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Home Blog Page 5394

This is 2022; stop spending time on that pitch deck; go out and launch!

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One thing that must NEVER be absolutely perfect is your pitch deck (or business plan). A perfect pitch deck is a failure because no market is standstill and waiting for someone to perfectly deck it!

Markets are dynamic because customers #move. A pitch deck that tries to understand every nuance of the market is hopeless. In mathematics, we call it an asymptote; a line which gets closer to a curve but never touches it at a finite distance. (Chinua Achebe wrote that proverbs are the palm oil  with which words are eaten; mathematics is a compass that explains every aspect of the world)

The best business plan is the one that provides confidence to #BEGIN now. Why? In a few months, you might have so deviated that you would not believe that was the original idea!

This is 2022; stop spending time on that pitch deck and get out into the market right now. It’s about time! BEGIN.

On Government’s Lethargy And Labour’s Vigour

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A kid might claim ignorance of the incessant ‘tours’ that had in recent times embarked upon by the Nigeria’s Government and the Labour as regards minimum wage but if a full-fledged adult displays such an attitude, he may be regarded as an imbecile.

From the onset, the teeming Nigerians have been watching with keen interest, though with soured physiognomies. In some quarters, many have opined that if care isn’t taken, the excruciating effects of the endless tours is liable to cripple the functionality of the system especially at a point the country is deeply concerned about the fast approaching general elections.

In spite of these concerns, the government is still creating further room for the organized Labour to embark on yet another industrial action in this year being 2022. It’s not anymore news that the Nigerian Labour Congress (NLC) is threatening to go on an indefinite strike over the impending hike in electricity tariff and petrol pump price.

It would be very pertinent to appraise some key fundamental facts with a view to presenting a fair and objective analysis herein. Mind you; the fairness as mentioned above has to do with all concerned, not a particular party.

In accordance with the stipulations of the International Labour Organization (ILO) whose principle governs the relationship between the government and labour in any nation across the globe, the national minimum wage is meant to be upwardly reviewed once every five years.

The current N30,000 Nigerian workers are entitled to as minimum wage was signed into law by the government in April 2019. Funnily enough, till date, the Federal Government (FG) led by President Muhammadu Buhari is yet to fully implement the new minimum wage let alone the various state governments.

Prior to signing the N30,000 into law by the President, the organized labour comprising mainly the NLC and the Trade Union Congress (TUC) came up with an agitation, reminding the government that onward increment of the workers’ minimum wage of the then N18,000 was long overdue.

In line with the demand, after rigorous consultations, the FG under the watch of President Buhari set up a 30-man tripartite committee consisting of the representatives of the governments, the private sector and the labour union, though the Local Government wasn’t reportedly represented.

The Ministry of Labour and Employment led by Dr. Chris Ngige informed Nigerians that the awaited new national minimum wage would be presented by the committee by the end of the third quarter of September 2018.

It’s noteworthy that prior to the setting up of the tripartite committee, the NLC was proposing N56,000 as new minimum wage. Amidst the committee’s deliberations, N30,000 was reportedly agreed by the sectors involved as was notified by the NLC headed by Comrade Ayuba Waba.

It’s worthy of note that the committee couldn’t come up with any tangible resolution, not until the workers embarked on a warning industrial action.

It’s noteworthy that despite having resolved for N30,000 the FG was afterwards proposing for N24,000 contrary to the figure the committee allegedly agreed upon, knowing full well that the apex government was part of the deliberations.

Despite the fact that the FG, let alone the state governments, is yet to fully implement the N30,000 minimum wage doggedly fought for by the Labour unions, so many increments have thus far been experienced by the workers and the entire citizenry.

The FG’s border closure has continued to worsen food prices; VAT increment from 5.0% to 7.5% which has hurt disposable income;  the purported removal of petrol subsidy which has led to an increase in pump price by 12.4% to N165.0 and electricity tariffs hike by c61.3% from cN31.0/kwh to cN50.0/kwh; have all taken a huge toll on the citizenry.

Despite the arguable necessity of these reforms, inflation is currently at a 36-month high with an incredibly harsh impact on purchasing power in Nigeria. The economic hardship is obviously seriously telling on the ordinary citizens who make up the majority of the entire population.

The workers apparently deploy the strike mechanism whenever the ‘maltreatment’ becomes much unbearable or life-threatening. Could it be that the government has always mistaken their patience cum patriotism for cowardice or inferiority?

It could be recalled that the various state governments under the aegis of the Nigerian Governors’ Forum (NGF) offered N22,500 as the new minimum wage, stating the government workers constitute merely about 5% of their respective states’ population.

According to the governors, if the workers end up receiving up to N30,000, their funds would be impoverished, which based on their claim, would be to the detriment of the entire populace or the common man who make up the majority.

It were only states such as Edo, Benue and Bayelsa that then indicated interest to pay any amount, which we all knew was done for political reasons. It’s needless to assert that it was a mere political talk, because the states in question are reportedly yet to fully implement the new minimum wage.

It’s pathetically noteworthy that till date, most establishments in the private sector are yet to pay most of their employees up to N10,000 let alone the N30,000 stipulated by law and no one is talking about it.

A supplementary budget of the new N30,000 Minimum Wage was approved by the lawmakers in 2021 and was duly signed into law by the Presidency, yet virtually the entire federal workers are currently yet to receive their arrears of the new minimum wage. This implies that the government lacks the enthusiasm to take the needed action.

No patriotic Nigerian wants a strike action neither do they want any form of deceit, hence all concerned needn’t be reminded to earnestly do the needful to salvage the country from the ongoing quagmire.

 

 

 

 

Condemning the act of Lagos CP Odumosu at the new year eve

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The narrative that the outgoing commissioner of police of Lagos state who was just elevated to the rank of Assistant Inspector General of Police (AIG), Mr. Hakeem Odumosu can enter any place at will with unhindered access, be it privately owned or publicly owned property is fallacious, illogical and unfounded by any legal standpoint.

Mr. Odumosu despite the fact of being a high ranking police officer is still a police officer, hence a public servant and when a police officer is operating or going about officially to carry out his official duty as provided by the police act and other enabling statutes, he must first identify himself and the law is to the effect that when a police officer is to enter a place even if for the discharge of his official duty like search or arrest he must first be subjected himself to he searched by the owners of the place he’s to enter so not to plant incriminating objects in the place.

Therefore, even if Mr. Odomusu with is security details are entering the Magodo estate to carry out official duties which he claimed (he claimed that he’s attending a strategic meeting in the estate), the security guards of the estate are still within their power and duty to ask the police officers to identify themselves and confirm with them the particular house in estate they are visiting.

This security check carried out is estate entrance where visitors are to call their hosts from the gate to confirm with the security guards before the guards can grant them access into the estate are for security reasons and so the security guards can give the visitors the proper direction to where they are heading to so the visitors don’t end up loitering around the estate searching for their way.

Be it as it may, according to the reports obtained from the estate authorities and residents, the AIG was visiting the estate to attend a social event  hosted by a friend and not for official reasons. Therefore, the act of the commissioner of police ordering the arrest and detention of all the estate security guards for not granting him uninterrupted access into the estate is abuse of power as a police man and abuse of office as the commissioner of police of the state.

The police officer and the police service commission owes an unreserved apology to the residents of the estate and compensation to the security guards as the security guards are only carrying out their duties and are clearly within their bounds. The commissioner only felt embarrassed because his high-horsed ego was bruised by the estate securities by conducting a stop and search on him, hence he decided to use his power to punish the guards. 

For the sake of emphasis, according s.37 of the constitution of the federal republic of Nigeria, 1999 (as amended), citizens have right of privacy to their homes, premises, properties and the reasoning or thought that any individual be it a police officer acting in official capacity or personal capacity can have an uninterrupted access to people’s homes is not just fallacious but logically unsound and undoubtedly an argument from an irremediably half-baked rookie student of the law.

For a police officer to enter a home without being hindered, he must first obtain a search warrant to enter and search the home or estate and any act of any individual to interrupt the officer entering the home or premises will be tantamount to obstruction of the cause of justice which the law frowns against….but the Cp was not conducting a search neither was he in possession of a warrant in lieu of the estate, hence he is to be treated like every other private citizen and be subjected to the estate security protocol that every other visitor is to be subjected to.

The constant abuse of power by the high class public servants and public figures should always be called out and the act of the outgoing commissioner of police of Lagos state in the eve of the new year is a no no and should be highly be condemned by all and sundry and the senior police officer should be duly cautioned by his superiors and the police service commission.

Tesla Beats Q4 Expectations, Records 936,172 Annual Deliveries

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American electric vehicle company Tesla said on Sunday it delivered 308, 600 vehicles in the fourth quarter of 2021, marking a single quarter record-breaker that CEO Elon Musk attributed to the hard work of the company’s employees worldwide.

The Q4 delivery, which took Tesla’s total for the full year to 936,172 delivered vehicles, an 87% increase compared with 2020 when it reported its first annual profit on deliveries of 499,647.

The leading EV automaker produced 305,840 fully electric vehicles total in the fourth quarter of 2021, defying production hindrances presented by global chip shortage. Tesla Shares jumped more than 7% in premarket trading Monday.

Compared with the previous quarters in 2021, the overall production and output for Tesla beat expectations, setting new records. Tesla reached its previous best quarter of 241,300 vehicles in the third quarter of 2021.

According to a consensus compiled by FactSet, quoted by CNBC, Wall Street analysts had expected Tesla to deliver 267,000 vehicles in the fourth quarter and 897,000 vehicles for all of 2021.

CNBC analyzed below the impact of sales of Tesla models on the overall annual growth.

Tesla combines delivery numbers for its higher-priced Model S and X vehicles, and lower-priced Model 3 and Y vehicles. The company does not break out sales or production numbers by region.

Deliveries of its flagship Model S sedan and Model X falcon wing SUV represented just under 3% of Tesla’s total deliveries in 2021. Model 3 and Model Y deliveries amounted to 296,850 in the final quarter of 2021, and 911,208 for the full year.

Tesla makes Model 3 and Model Y vehicles at its factory in Shanghai and in Fremont, California, but only produces the Model X and S in Fremont.

Tesla’s magic wand

Like every other automaker, Tesla was greatly impacted by the global chip shortage that forced many of them to shut down production. Musk had at Tesla’s 2021 annual shareholder meeting, expressed concern about pandemic-induced supply chain challenges that made it difficult to obtain enough microchips.

However, unlike other companies forced to curtail production or shut down at some point, Tesla devised a means to beat the challenge.

“Throughout the second year of a global coronavirus pandemic, Tesla was able to increase vehicle deliveries by ramping up production at its first overseas factory in Shanghai, and by making technical changes to the cars that it produces in Fremont, California, so that it could ditch some parts altogether,” CNBC said.

A notable example of Tesla’s prodigious maneuver was in the removing of radar sensors from Model 3 and Model Y vehicles built for customers in North America. The decision was announced in May. According to CNBC, those cars now rely on a camera-based system to enable Tesla’s driver assistance features such as traffic-adjusted cruise control or automatic lane-keeping.

While the pandemic remains a big challenge to production and global supply chain, Tesla’s unprecedented growth in 2021 sets it on the path of uninterrupted growth.

Musk said he hopes to increase Tesla’s production to 20 million vehicles annually over the next nine years. His push to achieve that aim is seen in the expansion of Tesla’s factory to Texas, where the company is planning to start the production of the Model Y this year. There is also the Berlin-Germany giga-factory, which the EV leader hopes will serve as a base for its competition with European rivals.

Tesla’s global EV leadership is expected to be greatly challenged this year as more automakers join the net-zero emission cause. Toyota, Ford, Volkswagen and others are all gearing up for production. By 2030, about 24% of new vehicles sold worldwide are likely to be fully electric, according to forecasts from Alix Partners.

Governments in Europe and the US are enacting pro-green legislations, encouraging more companies to make a switch to electric vehicles. But it will take more than a few years for other companies to catch up with Tesla. Deutsche Bank says that Tesla’s strong fourth-quarter deliveries may signal a big year ahead.

Add Shareholder Letters In Your Reading List

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How do you get insights on markets? Personally, I read dozens of annual reports in addition to quarterly reports. As I read them, I see patterns on what is working and not working. If you want to understand markets better, find avenues to read annual reports especially those prepared by startups and young companies.

The big banks, insurers, cement firms, etc are macro and largely offer nothing but top-overview. But annual reports of startups give you monthly customer growth, views, conversions, etc which the big boys have no time to bug you with.

Sure, those reports are proprietary but if you can have access to them, go for them. Validation of market patterns does not come from reading non-quantitative blogs. They come from insights gathered on companies in which people have invested money. Those insights are hard data.

In the Tekedia Mini-MBA which begins next month, we will be introducing a Homework on creating Annual Shareholder Letter or Annual Report for SMEs/new startups.. We already have one for Business Concept Note,  Investment Brief, etc which have served many of our members. Yes, before you hire the experts, you may be the person to write the first Shareholder Letter for your firm. We want to make sure you are prepared to do that.

Meanwhile, let me wish Happy New Year to two of our portfolio companies which engaged me yesterday via shareholder letters: AjoMoney and TradeGrid. Happy new year to both and more open doors; so proud. And to all our portfolio companies, Happy New Year.