What’s proof of concept and why you should know it
[bctt tweet=”Test a business idea before scaling up your business with this simple concept” username=”SheLeadsAfrica”] There’s a huge risk attached to every new business. We’re talking the loss of lots of money. That’s why it is important to test a business idea before scaling up the business. Simply prove a business idea works and is commercially viable, and you’re off to a great start. This is called “proof of concept”. Most of the time, venture capitalists/investors look out for proof of concept before putting in money in a business venture. This is because it quantifies how much a business has (and is able) to accomplish in a way that’s measurable. When you create a product/service and are able to achieve a certain level of traction with it, it becomes easy to relate with whatever huge projections you set especially when trying to get investment. Showing that a business works can help zero in on a definite path to follow for success. In the bootstrap model, a business becomes commercially viable somewhere along the “sell” stage, just before the “growth” stage. How do I know my business shows proof of concept? Well, when a business idea shows proof of concept, it means one or all of the following The business has been able to capture its own sizeable audience. The business has been able to successfully sell a product/service and make money (profit) from its audience. Systems and processes within the business are reproducible on a commercial scale. A business that has not attained a proof of concept is not necessarily failing. However, such business has most likely not been able to clearly identify how to make money from an audience on a commercial scale. None of this applies to me, what can I do? To increase your business’ potential for success, it is important to look out for proof of concept before scaling up commercially. The proof of concept verifies important assumptions about the business and reduces the risk involved in taking a small business/startup into the mainstream market. [bctt tweet=”To increase your business’ potential for success it’s important to look out for proof of concept” via=”no”] Here are some parameters to consider when checking for proof of concept in business. Net profit Gross profit Revenue/ revenue growth rate Number of customers/clients/users Customer/clients/users growth rate Systems and processes Total amount invested in business Return on investment The result from the analysis of these parameters says a lot about the potential of a business idea that has been set in motion. These parameters can also be used to see how well a small business/startup is doing. This is why recordkeeping/bookkeeping is important in business, it lets you keep track of progress. If your business is funded by personal funds/friends and family, I recommend checking these parameters as you use the bootstrap model to develop your business.
5 things you must know before starting a business with your husband
[bctt tweet=”What could possibly go wrong when you start a business with your husband? Everything!” username=”SheLeadsAfrica”] Relationships have a lot of milestones, and one you could add to your cherished-memory collection could be of starting a business with your husband. You may be thinking, “We’ve been married for five years now”. You’ve obviously thought of the cons, you have even imagined how much of an adventure it would be —what could possibly go wrong?? Now, you may have a point, but before you go on and tell hubby you want to start a business together, here are a few things you may want to have in your knowledge basket… 1. Compatible marriage partner does not mean compatible business partner So you dated the man for 3 years, and have been married to him for the past 4 years. You’re thinking “we make a great team!” Sure you do —but that doesn’t necessarily mean it will work out the same way in the office too. When thinking of a business partner, regardless of whether they’re your husband or not, a lot of things come to consideration; such as your personality types and your skill sets, and personality traits for success. Does he want to take charge everywhere? Would he be willing to let you be an equal partner and leave the ‘head of the family’ cap at home? And your skills; are they complementary or overlapping?? If you both love to do paperwork, there will be a problem because no one will want to do some fieldwork. Who is sitting behind the desk and who is meeting the big guys? While complementary skill sets are a bonus in marriage, the same just doesn’t apply in the work field. 2. He will still need his wife… This is definitely something you need to talk about along with your job descriptions. You probably already have some rooster at home for who is taking out the trash or picking up the kids from school and what have you. The same will need to apply in the office. Who makes the final decisions? Who talks to the employees (if any) in meetings? Having the who-does-what conversation will be fruitful, and will help you carry out your wifely and/or motherly duties effectively. After all is said and done, you are his wife and he will still need you to be such before and after work. Don’t make the mistake of assuming that just because he saw you slaving away at work he will understand not having his favourite meal on the day it’s served. Will you need to hire a maid? Will you be too tired to cook? Talk everything out, but remember to not neglect the fact that you are his wife above everything else, and that as lenient as he may be, he’s still your man and his needs are yours to cater for. [bctt tweet=”You’ll need time alone…and other things to consider if you want to start-up with your husband” username=”SheLeadsAfrica”] 3. Your marriage will take strain… Your funds and the time you spent together being a couple will take strain, and it will show. Is it manageable? Totally. Are you and your partner strong enough to weather the storms that will hit? That is a decision you should both be willing to make because things can get ugly…In the meantime, be warned my sister. 4. You’ll need alone time If you decide to start a business with your husband, consider the fact that you are spending pretty much all your time with him. To add on to that too, you are married to the guy, so you’ll be living like this forever, God-willing. Believe it or not, you will get tired of your husband. To avoid this, make sure you find hobbies and activities outside of your marriage and work. Get that work-life balance. This way, you avoid having your conversations revolve around work and home. You get to spice it up with some news about how you beat your girls to the tennis game you had that weekend. Spending too much time with him should not be an excuse to neglect your life, or not keep him on his toes. 5.There is no guarantee it will work out Start-ups can fail, and having your husband as your business partner does not make you an exception. Work on a contingency plan before you start your business. Besides, who says the fear of failure should hold you back? You can always bounce back!
Starting a business while in school
So, you’re in school and you want to go into entrepreneurship? Cool! I like playing dangerous too. Gone are the days of waiting after graduation and getting a job. Gone are the days of “business is for uneducated people”. Come on, you and I know better and frankly, starting a business when you are in school is probably one of the best ideas. It gives you time to prepare for “post-school” days. Starting a business is never easy, but here are a few tips to help you get started and stay on the hustle. Eureka! First, get the idea! You can either be innovative by starting something new or redefining something old. Usually, most student campuses are filled up with people peddling the same wares in the same manner. If your idea is based on an already existing idea, then you should be one step ahead of those already in the business by having a modification. New ideas are always fresh. Analyze the demand rate for your product (goods or services). This can be done either by studying the existing market for an already existing idea or carrying out a mini survey for a new idea. You should be sure of your target market, which should mostly be students. But also consider, do you provide services for the non-student members of the community? Make sure your idea has no legal implications. Evaluate yourself How much technical know-how is needed in the business? How much do you know or can you provide? Do you have what it takes? Should you first acquire certain knowledge and skills? Do you have the time to see it through? These are some of questions you need to ask yourself when self-evaluating. Research the competition No, this is not spying or “copy-catting”. This is purely a form of business survey. Some of the important things to research include, who your competitors are, any similarities in business (yours and theirs) and how long they have been in business. How do they relate with their customers? What is their price range? et investigating and uncover these facts about the competition. Plan You remember this… (s)he who fails to plan, plans to fail? You might think you’re an expert in the field you plan on venturing into, but if you do not make concrete plans, you are just an over experienced failure waiting to happen. I want to debunk the notion most student entrepreneurs have about starting a business in school and ending it after school. Except you are only into business as a means to pay the bills and not interested in expanding what will become your brand, then you shouldn’t think of a business that will stop after graduation. Most successful #MotherlandMoguls started in school and grew it from there. So, your business plan should have room for growing the brand outside and after school. Partners? Is this a one woman venture or a partnership? Your partner can either be someone who has been there from the word go and is willing to invest time and money, or someone who started with you but wants to only invest money. She can also be someone you pair up with later on. Is it necessary to have a business partner? The nature of the business will determine that. If it is a service providing business like home cleaning services, then the answer is yes. You will need a partner, if not at the beginning, then later on. Let’s talk money I know this is a the one that will probably interest you the most. Where do you get money for your business? Well, this should also be in your business plan. Here are some sources you can raise money from: Personal savings- You should have savings, everybody should. Donations from family and friends Loans- check to see the types of loans available to you as a student and the general ones you’re eligible for. Thrift collections- These are local saving schemes that afford members the opportunity to take loans based on the arrangement. Ajo/esusu is a popular type of thrift collection in Nigeria. Crowdfunding. On your marks… Ready? Before you start, check to see if you have most of what you need, and if you do, start. Do not wait to be 100% ready, just do it. Advertise and network Well, what are friends for? Get your friends to use word of mouth, social media and even school related platform to blow your horns. Use colourful fliers (duh) to drag attention. Oh and hashtags are another way to go. Network among your peers and locate your customers. Goodluck You are in business, yay! Keep and eye on your profit margin. Don’t be too keen on the profit at first, just make sure your service or production cost are being covered. Breaking even at the beginning is a really good thing. But watch your monthly returns and weigh them against your expenses. You should notice a slight growth. Always take reviews. Do an audit after the first 3 or 4 months and see the places you need to improved. Good luck dear student Motherland Mogul!
Kah Walla: Starting a business in Cameroon is easier than before
Kah Walla is one of Cameroon’s most successful female entrepreneurs. When she started her consulting firm 20 years ago, she says she never stopped to consider how unusual, and challenging, it would be for a woman in her 20s to begin a business in Cameroon. Despite being a woman and facing the hurdles of the Cameroonian tax system at the time, Kah successfully established her consulting firm. Her company; Strategies is now across the world, serving both domestic and international clients, and draws in an average annual revenue of $500,000. Kah’s consulting firm, which makes over 90 percent of its turnover outside Cameroon. It offers services in leadership, strategy and organisational development to multi-national firms and development organisations. Kah’s business reach and outstanding impact throughout Africa, Europe, and the US, has given her recognition and many awards. In 2008, she was recognised by the World Bank as one of the seven women entrepreneurs working to improve the African business environment. Today, Kah says now is the best time for entrepreneurs, especially women, to start a business in Cameroon. This, given that Cameroonian laws now grant women new rights, such as travelling without male companions, opening bank accounts and registering businesses on their own, without their husbands’ consent. This is something which didn’t exist before. In the following excerpt, Kah shares more tips on starting a business in Cameroon. Do research: Know the country’s laws and what the people need Any entrepreneur willing to start up any business in Cameroon has to do some professional homework regarding the country’s business and tax laws, including general marketing analyses. You also need to know what the people really need in a bid to understand if your business project will be people-friendly. Cameroon’s business law is harmonized under the OHADA treaty like other countries in West and Central Africa, and is at face value gender neutral. But there are customary laws and traditional practices which sometimes disadvantage women in business dealings. So knowing the laws is a salient point to consider before starting out. Put down your plan on paper The next step in starting businesses at any level is creating a plan. You must create some kind of plan before going into business. Putting something down on paper will remind you of your objective and goals. Then you can continually develop this plan, but make sure to always have one from the get-go. At some point –even after you’ve started a business, return, rearrange things, and reflect. Just put your plan together first! Be proficient in the country’s two languages. Cameroon is a bilingual country with English and French as its two official languages. Any young entrepreneur who wants to succeed should know how to manoeuvre between English and French. Get the right information, meet and create the right network “Meeting and creating the right network is very important. There are many businesses that have not seen the light of day simply because they didn’t get the right information. Connect with people who have different strengths but are like-minded in their entrepreneurship and development interests. Being a business owner or entrepreneur can sometimes get lonely, particularly in the start-up phase. The government of Cameroon has been striving to assist entrepreneurs in setting up and running their own businesses in Cameroon through the One-Stop Pilot Centre. The Centre is one of out of the many other investing paltforms in Cameroon. These centres unite all administrative services for creating a business –including taxation, insurance, treasury and customer service. There are places where people can find out what documents they need to prepare and fees they need to pay in establishing their businesses. Any person willing to start up a business should go to these places to get the right information. These centres have eased the process of creating businesses in Cameroon, which now is supposed to take between three to five days.” Have the right mind-set There are certain basic mind-sets which are critical to becoming the ultimate entrepreneur. They include: Everything is possible, Passion first, We are connected, 100 percent accountability, Attitude of gratitude, Live to give, and The time is now. All challenges have solutions “All challenges and problems have solutions, and in order to be successful, one has to be innovative and creative. Successful business women must remember that everything is possible. When I started out in my 20s, I didn’t realize that the markets would be a challenge for me. But what I had was the will and desire to make it and to start my business venture. With that alone and my passion, I think I have been extremely successful in my life. Summarily, I will advise entrepreneurs to create businesses that provide what Cameroonians need and to welcome any challenges as added motivation for innovation. The keys to success are sticking to a plan, being creative, remaining optimistic and doing one’s homework. The Cameroonian government has made starting a business faster and easier here. So the time to start-up is now!”
How to know if you’re ready to be an entrepreneur
Are you feeling an itch to test your prowess as an entrepreneur? Do you think it’s time to get to some self-medication for this entrepreneurial fever? Don’t! There is no magic pill that catapults you from your office cubicle to the members-only entrepreneurs island. Your success lies in a tiny mustard seed that needs to be nurtured. It’s the streak of hope that your crazy idea might just work. The glimmering light that tells you that you can make it. Starting a business means you’re opening up to possibilities between immeasurable success and catastrophic failure. The difference between the two can leave you indecisive. There may not be a set time or perfect recipe to starting your business. However, there are hints to let you know that possess the qualities to be a successful entrepreneur. Unsatisfactory work… Your present job no longer fulfills you like in the good old days. Instead it drains your energy and sucks life out of you like a vampire. Or it could be that you’re stuck under the heels of a Devil wears Prada boss barking orders at you here and there. When you stop getting fulfilled by your work, your work efficiency and productivity goes down. Beware though, a few bad days doesn’t guarantee that you are ready to walk down the entrepreneurial road. You have to be extremely tired of working for someone. A burning passion We have all attended (or been dragged to) those business pitch talks that set our imagination wild with ideas on how business is the next-thing for us. I’m talking about those presentations done by shady-looking speakers with fascinating (fake) success stories of how cash was made within no time. As an entrepreneur you shouldn’t be carried away with the hype. Entrepreneurial passion is about the itch. It’s about a business idea that won’t let go. This itch stems from inside you; it irritates you to get it done. It’s that pounding thought that tortures your mind from months. Most businesses that flourish are those that are hobbies of the business owners. If you have guts to turn a hobby into business, then you are ready to fly. Understanding that 100% of your efforts could vanish By now, you understand that there are serious risks involved in entrepreneurship; it could be losing all capital investment, facing legal problems or accruing debts. Before starting a business, you should research on the risks involved and how to mitigate them. Talk to experts whose start-ups failed, you could learn a thing or two. Do you think and act like an entrepreneur? Entrepreneurs are fascinating people; they think and act in a certain way. They are never content with things the way they are. Entrepreneurs always seek alternative ways to improve existing ideas. They take risks and are thrilled with trying new things. They are motivated by control, problem solving and creativity. A new business will teach you more than you think. You get to acquire new skills, grow thick skin and face the challenges that confront your ego. Why? You’ve got to answer the question —why am I starting a business? Is it because my job is boring? Can I be a better boss? Can I create new ideas? Will I solve problems more effectively? Have I reached a ceiling in my career? The answers to this question may be varied but you need to be truthful to yourself Finally your attitude dictates it all. If you don’t give up, don’t take no for an answer and don’t take things personally, then you are set for setting out in the Motherland Mogul path.
Asmau Ahmad, Plum Perfect CEO: Lessons on building a business in tech
The She Hive made its way to NYC and it held no punches! Guest speaker Asmau Ahmad, CEO and founder of Plum Perfect, showed us that building a business in tech requires strategy, confidence and persistence. Trained as a chemical engineer, Asmau understands the importance of being both precise and thorough. Asmau’s Plum Perfect is a mobile technology that allows the user to submit a photo selfie, it then analyzes the content of that photo to recommend makeup products that work for your complexion. During She Hive NYC 2016, Asmau shared with us how she navigated her path within the tech industry. Here are some lessons we can take away from Asmau’s journey. Be flexible Your ability to stay alive as a startup is directly correlated to your ability to pivot quickly. This means that you need to learn what is moving very quickly and move directions. Do not get too emotionally invested in something that clearly isn’t working. If you have been working on something that needs to be revamped, just make the necessary changes. You can either grow fast or die slowly, the choice is yours. If your startup does not have the funds to market itself, partner with bigger brands and let them do the marketing. Data is king Use data tracking tools that allow you to see how your users interact with your technology, Google Analytics and Mixpanel are some resources Asmau suggested. Listen to your users, read all of their reviews and make adjustments accordingly. Your most enthusiastic customers and your most angry customers will be the ones who give the most feedback. Feed off the energy of your most enthusiastic customers and give them what they want. Conversely, solve the problem of the angry customers and give them what they want too. You want to get to a happy zone with as many customers as possible. Reach out to investors Asmau said that she focused on mostly women-led investors to help push Plum Perfect forward. It’s important that you find investors that fall in line with your business interests. Choose one revenue model that you want to focus on, state what you want clearly and simply. Investors need to know that you are well informed about the product you’re pitching. Know your numbers when presenting, what has been your ROI thus far? How much do you need to carry out your next endeavor? Get investors who not only give money but also invest time into your project. Surround yourself with people who are smarter than you. You do not always want to be the one with the best ideas in the room. There are some instances where an investor will not take you seriously unless you have an MBA degree, it is validating for them. Asmau’s takeaway is that business school is not mandatory for running a successful business. If you have a viable business model and can think logically you can run a business.