Welcome back to the second series of OGBMS 102.I believe you
read and digested the 101.If not kindly check OGBMS 101 below to brush up. It
is mandatory because, it is the bedrock on which other series are built.
A TRUE LIFE STORY
Let get started friends. A friend Dave (not the real name)
has an uncle who retired from active service of a multinational oil company in
Lagos. He was paid a lump sum worth millions. He was advised by his colleague to
start Cement Distribution business without adequate training. In a short while,
he started making loss.
On a Saturday, I met Dave who told me about the predicament
of his uncle. I chuckled and shouted Daaaaaave! He asked why the reaction; I
said someone who retired from such company would need no advice on any business;
he would invest directly into Oil business where he has acquired so much
acumen.
I asked if I could engage the man in conversation, they
booked appointment and we met.
OUR CONVERSATION
Me:
Good
afternoon sir
Uncle: Good
afternoon Mr. Osho. Dave has told me a lot about you and I hope you can assist
me.
Me: Sir,
I think you have sound acumen on the business since…. (Cut in)
Uncle: I was busy
with work and never bothered to learn the business. Just assist and I will pay
you if you can.
Me: It
is not about money now , but let us get started. I gave him the options.
THE OIL AND GAS
OPTIONS
1. Importation & Exportation
2. Leasing
3. Independent Marketing
4. Supply
5. Mandate
6. Freelance Marketing
Me: Sir, before
we proceed, let me tell you the rudiments of the business
Uncle: Please go
ahead Mr. Osho, it is becoming more interesting
THE RUDIMENTS OF THE BUSINESS
Location
Many people would not want to relate with you if you do not
have a place they can refer to. Get an office. It does not have to be a big
place. The most important are the ambience and its strategic location.
People who want to start without capital can liaise with an office
owner i.e. a church member, neighbour, uncle etc. for the temporal use of the
office address for business transaction
Business Registration
You can register a business name, private liability or
public limited company. For the sake of this write up, a limited liability
company would be adopted. To register a company in Nigeria, the price ranges
from #50,000 upward depending on the number of shares and the person handling
the registration for you. A lot of organisations would not want to relate with
an individual and more so, this adds credibility to your transactions. Let your
objectives be broad in service delivery and expertise. It would be better to
seek counsel of an Attorney.
A person who does not have
enough capital can register a business name. This is less than #10,000
depending on your attorney or consultant.
Brand Registration
People take this for granted in our society; however, it
would go a long way in making your product and organization a household name.
Invest in this “logo”. Get a professional Brand Expert to do the job for you.
They should assist with the design of your letter head paper and Business Card
.All these would give your company, especially you, the required “packaging”.
These do not cost much especially if you have a close friend or family member
who can do this for you.
Open a Business
Account
You are to open an account on your company’s name. Open an
account with a bank that would support your business with credit facility, if
need be, and also facilitate your business activities at the international
level. There may be a time you would require a Local Purchase Order, letter of
credit, T/T, Bank Transfer, Bonds etc. for big ticket transaction. Please
make proper enquiry before opening an account with any bank. Consider the
charges, facilities, speed, accuracy etc. All these have great impact on your
goodwill, profits and reliability.
Develop a Website
Website would add more credibility to your company’s image.
It makes you more accessible and provides detailed information about you and
your company. At a phase of your company, products can be ordered and paid for
online.
Get Your Own Truck
In the meantime, you can hire truck to load your products
from the depot .It will increase your cost and hit down on your profits. As
your business progresses, work earnestly to purchase one; it is cost effective.
(Phone Rings)
Uncle: Excuse me Mr. Osho. I need to pick the call. It is a friend that
just came from the States. I told him about this meeting, he also expressed his
interest in the business.
Me: No problem sir.
(Phone Conversation ends)
Uncle: Mr. Osho, please, we would need to reschedule this meeting. You
would be meeting my friend and I .I will call you on phone.
Me: No problem sir. I will be expecting your call.
Uncle: Thank you for your time. How much is the consultancy fee?
Osho: You are welcome. Hmmm. let us be through with everything;
although, I am supposed to charge you immediately but Dave would not let me do
that.
(We departed)
I intentionally include this story so that you can appreciate and value
the information. People are seeking this kind of piece, at least, as a guide to
start. My interaction with Uncle actually gave birth to this masterpiece.Please read with deep understanding. See you next week for the 103
Vision and Career Coach | Digital and Communication Manager | Motivational Speaker
