“Three components make an entrepreneur: the person, the idea and the resources to make it happen.” – Anita Roddick
VENTURES AFRICA - I get confused with
quotes sometimes – one points at a direction and the other seems to
point at the opposite. However, the above quote is meant to set the pace
for this exciting account of a touching account of entrepreneurial
experience which I have the copyright to share with everyone willing to pick up a thing or two in their personal sojourn into entrepreneurship.
Ventures Africa sat with Bukky
Shonibare, the Group CEO of “The 555 Group” owners of 555 Consulting
Limited (Human Resource Management, Operations Management, and
Strategy); 555 Foods (owners of ‘Beans City’); 555 Impact Centre
(Training & Development); and 555 Foundation (Corporate Social
Responsibility with focus on promoting Entrepreneurial Development,
Personal Development, and Poverty Alleviation) as she shared a story
every budding entrepreneur must take to heart as you navigate the mucky
waters of entrepreneurship. Bukky holds dual Certificates in
Entrepreneurial Development and Social Sector Management from the Pan
African University, Nigeria. She is also a Training partner on the SME
Toolkit, with the International Finance Corporation (IFC – member of the
World Bank Group). Read below her story and tips on entrepreneurship…
“Let me start by stating how difficult
and sensitive it is for me to pen this down. This is not just my real
life ‘business failure’ story, but also a fresh wound I am still
recovering from. It is especially tougher because as a Management
Consultant, I am not expected to make these kind of mistakes; yet this
has proven to me how hard it is for a surgeon to operate on himself. I
have also come to understand that making mistakes is not a reason to
stay down and dwell in pity parties, and giving up is NOT an option no
matter how grievous or seemingly irreparable the challenge may be.
Surmounting these roadblocks has invariably empowered me with the
ability to better advise others.”
Having left paid employment in December
2007, I decided to face, full time, an NGO (The Light Foundation – TLF),
which I had started while living in England. To me, TLF was not doing
any badly as we could boast of some remarkable projects that were
impacting hundreds of lives in several ways. Then it dawn on me that
running a charity organization abroad is quite different from running an
NGO in Nigeria, especially in terms of funding, technical support, and
credible collaboration.
When funding and support became somewhat difficult, I decided to pend the NGO and start a profit-making business; so I started 555 Consulting Limited. I
planned to build a strong and sustainable internal operational
structure so that when my attention shifts back to the NGO, the business
would be able to stand on its own with minimal attention to it, and a
certain percentage of the annual profit would be earmarked for impact
projects in TLF (now, 555 Foundation). I should have stayed with my plan, but after two years of running 555 Consulting,
I decided to start a regular income generating business so as to have
real life business field experience which I believe would boost the
depth and quality of my consulting; so I started 555 Foods (owners of “Beans City”).
Below are some of my mistakes and the lessons I have gathered so far in running these businesses:
Lesson 1 – Festina Lente: This literally means: make haste slowly.
My greatest mistake was moving too fast, when I should have actually
hurried slowly. Beyond every reasonable doubt, I am now convinced that
every idea has its perfect timing. That you ‘caught’ an idea, and you
are so excited about it does not mean you should start immediately. It
is sometimes wise to wait and plan; but our fear of someone else
starting the same unique business makes us rush into commencing.
Starting Beans City, when 555 Consulting was still
relatively young was a decision I should have considered well. The
consulting firm being young is not so much a function of how many months
or years we have been in operation, but how well we have built the
internal processes and structure to ensure its survival and
sustainability.
Lesson 2 – Start small and grow gradually: I was able to gather funds from different sources to create the physical standard I wanted for Beans City;
but I later realized that perhaps I should have started really small –
from my kitchen, serving family and friends, or doing outdoor and
delivery services, as that would have provided me the opportunity to
learn some things I had to forcefully, yet painfully, learn on the
business. This did not only set us back, we wasted money.
Lesson 3 – Bounce-off ideas:
This is about standing on others’ shoulders so as to see farther! I was
unable to find any business owner who was doing the kind of business I
wanted to do – a beans-only restaurant; everyone was doing the regular
kind of restaurant. I made avoidable mistakes even though I have great
people around me who are brilliant enough to help prune my crazy ideas,
yet I narrowed down to a microscopic few whose
advice/contributions were limited to their fields and experiences. It
is however unfortunate that the experienced ones were unwilling to share
important information that would have helped my start-up. Some were so
scared of competition that even when my business is geographically far
away from theirs, they still were unwilling to share.
Lesson 4 – Manage Opportunities: Even though I had written down my idea of a Beans City
three years before I started, I prematurely commenced because an
opportunity came for me to pay 25% towards the purchase of a shop, which
I jumped on without having a concrete plan for how the next payments
would come, believing that Beans City would grow immediately and
make enough profit to cover the huge monthly installment payments for
the completion of the remaining 75 percent. Truth is, not all
opportunities are to be seized no matter how juicy they appear; there is
time for everything! And that you have one out of all that is needed
for a business to start, does not mean you have all, as there is need to
consider several factors like: costs, preparedness, time, resources,
etc.
Lesson 5 – Start and move with the end in mind:
The best way to build a structure that will last is to first have a
clearly mapped-out architectural plan. Though while building, there will
be need to make some adjustments based on realities, but the presence
of a plan will save a lot of headache. Another mistake I made was to
‘jump start’ the business without a well thought-out management and
operational plan.
Lesson 6 – Feasibility:
To run a successful business, assumptions don’t work! I conducted a
virtual presumptive Feasibility Studies, which of course, was
inconclusive and inaccurate. I assumed setting up Beans City
just anywhere would sell due to the uniqueness of the concept, and the
aesthetics I planned to create. I later realized that one cannot build a
castle in the desert; people will only admire or wave at it from afar
and may come close once in a while, sometimes never. It became valid
how that the three most important things for a business are: Location!
Location!! Location!!! If I had conducted a proper Feasibility Studies,
it would have revealed, among others, the fact that the location of the
business was not suitable for the standard I created.
Lesson 7 – When you fail to plan, you plan to fail:
It is one thing to have a great idea; it is another to have a
framework on HOW it will work out profitably and sustainably. I realized
that the most important thing any aspiring business owner need is NOT
funds, as you may have all the funds and not know how best to utilize
it! I lavished my funds on aesthetics, yet the internal structure was
suffering. I should have had at least a six-month plan on how the
business will be sustained operationally; like plans for salaries,
fueling of the generator, buying electricity units, re-stocking, and
even statutory government payments (e.g. Food Handlers fees, Signage
levies, etc) so much so that government officials were coming with
threats to close the Restaurant, which destabilized and demoralized me
as well as my staff. I beseech you to please PLAN!!!
These are some of my avoidable mistakes
and the unpalatable lessons I have had to learn; but I am glad I did as I
have become wiser having learnt lessons and gained experiences I would
not have got in a 4-walled classroom or a-thousand-page book. While I am
currently recovering and making my way back on track, I implore you to
learn from my goofs and not repeat them!
I wish you great success.
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