Entrepreneurs say finance not basic requirement for start-up success
Contrary to popular opinion that finance is the basic requirement for business success, expert entrepreneurs have said there are other factors that have bigger impact on start-ups, small and medium enterprises than money.
According to these experts, ideas, understanding of the market and integrity are prerequisites for the success of businesses, particularly start-ups.
“It begins with good and marketable ideas,” said Peter Emodi, managing director, Chupet Enterprises, which is based in Abuja, in a telephone chat with Start-Up Digest.
“If you have not developed an idea of what to do, you won’t even put $1 million to any use when you are handed it,” Emodi said.
Anthony Okoye, president, Entrepreneurs Organisation, Lagos chapter, re-echoed this point during the get-together of EO members in Lagos. According to Okoye, good business ideas must always find someone or some organisation to fund it.
“Banks will always fund fantastic business ideas,” Okoye said.
He explained that start-up owners must concentrate more on developing their innovative skills while also building respect and integrity.
Others say rather than emphasise funding at the outset, young entrepreneurs and start-up owners must first concentrate on building character and relationship.
According to those in this school of thought, gaining trust of prospective customers is an art that must first be learnt before delving into business.
Nkem Obi, executive director, Exxon Mobil, said trust and integrity have catapulted many small and medium enterprises into conglomerates. According to Obi, who spoke during the get-together of EO in Lagos, his own firm has been propelled by its integrity and total refusal to give or accept bribes despite potential gains.
Anthony Okoye, who earlier spoke on the need to develop lucrative and marketable ideas first, also said start-ups must gain customers’ trust first before thinking of making gains as this is the easiest way to succeed and survive the tough business environment.
“The more customers trust you, the more they can refer you to others,” Okoye said.
Tonye Cole, managing director, Sahara Energy Group, also re-echoed this by stressing that start-up owners must be firm and uncompromising in their integrity no matter what they think they can gain from doing so.
Others say understanding the market first should be a priority before starting a business. According to entrepreneurs in this school of thought, those wishing to establish business must understand how the business works and how market for their products/services. They say market research is also crucial.
They frown at entrepreneurs that jump into business without mastering the nitty-gritty of what they want to invest their money in, stressing that becoming successful requires some level of learning, tutelage and mentorship.
“Market is very important in business,” said Matthew Ibeabuchi, CEO, MD Services.
“If you do not understand or locate your market, you will struggle to penetrate it with your good or service,” Ibeabuchi said.
He advised that markets have peculiarities which need to be understood.
“What sells in Agbara, Ogun State, may not basically sell in Aba, Abia State. So a novice can easily take the products that are supposed to gain good market share in Agbara, to Aba. The loss is always regrettable. This is why market research and understanding are critical,” he said.
ODINAKA ANUDU