Feature/OPED
8 Steps for Turning Viable Business Idea Into Fundable Business
By Dotun Oyebolu
There is an old saying that investors bet the jockey over the horse. Horses come and go, but a really good jockey is a rare thing and lasts a lifetime.
The discourse about lack of funding being the most critical challenge facing small businesses seem to have been overestimated to a degree that it’s been formed in the neural pathways of many entrepreneurs. They blame everything, even internal problems on lack of funding.
On the flip side, newspaper headlines continue to feature many emerging businesses whom recently have secured funding from local and foreign investors.
When I analysed these businesses side by side with the total stock of funds in Nigeria looking to invest in emerging businesses, (which my data happens to put at $6 billion), I believe the major issue here in Nigeria is that we have very few fundable businesses.
You need to understand the difference between a viable business and a fundable business. Certainly a non-viable business should not be fundable, but many viable businesses are also not fundable. Fundamentally, a viable business means that your business is on its way to self-sustaining revenues, while a fundable business means your business has the potential to fundamentally change the lives of a large number of people and can generate optimal returns for investors.
Financing a viable business that is not fundable will just be mere experimenting. Nobody wants to experiment; they want to either light up a fire that they are sure of or pour gasoline on a fire that is already burning – a $1million business idea is different from a $1million business, investors are interested in the latter.
Hence, before you source for funding or come up with excuses why your funding request was rejected, be brave and look at your business with honesty: does it look and feel like a fundable company?
So here we go, how do you make your business fundable?
For your business to be fundable, your business plan need to clear, scalable, possess huge market potential and has to be uniquely qualified to deliver. You need to match your plan with credible likelihood to execute. According to Alan Brody, the best (fundable) idea and entrepreneurs are “in the moment” of the idea – the idea looks right, the entrepreneur looks right and the timing looks right.
The steps outlined here should be used as a baseline for any entrepreneur working to develop their idea or concept into a fundable business proposition and moving it to the next level with potential investors.
Validate your idea
You shouldn’t try to create a business that has not yet been defined. The biggest mistake most entrepreneurs make is starting to work on a business idea before confirming that there is market demand. If your startup aims to sell a product the world has never seen, make sure the world, in fact, needs your product. Perhaps it doesn’t exist yet because no one needs it. If it is needed, then make sure the world is willing to pay for it. Don’t work on the business until you’ve validated the idea, make sure there’s a market, make sure it’s what the customer wants. Sometimes the entrepreneur’s vision doesn’t align properly with what customers want.
Create a solid business plan, pitch-deck and financial model that you understand
Half the business idea pitches I hear don’t have any plan at all, even though some have great potential. Creating a business plan requires you to do research and really think about your product or service, identify your prospective customers, and to analyze your competition in that specific channel or marketplace. It will help get you thinking about marketing and overhead costs. As you go through this process, your idea may begin to change, to grow, and to mature into a well thought out and developed concept. This is what investors will be interested in.
Build the right team
Investors bet on the team, just as they bet on a business plan. Your business model may be very attractive, but if you are new to this, you may not be fundable. If you can find a partner who has deep domain knowledge and a track record of building businesses, I can assure you that your luck will improve.
Have a thorough structure
Governance of a company, even a young one, can tell an investor a lot about the capabilities of the promoters. Ensure that you can accurately portray your current company structure, and that you have the clerical backing for it. All registration documents and resolutions need to be obtainable and compliance with all industry bodies and laws need to be in place.
Have a clear go-to-market strategy and competitive advantage
You need to show how your product or service will be embodied in a solution that satisfies people’s need, what channels will be used for sales and what business model maximizes return. You also need to have a long-term sustainable competitive advantage in the market, an idea or concept that changes the basis of competition within the targeted market of interest.
Your business must be scalable
Your business plan may eliminate world hunger, but hungry people don’t have much money. Some business may make sense for now, but scaling and profitability is limited. How much realistic growth potential does your business have? Is there a way to double or triple your revenues within a year or two? What will it take to make it happen? If you can demonstrate the scalability of your company, you’ll find more investors willing to talk to you.
Have an early track record of sales
If you have a functional product, have you begun to sell it? If you can show investors you have a product that is already seeing some sales, they will be more likely to take your idea seriously. If you have not yet logged any sales, you should at least get feedback from neutral consumers in your target market and present it to investors. In short, you will need to prove that consumers are willing to pay for your product.
Be aware, respond to feedback and refine your business model
Recently, an entrepreneur shared his business plan with me. First-mover advantage was basically his selling point, but my quick research on the business led me to 5 big players already in the industry. It was later I discovered he had this business plan written in 2014 and has done nothing to it since then. It is necessary to constantly think with the lines of your business, you have always got to be thinking about how you can tweak things to make the business even better. You have to be acutely aware of what the market is telling you and what you are able to learn about either your competitive landscape or the market you’re trying to serve or the problems you’re trying to solve, it’s a continuous process.
Always try to look at your business, and business plan, through the eyes of an investor, do not get caught up with your business idea that you lose sight of how others see it. Investors are constantly looking to invest; your job is to be properly prepared when opportunity strikes.
Even if you are not searching for funding, it will be worth your while to navigate your business into a category that is both viable and fundable. The odds of finding funding generally correlate highly to your odds of business success, and your personal risk is even more critical than outside investor risk. Minimise both
http://www.arm.com.ng/8-steps-turning-viable-business-idea-fundable-business/
By Prince Charles Dickson PhD
“Misunderstanding the understanding” can refer to a situation where someone fails to comprehend or interpret a concept, idea, or situation correctly, despite believing that they have understood it. This can occur due to various reasons such as cognitive biases, lack of knowledge or experience, miscommunication, cultural differences, or preconceived notions.
For example, imagine a person from one culture trying to understand a complex concept or idea from another culture. Even if they have the best intentions and have studied the concept extensively, they may still misunderstand it due to differences in language, values, or beliefs. This can lead to misinterpretations and miscommunications that can create confusion and misunderstanding.
Another example could be in a professional setting where a manager provides instructions to an employee, but the employee may not fully understand the instructions due to different interpretations or assumptions. The employee may then carry out the task incorrectly, leading to errors and inefficiencies.
In order to avoid “misunderstanding the understanding,” it is important to maintain open communication, clarify concepts and ideas, and be aware of potential biases or assumptions that may affect the interpretation of information. Additionally, seeking feedback and asking questions can help ensure that everyone is on the same page and that there is a shared understanding of the information at hand.
We cannot do the last paragraph above because elsewhere the police say freeze when they want to arrest you, but in Nigeria, we say ‘hold it’. The people that say hold it is the same people that, by the time you are reading this, would have settled whether Vivor of Lagos is Igbo or Yoruba. They are the same group of people that will remind you that Murtala Muhammed was from Edo or one-time Vice President Sambo is from Agenebode.
If you understand the misunderstanding, one time, an Eboni man was told that he could not be governor in Enugu, the same way Bianca Ojukwu was once told by the family of Ojukwu she could not be a senator in Anambra state.
We are a people that are no different from our politicians, who are dealers rather than leaders, so it is difficult to understand the difference because we are consciously misunderstanding, no Minister’s kid is looking for a job, and no governor’s brother is jobless. No local government chairman has an issue with getting his sister a job.
The political class don’t know that there’s no electricity, because Rimi road, Adeoye crescent, and Mbakwe close all have houses powered by big generators.
While we battle our misunderstanding, the fact is that we don’t understand the pain of a family whose substantial monthly income goes to purchasing cooking oil (kerosene) or gas.
We believe that the earth is chasing us, so where did we put our feet while running? I was once told that the fowl on a journey inside the basket does not know where it will end.
You need to understand the misunderstanding that the Nigerian dream is that you steal much and even more because if you are caught, you need money to settle all the steps of the staircase, police, lawyers, and more. At the court, you seek a restraining order and restrain anybody from arresting or investigating you. You pay a handful to protest that you’re being persecuted because of your faith or creed…do you understand, or are you being misunderstood?
Stealing government money is no big deal; it’s a dream, after all, we have erroneously insisted it is everybody’s money. If you do not want to steal, your people will mock you, in fact, as you aspire, the past records of looting by your predecessor are packaged in phrases such as ‘see the house he built for his mother’, ‘how he buried his father’, and ‘he managed to build us a small clinic too’, ‘it is our turn’, ‘you must put our people in position’, and these are misunderstandings that must be understood.
The Nigerian dream is to have your cough treated in Germany, your kids’ school in heaven knows where, and get all sorts of awards and titles, from the Baba Adini of Adiniland to an honorary degree from a one-storey building college in Maputo, that is after being knighted by one of the numerous churches, countless lesser and higher hajj, and it is all ‘you either understand or you misunderstand’.
The United Kingdom has a Hindu prime minister of Indian descent and a Muslim mayor of London of Pakistani descent. Jeremy Hunt, who is currently Chancellor of the Exchequer, when was foreign secretary, referred to his Chinese wife as Japanese during a visit to Beijing to discuss post-Brexit trade deals between the UK and China. We do not understand that true diversity is about disrupting the status quo, not enforcing it with zeal. In Nigeria, it is a different story.
How do we understand the misunderstanding in Lagos, the Igbo and Yoruba drama, as in the real deal is our dichotomy is not a subject within the shores of this nation that one talks about without understanding; it evokes a lot of passion from the heated arguments which it generates, everyone holding dear to their values, and idiosyncrasies. A lot has been written on old perspectives, likewise, new viewpoints; after the elections, we go back into the cocoon, and the differences remain and are not tackled.
In our misunderstanding, we think of easterners, westerners, northerners, and middle belters, all depending on the turn of events. In our sensationalism, we have, in every sense, approached most problems sectionally, thereby creating all kinds of unnecessary petty-cultural-ethnic-religious-paranoia and bourgeois mentality in dealing with our national issues.
There is an ideology of hatred, one that props up again and again, Lagos in the West, Anambra in the East, North vs South, Muslims vs Christians. This is a factor that reactionary elements within the system use in battling the progressives. The misunderstanding in the understanding, which really borrows a lot from bourgeois theories, which essentially is directed at confusing our intellect, like we try to argue within the parameters of “anti-class theory”, “theory of development”, “take off theory”,, “theory of cooperation”, “theory of external push”, “end of ideology theory”, “convergence theory”, “the theory of the periphery in the periphery”.
Wonderful sociological concepts that do very little to help us shift in the way of progress because only a few theories work for us…” the theory of corruption”, “the theory of bad governance”, “chop I chop theory”, and “killing for god theory”, “WIKE”, “Obi, and Elu Pee theory”, “Balablu theory” and now the “BVAS theory”. Do you understand, or you misunderstood me?
Interestingly and constructively, when we fulfil the Nigerian dream-like stealing, we have no religion, no tribe, and no fights; all is good so long it ends well, we only fight when one attempts to out steal the other. It is the misunderstanding that we do not understand, and we never will until the ordinary Nigerian becomes the focal point, it will almost never work. The dream for a better, strong and virile nation lies in our hands. Sadly, we refuse to understand it and choose to misunderstand the difference, we continue in our wild goose chase till when—only time will tell.
By Nneka Okumazie
It is often puzzling to watch two weak people engage in a fight of mostly rare necessity. There are often reasons. Different sides deploy different tools, but they contend over what should possibly be avoided. They most certainly become weaker subsequently.
For some, the objective is that when something else is added, they become stronger. However, conquest alone does not guarantee a change in strength, so weakness remains, even when they don’t think so.
In Africa, there have been intertribal conflicts for decades across different locations, but there is hardly any conflict between the peoples of Africa that is about the future. There is always something immediate or some form of possession as the purpose, but it is never about the future.
Tribe, race or ethnicity is not what is important for a people that desire true progress. The origin may be a useful community but that origin, religion or whatever else weak people take pride in as the first thing leaves them below progress, at a time of excellent progress from other places around the world.
For all the resources that countries in Africa list, what is absolutely irreplaceable or which ones do the existence of the world depend on, that are excluded from there? How did they also find out that these are resources, or have they always been needed?
There are tribes, places and resources in Africa that are not as exciting as some new technology in the world, because of the promise, yet the people fight and lengthen hate.
The governments in Africa are powerful because the people are mostly beneath their government. Many structures of power in Africa in modern times are mostly from other places. The people within have been unable to drive alternative structures that would be powerful enough to earn the respect or boundaries of government.
Governments in Africa are as powerful as their people are weak. Protest, election, advocacy, politics, tribe, religion, complaint, press, education, business, law, criticism, and whatever else are unable to match the crazy behaviour of their governments. There are tools that governments in Africa cannot live without at present that did not come from Africa. African governments are not more powerful than those external tools, yet their people seek change from weakness.
There are tribes in Africa in power more than others, but it is of no use to the development of their people. There are tribes that are considerably wealthier than others but worthless to their people. There are others with good locations and education but are useless to their people.
The interest of someone in some place trying to have a nice time can hardly be advanced as a group. The determination to make the future different from the past does not exist in the people. The shame they should have as a people for where they are, to organize with superior methods to emerge into an advantage is not there. Tribes in Africa want to stay weak, so their fights are never about the future.
[Judges 20:16, Among all these people, there were seven hundred chosen men lefthanded; every one could sling stones at a hair breadth, and not miss.]
By Musa Ilallah
2023 kicked off on a significant note for the Nigerian Navy, with the hosting by Nigeria of Exercise Obangame Express 2023, the largest multinational maritime exercise in Western and Central Africa, in collaboration with the US Africa Command and the US Naval Forces Europe and Africa.
This year’s edition featured 32 countries from the Gulf of Guinea and beyond, coming together to “improve regional cooperation, information-sharing practices, and tactical interdiction expertise.”
At the beginning of March, barely a month after the end of Exercise Obangame Express 2023, Nigeria commemorated one year since the International Maritime Bureau (IMB) announced the country’s exit from the Global List of Piracy-prone countries. This feat came as a welcome follow-up to the IMB’s Global Piracy Report of July 2021, which indicated that Nigeria had recorded its lowest number of piracy and sea robbery against ships attacks in 27 years.
These remarkable milestones were the culmination of unprecedented naval and maritime security investments by the Buhari administration through such initiatives as the Falcon Eye Maritime Domain Awareness System, commissioned by President Buhari in 2021, and the acquisition of several new platforms, including a brand-new Hydrographic Survey Ship, NNS LANA, as well as a new Warship, the Landing Ship Tank (LST) NNS KADA, whose inaugural operational assignment was a mission to Guinea Bissau to support the ECOWAS Stabilization Force there, in August 2022.
Two brand-new Seaward Defense Boats (SDBs) are currently under construction by the Naval Dockyard Limited in Lagos, while, in September 2022, the keel-laying ceremony of two 76-metre Offshore Patrol Vessels (OPVs) took place in Turkey.
Weeks after the March 2022 IMB announcement on Nigeria exiting the Piracy List, the Nigerian Navy launched one of its biggest operations in years, Operation Dakatar Da Barawo, aimed at curbing crude oil theft and vandalism in the creeks of the Niger Delta.
The Operation, launched in partnership with the Nigerian National Petroleum Company (NNPC) Limited, has since begun yielding fruit. So far, well over N80 billion worth of stolen petroleum products have been seized or recovered, with hundreds of arrests made.
Importantly, oil production, which had been declining since the start of 2022, reversed course and began climbing steadily from October, a feat that has been roundly commended by all stakeholders.
Speaking on this, the Minister of State for Petroleum, Timipre Sylva, said, “I am happy to announce that there is a significant improvement in crude oil production, with both Nigerians and the international community acknowledging the improvement.”
The Chief of Naval Staff, Vice Admiral Awwal Zubairu Gambo, has consistently stated his determination to achieve this goal and has expressed gratitude to President Buhari for providing the wherewithal and the resources to record the significant progress being recorded in the fight against maritime piracy and criminality.
One of the high points of the fight against maritime criminality was the interception, in August 2022, of a Very Large Crude Carrier (VLCC), the MT Heroic Idun, a timely action that helped abort unauthorized entry into a producing Nigerian oilfield.
Working with Nigeria’s regional partners, through the Yaoundé Architecture, a Gulf of Guinea maritime safety and security coordinating mechanism covering 19 countries, the Nigerian Navy successfully alerted Equatorial Guinea to arrest the vessel, which had by then fled into the country’s waters.
Interestingly, the West Africa Regional Maritime Safety Centre (CRESMAO), based in Abidjan, Côte d’Ivoire, and the ECOWAS Multinational Maritime Coordination Centre (MMCC) Zone E (covering Nigeria, Benin, Niger, and Togo), two critical operations centres within the Yaounde Architecture, are currently headed by Nigerian Naval Officers.
Following the arrest and investigations by the government of Equatorial Guinea, the ship owners paid a substantial fine, after which it was handed over to the Nigerian Navy and duly repatriated to Nigeria to face justice. The case is currently being tried by a Federal High Court in Port Harcourt.
MT Heroic Idun is the most high-profile of a number of rogue vessels arrested by the Nigerian Navy in 2022. According to the Chief of Naval Staff, Vice Admiral Gambo, “The arrest of MT Heroic Idun will serve as a deterrent to those who are stealing our crude.”
But, of course, the arrest and trial have not come without resistance from the powerful owners and elements behind the VLCC. They have been waging a vicious international propaganda campaign against the Nigerian Government and the Nigerian Navy. But the Chief of Naval Staff has made it very clear that he will not be deterred and that justice will take its due and transparent course through the Nigerian legal system.
Nigeria’s hosting of Obangame Express, to kick off 2023, is a testament to the Nigerian Navy’s determined efforts at advancing regional and multinational cooperation to achieve its objectives of securing, in a holistic and sustainable manner, Nigeria’s maritime environment and the wider Gulf of Guinea.
It is this unwavering commitment to partnership that saw the CNS and Naval Headquarters host, at the Naval Headquarters in Abuja, delegations from the European Union, China National Aero-Technology Import and Export Corporation, Defense Academy of UK, the African Union, International Seabed Authority (ISA), European Security Academy, Italian Defense firm, Leonardo; the United States Navy Office of Security Cooperation, among many others.
The CNS, also, in this spirit of partnership and engagement, attended Euro-Naval 2022, the Sixth Symposium of Chiefs of Staff of Navies of the Gulf of Guinea in Paris, France, and the XIII Trans-Regional Sea-Power Symposium in Venice, Italy, among others.
In October 2022, President Buhari awarded him the National Honour of Commander of the Federal Republic (CFR), and a month later, he was in Banjul, Gambia, to receive the Award of Most Outstanding Naval Chief in Africa, presented at the 17th Edition of the Africa Security Watch Awards and Conference (ASWAC).
In 2023, the partnerships are set to continue, and Obangame Express 2023 is just the beginning. Speaking at the closing ceremony on February 3, 2023, Vice Admiral Gambo noted, memorably, “Coming together is a beginning, staying together is progress, and working together is a success.”
Musa Ilallah writes from Abuja, Nigeria
