Jack Ma says, “Please tell your children that the world is changing every day and no one is going to wait for you in the past. When lighter was invented, matches slowly disappeared. When calculator was created, abacus was to fade away. When digital camera was designed, the market of negative film no longer existed. When direct market selling/internet-based selling arises, traditional marketing declines. When smartphone with 4G (wireless internet access) was introduced to the world, you no longer need to turn on your computer at home. When WeChat and WhatsApp (mobile text/voice/video messaging) are developed, traditional text messaging is no longer as popular as before.
Let’s not to blame “Who took over Whose business.” It’s only because people are more adjustable and adaptable to new ideas and changes in the world.
Someone asks Jack Ma, “What is your secret for success?” He says, “Really simple…I am doing (action) while you’re only watching.”
Please remember that the world keeps changing every day. If you don’t change, you’ll be left behind. You reap what you sow with your time. If you spend time to drink, you may become an alcoholic. If you spend time to complain, you may become a blamer. If you spend time to beautify yourself, you may become a pretty girl/handsome guy. If you spend time to stay healthy, you may enjoy a healthy good life. If you spend time to be picky, you may become a ‘mean’ person. If you spend time to learn, you may gain wisdom. If you spend time with your family, you may foster a warm and loving relationship with your loved ones.
The curious case of the young generations – FEMI PEDRO
Sometime in 1988, I received a call from a good friend, Mr Akin Akintoye, about an interesting investment opportunity with a few colleagues. After a series of meetings, it became very clear to me that we were about to embark on an audacious but incredibly special journey, and I was excited about the prospect of being a part of such a project. For almost 2 years, I worked alongside the likes of Akin Akintoye, Fola Adeola, Tayo Aderinokun (of blessed memory), Gbolly Osibodu, Bode Agusto and a few others on this investment project. As of 1988 when we began the journey, Fola was 34, Tayo was 33, Gbolly was 33, Bode was 33, Akin was 35 and I was 33. The objective: To own a BANK.
It was a bold objective considering our respective ages at the time, but certainly not an impossible task in our eyes. So we began to hold countless meetings at Fola’s residence in 1988, until we eventually shifted base to Tayo’s First Marina Trust office in Victoria Island. By late 1989, we were ready to put in our bank application at CBN, along with the required minimum capital. This effort was spearheaded by Fola and Tayo (the two brains behind the entire operation), and supported by about 40 persons (including myself), most of whom were in their early 30s and working for different organizations at the time. The end product? We formed arguably one of the finest financial institutions Nigeria has ever seen- Guaranty Trust Bank (known as GT Bank today). The bank was licensed on the 1st of August, 1990 and we commenced banking operations later that year. A group of young boys in their early/mid 30s OWNED a bank! We simply dreamt big, and turned this dream into reality.
I am taking the liberty to reflect on this chapter of my personal history against the backdrop of some of the criticism about the ages of some of President Muhammadu Buhari’s ministerial nominees. The argument being brandished about is that by nominating the likes of Chief Audu Ogbeh as ministers, our President is somehow blocking the destinies of younger Nigerians by preventing them from occupying such positions. People are quick to reference Yakubu Gowon and Murtala Mohammed as being relatively young when they ascended to power, and they argue that the same opportunities that young people had in the past are no longer available today. They also argue that around the same time we were forming GT Bank in the late eighties, there were also a number successful young entrepreneurs who distinguished themselves as well – Bola Tinubu (Treasurer at Mobil Oil), Gbade Ojora (ED Mobil Oil), Jim Ovia (Zenith Bank), Erastus Akingbola (Intercontinental), Dele Momodu (Publishing), Tony Elumelu (Standard Trust), Liyel Imoke (Politics), O’tega Emerhor (Standard Alliance Insurance), Aig Imoukhuede and Herbert Wigwe (Access) and Atedo Peterside (IBTC) are some of the noteworthy youngsters who made an impact in various fields in Nigeria at the time. But what some of the proponents of the argument against the older ministerial nominees fail to realize or remember is that even in my early thirties, we also had very established industrialists like MKO Abiola, Otunba Subomi Balogun, etc, who all operated during our time. We respected them, but neither felt overwhelmed by their success, nor daunted by the prospects of climbing up the ladder. We simply forged ahead with our plans and damned the consequences. The point is nobody cleared the way for us back then, so young Nigerians today should not expect that anyone would clear the way for them either.
Perhaps, at play is the venting of some on-going frustrations by the younger generation today, but it is important to put things into proper perspective. I have spent a lot of time mentoring, observing and interacting with young Nigerians. Today’s youth are no different from those of my generation about 30 years ago. They are faced with the same pressures, frustrations, uncertainties and life vicissitudes that we faced in our late twenties and early thirties. However, the marked difference is how young Nigerians apply themselves today. Most of us who made an impact in our early thirties came from modest means. We were not rich, and we did not have any noteworthy inheritance. Nobody did us any favours, and the older generation did not give us a pass or a nudge in the right direction. In fact, the military administrations at the time made it extremely difficult for us to participate optimally in business, governance and politics. We did not have social media, and there was no technology to aide our goals. We were simply big dreamers determined to make a difference. We were highly enlightened and career-oriented, so we were able to force our way through the door by working extremely hard.
So what exactly needs to change amongst young Nigerians today? First, young Nigerians have to humble themselves. You have to be willing to learn the ropes and hone your craft. Around the age of 27, I left the relative comfort of a steady career at CBN to learn under the tutelage of Otunba Subomi Balogun, the visionary and pioneer behind FCMB. Working as Otunba Subomi Balogun’s executive assistant was an experience of a lifetime. He was (and still is) a well-organized and thorough individual. He strongly promoted excellence and perfection, and did not condone indolence, laziness or poor quality work. He was also an impeccable dresser, always elegantly attired in all-white traditional wear or perfectly tailored quality suits. I picked up these virtues and adopted his style of leadership and management in my future endeavors. I was opportune to travel with him to attend corporate and other board meetings. I gained valuable and practical experiences in corporate board management and boardroom politics, which became useful tools later in my career.
Secondly, you must know your worth. Do not settle for less, and do not allow yourselves to be used by selfish political interests. Challenge the status-quo. Challenge the establishment. The youth make up a sizeable portion of the Nigerian populace. By extension, they have the loudest voices and the biggest potential. Alan Moore, a prominent British author opined that “People shouldn’t be afraid of their government. Governments should be afraid of their people”. This is especially true with regards to young Nigerians. You are more powerful than you give yourselves credit for. Our current president was victorious in large part due to the votes cast by young Nigerians, and you must continue to remind yourselves of this fact, because 2019 is already fast approaching.
Thirdly, and crucially, young Nigerians have to eliminate distractions. Do not get carried away by the allure of good living, bling, fame and fortune. Stay on the straight-and-narrow path. Distractions are the proverbial pot-holes; they slow you down from reaching your destination and damage your wheels in the process. By all accounts, social media is obviously the biggest distraction. It is a powerful tool, but can also derail you from focusing on the bigger picture. The most discerning amongst you will know how to navigate social media without hindering your ability to make significant inroads in the economic and political fabric of Nigeria. I have been impressed with what the likes of Linda Ikeji, Bellanaija, Don Jazzy, TY Bello, Jimi Mohammed, Banke Meshida-Lawal and other young Nigerians have been able to accomplish at such a young age, and it should serve as an inspiration to other young Nigerians in various fields as well.
Finally, take advantage of opportunities, no matter how small or inconsequential they may be at the time. Expect no helping handbs. And when these opportunities present themselves, grab what you can. During our cabinet meetings, my boss and mentor, Asiwaju Bola Ahmed Tinubu always quipped that “Power is never served a-la-carte”. This is indeed true in the context of where young Nigerians currently are, and where they need to be.
These are the sacrifices that the youth have to make today.
Incorporating a company in Nigeria is simple and straight forward. We intend making this easier by compiling the simple process and requirements for incorporating a private company in Nigeria. Unlike most of the information you read online and tabloids,on this subject, the authors make Nigerian company formation look seemingly complex by writing out a long list of “legal” requirements difficult to understand by the average reader.
However, it is advisable you consult a specialist such as a Lawyer who will assist you in the entire formation process.
The Companies and Allied Matters Act (CAMA) recognises 6 corporate structures in Nigeria:
1. The Business Name
2. The Private Company Limited by Shares.
3. The Public Limited Company
4. Unlimited Company
5. Company Limited by Guarantee; and
6. Incorporated Trustees.
For the purpose of this write up, however, we will be writting about the process of Incorporating a Private Company in Nigeria.
REQUIREMENTS FOR INCORPORATING A PRIVATE COMPANY IN NIGERIA.
Steps for incorporating a new company at the Corporate Affairs Commission, can be summarised in the following 10 steps:
1. Submission of the proposed Company Names to the CAC. This is the first step in the entire process. The promoters of the company must decide on a company name and submit for approval. The government officials reserve the right to approve or deny company names submitted for a number of justifiable reasons – availability, suitability, legality, similarity, etc. It takes an average of 5 business days to get availability results.
2. Details of Directors. Long story short, you will be required to provide the biodata of the Directors of the proposed company. These information include: Full Names, Residential Address, Nationality, Age, Valid Identification Document and Signature of the Directors. The minimum number of directors for a private company is 2 and maximum is 50. There is no maximum for public companies. There are statutory requirements for being a director, one of which is that the directors must not be less than 18 years old.
3. Shareholders/Subscribers. The legal minimum number of shareholders in a private company in Nigeria is 2 and a maximum of 50. The shareholders subscribe to the memorandum and articles of association and are alloted shares in the company.
PS – the shareholders can also double as the directors of the company.
4. Appoint a Company Secretary. Every Nigerian company must appoint a Nigerian Company Secretary, as it has become a legal requirement. The company secretary of a private limited company needs no formal qualifications. It is the directors responsibility to ensure he/she has the appropriate knowledge and experience to act as a Secretary of the company. The company secretary could be an in-house person or an outside consultant. Some of the roles of a company secretary include:
a. Maintaining the Statutory Registers;
b. Liaison between the company and the CAC and other relevant government agencies;
c. Providing members and auditors with notice of meetings.
5. Registered Address of the Proposed Company. The company must have a Nigerian business address. This requirement needs no much explanation and not debatable either.
6. Core Areas of the company’s business activities (Nature/Objects of company). Nigerians and Non-Nigerians are allowed to carry on all forms of business provided it’s legal and not in the “negative list”. If the company will engage in specialist services (Hospital, Consultancy, Schools, Media & Advertising, etc), the directors may need to provide an evidence of professional proficiency. E.g. Certificate of a professional body/trade association, Academic Certificate, or both.
7. Valid Identification. Although I have stated this requirement earlier. It is worthy of mention here again. A photocopy of Identification of all the directors is required. (e.g. National ID card, Data Page of your National Passport, Voter’s Card or Driver’s License).
8. The Company’s Share Capital and Allotment. In simple terms, the share capital of a company (usually in monetary terms), is the amount of capital the subscribers have to carry on the business. The minimum share capital of a private company must not be less than N10,000. However, for economic reasons, it is advisable that an average Nigerian company incorporate a N1,000,000 share capital company. A company’s share capital is also industy-dependent. For example, advertising agencies must have at least N10 million as share capital. The law also stipulates a minimum of N10 million share capital for a Nigerian company with foreign ownership. Your regulator or adviser should advice you appropriately. A minimum of 25% of the authorized sharecapital must be subscribed and paid for.
Once the issue of share capital have been decided on, then the subscribers must also decide on alloting the shares. If there are 2 persons that formed the company, they could share it 50% each.
9. Draft the Memorandum of Understanding and Articles of Association (MEMART). This is a legal document that spells out the business objectives and the framework on which the company intends to run its business within the acceptance of the law. This legal document also shows the particulars of the shareholders and their shares allotment.
10. Payment of Stamp Duty and Statutory Filling Fees. The total fees payable to the Stamp Duty office and the Corporate Affairs Commission is dependent on the company’s share capital.
These are the basic requirements for incorporating a private limited liability company in Nigeria. However, EXPATRIATES are subjected to additional requirements and laws – Nigerian Investments Promotion Act, Immigration Act, Investment and Security Act, and Foreign Exchange and Monitoring Act.
Duration of Incorporation at the Corporate Affairs Commission
As at the time of writing this blog post, the average turnaround time to receive a Certificate of Incorporation and Certified True Copies of your documents at the CAC is 3 weeks.
Come and setup a company in Nigeria – Africa’s most populous nation – a business destination for many investors.
To incorporate your company, you can contact us to facilitate this for you, email: firstname.lastname@example.org or call (+234)080-9502-9999
How did a 30-year old Nigerian and a Ghanaian – Tunde Kehinde and Raphael Afaedor – grow their local e-commerce startup into a multimillion dollar company in less than year?
VENTURES AFRICA – I was chatting with a colleague, as we drove to Jumia’s Lagos corporate office, when he asked rhetorically: “Why would JP Morgan be so interested in a 5 month old Nigerian startup as to invest millions in it?” Well, I was eager to know too.
Africa, home to six of the world’s fastest growing economies, has caught the entrepreneurial bug but an ubiquitous lack of funds has kept its entrepreneurs from marching. Minutes into meeting Jumia co-founder Tunde Kehinde, he would have me know having an amazing powerpoint business plan isn’t the key to investor funds.
“With the little crowd funding you can get, test your business concept and prove it makes money,” he tells me. “That way you become irresistible for investors.”
His partner, Raphael Afaedor chips in: “We had to quit our jobs and put all our effort in what we believed. Often, working 16 hours a day, sometimes more.”
Raphael was laid back, but spoke with rare speed. Spitting an average of 3 words per second, he would give Eminem a run for his money. His business-like countenance, tucked-in white office shirt and black trousers, made him look like the boss at the Jumia office.
Tunde on the other hand, with the rest of the Jumia team appeared youthful and casual.
At the online retailer’s office, dozens of under-30 year olds carrying Jumia tags could be seen in jeans and sneakers or fashionable clothing. Self expression is uninhibited, ideas are encouraged. It’s the kind of place a millennial would love to work. It isn’t the conventional Nigerian work setting – for a second, I thought I was in some sort of Google workspace.
Hanging on the walls at the lobby are two aluminium frames. One reads: “Best People for the Best Team.” The other, a sort of guideline for interaction between the staff, reads: “Challenge ideas but Respect everyone.”
When Raphael and Tunde first conceived the idea of building an enduring online ‘shopping mall’ for the Nigerian market, they had never met. Raphael was Head of Marketing and Sales (West, Central & North Africa) with Notore Chemical Industries while Tunde Kehinde was in the UK assisting alcoholic beverage multinational Diageo, to acquire valuable African brands. Both had also studied at Harvard Business School (and Tunde had tried his hands on Bandeka.com, a dating site for young African professionals) so they had received some training for their impending entrepreneurial pursuit.
Word got around about two guys talking about e-commerce opportunities in Nigeria and by a stroke of fate they met through a mutual contact. 10 days later, the pair started building their first general merchandise store; only this time, the store was to be online. The name was Kasuwa. The strategy was simple – boycott difficulties associated with shopping at the mall – traffic, long queues, stress, time constraint – by providing a user friendly online store with competitive prices, thereby making shopping convenient.
“Why wait till weekend before going to the mall when you can shop at the press of a button and have your purchase delivered to your doorstep?” Tunde wore a wide grin as he made the statement.
The business of delivering electronics, computers, fashionable items, et al across Nigeria’s 36 states is not an easy task. The boys had to quit their jobs and take a risk. Little did they know Rocket Internet, a german internet Venture Capital was seeking opportunities in Nigeria. Like the American billionaire Paul Getty who struck oil at an early age, the young men had struck gold. Rocket Internet, also owners of South Africa’s leading fashion online retailer Zando, met the duo and decided to invest in Kasuwa. June 2012, Kasuwa.com was officially launched.
“It’s not just getting money that matters,” Tunde explains. “Get smart money.”
“Investors that can add value to you, open doors and help you network, will help you run faster against competition.”
Not only does Rocket Internet funds Kasuwa, the group also shares with Raphael and Tunde its network, expertise and vast experience operating e-commerce, including a billion dollar business, in several continents.
An introduction of the German group on its website reads: “Rocket is much more than a venture capital firm or an incubator. We bring together all key elements required to create great companies: team, concept, technology, and capital.”
It’s one thing to have all that support though, it’s another to understand the market and rightly execute market entry strategy in a peculiar one like Nigeria. The first four months were really rough for Kasuwa. Just two months after launch, reports of a brand name change from Kasuwa to Jumia “due to legal issues” filled the online media. Subsequently in September, Jumia and Sabunta – a Nigerian online fashion store, also supported by Rocket Internet – downsized and merged, shedding off around 50 employees, some earning as much as 6.5 million naira ($41,000) per annum.
Raphael says, “the name Kasuwa wasn’t catchy. We wanted a name that could sell, even in other African countries.”
And Jumia sold. With a workforce of less than a hundred, a 12,000 sqft warehouse, omnipresent Google ads, effective marketing campaigns, and countless overtimes, the new brand quickly gained wide acceptance, recording about 40,000 site visits daily – more than Amazon’s site visits from Nigeria – and receiving orders from every state in the country. “The early acceptance surpassed our expectations. We emerged 7th most trafficked site in Nigeria, the number one player in the country’s ecommerce space, and the business was profitable,” Raphael says with a hint of excitement.
It was only natural for J.P. Morgan Asset Management to grab some equity in the company. As hard as I pressed, Tunde wouldn’t disclose the amount of the JP Morgan investment but he was kind enough to tell the cash was “significant enough” for him to feel “very confident about growing the business to a really really large scalable platform for a long time.”
Analytics of top internet searches and inquiries (for products) from Nigeria informs the decision of which category and product is sold on Jumia. Now, the online store gets 70,000 visitors daily. A March statistics report by global web information company Alexa, says roughly 34 percent of visitors to the site are one page views. The remaining 66 percent of visitors spend an average of over 9 minutes per visit. If a-tenth of this group purchases an item (comprising mostly of electronics, mobile phones, fashion items) and Jumia makes a meagre $7 on each sale (the retailer receives products on wholesale), it is safe to assume the company generates $32,340 daily, approximately a million dollars per month.
“Our staff has grown to over 300 and we are expanding into a 66,000 sqft warehouse, only 4 months after we moved into our current 12,000 sqft warehouse,” Raphael discloses.
With Nigeria’s middle class growing tremendously, and consumer buying on the rise, Jumia’s investors seems to have struck another goldmine of the Nigerian economy.
Tunde says: “We don’t want to just make profit. We don’t want to be here just a few years. We want to establish something enduring, help develop e-commerce in Nigeria and provide that talented fashion designer with no shop, a platform to sell across Nigeria.”
All big achievers are big dreamers. More often than not, their dreams are bigger than who they are and what they have while dreaming. And one classical example of big dreamers are Bose Ayeni and Folu, her husband, who cofounded Tantalizers, one of the biggest and the fastest growing fast foods restaurants in Nigeria today, 15 years ago.
Speaking with Weekend SuccessDigest, Bose, who is now Managing Director, Tantalizers Nigeria, with her husband as CEO, shares her experience in starting her business in Nigeria. The first hurdle the couple had to scale to realize their dreams was the recurring decimal in the stories of all entrepreneurs: the start-up capital. Her words:
“Our greatest challenge then was raising the capital. We didn’t have the money required for the kind of venture that we had in mind,” she revealed. But rather than give up their Tantalizers vision, the couple took off the hand breaks and threw in their savings, adding for good measure, soft loans from family and friends.
She revealed: “We started the business in 1997. If I recall now, I know the initial loan that we got was N2.5million. However, that was after we had expended all the money we personally had. I remember we got loans and advances from family and friends and so on.”
Yet the dream was still under threat from a lack of sufficient funds. With their backs against the wall, the couple turned to the banks for a loan. If the Ayenis had expectations that their ‘friendly, neighbourhood’ banks were there to help on days when loans are needed, they had to wake up and smell the coffee! Bose tells the story:
“I recall that there was a bank where we (my husband and I) had maintained an account for so many years and through that you would think you had a good relationship. And the truth of the matter is that when you approach them for a loan for a business venture, you are disappointed (because they won’t grant you a loan).”
“Even when we brought collateral we were not given any loan. The bank was afraid because we were a new venture. But we felt that a bank we have been with for a while should be able to give us such loan.
“And I remember that my husband closed his account with one of those banks out of annoyance. He was just not happy with the way we were treated,” she recounts with a note of sadness.
But the couple did not stop knocking on doors and asking for the bank loans. Their dream was for them, much too precious to give up just because they couldn’t get a loan. And as they say, persistence pays, and according to the former Unilever staff, eventually, one bank took the risk to loan them the money.
“I think the total amount of money was around N7.5 million to N10million then,” she points out. “Also, there was a bank that was ready to give us money. They looked at our proposal and they were convinced that we would succeed. And they gave us N2.5 million.”
She finally heaved a sigh of relief when the bank officials, after several meetings and demanding for countless documents and assessments, decided to grant her the loan she and her husband needed to start the fast food business.
That was 15 years ago. Today, Bose and Folu Ayeni have not only made Tantalizers one of the leading chains of fast food restaurants in the country, they have also listed it on the Nigerian Stock Market as a public limited liability company.
From just one shop eatery in Lagos, Tantalizers has spread across major Nigerian cities, rivalry the other known brands like Mr. Biggs, Tasty Fried Chicken, Sweet Sensation and a host of other not-so-popular ones.
In February 2010, Tantalizers forged a strategic partnership with The International Finance Corporation (IFC), an arm of the World Bank which granted it $7million in loan and took $1.5million equity in company to help take the fast food company to the next level and outwit competition posed by foreign eateries like Shoprite, KFC and Barceló’s in Nigeria.
Though Tantalizers has grown into a multimillion dollar company today, getting a loan from the bank was by no means the only mountain they had to climb to reach the Promised Land they now occupy. First, they had to deal with Shylock landlords.
Bose recollects that, “When we started we actually didn’t start with lack of location. Anyway, we were renting the premises that we were using. But along the way when we also saw that when you rent a property, our experience has shown that, for our kind of our business, you will have to completely redesign the premises to the level of the standard you want to set.
“And the landlord is watching you improve the state of his house and once your lease expires you can be sure that you will come back to pay double. One, he is looking at the renewing the lease on the building; he is looking at how your business is doing well so that he could be a partaker of whatever profit that comes.
“Overtime we have had such experiences. The option they give you is that you can move out if you can’t pay and you would not want to move because you have already established your business in that location. After such experiences we also decided that maybe we should look at acquisition of buildings or land and build on our own rather than having problems of landlords.”
A strong will is certainly important for every entrepreneur, especially if you start business in Nigeria. No sooner had they decided to acquire their own properties and build than they had to contend with another challenge: land speculators!
“We faced problems with land speculators. You buy a piece of land and at the point you are about to build on it somebody would come to claim the land. And as we speak now, we have a similar case at a site.
“After paying, we sent for the soil engineer to start the soil test because of the kind of structure we want to build on it. It was an initial property but suddenly somebody came to say that they own the place. Unfortunate, it was the police. As we speak, we have not been able to resolve the issue and we are waiting for the authorities before any work could commence,” the Tantalizers boss recounts.
This prevalent problem of land speculators has not stopped the company from growing though. Even amidst growing competition from local and international fast food brands, Bose and her husband have been able to steer Tantalizers in the right direction of grow and expansion. Tantalizers currently has over 30 outlets in Lagos alone and a total of about 50 across the country. For some time now, the fast foods restaurant has been planning on taking its operations outside Nigeria to the US, UK and Europe.
However, Tantalizers’ growth has not been without fierce competition coming from other fast foods companies, indigenous and international. Competition and the challenge they pose to Tantalizers’ dominance is not an issue Bose loses sleep about; Tantalizers, according to her, is not resting on its oars in spite of its achievements and wants to continue to expand. Her words: “We have been in business for 15 years and we have seen different phases of competition.
“We started from where competition was largely local. We had a dominant or major player who was Mr. Biggs and all others. All others then were made of people like us, Tasty Fried Chicken, Sweet Sensation and we have lots of neighbourhood competitions.
“But overtime, we found out that a lot of neighbourhood operators were dwindling and some of them have shut down. Then all others are surviving. And in the last five years, we discovered that the competition moved from being local to international. We have had a couple of entries of international brands.
“We now have KFC, South African brands among others. The face of competition has changed, and demands made on local operators from consumers have also changed. It has changed expectations of average consumers.”
Is she learning anything from her competition? Bose answers in the affirmative, adding that, “For us at Tantalizers, it has only made us wiser because in a situation where we were dealing with one of us is different from when we are dealing with an international brand that we know we can learn from.
“So what we have now is that the local fast-food operators are working to bring themselves up to the level of the international brands.”
With international brands now involved in the same market, how has Tantalizers faired in the market? An astute businesswoman that she is, Bose reveals that the competition has been there from day one, but Tantalizers’ concern is to “think every day of how to improve what we do to satisfy our customers because they are key to our goals.”
Speaking further on taking the business to the next level, Bose admits that the loan granted by IFC is a major boost for the business. She believes that, “our association with International Finance Corporation (IFC) should push us to a higher level because when you have an association with the World Bank, there are acceptable standards expected of you.
“So, the association would not only help in the area of finance but it would also help us and push us to the next level to ensure that we benefit in terms of IT and information flow and integration upgrade.”
This is not all. The former Rank Xerox employee reveals that Nigerians are welcome to join the Tantalizers family, explaining that by being a part of the Tantalizers franchise is being part of a great dream. She explains:
“When you come to Tantalizers and you accept that you can do a franchise with us, we ask you some questions. We ask you if you have a location or we give you a location we have been looking at, we supervise the building of the structure. Do you have the resources?
“If the location is okay, we give you an agreement; we take you through the training programme. Thereafter, we recruit for you and manage the business with you for a period of time until we are sure you are able to run it on your own,” she pointed out.
From a dream that was in danger of fizzling out due to lack of funds, Tantalizers has grown to become a fast food restaurant of choice for Nigerians. We sought to know what the success secrets of the boss were and she lists them carefully.
“I think for me the number one thing is that you need is to acquire knowledge”, she begins. “You must have an idea of what your business is. You should understand basic financial principles. You must know that there is difference between revenue and profit.”
Then she emphasizes prudence, revealing that “You must not be disciplined and delay gratification when money comes in. A lot of businessmen throw parties when money comes. You must invest on your workers. You must have a vision that is bigger than yourself.
“My vision for Tantalizers was not as big as my husband’s vision for Tantalizers. It is my husband’s vision for Tantalizers that has taken us to where we are now. You must have a roadmap on how you want to get there. You should work with people and deal with them as people and not as tools. Always think of the human side of people.
“You may not be the best payer in the economy but people working for you should be happy when they leave their homes for work not because of how much you pay them but because you have built a relationship with them that transcends the job. As a woman, another principle of success comes from support from your family, support from your husband. My husband really supported me.”
WHAT IS YOUWIN!?
YouWiN! stands for Youth Enterprise with Innovation in Nigeria. It is an innovative business plan competition aimed at job creation by encouraging and supporting aspiring entrepreneurial youth in Nigeria to develop and execute business ideas. The accomplishments of the 1,200 YouWiN! awardees were celebrated at the Presidential Villa on April 12, 2012. YouWiN! Women was the second edition of the entrepreneurial scheme, which was designed for only female entrepreneurs aged 45 years or less. YouWiN! 3 is the third edition and will feature men and women entrepreneurs in Nigeria between the ages of 18 to 45.
The Youth Enterprise with Innovation in Nigeria (You WiN!) Programme is a collaboration of the Ministry of Finance, the Ministry of Communication Technology (CT), the Ministry of Youth Development and the Ministry of Women Affairs and Social Development that will launch an annual Business Plan Competition (BPC) for aspiring young entrepreneurs in Nigeria, in line with the Federal Government’s drive to create more jobs for Nigerians. The programme will be implemented in partnership with Nigeria’s private sector, who will be requested to provide funding support.
GOAL OF THE PROGRAMME
The main objective of the Youth Enterprise with Innovation in Nigeria (YouWiN!) Programme is to generate jobs by encouraging and supporting aspiring entrepreneurial youth in Nigeria to develop and execute business ideas that will lead to job creation. The programme will provide aspiring youth with a platform to show case their business acumen, skills and aspirations to business leaders, investors and mentors in Nigeria.
SPECIFIC OBJECTIVES OF THE PROGRAMME:
- Attract ideas and innovations from young entrepreneurial aspirants from Universities, Polytechnics, Technical colleges, and other post-Secondary institutions in Nigeria;
- Provide a one time Equity grant for 1,200 selected aspiring entrepreneurs to start or expand their business concepts and mitigate start up risks;
- Generate 80,000 to 110,000 new jobs for currently unemployed Nigerian youth over the three years during which the three cycles will be implemented;
- Provide business training for up to 6,000 aspiring youth entrepreneurs spread across all geo-political zones in Nigeria;
- Encourage expansion, specialization and spin-offs of existing businesses in Nigeria; and,
- Enable young entrepreneurs to access a wide business professional network and improve their visibility.
- YouWiN! is an equity contribution to your business. It is therefore NOT A LOAN but a grant.
- Award recipients will be paid according to the needs of the business and specific mile-stones stated in the business plan.
- Award recipients must be registered with CAC before disbursment of funds even though they do not need to be registered to apply. YouWin! will support the registration process.
- Award recipients will opperate accounts using their registered companies with any of the participating commercial banks prior to disbursment.
- Award recipients must sign a grant agreement with the managers of YouWiN!before disbursment of funds.
FOR GENERAL ENQUIRY:
Woka: (234) 809 594 1711
Oyinda: (234) 812 891 8177
YOUWIN! FIRST EDITION:
Nanko: (234) 815 751 2826
Oyinda: (234) 812 891 8177
Olawale: (234) 818 032 4052
Michele: (234) 818 723 7689
Ken: (234) 810 219 9690
Wale: (234) 806 394 1372
For more information, visit : https://www.youwin.org.ng/about-youwin/
- Manufacturers Association of Nigeria (MAN)
- Nigerian Association of Chambers of Commerce, Industries, Mines & Agriculture (NACCIMA)
- Nigerian Association of Small Scale Industrialists (NASSI)
- Nigerian Association of Small & Medium Enterprises (NASME)
- Federation of Nigerian Exporters (FNE)
- The Raw Materials Research and Development Council (RMRDC)
- Nigerian Export- Import Bank
- Nigerian Export Promotion Council (NEPC)
- Manufacturers Association of Export Group(MANEG)
- Nigerian Foundries Limited(NFL)
- Bank of Agriculture (BOA)
- Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
- Abuja Enterprise Agency (AEA)
- Debt Management Office
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There are two major ways the entrepreneur can obtain outside financing for a new venture.
Debt Financing: This involves going into debt by borrowing money from another person, a Bank, or a Financial Institution. This loan must be paid back over time with interest. A loan also requires collateral that pledges business assets or personal assets, such as a house, to secure the loan in case of default.
Equity Financing: Involves giving ownership shares in business to outsiders in return for outside investment monies. This money does not need to be paid back. It is an investment, and the investor assumes the risk of potential gains and losses. In return for taking that risk, the equity investor gains some proportionate ownership control.
Equity financing is usually obtained from venture capitalists, companies that pool capital and make investments in new ventures in return for an equity stake in the business. Typically, venture capitalists finance only a very small proportion of new ventures. They tend to focus on relatively large investments, such as N160,000,000 (about $1million) or more, and they usually take a management role in order to grow the business and add value as soon as possible. Sometimes that value is returned when a fast-growing firm gains a solid market base and becomes a candidate of an initial public offering (lPO). This is when shares of stock in the business are first sold to the public and then begin trading on a major stock exchange. When an IPO is successful and the share prices are bid up by the market, the original investments of the venture capitalist and entrepreneur rise in value. The anticipation of such return on investment is a large part of the venture capitalists motivation; indeed, it is the nature of the venture capital business.
When venture capital isn’t available to the entrepreneur, another important financing option is the angel investor. This is a wealthy individual who is willing to make an investment in return for equity in a new venture. Angel investors are especially common and helpful in the very early start-up stage. Their presence can help raise investor confidence and attract additional venture funding that would otherwise not be available. For example, when Ajike wanted to start her sales of compensation firm, Azrab Ventures, she contacted to 40 venture capital firms. She was interviewed by 20 and turned down by all of them. After she located N50,000,000 from two angel investors, the venture capital firms got interested again. She was able to obtain her firs N320,000,000 in financing and has since built the firm into 200-plus employee business.