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Our Apologies – And An Accidental Marketing Lesson from A Broken Process

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Greetings. I sent an email to our members last night. If for any reason you did not receive it, please click, read and watch  the video. We apologize for the noisy session on Zoom yesterday. It was all my fault; I shielded myself from it as I spoke (my laptop was muted). I have made a new video, and merged with the portion where we recovered.

But interestingly, just making that mistake and releasing the Week 1  live session video to the public have resulted in a jump in registration! Possibly, some people have watched it and decided to join Tekedia Mini-MBA. So, there is a positive to this!

Indeed, we have picked a potential way to market our product: explore making all Week 1 public, including the courseware, cases, etc. The number of new registrations per 12 hours skyrocketed when we sent that apology email to global Tekedia Institute database.

Again, I apologize for the rowdy session last night.. We run many Zoom sessions here, and Eyitayo, Arinze and our team members have always delivered. But yesterday, I blew it. That will not repeat again.

 

https://youtu.be/fTxRR7fclik

 

Managing Startup Valuation At Pre-Revenue

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A key part of valuation is explaining your revenue model and potential financial growth, to bring in investors and partners to walk the journey with you. Part of this also includes your annual revenue at that point (even if you are not yet profitable). Now, what happens if you do not have revenue yet? How do you do a proper valuation of your business and present it in your pitch in the best way possible?

For pre-revenue startups, here are some things you can consider and maybe leverage when reaching a valuation for your business.

Leverage your management team

It is worth noting that the strength of your management team can reflect in your business valuation whether or not you have revenue yet. For instance, the presence of a COO that is known to have taken two or three startups from seed stage to IPO, on your team can carry the same weight as a healthy financial record. Remember that investors inject their money into your startup, not just because of how far it has come, but because of how far they think it will go and grow.
And if you have some individuals with strong antecedents on your team, the investors will see the business as having good potential. Keep in mind that valuation only gives a good estimate (by weighing several factors), not necessarily the exact value or worth of the business.
Data on Market trends and surveys

Even if you don’t have a product in the market yet, if you can get sufficient data on market trends that show your solution could be highly needed, then you have something. This is an indicator as to the market potential of your product or solution and can do a lot for you especially when you don’t have all the revenue numbers to crunch. Remember that investors do not only invest based on the milestones achieved but on the potential of what your product could become.

For instance, if you have sufficient data showing that there is a huge gap or challenge in a specific sector, that is costing them lots of money; and you also show how your product can solve that problem at a fee that they would be willing to pay, it will suffice in place of established revenue streams. This is more so for early-stage startups.

Realistic Financial projections

That you do not have revenue already should not be a reason to walk into any pitch without solid financial projections, preferably done by experts. If you have a solid solution and business, then experts should be able to come up with financial projections that can be both real and impressive. There is no need to exaggerate facts to impress investors. Keep in mind that those that are aligned with your business goals will not be afraid to put their money into it.

The point is that you can leverage on other things you have to make up for what you don’t. A proper combination of your management team, systems, realistic financial projections based on market trends, and so on, will do the trick for you. If you need to bend a little to accommodate that investor you want, without necessarily compromising your structure or overdiluting ownership, do it.

Your Tekedia Mini-MBA Comes With A Free Facyber Cybersecurity Course [Get the Bonus]

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If you have paid for Tekedia Mini-MBA, ask Admin to give you access to a Certificate module at First Atlantic Cybersecurity InstituteThere are four tracks in Facyber  for you to select from, and each module takes 12 weeks. All programs are self-paced with a brilliant portal designed for geeks.  The course syllabus and Table of Contents are provided in Facyber.com. Here are the tracks:

  • Certificate in Cybersecurity Policy (CCYP)
  • Certificate in Cybersecurity Technology (CCYT)
  • Certificate in Cybersecurity Management (CCYM)
  • Certificate in Cybersecurity Intelligence & Digital Forensics (CCDF)

What To Do (after Mini-MBA Registration):

  1. Visit Facyber and create your account (use the same email used for Tekedia Mini-MBA).
  2. Activate the account in your email
  3. Email team with the certificate course of interest, and confirm that you have done #1 and #2 steps by writing “I have done steps #1 and #2”. Remember to let them know the track of interest.
  4. Admin will respond after setup & activation
  5. Login back to Facyber, you will see the course

 

How To Make Your Potential Customers Buy More Of Your Product

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CUPERTINO, CALIFORNIA - SEPTEMBER 12: Phil Schiller, senior vice president of worldwide marketing at Apple Inc., speaks at an Apple event at the Steve Jobs Theater at Apple Park on September 12, 2018 in Cupertino, California. Apple is expected to announce new iPhones with larger screens as well as other product upgrades. (Photo by Justin Sullivan/Getty Images)

Business is not a walk in the park, it demands you put in the required effort to ensure you get desired results. Aside from the desire to ensure that your products reach the hands of potential buyers, you must still put in the necessary efforts to ensure that your customers will always want to patronize you and buy more of your products. You need to give them a reason to always come back. You should note that the market is highly competitive and you must devise every means possible to ensure that your business gets patronized so that you can stay on top. You must give potential customers reasons why they should overlook the products of others and always come back for yours.

Here are five (5) ways on how to make your potential customers buy more of your product:

Target them before anyone else does: This is why you must always be on the lookout for those that need your products. This is one of the initial tricks to convince your customers to buy more. For instance, when you go to a marketplace in search of a product, you will often encounter sellers who rush to you to inquire about what you want. If what you are in search of is what they sell, they will hurriedly carry you to their spot before anyone does. 

Most customers these days show immense loyalty to a brand they found in the early stage. Therefore, if you give them a product or service they desire before your competitors, you will become their favorite and they will often like to patronize you. You must keep your market research constantly on, to stock products or services that your potential customers will want.

Create push notifications that will give your customers an alert every time you have something new in store. As stated by the experts behind clevertap, marketers can and should utilize push notifications to encourage engagement and retention. Push notifications help remind customers about discounts, sales, or any other offers that you may have available for them.

Create interpersonal relationships with them: If you do not know how to create interpersonal relationships with people who patronize you, I am not a harbinger of bad news, but you will struggle in business. Business is more than buying and selling, you need to create a relationship. I will give a personal example. I once went to cut my hair at a salon. The barber in charge just kept a stern look while he carried out his job. After he was done, I decided I wasn’t going to patronize him again because I felt uncomfortable in that atmosphere. A few days later, I located another barber. This one got his interpersonal relationship skills on the check. 

He always asked about my work and family. Often, we engage in topics concerning sports, football, politics, etc. I felt connected to him. I always patronize him because of the relationship he created. Having a deep personal relationship with your customers is one of the key factors that drive them to buy more and patronize you. It could just be you passing a simple compliment. Show them that you are not just interested in making sales, but you care about them. 

A report on Forbes suggests that brands that form a deep interpersonal connection with customers are 80% more likely to lead. If I want to break it down, I will say treat your customers like your friend and you will always have them coming back to patronize you. Giving your customers an interpersonal connection with your brand will convince them to always buy more from you. As trivial as it looks, it works.

Do Free Giveaways and Bonus: When you often do giveaways and bonuses to your customers, you will always have them patronizing you because they will feel the more they buy your products the more they stand a chance for more giveaways or bonuses. Giveaways drive one of the highest conversions for brands. If you tell a customer that if they buy 2 of your products they will be given one free. Trust me they will always want to buy more from you. 

A business that offers giveaways and bonuses is more likely to retain customers than those that do not. The point is giveaways drive conversion. The thought of getting something for free with just a little more investment convinces customers to buy more.

Share customer reviews/ testimonials: As far as your products are top quality, and your customers enjoy the experience they derive in using them, don’t do yourself a disservice by withholding the testimonials. According to a report, 95% of the customers read testimonials/ reviews before buying a product. Another report suggests that for every one-star increase in the brand’s review yelp, a brand gets a 9-5% increase in their revenue. 

Therefore, sharing customer reviews will definitely convince your customers to buy more from you. If it is an offline business, don’t fail to tell testimonies of how your products have been helpful to others. Share it with them by uploading screenshots of the testimonials.

Offer Extended Warranties: A warranty is a guarantee, issued to a purchaser by the seller, promising to repair or replace a product within a specified period. As a professional tool, warranties assure consumers against defective products that fail to perform satisfactorily over the warranty period. When you offer warranties to customers, this will instill in them a sense of trust and loyalty to your brand and they will always want to buy more from you.

Understanding the Concept of Money Laundering

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What does the term “Money Laundering” really mean?

People are always asking what does the term “Money Laundering” really mean; is it a legal concept or a political concept? I will try to break down and explain in simpler terms what the term “money laundering mean”; the offense of money laundering in Nigeria and its punishment as a legal concept.

Scenario: Let’s assume Mr. Ade made about N500m from illegal activities like international fraud scheme, drug trafficking, arms deal, oil bunkering etc and there is no how he can spend such amount of money or take it to the bank without drawing the attention of the authorities to verify the source of the income and know what Mr. Ade does  for a living to justify him owning such an amount or having such a huge amount in his possession. Mr. Ade decides to invest the money in a business venture. The process  of investing such illegally acquired money into a legit business thereby covering the illegal money tracks is what is called money laundering. 

Just like the name implies, laundering is an English word which simply means washing or cleaning; therefore, money laundering simply means the act of washing or cleaning a “dirty” or money gotten through illegal means to become clean or legal by investing the money into a legal or legitimate venture.

It can also be said to be the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses or Money laundering is the practice of making money that was gained through criminal means, such as smuggling weapons, look as if it came from a legitimate business activity.

When authorities arrest an individual for money laundering, they are simply saying that his business or source of income does not justify him owning such a huge amount he owns and definitely the money is a proceeds of some illegal activities.

Money laundering is a crime in most countries of the world, it’s an international crime that the offender can be arrested and tried in any country where he committed the offense. It is also a high class offense in Nigeria and the Money Laundering (Prohibition) Act, 2011 subsequently Money Laundering Prohibition (Amendment) Act, 2012 in consonance with the Economic and Financial Crime Act, 2004 are the main laws that regulate and provide for the offense of  and punishments for the crime of money laundering in Nigeria and the Economic and Financial Crimes Commission is the law enforcement agency charged with the statutory duties of arresting and prosecuting money launderers. 

The Economic and Financial Crimes Commission has a special department whose sole purpose is to regulate, educate, arrest and prosecute criminals of money laundering. The department is called ; Special Control Unit Against Money Laundering (SCUML) and they have offices in most states in Nigeria.

The offense of Money Laundering in Nigeria is not just limited to the act of investing ill gotten money into a legitimate business, The Money Laundering (Prohibition) Act 2011 makes it illegal for any individual to accept or make any cash payment that exceeds N5m (Five Million Naira).

This implies that if an individual pays or accepts in payment a cash that is above N5m without making use of financial institutions, then the transacting parties have committed the crime of money laundering. The transacting parties found guilty of contravening this are liable to imprisonment for a term of not less than 3 years or a fine of N10m (Ten Million Naira) or to both.

The Money Laundering act provides for the punishment of 5-10 years jail term  or more for anybody involved in money laundering activities in Nigeria.