of the richest men in history.

                “You are nuts and you should be proud of it. Stick with what you believe in.” – Trip Hawkins

I believe with these few examples, my point is clear. Developing the vision and idea is the first true task and challenge of being an entrepreneur.

2.            Raising Capital for your Startup

After developing your idea, the next challenge you are going to face when starting a business from scratch is that of raising capital. As an entrepreneur, you are the only one that knows business your idea to the core. You are the only one that knows the story of the future.

                “Capital can do nothing without brains to direct it.” – J. Ogden Armour

Trying to convince investors about something that doesn’t exist is definitely a challenge. Trying to make them understand that you are trustworthy and equal to the task is not child’s play especially when you are building your first business.

                “If you want to know the value of money, go and try to borrow some.” – Benjamin Franklin

There is more to raising capital than just simply asking for money. Most investors want to invest in already established businesses with minimal risk and they want to be sure that they get returns for the risk they took. Most brilliant business ideas never scale through the venture capital stage because the entrepreneur is either not prepared or lacks what it takes to raise the needed capital. Just as my mentor, Robert Kiyosaki says:

“The world is filled with brilliant ideas and excellent products but the world lacks seasoned entrepreneurs.” – Robert Kiyosaki

To overcome the challenge of raising capital, you must develop the ability to sell your idea and vision to potential investors. When I say “sell your ideas“, I mean improving your communication skill and your manner of presentation. In the game of raising capital, you must have a good story to tell; backed by a strong business plan and good persuasion skills. You must know how to pitch angel investors and venture capitalists alike.

                “The ability to sell is the number one skill in business. If you cannot sell, don’t bother thinking about becoming a business owner.” – Rich Dad

3.            Assembling a Business Team

                “Eagles don’t flock, you have to find them one at a time.” – Henry Ross Perot

The third business challenge you will face in the course of starting a small business from scratch is assembling the right business management team. When I talk about a team, I am not talking about regular employees. I am talking about a “strategic round table business team” that will meet regularly to brainstorm on ways to grow your business.

                “Individuals don’t win in business, teams do.” – Sam Walton

The process of building a business team starts even before the issue of raising initial start-up capital arises. Remember I said that most brilliant ideas never scale through the phase of raising venture capital. Well; this is where most budding entrepreneurs miss it. Most brilliant ideas and products never get funded because the entrepreneur is trying to raise capital as an individual. A business team is a vital, yet often ignored key to raising venture capital successfully.

                “Business and investing are team sports.” – Rich Dad

As an entrepreneur, you are bound to have strengths and weaknesses. That is the more reason you need a business team to cover up or compliment your weaknesses. A team is a necessity for building a successful business. Now finding a business team is just the second hurdle, transferring your passion and vision to your team is the next piece of cake.

                “Teams should be able to act with the same unity of purpose and focus as a well motivated individual.” – Bill Gates

It’s your duty as an entrepreneur to make sure your team sees the future you see. They must believe in your possibilities and must also be passionate about making that possibility a reality. If they can’t grasp your vision, if they can’t see the future with you, then they are not worthy being your team.

                “My model for business is the Beatles. They were four guys that kept each other’s negative tendencies in check; they balanced each other. And the total was greater than the sum of the parts. Great things in business are not done by one person; they are done by a team of people.” – Steve Jobs

Your strategic business team should comprise your banker, financial adviser, accountant, attorney or legal adviser and any other specialist that will be of tremendous impact to your business. A question on your mind right now might be “how am I going to pay this team” My answer is I don’t know. You will have to figure it out yourself or better still, you can consider bringing them on board as partners.

If you are still at puzzled at the thought of assembling a business team, then I will recommend read How to Build a Strong Business Management Team from Scratch.

                “Go to the wolf, consider its ways and be wise. A wolf will never hunt alone; it hunts in packs because it knows the power of team work.” – Ajaero Tony Martins

4.            Finding the Right Business Location

Is finding a good location a business challenge? I don’t know but what I do know is that finding a good business location at the right price is definitely not easy. How do you get a location that has a rapidly growing population, good road network and other amenities at a good price? Well, you will have to figure out yourself.

5.            Finding Good Employees

                “If you own a butcher shop, don’t hire vegetarians. To hire the right people, you have to let the wrong people go.” – Rich Dad

Most writers and managers crank up the process of finding good employees as an easy task. They define the process of finding an employee as simply presenting the job description and the right employee will surface. But I think it’s more than that.

                “The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.” – Bill Gates

Business owners know how difficult it is to find a hardworking, trustworthy employee. Most employees want to work less and get paid more. Finding a good employee who will be passionate about delivering his or her services is quite difficult. Finding good employees is a minor task compared to the business challenge of forging your hired employees into a team. You may have great employees but if they can’t act as a team, they are worthless and will yield nothing but stagnation. A football team may have great skillful players but if they fail to play as a team, their possessed skill is useless.

                “Bringing together the right information with the right people will dramatically improve a company’s ability to develop and act on strategic business opportunities.” – Bill Gates

Employees are your representatives to your customers and the outside world. They are a reflection of your business culture and ethics. If an employee of yours is bad or rude to your customers, it is going to portray a bad image for your company. So you must be careful when hiring employees. Remember the golden rule of business; “Hire slow and fire fast.”

6.            Finding Good Customers

The sixth challenge you will face in the process of starting a small business from scratch is finding good customers. Note the keyword “good customers.” In the process of building a business, you will come to find out that there are good customers as well as bad customers. You must be on guard for bad customers. Good customers are really hard to find. A good customer will be loyal to your company and will be willing to forgive you if you make a mistake and apologize. A good customer will try to do the right thing that will benefit both himself and your company mutually.

                “Thank God for my customers. They buy my products before they are perfected.” – Henry Ford

Bad customers will always look for loopholes in the company’s policy to exploit and make a few gains. Bad customers will always try to exploit the company’s goodwill and look for ways to rip off the company. Bad customers are responsible for bad debts. Good customers build your business and bad customers will always try to liquidate your business. Just as you fire employees, you must also be prepared to fire bad customers without hesitation. Remember the story of the customer that sued McDonald’s claiming the coffee was too hot.

                “You must fire bad customers just as you would fire a bad employee. If you do not get rid of your bad employees, the good employees will leave. If I do not fire bad customers, not only will my good customers leave but many of my good employees will leave as well.” – Rich Dad

7.            Overcoming Competition

                “In business, the competition will bite you if you keep running. If you stand still, they will swallow you.” – Victor Kiam

Competition is the next challenge you will face when starting a business. Most individuals see competition as a plague but I see competition as a good challenge. I see competition as a benchmark for creativity, the main engine that stimulates innovation and production of quality products at great prices. Without competition, there will be no innovation and without innovation, the world will be stagnant.

                “If you don’t have a competitive advantage, don’t compete.” – Jack Welch

I see competition as a welcomed challenge and I want you to do the same. Competition keeps us on our toes and drives us to constantly improve our products and services. But you must be warned. Competition can make your business lose its relevance in the eye of your customers so you must always be on guard.

                “The competitor to be feared is one who never bothers about you at all but goes on making his own business better all the time.” – Henry Ford

8.            Unforeseen Business Challenges and Expenses

                “Smooth seas seldom make good sailors.” – Anonymous

Just as a sailor prepares for unexpected storm, just as a pilot is always on the watch for unpredictable bad weather and thunderstorms, so must an entrepreneur prepared for whatever comes. Unexpected challenges can come in the form of:

Unexpected law suits

Inconsistent government policy

Not being able to make payroll

Unpaid bills and taxes

Unexpected resignation of staff from sensitive office

Bad debts from customers

Loss of market share

Dwindling working capital

Inadequate stock or inventory

                “A company’s ability to respond to an unplanned event, good or bad is a prime indicator of its ability to compete.” – Bill Gates

These business challenges, if not handled properly can ruin your plan to build a successful business. Another challenge you must expect is an unforeseen increase in business expenses. If not handled properly, it might result in constant negative cash flow and eventually; business failure.

9.            Keeping Up With Industrial Changes and Trends

                “In three years, every product my company makes will be obsolete. The only question is whether we will make them obsolete or somebody else will.” – Bill Gates

Change in trends is a challenge you must be prepared for when starting a small business. Trends have made and broken lot of businesses. I know a lot of profitable businesses that have been wiped out by slight industrial changes and trends. A typical example is the Dot com trend, where many established industrial based businesses were wiped out by new web based dot com companies.

                “How fast a company can respond in an emergency is a measure of its corporate reflexes.” – Bill Gates

When the Dot com era began, business owners were left with only two options. Either they join the dot com train or they get crushed by the dot com train. Seasoned entrepreneurs know that trend is a friend and are always willing to swiftly adjust their business to the current trend. Keeping your eyes open to spot trends is really a challenge but the big task will be your ability to quickly use the trend to your advantage.

10.          Exiting the Business

“In the world of business and investing, your exit is more important than your entry. A good thumb of rule is this; exit before you enter.” – Robert Kiyosaki

When building a business from scratch, you are going to face the challenge of determining your exit strategy. Just as the quote above states, you have to plan your exit strategy before you even start the business. Most entrepreneurs run their business without any plans to exit and even if they have an exit strategy, they find it difficult to implement it.

                “Always start at the end before you begin. Professional investors always have an exit strategy before they invest. Knowing your exit strategy is an important investment fundamental.” – Rich Dad

Before starting a business, it is advisable to plan an exit. Lack of an exit plan is the primary reason why most businesses crumble after the death of the founder. An exit strategy is very important to the long term survival of a business. now how do you plan an exit strategy? There are benchmarks you can use to determine your exit from any business. Most smart entrepreneurs will use a certain benchmark as a target and once this specific target is reached, they exit the business. Examples of such benchmarks are:

Annual sales

Annual Turnover

Asset Base

Market Saturation

Customer base, subscribers or number of users

Now when it comes to exiting a business, there are three strategies you can apply. You can choose to exit a business in any of the following ways:

a)            Turning over the business to professional managers

When your business reaches a certain stage of maturity, you can exit by turning it over to professional managers. In this case, the business still belongs to you but you are not involved with its day to day affairs. You will have to give up administrative role to assume the role of a watchdog. When you exit in this manner, you will have more free time to look at other projects or retire.

b)            Selling the business privately

In this case, you are exiting the business by selling it to a private investor. In the business world, it is called M&A (Mergers and Acquisitions). Exiting your business this way means that after the sale and transfer of assets is complete, you have nothing to do with the business again.

c)            Taking the company public

The unique thing about this type of exit strategy is that while you are selling your business (in form of shares) to public investors, you still maintain control over the business. Please before you apply any of these exit strategy, I will advise you consult with your attorney or legal adviser. But ultimately, it’s up to you to decide the exit strategy you want to apply; but always remember “your exit is more important than your entry.”

As a final note, I want to state clearly that challenges come only to make you stronger; so don’t faint in the face of challenges. Stand tall; keep moving your business forward and I will see you at the top.

What is the Best Business to Start in 2012 – List and ideas

What is the best business to start in 2012? Which business opportunity has the potential for rapid growth? Do you have the capital and passion to start a business but you can’t seem to decide what business to start? If any of these questions best describe your thoughts, then please read on. Most aspiring entrepreneurs are usually confused when it comes to starting a business because they can’t figure out the best business to start. Just recently, I got an email from a reader on this business blog and this was the reader’s message.

“Respected Sir, how are you? This is (name withheld) from London, United Kingdom. Now I am doing MBA and ACA as well. Sir, I am very interested in business but I am very confused about field. Which field is more suitable for business, for growth? Would you like to suggest me something? Thanking you.”

I receive such emails on a daily basis so I decided to do a piece in reply to this email. Now what is the best business to start? Well, you are going to find out soon. In this article, I am going to explain in detail the best business to start and how to find such business opportunities. If you are an aspiring entrepreneur or an employee with a strong desire to start a business? Then please read on because this article is for you.

                What is the best business to Start in 2012?

Well, before I reveal to you the best business to start this year; I want you to take a careful look at the list below.

1.            1900 – Andrew Carnegie made his money from steel – $475 million

2.            1910 – John D. Rockefeller became a billionaire in oil – $1.4 billion

3.            1920 – Henry Ford became a billionaire in the auto industry – $1 billion

4.            1940 – Howard Hughes became a billionaire with military aircrafts, contract, tools and movies – $1.5billion

5.            1957 – J. Paul Getty became a billionaire in oil – $1 billion

6.            1962 – Henry Ross Perot became a billionaire with EDS – $3.8 billion

7.            1970 – Sam Walton took retailing giant Wal-Mart public and became a billionaire – $22 billion

8.            1980 – Ron Perelman made fortune as a Wall Street deal maker – $3.8 billion

9.            1990 – Jerry Yang founded Yahoo! – $3.7 billion

10.          2008 – Aliko Dangote became the richest black man in the world as a manufacturer – $3.3 billion

11.          2010 – Mark Zuckerberg became a billionaire with FaceBook.com – $6 billion

Some of the successful entrepreneurs mentioned in the list above were school dropout billionaires. Is this list exhausted, my answer is no. Oprah Winfrey became the richest black woman in the world with television show productions. J, K. Rowling joined the billionaires list with her book “Harry Potter Series.”

Debbi Field’s became a multi millionaire selling cookies; and Mary Kay Ash became a billionaire with her company “Mary Kay Cosmetics. Rupert Murdoch and Ted Turner became billionaires by running their own cable network channel company; “Fox Broadcasting Corporation” and “CNN” respectively.

Now what is the best business to start? My answer to the question above is this: “The best business to start this year that can yield the highest returns on investment is non-existent.” Are you surprised? Please don’t be. I know you might be expecting me to make a list of businesses ranging from oil and gas to web based businesses. I am sorry to disappoint you because there is no stipulated best business opportunity with respect to the illustrations I cited above.

However, there’s a contradictory twist to my answer. I believe the best business opportunity exists but you have to create it or make it a reality yourself. Now what am I trying to stress? The point I am trying to stress is that becoming a successful entrepreneur does not depend on the business opportunity; it depends on you. So if you are going to successfully go through the entrepreneurial process, you will have to find your own best business opportunity.

Well, instead of telling you to start an oil and gas supply business or an internet business; I am going to reveal to you five criterion to creating your own best business opportunity. If you are still willing to learn, then below are five questions that will help you decide the best business to start this year.

                How to decide what Business to Start this year

1.            What is your level of preparedness?

The first key to finding the best business to start is you; and the reason is because building a successful business starts with you, the entrepreneur. Are you in the right mindset? Do you have what it takes to build a successful business?

I listed the entrepreneurial mindset here because it the fundamental key to starting, building and growing a business. The state of your mindset will determine how far you will go in the entrepreneurial process of building a business. Choosing the best business to start begins with you answering the following personal questions:

                What is your risk bearing capacity?

                Are you prepared to face business challenges?

                Are you prepared to handle business failures?

                What’s you perception towards making mistakes in business and life?

These are the type of questions you need to ask yourself before even deciding what business to start. These questions will reveal your mental preparedness for the entrepreneurial journey at hand.

2.            How much Capital do you have?

The start-up capital you have access to, is another factor that will determine the best business for you to start. The best business opportunity for an entrepreneur with access to a $1,000 start-up capital will be quite different from that of an entrepreneur with a million dollars in start-up capital.

The best business to start for an entrepreneur with a $1,000 start-up capital may be an online niche store while the entrepreneur with the million dollar capital will feel that starting a gas distribution business or a manufacturing firm will be the best bet. So take note that your start-up capital is a predominant factor when deciding what business to start.

3.            Who is on your Team?

The competence of the management team you have on board will determine the kind of business opportunity to pursue. If your business team has a track record of successes; then raising capital to pursue big projects will be a piece of cake. But if you are a solo entrepreneur, then your best business opportunity will be quite different.

4.            How Strong is your Business Plan?

If you have the right plan, coupled with the right team and the right mindset; then you can pursue mega projects. But an entrepreneur who lacks the orientation of the use of a business plan will just bootstrapped his or her business on a shoestring budget. The extensiveness of both your personal and business plan will determine the kind of business opportunity you will pursue.

5.            What Business idea do you have in mind?

Lastly, the best business to start varies from entrepreneur to entrepreneur based on the ideology of the entrepreneur and the prevailing circumstances. Your best business opportunity may differ from mine based on prevailing circumstances such as trend, your passion, hobby, skill, geographical terrain, demographics, psychographics, demand, supply, economic policy, etc.

The best business to start for someone in Nigeria or China will differ from that of someone in United States, Canada or India. And most importantly, I listed the “business idea” last because it is the least important necessity to starting a business. Remember, the world is filled with brilliant, million dollar ideas but the world lack savvy entrepreneurs.

An average business idea with the right mindset, a strong business management team and the right business plan will outperform an excellent million dollar idea with a poor mindset and a weak management team. So when deciding what business to start, make sure you do your preliminary feasibility study. Also make sure that the right combinations are in place and when contemplating on the best business to start; be sure to take into consideration the five questions above and I will see you at the top.

Six Lessons from My Failure in the Network Marketing Industry

For every success story, there are fifty corresponding failure stories and just like every other person; I have had my own share of failure. One of the reasons why I take the pain to share my failures with you is to make you realize that failing is not abnormal; in fact, it is part of the process of becoming a success. Secondly, I want you to know that I don’t succeed in every business venture I engage in; so don’t think I am a super human when I tell you about my successes. Thirdly, I have come to understand from personal experience that success is a poor teacher and it tends to make you believe you are infallible. But failure, though painful is the best teacher. You learn more from your mistakes/failures than your successes. Success inspires but failure teaches; and this is the sole reason why I listen keenly to failure stories than success stories.

I once joined a network marketing company as an independent distributor and along the line, I failed. Well, I have explained the reason why I Failed to Build a Network Marketing Business so I won’t be going into the details here. After my failure as a network marketer, I picked myself up and moved on but not without the lessons learnt. And with lessons learned from this single failure, I have built several successful businesses; so it’s this same lessons I want to share with you now. If you are planning on starting a multi level marketing business; then I will advice you read this before launching out.

                Six Lessons from My Failure in the Network Marketing Industry

1.            There’s a process to building a successful business and that process can never be bypassed

Before I signed up as a network marketer, I was told network marketing was an easy, stress free and quick paying business. I was told that my primary task is just to recruit new distributors and I will be on to a steady passive income. Now considering the low start-up capital involved, I felt I had nothing to lose; so I signed up with enthusiasm and high hopes of becoming a millionaire marketer overnight. After all, I have heard the success stories of other distributors; so mine shouldn’t be an exception.

Unfortunately, I was dead wrong. Network marketing, like every other business is not easy. After I flopped and quit the business, I realized that there was nothing different when comparing network marketing to other businesses. I came to understand that the principles of business is the same; regardless of the type of business, economy or location. Building a successful business requires a process; it’s a process that occurs in phases and each phase can never be skipped.

So never fall for the hype of a push button system or a stress free business model because it doesn’t exist. There’s nothing like overnight success; you have to toil to make your own bed of roses.

2.            Acquiring the basic knowledge of a business is the first prerequisite for starting a business successfully

I believe this lesson is clear. You will be foolish to jump into the waters of business with both feet; without first testing the waters and understanding the basics. Business is universal in principle but each industry has its own tactics and intricacies. If you fail to learn the basics, then you are failure bound and nothing can help you. Learning the basics of a business can be done by understudying business models in the industry of your choice; attending seminars, by apprenticeship, reading books, journals, and most importantly, by starting small.

3.            Business revolves around people

The network marketing business, just like every other business revolves around people. To succeed in the network marketing business, you must invest in people; because people are your assets in the business. So if you are an introvert; then you might reconsider your decision to start a network marketing business.

4.            Selling is your most important task in business

If you have listened or read the prospectus of a network marketing salesman, you will notice the following bulleted points: No selling, No stockpiling, No stress, Easy to run, No recruiting down lines, etc. Most people hate selling; and these people are easily attracted to ads and prospectus that screams “NO SELLING.” Unfortunately, selling is the most important task of an entrepreneur; and without it, no business will survive. In fact, selling is life.

So if you hate selling, then forget about starting a network marketing business. In fact, forget about even becoming an entrepreneur because you are only heading for the rocks.

5.            Leadership skill is the second most important business skill

I wasn’t born a great leader. In fact, I hated anything that will put me in the fore front. While in school, I was an A student but I hated being identified or singled out. I hated leading; even when I know deep down in me that I am competent enough to handle such task. But my adventure as a network marketer changed my perception entirely. While in the network marketing industry, I saw first handedly the importance of leadership and unfortunately, it’s something you can’t run away from in the industry.

As an entrepreneur, you have to be at the fore front of your business. People don’t follow someone who doesn’t inspire confidence. Secondly, people don’t like being guided from behind; they want to be lead from the front. So despite my failure in network marketing, I never forgot the importance of leadership in business.

6.            Failure is the greatest teacher; only if you are willing to learn

Failure is not bad. In fact, everybody fails at one time or the other but unfortunately; only few learn from their failures. Failure is the greatest teacher, but that’s only if you are willing to learn.  Now how can you learn from your failures? You can learn from your failures by keeping an open mind and critically analyzing the process that lead to the failure. When you analyze your steps, you are bound to discover where you went wrong and this will help you avoid the same mistakes in the future.

In conclusion, I want to stress the point that my time in the network marketing industry was worthwhile. It gave me the opportunity to meet great men and women who started from scratch. Secondly, my journey in the network marketing industry helped me discover my weaknesses and prepared me for the challenges of the business world. So my failure wasn’t really failure; it was a learning process for me because with the experience gathered from my failure in the network marketing industry, I have become a better entrepreneur with a successful business to prove it. So don’t let failure stop you; instead, learn to make it a stepping stone and I will see you at the top.

How to Reduce Operating Costs, Run Lean and Still Grow your Business Fast

“Cash flow is the life blood of business.” – Robert Kiyosaki

One of the most tedious; yet most important tasks in business is cash flow management. Constant in flow of cash is very vital to business survival but will be meaningless without proper utilization and channeling. Poor cash flow management is a major reason why most businesses fail; even with a winning product and business team.

“The most important word in the world of money is cash flow. The second most important word is leverage.” – Rich Dad

Every now and then, you will hear of businesses taking drastic measures such as downsizing; just to cut down costs. Now reducing the operating cost of your business is a very simple task; yet, it’s extremely difficult because it takes discipline to achieve.

So in this article, I will be sharing with you some inside tips on how to reduce your operating costs, run your business on a lean budget and still grow fast. If you are an entrepreneur starting out with low capital or you are seeking ways to preserve investors’ money and make the best use of it; then this article is for you. But before I go into the details, I want to point out the fact that reducing costs or running a business on a lean budget will never be possible without the three factors below:

  1. Discipline
  2. Thorough understanding of the business
  3. Your team’s commitment towards your plan

Having said that, below are practical ways you can reduce your business expenses and operate on a lean budget.

                How to reduce your business expenses and operate on a lean budget

1.            Avoid Marketing/Advertising whose results can’t be measured

Marketing and advertising are some of the leaks through which money flows out of a business. Now don’t get me wrong, both of them are important to generate sales but they should be done tactically. You are a start-up company and you don’t have the million dollar marketing budget of the big corporations, so what do you do?

Well, you simply apply marketing tactics that puts you directly in the face of your targeted market; note the keyword “targeted market.” Therefore, avoid marketing/advertising methods whose results can’t be quantified or measured. Effective marketing must reflect in the books; it must yield the corresponding desired results (increase in sales, lead generations, increased traffic/visitors/customers) and must be quantifiable (percentage change, ratio).

Avoid advertising agencies, Pr firms and social media ad companies except you have millions of dollars to toy around with. Avoid advertising techniques you don’t understand or have not mastered; stick to what you know. And best of all, try to make the most of free publicity; such as press releases, getting on TV and radio shows and contributing content to news sources. Most importantly, if you are going to use a paid advertising medium, make sure you first educate yourself about the intricacies of the medium; it will save you a lot of cash in the long run.

2.            Avoid Expensive Office Spaces or Leases

“I could have an office all to myself but since my collaborators don’t have one, then I too am contented to have a desk in a shared room.” – Ingvar Kamprad

One of the expenses that take a large chunk of capital/resources is office space and most entrepreneurs waste investors money by situating their businesses in glorified high rise buildings; just to satisfy their ego. If you are a start-up company or you are running on a lean budget, then you don’t need an expensive office spaces. You can go for shared office spaces or better still, work from home and make use of a virtual office address. After all, Amazon, Ford Motors and Apple were started from the garage; you shouldn’t be an exception. Start small.

3.            Avoid Technology or Software that doesn’t improve Efficiency

“The tone is in the fingers……..not the instrument.” – Jason Fried

I have a friend who has a dream to become a black belter in martial arts. This friend of mine is so committed to his dream that he has invested heavily in buying several kits, books and video tutorials on sparring techniques. He knows all the fighting styles and terminologies off hand; yet, never will you see this friend of mine sweating out in the Dojan (training ground). He would rather watch videos and read books than train. Is this friend ever going to become a black belter? The answer is no.

The same applies to business and unfortunately, most entrepreneurs are just like this friend of mine. They live with the illusion that a new technology, business software or tool will make them better entrepreneurs and push their profits to the sky. But improved technology or the latest software/tool will be useless if you are not prepared to put in the required efforts. An expensive golf club did not make Tiger Woods a star; a super computer did not make Bill Gates the richest man in the world, their skills did. So don’t waste your resources pursuing technology, if it’s not going to add to the bottom line of your business. Rather, work on improving your business skills and boosting the morale of your employees.

4.            Don’t Overstaff or hire incompetent people emotionally

“If you own a butcher shop, don’t hire vegetarians.” – Rich Dad

Most entrepreneurs tend to over staff their company; based on the illusion that more numbers of employees will lead to increased productivity. Others tend to hire incompetent people emotionally. Don’t do any of the above. Having a large staff doesn’t signify success; neither does it increase your company’s output. Remember, it’s easier to increase your number of employees but difficult to shrink. Small businesses hope and strive to be big while big businesses wish they were smaller in size because being small gives room for flexibility. So don’t overstretch your workforce; hire slow and fire fast still remains a golden rule in business.

5.            Avoid Office equipment that doesn’t add to the bottom line

I have seen entrepreneurs keep a computer on their desk that they don’t even know how to use. I recall a time when I wanted to put a television set in my office; I had the urge to go for a 21 inch plasma but I sat back and asked myself: why do I need a television in my office? Why do I need a 21 inch wall plasma? Well, I figured out that I needed a television set to stay current with happenings but my desire to buy a 21 inch plasma was simply that of ego. A normal 14 inch will serve the same purpose, so I shoved the idea of buying a plasma TV and went for a normal 14 inch television. Buy necessities, not wants. If an equipment won’t add to your bottom line; don’t buy it.

6.            Avoid hosting your business meetings in high brow buildings

Well, having a business meeting in an environment that’s conducive is important but you must avoid expensive places. I sometimes meet with my business team in fast food joints or restaurants; other times, we meet in my office or the hall of my church or even a public recreation centre provided it is quiet. These places are conducive and almost free; we only get to pay for a meal, that’s only if we need it. I think you can adopt this strategy too to save cost.

7.            Watch the decisions you take; it may cost you a fortune

“I have made tough decisions, always with an eye on the bottom line. Perhaps it’s time America was run like a business.” – Donald Trump

For every decision you take in life or business, there will always be consequences resulting from such decision; either positive or negative, so be careful of the decisions you take. I have seen businesses suffer massive setback and loss just because the entrepreneur or manager took a decision that backfired. So weigh every decision you are about to take while keeping an eye on the possible outcome; it will save you from monumental losses.

8.            Concentrate on your core; outsource the rest

What is your core business operation? One of the mistakes small businesses and start-ups make is trying to do everything effectively. Business, just like the human body, is made up of systems and all systems must work effectively for a business to be successful. To be successful, a business must handle human resource, payroll, sales, marketing, product development, production management, customer relationship, accounting and so on.

Now instead of taking up all these tasks and increase your overhead; you can choose to concentrate on your core task and outsource the rest. Some business tasks you can outsource include employee recruitment, human resource management, product manufacturing and packaging, payroll, etc.

9.            Avoid luxury and unnecessary expenses

“Simple routine have a greater impact. It is not just to cut costs that we avoid luxury hotels. We do not need fancy cars, posh titles, tailor made uniforms or other status symbols.” – Ingvar Kamprad

Avoiding luxury is a good way to cut down on your business expenses. By avoiding things such as private or chartered jets, five star hotels, corporate cars, frivolous parties, being chauffeured in limousines, etc; you can save a tremendous amount of cash for your business.

10.          Avoid taking on too much inventory

If you are running on a limited budget; then you should avoid tying down cash as inventory. Rather, try to produce on demand or work out a systematic time-based production.

Now these are ten common ways you can reduce your operating cost, run lean and still build a successful business. In addition to the above, below are an extra eleven unconventional ways to run a profitable business on a lean budget.

                11 Unconventional ways to run your business on a lean budget

a.            Work for free first; then put yourself on a decent salary

Working “in” and “on” your business for free is a good way to make some extra cash available for your business but unfortunately, most entrepreneurs wouldn’t want to hear of it. Everyone wants to get paid for doing a task and that’s why most people shy away from starting a business.

Most start-up entrepreneurs sometimes set aside ridiculous salary for themselves even when their businesses is yet to turned out a dime in profit; but things don’t work that way. Building a business requires commitment and sacrifices especially in the start-up phase; so therefore, you should be prepared to work for free.

Now if you must know; every successful entrepreneur today has at one time or the other worked on their business without receiving a dime. I have also worked for free and I still work for free today in some of my new businesses. It’s not absurd to work without getting paid; rather, it’s something you should get used to as an entrepreneur. When your business begins to turn in some revenues or even profit; then you can place yourself on a decent salary. Remember, your aim for building a business is not to earn a steady paycheck. I want to believe you are in it for the bigger picture; which is building a multi-million dollar asset.

b.            Don’t expand vertically; grow horizontally

Most managers and entrepreneurs love the idea of growing vertically because it makes the business look big from the outside; and they do this by creating more job positions and employing more people. While this may look good from the outside and earn you some prestige; remember that growing vertically will increase your overhead and make your business more cumbersome.

Rather than growing vertically, I will advice small businesses grow horizontally through strategic partnerships and alliances. Do you want to expand into another industry or you want to grow in terms of scale? Instead of increasing your overhead by taking new employees, all in the name of growth; it is better you forge a partnership with an existing business that handles such task or serve such industry. This will help you save some cash and even reduce your growth risk.

c.             Encourage your customers/clients to pay before service

This tactic is simple, yet most entrepreneurs ignore it. You can offer your clients/customers incentives and value added services to entice them to make advance payment for goods and services. This will help your business with cash inflows.

d.            Avoid expensive business meals

I believe the message here is clear; avoid meals that cost an arm. Good food doesn’t have to be expensive.

e.            Spend on budget and stick to it

I am a stickler for forecasting and budgeting; both in business and in my personal life. I don’t wake up and spend money just for the sake of spending; I spend on a budget. Everything I buy, every cash note that leaves my pocket today has been budgeted for months back. Even if I am going to spend some free cash, it has been budgeted for as miscellaneous; I have never had free cash at hand that’s unaccounted for and I don’t intend to. I tend to look at my cash needs at present and use it as leverage to forecast my future needs; this singe act has helped my business avoid a cash crisis. You should do the same; operate on a budget and stick to it.

f.             Balance your acts with family and friends

“People say I am cheap, and I don’t mind if they do.” – Ingvar Kamprad

The issue of family and friends is something I handle cautiously. Family is family and business is business; I don’t mix both and this is a principle I live by. Now family and friends are a very important part of your life; so also is business. To be a true success, you have to balance your act between these three elements.

Family and friends are close to you; meaning, you can’t hide your success from them. Secondly, you tend to be soft towards them because of their close relationship with you. Well, it’s ok to be soft with them but when it comes to financial matters; you’ve got to be tough with them.

Most people see entrepreneurs as money bags; they see your company growing fast, with you working round the clock to ensure a smooth business operation and then they will think you are made. What they don’t understand is that there’s a big difference between revenue and profit. They won’t understand that a business can generate revenue without profits. This is when you need to tighten up on your finances. Now I am not asking you not to give your family money; all I am asking is that you do it with cautiousness. I have had friends complaining that I am too strict when it comes to spending; well, why shouldn’t I be. After all, I worked hard for my money while they slept; so I can’t afford to waste resources on unprofitable things. I think I have ranted enough for you to get my point. Open your mouth and wallet cautiously…………………enough said.

g.            Be a tough negotiator

You are running a business on a limited budget; this means you don’t have the resources for trial and error, and there’s no room for wastage. You can’t also afford to leave money on the table, so you have to be a mean and tough negotiator. Now I am not asking you to be a penny pincher; I am asking you to be a tough negotiator and get the best out of every deal you make.

“If you want to buy something; it’s obviously in your best interest to convince the seller that what he’s got isn’t worth very much.” – Donald Trump

h.            Cut down you energy consumption

Another way to cut down your expenses is to cut down on your power consumption; this will directly reduce your bills. You can do this by using energy saving appliances and switching off appliances that are not in use. Now for those who generate their own power supply like me, you can further cut down your energy cost by switching between alternative power supplies and generator.

i.              Establish a credit line with your suppliers

Now by establishing a credit line with your suppliers, while encouraging your customer to make advance payments for goods and services; you will be creating a pool of extra cash that can be diverted to very short term tasks.

j.             Avoid litigations; it cost money

This is as simple as ABC; avoid litigation, it’s a huge waste of time and resources. The only people that get rich from litigations with certainty are attorneys or lawyers. Engage in litigation only when your business survival depends on it or you have a substantial case to prove with a success to failure ratio of 80:20.

k.            Keep your eyes open; to avoid larceny and waste

“Waste of resources is a mortal sin at IKEA.” – Ingvar Kamprad

One thing I have observed in business is that employees don’t attach value to business materials and equipment; because they aren’t the ones that bought them.  They tend to discard business items that can still be used or managed. Secondly, employees tend to take lousy decisions most of the time; if you allow them. After all, they have nothing to lose should their decision backfire; they will simply blame somebody else. Thirdly, employees will steal from you; consciously or unconsciously. Things employees steal from business premises include pens, notepads, toiletries, etc; and if they are left unchecked, they will even your steal time by engaging in unproductive activities during work hours. To run lean and still be successful, you have to successfully guard against the three things listed above.

As a final note, I think the above 21 steps is more than enough to help you grow your business on a lean budget. Remember, it takes discipline and action to achieve success in any endeavor. I rest my pen.

How to Start an Escort Service Business for Tourists

The tourism industry in Nigeria is one that hasn’t been tapped to its full potential. With a population of over 150 million and a growing need to get away from the maddening work life; many individuals are now spending their vacation, touring places. Now as an entrepreneur looking to satisfy a demand in return for profit; the tourism industry might just be your next point of call. There are many business opportunities in the tourism industry but in this article, I will be focusing on how to tap into the escort service business with no initial experience and succeed.

But before I go into the details of starting an escort service business, I want to emphatically state that the information provided in this article does not in any way replace the need for you to conduct a feasibility study, write a business plan and do your own due diligence. Secondly, the information shared in this article is applicable to any locality; be it USA, Canada, UK, Nigeria, Ghana, etc.

            How to Start an Escort Service Business with Little or No Money

When tourists arrive a country; they always need personnel to escort them in their site-seeing trips and in social events they are invited to. This single need is the reason why many escort services have emerged in the industry.

Business-minded people that understand the potential of the tourism industry always seek ways to tap into the escort business because they know that money pours in this venture. Almost every city has tourist spots and conventions frequented by out-of-towners and foreigners. These people would pay big just to have someone who understands the terrain go with them as they explore the country or city. If you want to earn huge profits, then below is a step by step guide on how to start an escort business.

                How to Start an Escort Service Business for Tourists

1.            Get qualified personnel that knows the city in and out

The first thing you need to start an escort business is to get qualified personnel. These should be people with good and pleasing personality. They should also be aware of the various tourist spots in the city or country. After determining the males and females you need; you will also need to hire an experienced trainer or coach who can develop the personality of your escorts. Your employees will also need to be taught good grooming, dressing up right and good manners so that they would become sophisticated, elegant, articulate and well-informed.

2.            Get necessary licenses and permits

The next step to starting an escort business is to contact the Chamber of Commerce in your area so that you will know what the necessary requirements are. You will also need to visit the Ministry of tourism to obtain vital permits. Afterwards, visit the Internal Revenue office and know what taxes you need to pay and the taxes to be collected from your employees. Visit the Immigration and Naturalization Service so that you will know the kinds of forms to fill out for your employees. You need to visit the Department of Labor also so as to know information on minimum wages, employees’ training, substance abuse, firing, hiring, tipped employees and child labor.

3.            Get an office

After accomplishing government requirements, the next step to starting your own escort service business is to get an office. Make sure it’s beautifully-designed, elegant and professional because your office is a reflection of your brand.

4.            Market your services through selected media

The last step to starting an escort service is to market your services and a good way to do it is to make an attractive and appealing website to promote your business. Place pictures of your escorts and indicate the services you offer on your website and make sure you mention the qualifications of your employees. If your staff does not want to place their real names on the website, you can give nicknames instead. You can also place ads in local dailies. This will help let the community know of your business. You can also enlist your office and telephone number in telephone directories.

As a final note, an escort service is one of the first things that a visitor or tourist would have in mind upon visiting a foreign country. They will pay big bucks just to have a companion, so that they would know what their itinerary would be. Having someone who knows the place also helps guarantee safety and a productive journey. If you are interested in offering this kind of service, then it’s advisable you acquire the needed knowledge of running an escort service business; this will give you a head start over competition.

7 Wrong Reasons to Quit your Job/Start a Business

I am an advocate of the need to take control of your life and starting a business is one of such ways you can gain control over your life. It thrills me to see people; both young and old take the leap to start their own businesses. But it also saddens me because most of these budding entrepreneurs start out with the wrong perception.

I love meeting entrepreneurs, I love listening to their plans, success or failure stories and their ideas because I know I can get my spirit ignited simply by listening to others. Most inspiring are the stories of employees; who are giving up the perceived security of their jobs to start a business. However, I will like to point out certain perception I have noticed in individuals who are making a transition from being employees to becoming entrepreneurs. If you are an employee wanting to quit to start your own business; I will advice you put your resignation letter on hold until you’ve read this article and absorb its message. As an employee wanting to start your own business; have you at one time or the other made any of the statements below:

  1. I am tired of my job
  2. I want to be my own boss
  3. I want to get rich quick
  4. I have a brilliant idea
  5. I want to be free
  6. I am the best in my workplace
  7. I have gained a lot of experience from this job, it’s time I quit.

If any of the statements above is a reason why you want to quit your job to start a business; I will advice you think again because your motive for going into business will determine whether you succeed or fail. Without wasting your time, below is a detailed explanation that will help you avoid quitting your job for the wrong reason.

                7 Wrong Reasons to Quit your Job/Start a Business

1.            I am tired of my job

My answer: if you are tired of your job; maybe because it’s stressful, or your boss is lousy, or your job is something you hate doing. Then I will advice you get another job rather than start a business. Why? The reason is because building a business is more stressful and demanding than a regular job. In a regular job, you are assigned to one task; while a business will require you handle multiple tasks almost at once. And as an entrepreneur, you might also need to do exactly that same task you hate.

Let me give you some instances: most people hate their job because it entails either selling, handling paper work, dealing with endless customer complaints, balancing the books or focusing too much on a single task, etc. My dear, if any of the above applies to you; then please forget about starting your own business because your business might just be dead on arrival. I have seen entrepreneurs burn themselves out; simply because they weren’t prepared for the stress involved with building a business. So please, don’t make the mistake of starting a business simply because you are tired of your job. It’s not enough motivation to survive in the business world.

2.            I want to be my own boss

My answer: before I go further, let me first ask you this question. Do you really understand what it means to be in charge? Do you have what it takes to be a boss? If you want to quit your job simply because you want to be your own boss; I will advice you have a rethink. Most people think being a boss/leader is all about being in control, barking out orders, hiring and firing employees. From personal experience, I can tell you it is more than that.

Being a boss in your own business comes with responsibility; meaning you are responsible for the success or failure of your business. As an entrepreneur, you have to make sure that your business system is running at full capacity everyday; even if it means having to make some personal sacrifices.

As the boss of your own company, you will have to make sure everything is provided for; you will have to deal with all problems arising from your business and most importantly, you will get paid only after your business and employees have taken their share. As a boss, you won’t have the opportunity to say “it wasn’t my fault.” And even if you end up firing an employee; you will still have to solve the problem the sacked employee created. Do you really understand what it means to be the chief decision maker? Well if you don’t, then I will recommend you watch the movie “24”; then you will get a feel of what it takes to be a boss.

3.            I want to get rich quick

“The Rich Dad Company is an overnight success; but it took us ten years to get there.” – Robert Kiyosaki

My answer: If you want to start a business because you want to get rich quick; then I say congratulations, you are on the right track. But let me ask you a question: are you prepared to work for three straight years without pay? I bet you will scream “NO.” well, this is where the problem lies. Most people wanting to start a business are looking for instant gratification; they want to be overnight successes. But let it be known to you that building a business is a high risk venture with a high failure rate. 90% percent of all new start-ups fail in their first ten years; so think again.

4.            I have a brilliant idea

My answer: this is the most common statement made by potential entrepreneurs but unfortunately, a brilliant idea is not enough. The world is filled with brilliant ideas but the world lack determined entrepreneurs that understand the intricacies of building a multi-million dollar business. If a brilliant idea is all it takes to build a successful business, then everyone will be a millionaire overnight. But unfortunately, it takes more than that. Growing a business requires capital, thorough understanding of the business, competence, cash flow management, a good business team, diligence, leadership skill and most importantly; the ability to sell. So now you see why it takes more than an idea to build a business.

5.            I want to be free

My answer:  it will be foolish of you to want to quit your job and start a business because you want a lot of free time. Well if you must know, business offers no freedom especially in the start-up phase. Do you realize that entrepreneurs work longer hours than most employees? There’s never going to be a free time in business; it’s up to you to create the time you want.

As an entrepreneur, I sometimes never let go of my business. Even while on vacation, or I am driving or travelling; I am always on the phone, laptop or mobile device just to stay in touch. I sometimes wake up in the dead of the night to do some brainstorming, or reflect over a business problem, or do some tasks or write for my protégés. In fact, this article you are reading now was written in the wee hours of the morning; while most of you are still enjoying your sleep. What am I trying to buttress? The point I am trying to stress is this: there’s will never be enough free time to do everything what you want; whether you are an employee or entrepreneur. But there will always be enough time to do a single task, which you consider most important; only if you are willing to make out such time.

6.            I am the best in my workplace

My answer: it takes a lot of knowledge and dedication to be the best in your workplace. So if you are one of the best employees in your firm, then I give you a thumb up. But I want to make a point clear: business is not about an individual, no matter how skilled that individual may be; it’s all about the team. Business is a team sports, so also is investing. In business, team work is more important and valuable than individual skill.

For instance, Lionel Messi may be the best player in the world but he is nothing without his team mates. No successful entrepreneur ever rose to the top by individual effort; they rose by the collective effort of their team. So even if you forget all the lessons, don’t forget that: “being on the best team is much better than being the best player.” If you are the smartest person on your team; you are heading for trouble but if you are part of the smartest team in your industry, then it is massive profit all the way.

7.            I have gained a lot of experience from my current job

My answer: if you have adequate experience from your job and you want to quit, then my best advice is this: Get another job. The fact that you are an experienced chemical engineer does not make you competent enough to run a chemical manufacturing business. Your experience as a real estate agent does not qualify to be a real estate investor. Why? The reason is because their role demands are different and your experience is one-sided.

Business is not a one skill affair; it is a synergy of different skills and experience. That’s why entrepreneurs are generalists; they need to know a little of everything. While your job might forge you into a specialized technocrat such as an accountant, attorney or medical doctor; an entrepreneur must know a little of business laws, production management, customer relationships, marketing and sales, people management, accounting, product development, etc. An entrepreneur must have a thorough understanding of the business basics; else, failure will be unavoidable.

As a final note, it is never my intention to discourage you from becoming an entrepreneur. In fact, it’s my greatest wish to see you running your own business; because entrepreneurship is the major driver of innovation and economic growth. That is why I took the pain to write this article; I wrote this to equip you with the right mindset. To make you understand that the mindset with which you start a business determines the outcome of your venture.

So if you are going to quit your job or start a business, do it for the right reason. Do it because you have a strong mission in your heart; just like Henry Ford and Steve Jobs. Do it because you want to be part of the solution rather than the problem. Do it because you want to satisfy a need or solve a problem. Above all, do it because you want to etch your name in the sands of time by improving the welfare of humanity; taking a pointer from entrepreneurs like Andrew Carnegie and Bill Gates.

The Ultimate Law of Wealth Attraction – How to Make Money Effortlessly

My experience as an entrepreneur is one thing I cherish so much and the reason is because it is shaped with events, people and memories. My line of duty affords me the opportunity to meet different people from all walks of life; all with different perception. There are those who believe the rich are greedy and evil; there are those who want the government to take from the rich and give to the poor, and there are also those who wonder how one man is able to amass billions of dollars while majority of the populace struggle in penury. This article is an answer to your questions on wealth attraction.

There are so many laws of wealth attraction but I will be focusing on the ultimate law only. This single law holds the key to tremendous wealth and is quite known by everyone; but the problem is that most people don’t understand how to apply the law to their own advantage. So in this article, I will reveal to you the ultimate secret of wealth attraction and how to apply it to make money effortlessly. Now who are those that have successfully utilized the law for their own good?

                Men and Women who have amassed Billions of Dollars using the Ultimate Law of Wealth Attraction

The following are men and women who have used this law to their favor: Thomas Edison, J. Paul Getty, Thomas Edison, Richard Branson, the Rothschild’s, Aliko Dangote, J. K. Rowlings, Oprah Winfrey, Martha Stewart, Coco Chanel, Bill Gates, Larry Ellison, Michael Dell, Jeff Bezos, Andrew Carnegie, Jacob Astor, Cornelius Vanderbilt, Henry Ford, Steve Jobs, Warren Buffett, etc. In fact, I can go on and on listing names but I think you’ve got my point. The men and women listed above were worth billions of dollars in their active years; and they all applied the same ultimate law of wealth attraction. Now you might say my list is biased; that it’s filled with only entrepreneurs and investors but it is not so.

The ultimate law of wealth attraction is not about building businesses, investing, stealing public funds or extorting money from the populace. No, the ultimate law of wealth attraction is much more than that. Now what is the ultimate law of wealth attraction?

                The Ultimate Law of Wealth Attraction

“Give and it shall be given unto you. Good measure, pressed down, shaken together and running over, shall men give into your bosom.” – Luke 6: 38

Yes, the statement above is the ultimate law of wealth attraction. If you want to make millions and billions effortlessly; then obey the law and give. The ultimate law of wealth attraction didn’t say receive first and give later; it says give and it shall be given unto you. What this mean in essence is that you have to give first to receive. Unfortunately, what most people know how to do is receive or take what belong to others.

Now let’s critically analyze this law. How do you become a medical expert or engineer? You must first study hard for years, while paying a huge sum for the knowledge you are acquiring. After that, you undergo series of rigorous tests before you become qualified to earn a salary as a medical or engineering expert. All these might take nothing less than ten years to achieve. The same is also applicable to money; you must give first before receiving. Now how do you give first to attract wealth? How do you apply the ultimate law of wealth attraction?

                How to Apply the Ultimate Law of Wealth Attraction

“If you want to be rich, simply serve more people.” – Rich Dad

The simple statement above is the only answer you need. If you want to become rich, if you want to amass billions of dollars; then simply serve more people. Now note this: Bill Gates and Larry Ellison did not join the rank of richest men in the world until they provided easy to use software for millions of individuals and businesses. Aliko Dangote did not become the richest black man in the world until he provided the basic needs of over 150 million Nigerians.

Henry Ford did not become rich until he took cars that were strictly manufactured for the rich and made them available to the masses. Investing is not the core secret of Warren Buffett’s wealth; Warren Buffett provides an intrinsic financial service to millions of individuals. Steve Jobs put a personal computer in every home; Michael Dell made the personal computer more affordable to the masses by selling directly while boycotting the middle men. This business blog (StrategicBusinessTeam.com) you are reading now generates a decent daily income; but that did not happen until I gave away tons of business advice for free. I can go on and on but I think my point has been made.

“If you want to be rich, simply serve more people.” – Rich Dad

In the simplest of terms, if you want to be rich, simply give; or better still serve more people. Give to the society, help them solve their problems; help satisfy their needs/wants and they will give you in return. But employees such as doctors and fire fighters also render a service; they give, so why are they not among the richest people in the world. Now that brings me to the next sub-principle under the ultimate law of wealth attraction.

“How many people can you give to in an hour? How many people can you serve in a day?

The question above is the thin line that makes the big difference between successful employees and entrepreneurs. Now let me ask you: what’s the difference between me and a doctor? The difference is that a doctor is limited with respect to the number of patients he can attend to in an hour. A doctor can personally attend to at most 20 patients in an hour in a specific locality and he rarely work for straight 24 hours. But I personally affect the live of over 1,000 individuals hourly with articles I wrote on this blog and through this blog; I am always available globally 24/7. Now that’s excluding my other business interests.

Aliko Dangote has a direct workforce of over 100,000 employees globally. He provides the basic needs of over 150 million Nigerians; his company has a large network of independent distributors and he has enriched many Nigerians through his quoted companies. Can you see how much Dangote has given? Can you see how many millions of people he is serving? This is the sole reason why he’s the richest black person in the world; this is also the reason why he is richer than the best medical practitioner, attorney and CPA put together.

In conclusion, I want you to know that there is an abundance of wealth flowing round the globe. You just need to be well informed and positioned to tap into it. For the law of wealth attraction to work in your life, you must be prepared to give; you must be prepared to serve millions of people. You must change your perception of being a dependant; you must stop being a core consumer. You must strive to become a core producer; a capitalist. Now how do you begin to serve more people? What must you give to attract wealth and join the elites? I leave you with the quote below:

“Ask not what your country can do for you. Rather, ask what you can do for your country.” – John F. Kennedy

The Untold Secret of My Business Success

“We are self made……or never made.” – Dr Sidney Newton

Are you an entrepreneur or you are intending to be one? Do you want to succeed in life and business? What if I share with you my personal blueprint for success, will you act on it? If your answer to the last question is yes, then read on.

I have written a lot of articles with respect to starting a business, developing business ideas, raising capital and the rest of it. But never have I written an article about my personal life and how it affects my business. Discussing my personal life is something I shy away from but this year 2012, I made a resolution to be more open. I made a resolution to give away everything in my knowledge base; from my ideas and strategies to my personal experiences and business moves. But I won’t be revealing income figures, business ideas and moves that have legal restrictions. Now back to the issue of the day.

On several occasions, I have been asked to reveal my personal formula for success. It’s also funny to note that those who asked this question expect me to spill out a holy grail of some sort. Now the truth is this: there is no secret to my business success. Why, you may ask? Well, the reason is because the secret code for success is no longer a secret. It has been used and revealed by the likes of J. Paul Getty, John D. Rockefeller, Henry Ford, Bill Gates, Steve Jobs, Aliko Dangote, Robert Kiyosaki, Richard Branson, Larry Ellison, etc.

But irrespective of how universal the law of success is, I still believe that the success path of every successful individual is unique. Meaning, every successful individual has his/her own story to tell and lessons to share. So in this article, I will try as much as possible to squeeze out the lessons and the codes I have worked with to get to where I am today. So without wasting your time, below are seven codes that shaped my success in life and business.

                My Personal Secret Codes for Success in Business and Life

“I wasn’t born a success………I was made a success…………on the streets.” – Ajaero Tony Martins

1.            Work Hard in the right Direction

Most successful entrepreneurs and employees attribute their success to hard work but what they don’t tell you is this; “hard work is useless without a strategic direction.” On several occasions, I have had people complain of how stressful their day job is and the need to find a new job because they are not making headway. All I do is wish them good luck and take my leave because their mind is already clouded with the illusion that getting another job will ease their pain. One truth I often fail to tell them is that my job is also stressful and I sometimes work twice as hard as they do. But the difference between us is that we are working hard in different directions. While I am working hard building a business, you might also be working hard building your career but our resultant end will never be the same.

“The richest people in the world build networks; everyone else is trained to look for work.” – Rich Dad

So what’s the point I am trying to stress? The point I am emphasizing is that hard work in the wrong direction is useless. Don’t work hard building someone else’s business; don’t work hard making your boss rich. Instead, work hard building a business; work hard to acquire assets that will produce enough cash flow so that you will never have the need to work again. And most importantly, even if you are building your own business, don’t work hard trying to do everything yourself. Don’t be a solo player, work hard alongside your business team; work hard forging strategic alliances with other successful businesses. Work hard in the right direction; this is my first code for becoming successful.

2.            Believe in Yourself

“You are nuts and you should be proud of it. Stick to what you believe in.” – Hawkins

If there’s any code I will emphasize repeatedly; it’s self belief. Without it, you will achieve nothing. My entire business success was a product of self belief and I am not alone in this. The greatest enterprises in the world were built by men and women who believed in themselves; thought for themselves and acted without giving a damn to what the critics say.

“Remain true to yourself; and your personal philosophy.” – Giorgio Armani

Whenever I sit back and analyze my life and business; I wonder where I would have been if I hadn’t believed in myself. I wonder what would have been my financial status today if I had lived in the fear of what people would say. I wonder where I would have been if I had followed the advice of family and friends without thinking for myself.

“It pays to trust your instinct.” – Donald Trump

I recall how my dad made efforts to get me to the US. I made it clear to everyone that I want to make my wealth here in Nigeria and that stance really caused a lot of chaos because my dad couldn’t understand the bases of my stance. I recall how I bluntly refuse to travel to China to oversee the family business over there because I wanted to stand out from my father’s shadow. Most unforgettable was my decision to drop out of college. Family and friends thought I was crazy but I still went ahead to drop out and focus on my business. It was a painful decision because of the effort, resources and time already invested but I thank God because I have no cause for regret.

“The most important aspect of my personality as far as determining my success goes; has been my questioning conventional wisdom, doubting experts and questioning authority. While that can be painful in your relationships with your parents and teachers, it’s enormously useful in life.” – Larry Ellison

I can never over emphasize the importance of self belief. I can never over emphasize the need to stand tall in the face of stiff criticism. Don’t live in the fear of being criticized; don’t put other people’s opinion before yours. You are you and no one can better understand your ideas and philosophy than you. So don’t be afraid to take a stand, don’t hide in other people’s shadow; stand out. If you have an idea you strongly believe in, shun the critics and go for it. The end will justify the means.

“You have to act and act now.” – Larry Ellison

3.            Be Persistent

Nothing good comes easy. The world is not going to spoon feed you to success; you have to fight for what you want and it takes persistence to win a fight. Your first blow or shot in business may not make the kill; so you just have to keep trying. Success is not an overnight venture; it’s something you attain over time.

“I was relentless even in the face of total lack of encouragement because much more often than you think; sheer persistence is the difference between success and failure.” – Donald Trump

I did not build a business overnight; I wasn’t a success on my first trial. Becoming a successful entrepreneur was a product of repeated trials and learning quickly from every mistake made.

4.            Live a Balanced Life

“In your quest to becoming a billionaire, you have to sacrifice literally everything – completely shut off everything else in your life (hobbies, interests, free time, friends, family, even love) and resolve to do nothing but work as hard as you possibly can to get a billion dollars as soon as humanly possible, not doing/thinking/caring about anything else, never giving up no matter what; until you have a billion dollars.” – Anonymous

The statement above is an extract from an email sent to me by a reader in response to the article I wrote about my goal to become a billionaire. In as much as I appreciate his effort to write me, I must point out that his perception is wrong. My reason for setting the goal to become a billionaire is not about the money, I am doing it for something higher than money.

“Becoming the richest man in the world is not championship; it’s all about competence.” – Carlos Slim Helu

Secondly, sacrificing everything in your life just to make a billion dollars is a foolish perception. There are things that are more important in life than money; things such as your friends, family, hobbies and your relationships. There are also free gifts of nature that cannot be bought with money; for instance spirituality is not a material thing, it’s a thing of the mind. So when you give up everything in pursuit of money; that means you’ve made money your god. Now what’s the essence of having a billion dollars without family, friends and interests to spend it on? Remember, life is short. That’s why Jeff Bezos said: “Work hard, have fun and make history.”

As an entrepreneur, I am strapped for time because I am always on the go. But despite my tight schedule, I still give time to things I value. I still make out time to spend with my family and friends. I give time to spirituality; I try as much as possible to attend social events and I also find time to read, listen to audios and attend seminars. It all boils down to time management and prioritizing your tasks. No matter how committed I am to my business, I try to balance my act and I think you should do the same else; you will end up like the multi millionaires and billionaires with broken homes, marriages and a failed health.

5.            Embrace Team Work

“Business and investing are team sports.” – Rich Dad

I have started and built several businesses from scratch. I have had successes and failures as well. I have bounced back from several failures and leveraged my successes. I make money even while I sleep. In fact, I make more money while on vacation than when I am active. What is my secret? Well, the open secret is that I am not a solo player; I am a team player. I love team work and that’s why I invest in people. I hire and partner with people who are smarter than me. I work with people who understand the technicality and have the ability to get things done. So if you are going to be a successful entrepreneur, then you must embrace team work. It’s as simple as that.

“My model for business is the Beatles. They were four guys that kept each other’s negative tendencies in check; they balanced each other. And the total was greater than the sum of the parts. Great things in business are not done by one person; they are done by a team of people.” – Steve Jobs

6.            Your Personal Values

“Sometimes, what is right for you at the beginning of your life is not the right thing for you at the end of your life.” – Rich Dad

“Waste of resources is a mortal sin at IKEA.” – Ingvar Kamprad

What do you hold dear to your heart? What do you attach importance to? What are your personal values? Do you know that your personal values can be a stumbling block on your way to becoming a success? Yes, what you believe in can make you a failure. I wrote an article about my goal to become a billionaire and this single write up attracted a lot of criticism. Some people challenged my rationale for setting such a goal and some labeled me greedy for wanting to make a billion dollars to the detriment of others. I had to respond by telling them why I want to become a billionaire. Now before I move on, I want you to analyze the opinions below:

  1. Money is evil
  2. The rich are greedy
  3. You have to sell your soul to become rich
  4. I need a steady paycheck
  5. Go to school so you can find a secured job
  6. Money is scarce
  7. Life is not fair
  8. I can’t work for free, I need to be paid
  9. I want to get rich quick
  10. Government must tax the rich and give to the poor
  11. The government must take care of our needs

Are the statements above true? If your answer is yes, then it’s your own opinion but I want you to know that the statements above are from people with a poor perception. If you have such perception, then you might not become a success; not to talk of being rich.

“Ask not what your country can do for you; rather, ask what you can do for your country.” – John F. Kennedy

Money in its true sense is not evil; it is simply a medium of exchange and a legal tender. Rather, I will say the love of money is evil and people who inflict pain on others just to make money are also evil. As an entrepreneur, money is simply a way I keep score; money is one of the ways I score my achievements in the business world.

Now for me, I attach value to things such as time, freedom, control, work and relationships. I value my time and that’s why I have people working for me and this in turn leads to freedom. I want to be free to travel or do what I want; when I want it. I don’t want to be stuck in a job where I just do as I am told; while living in the fear of being sacked. I am an entrepreneur and I love my work; that why I worked without pay for three years just to get my business off the ground. In fact, I still work for free today. Now let me ask: would you rather work for free for five years and live the rest of your life without ever having the need to work again or you will still to a steady paycheck for the rest of your life? I leave that for you to answer. Most importantly, I value my relationships and I will do anything to maintain them.

7.            Keep Moving

“The height attained by great men is not by sudden flight; for while others sleep at night, they toil.” – Anonymous

No matter the situation I find myself, no matter the setback or business challenge I encounter; I make sure I keep moving towards my goal. Most people imagine successful entrepreneurs as overnight successes but the truth is that, it’s not so. The path to success is not paved with gold.

“The Rich Dad Company is an overnight success; but it took us ten years to get there.” – Robert Kiyosaki

The quote above is the truth in its entirety. Using my life as example, my position today is not by sudden flight. I have been in the trenches, I have walked through fire and I have been through storms but I always make sure I keep moving. I have started and lost couple of businesses and investments; yet, I keep moving. Regardless of whether I succeed or failed, I will keep moving.

“If you are moving, even fire will not hurt you. If you are standing still near the fire, even though you are not in the fire, the heat will eventually get to you.” – Rich Dad

I remember the early days when I made up my mind to become an entrepreneur; what most people don’t know is that I took that decision without a dime in my pockets. Being penniless wasn’t the only problem; I was also inexperienced and had no business skills. But rather than remain stagnant and daydream about my goals, I did some menial jobs, raised some capital and first invested in myself by attending seminars on business idea development, marketing and investing. Rather than remain stagnant, I signed up for a network marketing company; where I developed my leadership and sales skill. I kept bouncing and moving until I found my place.

“I’m not afraid of turning 80 and I have lots of things to do. I don’t have time for dying.” – Ingvar Kamprad

Fast forward to today, I haven’t stopped moving because the world is changing rapidly and if I don’t keep moving; I will be left behind. Rather than pile up cash in my bank account, I am always on the look for good investments and business opportunities. I am still building businesses regardless of whether I fail or not and when I am not busy, I pick up a book and read or listen to an audio recording on business. And most importantly, I never stop attending seminars. The reason is because I don’t want to stop learning; I don’t want my cup of knowledge to be full. I want to keep up with the moving trend; else, I will be overtaken and left behind by the new fast moving competitors.

“A cup that is full is useless.” – Chinese Proverb

“Life is a journey, not a destination. So also is business; your  objectives keep moving.” – Thomas J. Burrell

Another reason I am emphasizing the need to keep moving is because people think becoming a millionaire or billionaire means having a million or billion dollars stashed in your bank account. I will never keep a million dollars in savings; it’s financial insanity to me. Don’t pile up cash in the bank; keep your money in investments. That’s what I do. I keep moving my money from one investment opportunities to another; a bulk of my cash are also tied up in businesses in the form of inventory and fixed assets. The lesson here is this: don’t be stagnant; keep moving forward.

“IKEA is not completely perfect. It irritates me to hear it said that IKEA is the best company in the world. We are going the right way to becoming it but we are not there yet.” – Ingvar Kamprad

In conclusion, I want to state clearly that I am not there yet. Despite my successes and failures as well; I am still far from my goal to become a billionaire. There’s still a lot to learn, businesses to start, products to create, investments to finance, wealth to re-distribute, friends to meet and competitors to fight. But I want you to bear this in mind; whether I hit the goal to become a billionaire or not, whether I lose everything tomorrow or not, no matter how many times I succeed or fail; I will stick to the process. I will keep moving until the day I bow to death. What about you?

How to Start a Poultry Farming Business

Over time, I have gotten several questions regarding the issue of starting a poultry farming business. So in this article, I will be sharing with you strategic information on how to start a poultry farming business from scratch and grow it successfully. Poultry farming is a viable business anytime any day; and to be sincere with you, it’s a business I have been considering for some time now. Below are reasons why I consider poultry farming a profitable business?

                3 Factors that makes Poultry Farming a Profitable Business

There are a lot of factors that make poultry farming business a profitable one but I will be highlighting only three major factors:

  1. Food is one of the basic needs of man. Regardless of the economic situation, human beings must feed and since domestic birds are consumable; that makes poultry farming feasible.
  2. My country Nigeria for instance has a population of over 150million and growing; bear it in mind that a huge population means a huge demand for food (egg and meat).
  3. With the increased awareness on the health implications of red meat; there’s an increased demand for white meat and birds are a source of white meat.

But before I go into the details of starting a poultry farming business, I want to emphatically state that the information provided in this article does not in any way replace the need for you to conduct a feasibility study, write a business plan and do your own due diligence. Secondly, the information shared in this article is applicable to any locality; be it USA, Canada, UK, Nigeria, Ghana, etc. Without wasting your time, below is a step by step guide on how to start your own poultry farming business.

                How to start your own Poultry Farming Business

1.            Select your Poultry Niche

The poultry industry is a broad niche. There are many sub-sectors in the poultry industry which you can tap into. Below are niches in the poultry business:

  1. Egg production (Layers breeding)
  2. Meat production (Broilers breeding)
  3. Chicken breeding (Hatchery)
  4. Poultry feed production
  5. Poultry equipment manufacturing
  6. Egg and meat processing, packaging and marketing

2.            What type of bird will you be focusing on?

Poultry farming can further be classified into the types of birds:

  1. Domestic fowl (Broilers and layers)
  2. Turkey
  3. Guinea fowl
  4. Pigeon
  5. Duck
  6. Goose

But for this article, I will be focusing on poultry breeding for egg and meat purposes with respect to the domestic fowl.

3.            Start-up Capital Investment

The poultry farming business is capital intensive; depending on the scale, location of your farm and the type of management technology used. A small scale poultry farm being run behind your house may require a capital of between $500 – $1,500. A medium scale poultry farm may require $2,000 – $5,000 and a large scale poultry farm may require a start-up capital of $10,000 and above. Like I stated earlier, scale is directly proportional to capital.

4.            Poultry Location

A good location is vital to the success and profitability of your poultry farm. An ideal poultry farm should be sited where there’s a large availability of cheap land and at the same time; should be close to areas with high population density. It’s not advisable to site your poultry farm within a residential area because of the offensive odour it produces.

5.            Housing your birds

There are three methods you can employ with respect to housing your birds. They are:

  1. Extensive system:           Range and fold unit
  2. Semi Intensive system:                 Standard semi intensive unit and straw yard
  3. Intensive system:            i.    Deep litter,     ii.    Wire and slated floor,     iii.   Straw yard,      iv.   Battery cage.

If you are running a poultry farm for commercial purposes and you intend getting the best out of the business; with respect to high birds’ productivity and efficiency. Then you should consider housing your birds using the intensive system. Note that each of the three housing system has its own advantages and disadvantages. Lastly, your poultry housing structure should be built at a particular angle; taking sunlight and wind into consideration.

6.            Poultry equipment and appliances

The following equipment may be needed for your poultry farm:

  1. Feeders
  2. Drinkers
  3. Perches
  4. Nests
  5. Crates
  6. Lighting system
  7. Waste disposal system
  8. Incubator

7.            Poultry Farm staffing and manpower

Operating a poultry farm is not labor intensive if the use of technology is employed. With respect to staffing, the number of manpower needed is also dependent on the size of your farm. But some must haves should be admin officer or manager; who will oversee the day to day running of your business. Your manager can also double as your accountant to cut down cost. It is advisable you have personnel who will reside permanently in the farm to monitor and see to the well being of your birds. You will also need security personnel that will monitor the inflow and outflow of people around your farm; and most importantly, guard against theft. Aside these few mentioned, you can add more personnel to suit your business needs.

8.            Projected return on investment

The incubation period of the domestic fowl is 21 days. You can start selling off your birds as early as 8 – 12 weeks but full maturity is reached between 20 – 24 weeks. The payback period of a poultry farming business is between 3 – 5 years.

                Five Challenges of Starting a Poultry Farming Business

1.            High start-up capital

2.            Longer pay back period

3.            Outbreak of diseases

4.            Labor intensive

5.            Pests and predators