Nigeria’s current economic state, characterised by various challenges, has been a significant driving force pushing many Nigerians towards entrepreneurship and self-employment.
The minimum wage earned by Nigerian workers has forced some civil servants in the country to dive into other means of livelihood which would help them meet the basic needs of life (shelter, food and clothing).
There has been an outcry in different corners for President Bola Tinubu to increase the minimum wage of workers following the rise in the price of commodities in the country.
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The leadership of the Organised Labour, Nigeria Labour Congress (NLC) and the Trade Union of Nigeria (TUC) at different times have called for an increase in the minimum wage.
In the last few months and with promises made by President Tinubu in his New Year message, there are indications that the Federal Government might increase the minimum wage.
However, there are no signs that this wage will be enough to the needs of a civil servant, this made a Naija News correspondent take time to interview a business expert and CEO of Product Growth Manager (Picharge), Adeolu Timothy, on how to dive into lucrative businesses that would be extra means of earning money.
What are the key factors to consider when identifying a lucrative business opportunity?
“What problem are we solving?
“What need are we meeting?
“Whose problem/need are we solving/meeting?
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“Are they willing to pay for the problems/need to be solved/met?
“To identify businesses that are most likely to succeed, you must also consider a factor called Market Pull.
“Market pull is when consumers reflexively want a product upon learning of it, and they’re willing to do whatever is required to get it.”
How important is market research in the initial stages of starting a business?
“Market research is a vital sign of any business. It is necessary to understand the market, potential customer, value proposition, competition, and other factors before launching a business. This helps to identify and make adequate preparations for every variable that can make the business succeed.”
Can you suggest effective strategies for developing a robust business plan?
“Using a Business Model Canvas is one of the most effective ways of developing a business idea.
“It’s a tool that helps define in clear terms what your unique value proposition is.
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“What makes you better than your competitors and what alternative solutions that your potential customers currently use?
“It also helps to define who you are solving problems for, what you need to have the problems solved, and how you intend to reach them and make revenue.”
What are the most effective ways to secure funding or investment for a new business?
“Friends and families are one of the sources of funding available to business owners.
“Raising funds from them is solely dependent on your ability to sell your vision to them.
“Grants are another source of funding. Some organizations provide grants to startups and SMEs. You can apply to these and raise funds via that medium.
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“Early adopters are also another medium of raising funds for startups. Depending on your product type or service offerings, some potential customers will be willing to pay upfront, pending when the product/service will be offered.”
What are your recommendations for setting realistic yet ambitious business goals?
“Let the size of the problem you are solving define your business goals. A business is more than just an idea, there is a long road from having an idea to developing a Minimum Viable Product and even getting a Product Market Fit.
“Importantly, be guided by data. Make decisions and projections as you review your progress and achievements.”
Could you provide insights into identifying and understanding the target audience?
“A very good tool that helps with identifying and understanding the target audience is called Empathy Map.
“This tool helps in effective customer persona development. It’s a process of studying everything about customers.”
What are the best practices for effective budget management in a startup?
“Keep accurate records. Keep your expenses as low as possible.
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“Whatever does not directly impact sales, don’t spend on it.”
How crucial is digital presence for a new business, and what are the best ways to establish it?
“Social Selling is an effective strategy for building a digital presence for a startup.
“Understand which social media your potential customers spend most of their time on, then launch your presence there.
“Interactive content, videos, and user-generated content are very good strategies to explore.”
What are the common pitfalls to avoid when starting a new business?
“Be customer-obsessed, not product-obsessed. Always listen to your customers, and allow data to guide your decision-making.
“Don’t be afraid to experiment.”
How can a new business build a strong brand identity from the outset?
“Make relatable content. Tell stories about the problem the business is solving.
“As much as possible, build in public. Make people buy into the brand story as early as possible.”