Why did you think Akin was struggling in his business and Kunle was doing well?
I know it’s been a while, but the story of Akin and Kunle did not just start today, it started in our previous mail.
You can read it via this link so you can understand this thing wey we dey discuss.
Have you read it?
I know some of us will not read it, na our way as Nigerians, we no too get time. Let me summarize what happened between Akin and Kunle to you. So you won’t be lost when we continue our talk.
Akin and Kunle were two best friends with almost the same drive and level of knowledge while in school. They both ventured into different businesses after their graduation.
Fortunately, and unfortunately, Akin was struggling to build his business effectively, while Kunle already had his structure in place and seemed to be running excellently.
So what could have happened?
One of the most cogent factors influencing the success or failure of businesses in Nigeria or across the length and breadth of the world is capital.
Well, that’s the business term for it.
Locally, it’s called:
Owo in Yoruba
Ego in Igbo Language
Kudi in Hausa Language
Generally, it is called Money.
“Money said if I am not at home, nobody should offer any suggestion whatsoever”.
The statement above is a popular traditional adage.
Can we say the same about our business space, especially startups in Nigeria?
Before we conclude that, it is important to note that before we deal with the issue of unemployment it is important to capacitate (fund) the MSMEs we have.
According to some financial experts, about 80 percent of Small and Medium Enterprises, and SMEs, in Nigeria fail within the first five years of their existence due to lack of experience and other wrong business practices.
This country and continent are hard already, and we must appreciate several individuals springing up to break the chain of millions of unemployed youths we have in this country by starting and running their businesses.
Should we also leave them to fizzle out due to a lack of financial support?
This was what inspired Ayo and Olu to start Lagos SME Bootcamp. We have the intention of providing the needed support and raising the next generation of successful business owners across Africa, starting from Nigeria.
Wait fess,
Did I just say Lagos SME Boot Camp?
Aye mi
We are now CALADIUM LAGOS SME BOOTCAMP.
Relax,
We still have the same mission,
Still driven by the same vision
Pilot by the same team.
So E ma fo (Don’t Break).
Back to the subject of this mail.
A few weeks ago, we made a post across our social media feeds and it spurred engagements and sparked questions in our DMs.
We talked about How Sade Uses Invoice Factoring to Scale her Business.
We won’t be discussing the Oyinbo processes of Invoice Factoring, let’s break it down into practical steps for full understanding.
Step 1: Ayo, a small and medium scale corporate gift supplier got a 2 Million Naira contract to supply Mr. Olu’s company.
Step 2: He (Ayo) prepared his invoice, and sent it to Mr. Olu.
Step 3: Mr. Ayo was told he would get paid the 2 million after he made the supply of the goods to the company.
The problem here is that Ayo needs at least 1.5 Million to execute the job, which he doesn’t have and has no means of raising.
That is where INVOICE FACTORING comes in and we are off to the next step.
Step 4: Ayo approached an INVOICE FACTORING COMPANY to present his invoice in exchange for funds to execute the project at a discount (This means that since the project is worth 2 million, the invoice factoring company could buy his invoice for 1.95 million depending on their fees).
Step 5: Upon affirmation and other necessary agreement between Ayo and the Invoice Factoring Company. Ayo was given a sum of 1.5 million, So the total bill of 2 million will be paid by Mr. Olu to the Invoice Factoring company and the balance minus (-) the company’s management fees will be paid to Ayo .
Step 6: Ayo executed his project successfully, the invoice factoring company gets their money back and Mr. Olu gets a quality job. Everyone is happy.
Did you get it?
If you don’t get, don’t forget about it.
Ask questions.
At the CALADIUM LAGOS SME BOOTCAMP, we are in the BUSINESS of seeing your BUSINESS SUCCEED.
We told you we REBRANDED to be able to serve you better right?
Well, we are launching a product that will help small businesses function effectively and break the barrier of funding.
We have an INVOICE FACTORING product.
The gist is this opportunity is only limited to the first 100 business owners.
Let us test the water before we eventually scale.
If you are seeking funding for your business or you know someone who does.
Kindly share this link with them, so they can register and join our waitlist via www.fedhagap.com
Remember the first 100 small business owners.
Finally, we congratulate @qiqifarms on Instagram for winning one of our customized shirts and an invite to our 5th year anniversary.
E choke abi?
That is part of what you get for following our social media updates.
PS. Feel free to reach out if you have any inquiries. You can reach me via alex@lagos-sme.com
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