AS AN ASPIRING ENTREPRENEUR, YOU NEED THE RIGHT MIND-SET AND SKILL-SET. DON’T TRY IT UNLESS YOU UNDERSTAND THESE TWO!

When they set out to write their new book, “Even Here Even Now”, hardly did it occur to them that the stories of the twelve indigenous entrepreneurs featured in the book would make as much impact in the lives of its readers. In this exclusive interview of Thursday 6th August, 2009, Olakunle Kasumu spoke about the book and the present level of entrepreneurship development in Nigeria. This he shared with Ayokunle Bankole.
Excerpts:

AB: Can we meet you, sir?
OK: My name is Kunle Kasumu. I run a company called People and People. People and People is a consulting and research firm that zeros in on HR and communications. We do a lot of trainings, recruiting, employee surveys, HR audits, human capital development needs for organizations, corporations and individuals. But I am also a partner with Awake Africa, which is entirely into entrepreneurship development; particularly youth entrepreneurship development.
The organization called Awake Africa basically produces a book series on successful indigenous entrepreneurs – people who have started businesses in Nigeria themselves and have built those businesses from the ground… up.
We try to promote entrepreneurship because there are a lot of people in this country who think that the only way they can go up is by getting a job and keeping a job; and relying on the pension or gratuity at the end of the day.
Entrepreneurship is very critical to emerging economies, and Nigeria has to take entrepreneurship very seriously – particularly, youth entrepreneurship – if we want to grow our economy as fast as we wish. So, Awake Africa is all about that. I am involved in Awake Africa.

AB: What can you say about the present state of entrepreneurship and mass unemployment in Nigeria?
OK: We are in a very critical state right now. It starts from our educational system that tries to prepare people only to get jobs. But even in doing that (that being the objective), it is even a system that fails in doing that successfully. That objective itself is faulty. But even let’s say it’s okay to do that, the system is not even doing that successfully. We need to critically look at our education so that people in the 21st century. And that means entrepreneurship has to be locked into our educational system. We have to churn out young people from our schools who are prepared to face life today; who understand entrepreneurship; who understand how to identify opportunities; how to explore opportunities; how to build organizations around opportunities; how to understand market forces; how to develop products and services to people to create wealth. So, our educational system has a major problem.
In my line of work, I meet people everyday who call and say they are looking for jobs. Number one, they don’t have the skill-set to get those jobs. Number two, they need to think about creating jobs. It’s a big problem. The president (Yar’adua) at one time was talking about declaring power emergency. I think he should declare entrepreneurship emergency among our young people. We need to train people on how to create jobs, how to develop their talents and skills, and turn them into commercial vehicles to generate income for themselves. That way, the economy would grow. And, we need to look at it holistically. The government has to create an enabling environment. There has to be easy access to cash. There has to be infrastructures that make businesses work. There has to be all these things.
We also have to look at it from the angle of the homes. Parents should stop forcing their children to toll only the lines of white-collar jobs. There are so many angles to look at it.

AB: So, you mean we are all to blame in this problem?
OK: There are a whole lot of factors to look at. We have to look at it holistically. But it starts from the individual. The individual has to realize that he has what it takes and he can develop the skills to succeed entrepreneurially. Even when you are an employee, you’ve got to think entrepreneurially. So, entrepreneurship is not a subject for people who want to go and start businesses; it is also a subject for people who are employees.

AB: You co-authored a book, “Even Here Even Now,” which is believed to be one of Nigeria’s most insightful books on entrepreneurship today. What brought about the idea of such a book?
OK: My partner, Niyi Adekunle, and I were young guys who met somewhere after leaving school. When we met, we found out that we had a lot of things in common. One, both of us grew up and schooled in Ibadan. Two, we both share the same year of birth. Three, we both believe in Nigeria. And four, we also both believe in entrepreneurship. We believe that as young people, we need to sit down and create jobs. I have my own small business and he has his own small business. We began to compare notes – the struggles and challenges of starting and running a small business in Nigeria long ago. We saw a lot of challenges.
Then, we observed we needed a lot of inspiration. The only place we could find inspiration were in the stories of successful foreign entrepreneurs. We could find books on Richard Branson, Bill Gates, Robert Kiyosaki, and so on. We asked ourselves, ‘Where are the Nigerian success stories that people could identify themselves with?’ We couldn’t really see anything. So we said, ‘Let’s go and make a research. Let’s look for Nigerians who are successful entrepreneurs, who are not in the banking or oil and gas sectors.’ These are the traditional sectors where people believe it is easy to make money. ‘Let’s look for people like that who are doing basic services and so on, and who have built successful businesses from the scratch in Nigeria. Approach them, interview them and put all their findings in a book.’ So we said, ‘Oh! Fantastic idea,’ and set out to do that.
Later, we thought if we go and meet these guys and just introduce ourselves as two individuals, they might not listen to us. So, we formed a company and approached them with that company. We started knocking heads together and came up with a name – Awake Africa. I went to my computer and designed a letter-head. We wrote them letters. By the time we got the first and second response, it was easier getting the others.
Over a two year period we met the twelve entrepreneurs. Tow years because it was difficult tracking them. We researched; short listed twelve Nigerian entrepreneurs, and ran after all of them. It was interesting because we insisted on meeting each of them one after the other, face-to-face.
We wrote the book together. After a while, we saw positive responses within and outside Nigeria from people who read the book. When we took the book to Sierria Leone, the people there said we should come and do a similar book for Sierria Leonean entrepreneurs. We saw responses from Sierria Leone, Ghana, the UK and USA. So, we decided to turn it into a series.

AB: Lastly, do you have any advice for aspiring and emerging entrepreneurs?
OK:

There are two things you need. As an aspiring entrepreneur, you need the right mind-set and skill-set. Don’t try it unless you understand these two. Entrepreneurship is a risky business – career risk. Entrepreneurship is a big word. We have the social entrepreneur, but I assume you are talking about the business entrepreneur.
When you say you don’t want the eight-to-five job, but want to start a business, it’s risky. You need the right mind-set, positive mind-set. You need to have a bulldog tenacity and focus, particularly in our own jungle marketplace here in Nigeria. You need that mind-set. Do you have it? Have you developed it? To develop it, you need the right kind of information. Read good books. Listen to good tapes or audios. Find yourself a mentor. Find yourself the right circle of friends – people who are like-minded, people who are thinking entrepreneurship. You need all that to develop your mind-set.
You need the skill-set or the know-how. How do you start a business? What do you do to start a business? You need all aspect of it. There is the accounting aspect of it; there is the HR aspect of it; there is the marketing aspect of it; there is the selling aspect of it. Go for a short-term course. Find a mentor you can talk to. Read books along that line.
The problem with a lot of small businesses in Nigeria is structure. Because you are just determined, you get in there. I had the same experience. When I started, just the determination was there. I jumped in, started and then it was learning as time went on. But, you can save yourself a lot of hassles. A lot of things I know now, if I had known then, development would have been quicker. Just imagine someone who knows a whole lot of stuff I know now – starting out – won’t make a lot of mistakes.
Develop your skill-set and mind-set. Go for entrepreneurship. I recommend it. If you have a tug for it in your heart, go for it. Don’t just go for it blindly. People tell me they want to quit their job and start. Long time ago I would say, “Yes, go for it!” Now I say, “No, slow down.” Give yourself time. Set yourself a target. ‘I will quit my job in the next one year, six months,’ and so on. Within that one year, you should develop your mind-set. You should ask questions. It’s not that you can be totally prepared for it, but preparation can help you minimize pains. That is my advice for somebody who is aspiring. Develop your mind-set and skill-set.

BUSINESS NAME REGISTRATION AND INCORPORATION OF COMPANIES & TRUSTEES IN NIGERIA

Q1: What is a business name and why is it so important?

A: A business name is the name which a business trades under for commercial purposes. A business does not actually begin by formulating a business plan or opening a bank account. It starts from choosing a name. There is more to business name than just identity. A good business name is an advertising tool. Many large companies even hire expensive consultants to help them name their businesses, products and services.

Q2: I have this business name that I love so much, and I want to start a business under that name. Can I proceed immediately?

A: No. I think the next thing after you must have done a feasibility study on the business itself is to get the business name registered at the Corporate Affairs Commission (CAC).

Q3: What do you mean by Corporate Affairs Commission?

A: Registration of business in Nigeria is the exclusive responsibility of the Corporate Affairs Commission, also known as CAC; which has its head office in Abuja, and branches in most states of the federation. The CAC is the federal government agency responsible for registration of all companies.

Q4: But I was told that the cost of registering/incorporating a company is expensive. Can’t I go on with the business then register the name later?

A: My candid advice is No! Having your business registered definitely confers some credibility on it, given that it then acquires an identity. In many important business activities or relationships you may want to get involved in, details of your business registration will be required. You do not have to wait for such occasions before getting your business into the register of companies - you may miss an important opportunity just for that omission.

Q5: Is that all?

A: No. Using a business name similar or identical to that of a registered business name can land you into problems, including legal issues. Besides, if you have succeeded in doing business for several years under a name which has not been registered, that does not confer ownership of such business name on you. The CAC has to approve the availability of such a business name before you can proceed to file an application to get the name registered.

Q6: Does that mean I may forfeit a business name that I have been trading under and has become so popular in the marketplace just because I didn’t register it at first?

A: Yes. Due to your negligence, someone somewhere might have registered that name or a similar one. This means you will lose all the goodwill that name garnered over the years. Do you see that this situation is more expensive?

Q7: I understand that the Corporate Affairs Commission rejects registration of some business names. What are the likely reasons for such actions?

A: Good question! Officials at the CAC use their discretion in approving a business name submitted for search. Business names may be disapproved if such names existed or are similar to the ones on their database. At times, business names are disapproved due to their vague nature. Consider someone who submitted LAW FIRM as a business name!? More so, objects such as INSTITUTION, FOUNDATION and MINISTRY are not likely to be approved as a business name, except when such objects are used for registration of incorporated companies/trustees.

Q8: What difference exists between a business name and incorporation of company or trustee?

A: To start a business, you need to decide on a business name. You also need to choose a business format under which to operate. You need to know the requirements relating to membership of the company, ownership, etc to enable you make decisions you will remain happy with. The routine processes of registration can then be carried out on your behalf by an accredited professional.

Q9: You mean business names, companies, and trustees are formats?

A: Yes. It may be called business structures too. You will need to talk to an expert concerning this. However, let me give you a little of what you should know.

Three major classes of registration are available under the relevant law (the Companies and Allied Matters Act of 1990):

(I) Registration of Business Names: This applies to sole proprietorships and partnerships. It is the simplest form of business structure. It is the one-man business, owned by a single person and called ‘enterprise’ in the local parlance. The partnership applies to a business where two or more persons agree to jointly own and carry on the business. Given the fairly complex nature of partnerships, it is best to seek the services of experts to assist with the details.

Q10: What about incorporation of companies and trustees?

A: Incorporation of companies is the second class of registration available under this Act. Incorporation recognizes the business as a unique entity, separate from the owners, with statutory powers to own property and sue or be sued. There is thus the concept of limited liability, implying that the individual owner’s(shareholder’s) liability relating to the business is limited to the amount of his share subscription.

The third class under this Act is the Registration of Incorporated Trustee. This applies to public institutions and associations, operated by a Board of Trustees. This category includes: NGOs, churches, clubs, trade associations, political and civil groups etc.

Q11: Can an ‘enterprise’ (business name) be used to carry on all kinds of business?

A: No. The choice of which structure to adopt will depend on the nature of the business, the ownership and evaluation of the benefits, and the pitfalls of each format.

Q12: Why do some people prefer to incorporate a limited liability company?

A: Limited liability companies have grown to become so popular among business owners due to the following reasons:

(I) There is limited liability for individual shareholder.

(II) The standing of the business is enhanced before financial institutions and other parties it does business with.

(III) It has a better access to credit and on even better terms.

(IV) The business is distinct from individual owners; the death of a member does not dissolve the company.

Q13: Can I handle the registration procedures myself?

A: Yes. But the challenge here is that you may receive many queries from the officials at the CAC if you don’t comply with certain rules. Though it is cheaper to do the registration yourself, hiring the services of accredited professionals does pay in the long run. However, the CAC specifically requires that only accredited parties carry out the actual registration processing for incorporation of companies and trustees. The accredited professional you choose for the registration process should also be able to provide further advice. As a trained practitioner, he is also familiar with the registration requirements for each business format and processing procedure.

Q14: Now, how long does it take to get my business registered and receive a certificate?

A: The duration depends on the business format you are considering. Applications for registration of business names are usually processed at the zonal office where you submitted an application to be registered; though Name Availability search forms may be forwarded to their head office at Abuja. However, applications for incorporation of companies/trustees are usually forwarded to Abuja for processing. This may take more time.

In either case, the duration also depends on how soon the Name Availability result is released. These days, a name search result could take up to 1 month as against the usual 3-7 days; and the issuance of certificates is taking months to be ready instead of weeks.

Q15: How much does it cost to have my business name registered with the Corporate Affairs Commission?

A: Except you are handling the registration processes yourself, the fee depends on the professional and how he bonds with you with his professional fees, but not the filing fee. The filing fee fluctuates every now and then so you cannot put a specific price on it.

Q16: Do you mean having my business name or company registered with the CAC confers special rights or privileges or licenses to carry on my line of business?

A: No. Registration of any business name under the Companies and Allied Matters Act only confers on the proprietor or partners thereof of the right to carry on such business under a business name, that is, a name other than their own surname or surnames without any addition other than their forenames or Names or the initial of such forename or names. It does not confer any special right or privileges or any license to carry on the business itself.

Q17: Do you mean certain businesses require licenses, educational certificates or accreditation from an authorized body before venturing into them?

A: Yes. Before you register a company that requires a lot of technical and financial input, the CAC has devised new means of screening out touts and quacks from proclaiming to be ‘professionals’ in a field that requires extreme expertise. Hence, it is required that you provide educational certificates, belong to a relevant professional body, and or must have gained several years of hands-on experience.

Businesses that fall into this category may include: Advertising/Public Relations, Alternative Medical Practice, Architects/Town Planners, Chartered Secretaries, General Tax Consultants, Hospital/Clinics, Building/Civil Engineers/Contractors, Food Products/Processing, Legal Practice & Consultancy, Human Resource Management, Schools etc.

Q18: My Business registered with a trade association. Do I still need to register it with the CAC?

A: Yes. What your trade association has done is to grant you a license to carry on your line of business. Examples include: Kerosene dealers, hair stylists, tailors, and even professionals such as surveyors and accountants. If you need to engage in some financial dealings such as opening a corporate bank account or securing bank loan, a copy of your business name/company certificate shall be requested.

Q19: My school has gotten an approval from the Ministry of Education in my state. What is the essence of a CAC certificate again?

A: The CAC is responsible for registration of ALL companies, including educational institutions. What the Ministry of Education did was to give you an approval/license having met the requirements laid down for operating a school. Many school proprietors/proprietress are guilty of this. They spend a lot of money to get a government approval then come back to register their school names at the CAC. It doesn’t work that way. Two stark choices are usually left open when they finally decide to register their business names with the CAC.

(I) The name approved by the Ministry of Education in their state, and subsequently submitted for approval, are usually denied. Why? The exact or a similar name may have been registered somewhere, sometime. Take for instance, someone submitted BETTER LIFE ACADEMY for Availability search at the CAC but was denied approval. The reason: BETTER DAYS SCHOOLS had been registered for someone else! It can be as serious as this.

(II) They are forced to change the name of their schools in order to be different or, at best, avoid a law suit from the rightful owner of such business name. So, be wise and obtain a certificate from CAC before filing an application for government (Ministry of Education) approval.

Q20: Is there a way I can confirm the validity or authenticity of my business name certificate?

A: Yes. In fact, many people are skeptical about hiring a third-party to process their business name registration, due to the fear that the certificate given to them might be a fake. There are two ways by which you can verify:

(I) Obtain a Name Search Form at any CAC office and fill your registered business name. Submit the form for a search. This may take about 3-30 days for the result to be released. However, when the search result is finally out, the comment stated by the CAC will suggest to you if the certificate in your hands is genuine or not.

(II) Request for a Certified True Copy (in the case of incorporated companies/trustees). The Certified True Copy (CTC) is a copy of the memorandum of association that has been verified and stamped as an exact true copy of the memorandum of association in the CAC’s possession and file. If you were not handed a copy at the time you registered your company, and you want to obtain it after your company has been registered, you have to show your tax clearance, your annual returns, write a letter to the director-general of the CAC stating why you need it, purchase application forms and pay the filing fees for the new CTC (which is double the cost compared to when you ought to have gotten it cheap during registration and avoiding the hassles involved). This is where the CAC makes money because they know you will come back someday for it.

Q21: Why is the C.T.C so important?

A: The advantages of this is that with the CTC, you can present it to any company to inspect its objects for business, to help conduct businesses with banks, tender it for auctions, or government contracts, etc, when these big corporate institutions need them. If you don’t have a CTC, you will force the company to do a search on your company at the CAC. Which means you will be billed for that search by the corporation. So, imagine how many times you will be shelling out money for company searches?

Q22: Do I get a CTC for a business name (Sole Proprietorship/Partnership)?

A: Yes. But it’s quite different from that of incorporated companies/trustees.

Q23: I quite understand why it is so important to register a business name or incorporate a company/trustee. It’s in my best interest, isn’t it?

A: Certainly. Imagine your organization being recognized, favoured and approved of by your target market/audience, government agencies, international organizations, financial institutions, or even your local community - just because you are duly registered with the Corporate Affairs Commission of the Federal Republic of Nigeria! The importance of your organization’s certification with the nation’s registrar of companies/trustee cannot be over-emphasized.


Disclaimer: The information in this article is only intended to guide investors. Please, consult an expert whenever in doubt. For registration issues, call +2348055981421

HOW TO MANAGE A SERVICE BUSINESS IN AN AREA YOU HAVE LITTLE OR NO EXPERIENCE. (Part 1)

In one of my previous write-ups, I had written on how aspiring entrepreneurs can take the bull by the horns and start a service business irrespective of whether they have hands-on experience – in that area of interest – or not.

Now that you have decided on a service business, it’s high time you knew what it takes to manage your start-up and command the attention of clients.

I have asserted countless times that starting a business does not guarantee that customers or clients will troop in as expected (see Has Your Small Business Adopted Integrated Marketing Communications?). There is always the place of hard-work, strategizing, courage, accountability, direct marketing, networking, etc – and sometimes, law suits! All of these aspects of business – and more – well managed, determine how successful a business would be.

In managing a service business in an area you don’t have considerable hands-on experience in, you need to understand the basics.

Your Service Uniqueness Depends on How you Combine TPIS
T – Talent: A natural ability for being good at a particular activity.
P – Passion: A strong enthusiasm for a particular activity.
I – Interest: An insatiable appetite to know about or take part in activities, events, trends, or issues in an area of passion.
S – Skill: The ability to do something well, usually as a result of experience and training.

Talent + Passion + Interest + Skill = Uniqueness

It is a known fact that the little extra in a person makes him extra-ordinary. If you must move your start-up from being perceived as “ordinary”, then you need to bring your “little extra” to the fore. Everyone needs the right combination of talent, enthusiasm, interest and skill in order to attain greatness. Therein lies the power to become what you desire.

You may have a passion for sports but that alone does not make you a soccer star. The Messi and Kaka of this world are men with remarkable natural ability for soccer. They rose to stardom as a result of their ability to blend talent with unreserved passion and insatiable appetite for success in the round leather game. And by regular exercise, these guys have over the years grown to become soccer gods, possessing unmatched quality and uniqueness.

You have an obligation to discover your area of natural competence, passion, interest, and skill; and build a business around it. The risk of failure is reduced when you embark on a business that you naturally fit into and have a flair for. It is possible to do well without the benefit of prior experience or expertise, especially if you have the passion to succeed.

How to Identify Your Uniqueness/Peculiarity using the TPIS Model*
The TPIS Model examines an individual’s peculiarity based on four parameters: Talent, Passion, Interest, and Skill. This model advances that rapid growth in any career or entrepreneurial venture hinges on these four parameters. It asserts further that a combination of these parameters makes an individual or business stand out among its contemporaries.

Here is a table of an individual’s make-up using the TPIS Model:

Parameters and Values/Variables.

(a) Talent (natural ability): Quick reasoning, imagination, organization, perfection, writing, innovation.
(b) Passion (love/hate): Creativity, aesthetic design, money, motivation, looking good, public speaking, excellence, innovation, copywriting.
(c) Interest (insatiable appetite): Entrepreneurship, graphic design, publishing, advertising, business communication, branding, public speaking, making money.
(d) Skill (training and experience): Journalism, Public Relations, Advertising, Marketing, Computer Application, Entrepreneurship, Administration.

How to Identify an Individual’s Make-Up Using the TPIS Model
1. Draw a table and list the different variables/values for each parameter as it applies to you. Be objective in each case. You may consult an outsider to give you an unbiased assessment of yourself.
2. Identify the areas of common values from each parameter.
3. Merge the common variables/values together in order to get an idea of your core strengths and perhaps, weaknesses.
4. Focus on your strengths and work harder on your weaknesses.
5. Build a business and make money around your core strengths.

The world is tilting to the service industry. Almost all new small businesses springing up are in the service business category. Service business is a potential money-making platform that can be used by almost every person. Branding yourself as a professional in some of these services and contacting clients who may need them will amaze you with results.

See you at the top!

*The TPIS Model has been propounded by Ayokunle Bankole.