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Tag Archives: Entreprenuers

Who To Negotiation With A Potential Investor

There are too many people that think raising money is like an episode of Shark Tank. You say, “I’m raising $XM at a valuation of $YM” just like they do on Shark Tank. Not only does providing a valuation makes you look like an amateur, providing a valuation can reduce the value of your company. Let me explain… In any negotiation, you should always let the other side provide a price first. Yes, you have to be emotionally strong because of the effect of anchoring, but… It’s always possible that you will get an offer at a price much higher than you expected. And you blow that opportunity the second you put a price out there first. So, absolutely be clear about how much money you’re raising. That’s the right way to go. But stay away from providing a valuation. The market (potential investors) will determine what your company is worth. Then you can always say, “No thank you” if you don’t like what you hear. I’m not saying you shouldn’t have a plan when you negotiate. You absolutely should have a plan. And you should have an idea of what you believe your company is worth. But understand the ...

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Business Partnership (Pt 3) – Opeyemi Komolafe

Business Partnership Part 3 As much as having a partner gives you leverage, having a problematic partner can cost you business, clients, your reputation and even your entire company.  So what do you do when you find out you have made a partnership error?  Dissolve the partnership as soon as possible. Knowing that a business partner is a fellow member of a business by contract, to dissolve the partnership, you will have to go back to the contract, get your lawyers and settle amicably (hopefully out of court).  It is important to note that all partnerships have their ups and downs, that said, we must be able to separate differences in personal and corporate affairs. Irreconcilable differences in some personal affairs might not necessarily impact the business, so to dissolve a viable partnership over preferred educational systems for your children is just plain folly, no matter how heated the argument. The denomination of your church does not impact on your business. A necessity to take an annual leave to vacation every year doesn’t necessarily impact your business.  As long as those differences don’t affect the business or reputation of the business, the partnership can work.  The minute your differences begin to ...

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10 Ways to Know If You Have a Great Business Idea

Good Ideas Ready to take on the world of entrepreneurship? In order to find startup success, you need a great business idea. But a winning business idea is more than just something you’re excited about or good at — you have to make sure your idea is actually viable. Business News Daily asked experts how you can tell if your business idea is poised for success. Here are 10 questions to ask yourself before pursuing your business idea Does it solve a problem? Entrepreneur and co-founder of the Web design school The Starter League Mike McGee thinks the best business ideas are those that solve a problem in some way. “If there is a problem that affects you, your friends, family, co-workers, etc., then the chances are high that it affects people you don’t know as well,” McGee said. It’s paying customers who validate an idea and determine which ones have the greatest chance for success, said Wil Schroter, co-founder and CEO of Fundable. “An idea is just an idea until you have a paying customer attached to it,” Schroter said. “Anyone can discredit a simple idea, but no one can discredit paying customers.” What’s your price point? Charlie Harary, founder and partner ...

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Challenges New Entrepreneurs Face Pt2

Hi BIE readers , you can refer to the part 1 of this post. Here… not to miss out on the points, for those just reading this, this is a brief introduction to the post. ‎ The economy is not smiling in a lot of countries in the world right now, especially countries that were totally dependent on oil as income. A country like Nigeria has been one of the greatest ones hit since the fall in oil prices and this has led to a lot of pay cuts, job losses and a hard time for employers to even pay salaries. This situation has forced a lot of people to seriously begin considering entrepreneurship like never before. Here are the final 6 challenges you may face as a new entrepreneur and ways to conquer them. 7. Dealing with the stress of not having a steady income: To me, that was one of the greatest challenges I faced. Many times I would say to myself, “Wow! I should have received a credit alert today, if I was still under paid employment”! At those difficult times, it is your passion for rendering the service that keeps you going. 8. Managing your money: ...

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Money or Passion? Which would make you happy?

The major problem with most people is that they put making money before fulfilling their dreams or their passion. I have a lot of friends who have gotten into banking just because of the money, fast forward to 10 years down the line, they want to get out to pursue their passion. Unfortunately, 10 years have been wasted on being average.  Working for free is definitely a lot of sacrifice, but nothing good comes easy. We make sacrifices to succeed sometimes. I remember the first employee I took into my company was earning five times what I was offering her in her previous employment. Honestly, I must tell, you I didn’t want to take her because I felt she would be dissatisfied. But she made the decision to move because she wanted to build a career in Human Resources (HR). I asked her “How will you cope? Honestly, this is a start up and I definitely cannot do much”. You wouldn’t believe what she said to me! She said “I should be paying you ma for teaching me” At that point, I saw the determination and the willingness to learn in her, and  I took her in just with a little increase to ...

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INTEGRITY: A NECESSARY GOOD IN BUSINESS

Integrity…………. a core value that is listed on every organization’s wall, physical or virtual, yet is one of the scarcest commodities in business relationships today. Let’s look at the meaning of integrity. The Oxford Learners’ Dictionary defines integrity as “The quality of being honest and having strong moral principles”. The Cambridge Dictionary adds a clause at the end of that …………..”that you refuse to change”. As an entrepreneur, your reputation is a large part of your business, and your clients, your vendors, your staff should be able to bank your words. You should run your business in such a way that if you ask for a loan extension it will be approved, if you ask a vendor to deliver and be paid later they oblige, if you promise a client a delivery within a certain timeline they won’t need a backup plan,………..you get my drift! Unfortunately, integrity as an entrepreneur is not suddenly endowed from heaven immediately you start a business, it starts from having integrity as an individual first. Your business is an extension of your person; your values; your ethics. If as an individual you are not known for reliability, honesty, dependability, quality, excellence, morality, etc it won’t ...

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How To Successfully Pitch Your Business

magine this scenario. You’re in a meeting with a major potential customer. And this one customer can make or break your business. You have to win this deal or your business is going to fail. Or imagine this scenario. You’re raising money. The potential investor seems really excited about you and your company. And this meeting will likely determine your fate. Or imagine this scenario. You’re recruiting a really talented potential new employee. The potential new employee has asked you to present your plan.   Are you ready? Because you only have seven quick seconds to win or lose the deal, get the funding, or hire the really talented employee. That’s it, seven quick seconds. You may have even less time if your pitching to investors. People make buying decisions very quickly. Then they spend the rest of their time with you justifying their decisions   So what can you do to grab your audience’s attention in less than seven seconds? I introduced my brother to a friend who could be a potential client last week. My friend called me yesterday and said he was going to work with my brother. Here’s what my friend said about his meeting with ...

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Entreprenuers And Money- Opeyemi Komolafe

Its amazing the number of businesses which start each day. I don’t have statistics, but using the numbers from my circle of influence alone, they’re a lot.  A key question is “Why don’t some of them live beyond a month, six months or beyond its first cycle of product sale/delivery?” A lot of reasons could be the cause for this but a popular one is ‘LACK OF CAPITAL’. Excuse me, please what happened to the capital you started with, and the profit you made from your first cycle? Then you begin to hear answers like; “I had bills to pay”, “I paid myself a salary”, “I kept a few items for myself”, “I had to take care of some pressing needs”, etc It is fine to spend your profit on the above, but to spend your capital is completely unacceptable. A popular cliche in certain circles is “Don’t eat your seed because it is your future”. Your capital investment is necessary for continuity of your business, while your profit is important for expansion of your business. Eating up both of them leads to the death of your business. There is someone very close to me who is a sales guru. ...

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Working With Your Friend As A Co Founder

I read this articles online and  I could completely relate to it,  I had once found myself in the same situation sometime ago and also didn’t handle it well. Reading this article made me realize the mistakes I made. Be inspired when learning from this. Should I Work With My Best Friend As Co founder? By Brett Fox I had a very close friend who was a co-founder of my company.  Here’s what happened: “You have an EQ of zero!” Ken yelled at me. “What the hell is an EQ?” I asked. “Perfect!” Ken screamed back. Then he hung up the phone. Those were the last words Ken ever said to me. Just like that a twenty-year friendship and business relationship ended forever. Ken was a co-founder of my company. More importantly I considered him a close friend. I had lunch with Ken the day before to have our weekly 1:1. I pushed him pretty hard at lunch because he wasn’t performing well. I looked down at Ken’s feet and he wasn’t wearing socks. It triggered a memory of when we were raising money. We were in a diligence meeting with a VC and I vividly remembered the VC looking ...

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The Keys To An Enduring Business

By Opeyemi Komolafe In the world today, we hear about so many businesses which do not outlive their creator/founder/owner. The business is meeting needs, providing goods and services for  thousands or even millions of clients, but shortly after the owner dies or retires, the business is run aground. As an entrepreneur, no matter what grand innovative ideas you have, no matter how fantastic your business acumen is, you cannot live beyond one lifetime. To ensure that your business; your legacy endures for generations: You must set up systems and structures. You must replicate yourself. You must pour yourself into others. You must select a group of future leaders into which you will transmit your way of doing things, your ideology, your creativity, your morality, your principles, your standards and your personality. It should be so effectively done that when you are absent, things should run as well as if you are on ground or even better. This select group of people should spend time with you getting to know how you think, how you react in situations, how you get inspired with ideas and what you envision the business to be.  You should have laid down documented policies and standard ...

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