Business lessons from start ups
Last week, we tried to scratch the surface of some of the business opportunities open for MSMEs in Nigeria, and we also looked at some of the challenges to starting and running business. We ended with the fact that there is no better time to start a business in Nigeria than now, and we urged people to “JUST START”
This week, were looking at one entrepreneur who did just that, and we’ll be learning a few lessons from his story. Hopefully this will spur others. Enjoy.
Gbitse Barrow is the founder and Group CEO of Learning Impact Group, a group of companies that focuses on knowledge resources, training, educational products, consulting and related businesses.
•Why did you start ?
A lot of people ask me this question – since I seemed to have an apparently good job and it didn’t seem like I wasn’t doing well or enjoying my job. My job at Stanbic IBTC was great. in fact perhaps the ovation was possibly at its loudest. I left to pursue a dream. I was 33 years old, and I thought to myself that if I didn’t pursue my dreams while I was still young, then I may have regrets when I was old. I also realized that as a People Development Professional, there were many things I wanted to experiment and try out with that were beyond the scope of being an employee. I wanted to grow in my passion, and I felt at that point it was the right time to take the risk and grow.
LEARNING POINT: The first rule in starting a business is to follow your passion. What are you passionate about? What keeps you awake every night, and what do you love to wake up to every morning?
•Why did you leave your job ?
In my previous role at Stanbic IBTC Pensions as Head of Human Resources and Learning, I realized that there was a lot that could be done differently regarding Corporate Training. The industry is an “all-comers” affair, and I thought it will be nice to do things differently in that industry, and really improve the quality of training and learning interventions that organizations and their employees got. I was also very deeply committed to research, publishing and innovation, and I thought that these three ingredients will make a difference in a training practice – hence I pushed along to establish mine.
LEARNING POINT:Look at the market, industry or perhaps your current organisation. Ask, what can I do differently? How can I improve on a process, and how can I create a business out of this improved process?
•How did it all start?
Based on my conviction, I went in alone – a handful of friends also supported with seed capital for the business and one of them is one of our Non-Executive Directors, a gentleman called Felix Rwang-Dung. However, we have grown over time to have 5Executive Partners (including Mrs Barrow who is the School Director at Creative Learning International School, one of our subsidiaries) in our business, especially as the scope of our business has evolved. So, while, I started Learning impact NG with 2 employees in 2010, the Learning Impact Group now consists of 5 Executive Partners who work with me in overseeing different businesses that have evolved since 2010.
LEARNING POINT:Work with your current network. Which of your friends, colleagues, family or former classmates can you approach for seed capital? This places an extra responsibility on you to ensure that you have kept a record as someone that can be trusted.
•What benefits has the partnership brought to the business?
It has been amazing – firstly all the partners except the School Director started off as employees. They saw a clear career path in the organization,grew through that path quickly and responded to the need to take on more responsibility. Through our partnership model, we have been able to create three new distinct business lines, and create new revenue streams that are still related to the business of people development – so we have not lost focus. Over the years therefore our revenue profile has broadened through these new business lines, and provided some referral income, cross-subsidies and internal synergies in the business. We now have a business focused on building learning resources (books and educational curricular) for schools and children run by Ukot Ette which integrates quite well and collaborates with the School run by Mrs Barrow; we have a fledging SME HR Consulting business that focuses exclusively on small businesses run by Amina Bolujoko; Anthony Oni is responsible for our E-Learning business that provides learning resources and solutions on computers (mobile learning, social learning and interactive learning). My most senior partner, Nike Oni oversees our Training Venues business and oversees Client Relationship Management for our Corporate Training business.
The model drives innovation and focus, as each partner is responsible for product innovation and marketing, getting support from me, and the rest of the Team as necessary. Our ability to innovate is largely driven by this model as the “power to innovate” is unleashed through many more committed people, than just through Mrs Barrow and I.
LEARNING POINT:Let your employees see a clear path for themselves in your business. This engenders buy in and commitment. If you treat employees as partners, they will give their all, bring their best and grow with the business. In addition, the business grows quicker as you are leveraging on the strengths and full capacities of your employees, who become intrapreneurs (Entrepreneurs working in organisations as employees)
•How did you find start up capital?
Internally, we took up all our savings, sold a few things from time to time, and like they say – the rest is history. We also got a few friends to support our businesses financially from the beginning and along the way and we also were recipients of the YOUWIN Grant – both for Learning Impact NG and the School – Creative Learning International School. We have also received support from our bankers over time through lending facilities that we have taken to shore up our working capital and support expansion, and like most entrepreneurs we have benefitted from the generousity of our friends and family in those tough times when we had short-term financing challenges.
LEARNING POINT:Starting a business is a sacrifice, and you might have to sell off a few things to achieve a bigger goal. Be prudent; be informed; look out for programmes that can benefit you and approach banks only when you have used up internal sources of funding. Be known as someone who is trusted, so that when you approach friends, they can help.
•Why did you choose this line of business (knowledge and learning)… why not oil and gas, or some of the other traditional forms of business.
I am a firm believer in two phrases “Learning is Good” – which is self explanatory and “Be Better” – which simply means that no matter how good or bad you are – you can Be Better! I am myself a product of a life-long commitment to learning and continuous development. It was a deliberate choice based on my talents and interests. Although, quite frankly, because of my early foundation as an Investment banker, I used to think that I was cut-out to own my own investment bank or fund manager, or pension fund administrator. I contemplated those things at various times in my life, but decided that people development from “cradle to boardroom” was my forte.
LEARNING POINT:Again, it’s all about your talents and interests. Often times you have to do an introspection to decide what you really love doing and what suits your personality, then build a business around it
•How many staff do you employ?
In the School, about 50 people, and the rest of the businesses about 13. We expect more growth in the school though – as it grows organically, as well as some organic and slower growth in headcount in the other “Consulting” related businesses.
LEARNING POINT::From one employee to an employer of over 60 people. If you’re contemplating starting a business, what should propel you is the number of jobs you can provide. That’s a great motivator.
•What advice will you have for those contemplating going into business, but have the butterflies?
Don’t ignore the butterflies – they are doing their job. Business is like marriage – it should be well considered, however this doesn’t mean that it shouldn’t be ventured into. Like marriage, everyone is not necessarily cut-out to be an entrepreneur, but by being realistic with yourself, learning and practicing the skills and forging ahead, you can succeed in any entrepreneurial venture.
LEARNING POINT:Learning is important. Everything can be taught..even entrepreneurship. Seriously consider the venture and have a positive attitude.
•In your view what is the single most important factor for success as an entrepreneur
Hmmn, tough question – it is a variety of things – no single bullet. Firstly, realizing that success is a journey, not a destination, so we are still on the journey. With this realization of being on a journey, I will say a commitment to innovation, taking measured risks, reproducing yourself in other people, and putting in place solid structures and processes – running your business like it was a large corporate – these things continue to help.
LEARNING POINT:Process, process, process. Run your business like it is a large company. It’s not when you get big that you start putting things in place. The time to put processes in place is right now, even when you are small.
• Why was it important for you to elevate some staff to the level of partners?
The law of Buy-In, the Law of Legacy, the Law of Multiplying Growth. If people buy into you and your vision, then you should give them a piece of the pie, so that they can help you bake a bigger pie. If you want to add growth to your business – lead followers, if you want to multiply growth, lead leaders; and finally the real test of the effectiveness of leadership is the legacy you create and leave behind. Your legacy will be in shambles if you have not empowered people around you. Remember, empowerment is not just by “mouth”, it is by actual devolution of power, responsibility, and privileges
LEARNING POINT:The phrase says it all – “Your legacy will be in shambles if you have not empowered people around you” – Empower your staff and aim to lead leaders not followers.
•How important is it to invest in your staff?
Critical – once you do, you deliver them to a higher level of influence, commitment, creativity and contribution. One of our leadership models – the Leadership DNA teaches us that every day a leader should be preoccupied with 5 questions: 1) Am I in the right place? 2) Where can I find the right people; 3) How can I develop the right people? 4) How can I keep the right people/get rid of the wrong people; and 5) How can I get my people to lead even more people. This is people development at its finest and these are the thoughts that I allow to occupy my thoughts each day.
LEARNING POINT:You cannot lead people where you have not been yourself. Aim to improve your leadership capabilities in order to attract and retain employees.
•What strategies/advice can you give for staff retention, loyalty and peak performance?
There is a lot, but I will say open engagement and feedback, sacrifice (share your time, resources and talent with them); structure: let them see that you are making an effort to move from “one man to many men” and passion ( your commitment should be unequivocal).
LEARNING POINT:Again, the word passion.
We can recap the major points from this interesting story and draw a number of things for budding entrepreneurs to learn from.
• Passion. Stick with what you love! Don’t rush into a business you have no passion for
•Information. Be knowledgeable about your line of business and keep updating yourself
•People, people, people. Your staffs are your greatest assets and that’s not a cliché. Look for creative ways to reward them.
•Sacrifice. In looking for start-up capital, look at some of your assets and tone down your lifestyle while you’re building up your dream business.
•Be someone that can be trusted. You can also get seed capital from friends, ex bosses, ex colleagues, classmates and family. But you have to have had a track record of integrity, passion and someone that understands that line of business.
Thinking about starting a business? Quit thinking and just start.
OgucheAgudah is an associate of both the Chartered institute of bankers and stockbrokers Nigeria. He currently works as a special assistant to Nigeria’s minister of Industry, trade and investment with a focus on improving the access of Nigerian businesses to finance.
He can be reached on oguche@ogucheagudah.com
Oguche Agudah