“I particularly remember the moment I realized my company was going to fail. My co-founder and I were at our wits’ end… If you’ve never experienced a failure like this, it is hard to describe the feeling… you realize you’ve been duped. The stories in the magazines are lies: hard work and perseverance don’t lead to success.” — Eric Ries(2011)

Entrepreneurship is hard. Very hard. To survive in its cut-throat environment, with every odd imaginable stacked against you is not for the fainthearted. But I guess you’ve heard this before.

I guess that you’ve also probably read somewhere that 90% of all startups are likely to fail. And yours, of course, is not exempt.

But here you are, building a new business and hoping to hit the million dollar mark soon.

Why?

Why would you keep investing time, dollar and faith in something that has a 90% chance to fail?

I’ll tell you why.

You love to build. You love to solve problems. You want to change the world. Which is great. Which is why you set out on this mission, hoping that with killer ideas, passion or even a great business model, you could change the world.

But ideas alone, no matter how great, are insufficient. This is what Neil Patel, entrepreneur and author, understood when he wrote, of the failed startup, Dijiwan, “They overlooked key aspects of business process and the ‘boring stuff’… small things can turn into large things. Some of the most important components of a startup are those perky issues of business process, business model and scalability.”

And Insurance completes this mix.

Every business is exposed to a variety of risks and liabilities. Although all risks are not created equal, many can cause delay or halt operations, distract managerial focus, weaken your financial capacity and kill the business. From structural, property and employee risks, to product liability and lawsuits, the damage can be severe.

A safety net to fall back on when emergencies threaten to ruin your efforts is, therefore, the only remedy. And that safety net is a balanced insurance program.

Who says you are insured?

Buying insurance is not the same as getting adequate coverage. Many entrepreneurs are under insured or paying for the wrong policies. Not only can this mar your ability to survive financially when uninsured accidents happen, you can lose your business for something that has nothing to do with a bad business model or a failing idea.

What can be worse than that?

Is insurance expensive for entrepreneurs?

All risks are not created equal. If the risks are minimal, you can choose to bear the financial costs for certain damages by retaining risks or avoid it by being really attentive.

However, any risk that can put an end to your entrepreneurial dreams should be insured against.

5 ways that you can benefit from buying the right Insurance coverage.

1. Reduced health concerns.

Being an entrepreneur exposes you to a myriad of health and emotional challenges.

Striving to make a profit out of a difficult market, in extreme conditions, dealing with temporary failure and taking on huge risks is likely to have a toll on you more than you even know.

In this article, Tolu Ajiboye, writer and contributor at The Entrepreneur, refers to a research conducted by Michael Freeman, clinical professor at the University of California, San Francisco where 49 percent of entrepreneurs were discovered to have one or more mental health conditions.

Entrepreneurs, by the nature of the work they engage in, are very susceptible to health problem. But you can stay insured against health risks by adopting healthy living habits and buying the right health insurance coverage.

2. Protection against business liability.

Whether your business operates from your home or not, you need insurance to protect liabilities that may accrue to the business during its operations.

This is because your standard homeowner’s insurance policy is not designed to cover for any liability related to home business activities so it is dangerous to assume or overlook this when operating from your residence.

You should also consider that personal liability policies have limitations that exclude your business liability from coverage. Even, umbrella policies do not cover business-related risks.

You must, therefore, buy a good business insurance policy to insure your business against structural risks, business property risks, employee injuries and risks, products liabilities, lawsuits, vehicle and human risks.

3. To keep your loved ones safe.

Addressing the reality that you may die affords you the opportunity to support your family and loved ones when the unexpected happens and you, along with the money train, disappear.

You don’t need to have a family of your own to buy life insurance. What you should be concerned about is whether there are people dependent on you for their financial upkeep.

If there are, you should buy life insurance.

4. You can keep working.

Being disabled and unable to work, whether for a short-term or long period, can have very negative effects on your business. Even worse, it can kill your resolve to succeed when your income stream suddenly dries up.

There is only one way to avoid this: getting insured against disability.

5. You can be insured against under insurance.

Every Entrepreneur should take advantage of the Personal Umbrella Policy. With this, you get additional defense coverage, higher coverage limits for liabilities and security against gaps in your primary insurance policy.

Ironically, it is not advisable to buy any umbrella policy that the insurance company offers you. Not all umbrella policies cover the same risks.

It would be safer to consult a good insurance agent before making a choice.

Exclusions and Limitations: Figure out what it is that you are buying.

You should never buy an insurance policy out of assumption or only through word of mouth. Your policy must be tailored to cover your risks, which may be quite different from what your friend’s risks are.

Buying the right insurance coverage means hiring the best insurance agent to help you make the right decisions. It also means making only informed decisions when choosing whether to buy an insurance coverage or take it higher.

Here are four tips to keep in mind before buying any policy:

• Only hire the best insurance agents. It is their job to identify coverage gaps and advise you on how to insure the most dangerous risks.

• Have a financial plan and goal, assess the risks that you are exposed to while trying to achieve your goal.

• If you have life insurance, ensure that your spouse or any one financially dependent on you is aware.

• Buy an umbrella policy to cover for your personal coverage gaps.

• Do not insure properties that you can afford to lose. If your business properties are easily replaceable, especially if your startup is still young and you are not confident that it may survive, you may close the lid on insurance. Adopting a careful, risk-evasive attitude may be more beneficial instead.

A good insurance program might just be the difference between your startup surviving or failing.

Sources

Ries, Eric(2011).The Lean Startup. New York: Crown Publishing Group.

I used to wonder why people made certain choices at different stages in their lives.

As I grow older and experience certain things, I appreciate the fact that you never know what decision you would take or what you would do if faced with certain choices.

Somethings come with age and experience!

You can never learn certain things by reading a book, listening to a talk, attending seminars or workshops,

Passing through the fire to learn, means you actually have to pass through it.

People say learning from other people’s experience is better than learning from your own experience. This is not always possible to fully grasp your own ‘made to measure’ learning need.

No two journeys are the same, you can learn from other people’s experience in some instances, but I tell you, you have to experience certain things yourself to learn and this kind of learning would make more impact

It does not have to be a negative experience; it could be a positive experience.

An experience would make some scales fall off your eyes and you begin to realise who you truly are and not what other people have made you believe.

Another experience could turn you into a formidable force, a giant that cannot be pushed from side to side, while others would humble you.

You begin to smile and laugh at things/events that would normally make you feel bitter or sad and you ask yourself, “why did I not know this up till now”. Don’t blame yourself – you wouldn’t have known if you didn’t go through the fire; you’re not a magician!

With every experience comes a learning point and sometimes disappointments could be blessings in disguise.

Talk is cheap, they say, and yes it’s very cheap. You need to experience it to grasp it!

I have learnt to – never say never!

I have learnt to stop judging people and the choices they make.

I have rediscovered myself through certain experience and interacting with different people.

Dear Fahim Saleh (CEO Gokada),

I’m writing this piece to you so you’d know I care about your brand and I have decided to openly share strategies I feel will help Gokada scale.

I must first say that I am impressed that you had to quickly shut down Gokada because of different reasons, and it was a very wise move. Some of the reasons I think which were not all stated are;

1. Competitors
2. The regulatory policy
3. Technical issues.

I wrote a post a few weeks ago about how it is safer for start-ups to swim in blue oceans and not red oceans because red oceans are bloody. Yes, in the red ocean, it is a battle of money, and who can endure pains for long and who has the better strategy. 

Quick analysis – Bigi Cola penetrated the beverage industry through price and is planning to match even with Coca-Cola and Pepsi. That’s a risky move like I analyzed. The reason is simple: in trying to defeat a bigger competitor, you don’t play a price war. You’d go bankrupt. Coca-Cola can declare a price war against them by reducing its price. Coca-Cola owns Fanta, Coke Zero and other brands; it will not die for doing price war.

Let me quickly take everyone back to how Microsoft dominated the computer industry owning 99 percent thereabout back in the 90’s. Bill Gates played a game of price and won even though he was charged to court by other companies for taking almost all the customers and giving them crumbs. He played monopoly. I love monopoly.

Now back to the problem on ground, I was quite happy when I heard about the money you raised and I felt, well, Nigeria is having a good turn only to see news about another ride hailing service O’Ride. For some months now, I have been seeing O’Pay all over Facebook, and I didn’t know it even had anything to do with O’Ride. I am not against any startup, but this is my letter to you and what I think.

O’Ride has the money, ten times more than you raised so it’s very impossible to go heads on with them, and I believe they even have more bikes out there. Can we talk about analysing many things, and see if you need to build a blue ocean strategy and come back fortified. Let’s consider some things: I call it the GOKADA STRATEGY.

This strategy was developed by me in less than twenty minutes, although it took a lot of time to finally put it down on paper. So we have a major bully in the market O’Ride and we have Max.ng as well. What are the key things to write down on board as we strategize? Remember, I’m offering this service openly and can go deeper from here.

1. Price: I saw on facebook a few minutes before I began writing that you can get a ride for fifty naira with O’Ride. Now, I am not so aware of how much a Gokada ride will cost but I’m sure it will be more expensive. Let’s analyse the psychology of consumers in ride hailing.

The average Nigerian has seen okada as a cheap form of riding and as a “not well to do” person mode of transport. Let me explain further.

We have Uber, Taxify and the normal Lagos Danfo. A person in the middle class will prefer to take Uber for Danfo seeing it gives this sense of class to him. The same with the top class people.

Danfo bus is not an option for some middle class and low class people. 

However, when it comes to bike riding, there’s no class attached to it. Both the top class and the low class see bike riding as bike riding, provided the bike is a neat bike.

Why am I taking my time to let you know this Fahim? It’s because the price war cannot work if we try this approach. O’Ride charges fifty Naira or thereabout and Gokada charges more, everyone will go for O’Ride because there’s no way it distinguishes the poor from the rich. The rich man will not say he will go for Gokada because they charge five hundred Naira and O’Ride charges fifty naira. It’s a bike.

The rich will always want to show off that is why besides comfort being a consideration, they will still use Uber because of class. However, riding a bike has no class, so why still spend so much money when I can always get cheaper ones.. If it’s price, we’d lose customers.

2. Convenience: Well, here’s something we can focus deeply on. Both ride hailing services offer convenience with their bikes to customers so I am not referring to the customers angle. I am talking about the part of the riders themselves.

Of late, I have seen O’Ride in the streets of Akure where I reside and I also have seen Max.ng. One way or the other, I am yet to understand what Max.ng is doing in Akure, and the business model, seeing that Akure is a city with people who do not see time as a commodity. The road network is always free. Here’s what I mean: Akure is a city with many government workers, less holdup and simple road networks as well as middle class earners. So what business model could Max.ng be operating on seeing an average person in Akure choose a normal bike even if there’s just a ten naira difference between that of Max.ng and a normal bike? They are not in a hurry like Lagos, places are easy to locate, so having a ride hailing service here is off point except the bikes run at the same price as normal bikes. So, what is the business model?

Same way Uber cannot work in some cities like Akure. One way or the other, I feel they ran because of O’Ride. Funny enough, O’Ride is also here and I was surprised to see them everywhere, and people using it.

Now back to convenience, I have not used this ride services before, and I don’t know how it works, but I noticed there is a mobile app. How easy has it been for the riders to use the mobile app. Matter of fact, how convenient is it for them using phones and riding a bike at the same time.

Here’s my point, “if” a mobile app is what is being used, then there is definitely a need for a better strategy for convenience. I saw a bike man this morning with his android phone trying to swipe even as he was riding. What came to my mind was that he was trying to use the mobile app. He was from Max.ng.

3. Safety: The riders are well trained, fine. But how safe is using a mobile device while riding. I do not think it is safe. Matter of fact, it is very risky.

I saw a Max.ng rider trying to navigate his phone with his left hand and at the same time ride. Every ride hailing service is defaulting in this so here’s a chance for Gokada to take the lead. There’s a unique selling point here and I will love everyone to read my piece on unique selling point. Firstly, Fahim, you’d need to make sure all your riders are locals and if you want to make technicalities easier, you get bike men that have been in the business in such areas for some time.

Why did I say that?

One of the burdens locals who have spent some years in such a location will ease off is the fact that they will not need to use navigational to get to locations. While that’s just a light issue anyways, Gokada needs to find a way that will help the riders use their mobile devices to navigate without having to be distracted. They could hire a good product development team that will help connect the Google AI navigator with the helmet or whichever way they can come up with.

While they do that and fix it, it becomes a strength and a unique selling point. Once that is fixed, send creatives advertising agencies to create ads on how unsafe riding are without such a feature and why Gokada should be the choice. Dwell on this as a selling point. Safety should be a selling point.

4. Brand Addiction: Why do we use Facebook everyday or Instagram and not some other apps? The apps have some things that make them addicted.

So far so good, I haven’t seen any distinction between these bike services except for the fact that they have different colours so it’s difficult to bring up a brand identity, talk less of a brand addiction. Gokada needs a unique selling point and it is very hard to come up with one but very possible.

What unique selling point will do is that it will help in the game of heart vs hype. I wrote a piece on that and I emphasized that heart always wins in the long run. What does a bike do other than ride?

This is where we need to do a detailed study on the customers and this will be very deep. At this point, I will love to be pessimistic that I don’t see the Red ocean a good place for Gokada.

Gokada should create a blue ocean. Creating a blue ocean will help Gokada create a niche for themselves. Should Gokada just be a ride hailing service or ride hailing service for working class or for the street or for those who want safety? It must carve out a niche.

Fahim, I wouldn’t want your strategies to be to combat O’Ride. Work on how you can fix the technicalities. Besides, I don’t want to talk so much on how you can partner with fintech start-ups as Prof Ndubuisi Ekekwe suggested. That will be on another day. I really believe Gokada can come back better.

Cheers to them.

Ajayi Joel

Human Resource department is always considered to be a puppet of management. HR seems to be losing its relevance day by day in the corporate world. Everyone assumes HR departments should know everything about underperforming employees. I completely agree. 

However, we must always remember that HR doesn’t own the company. They only implement company policies which they also act on. HR are humans that can make mistakes. They have families too. They go through emotional and struggles just like everyone else. Yet, they show up at work and manage employees wellbeing. 

I read Michelle Jesus’s story. She talked about her experience in the corporate world laying more emphasis on HR departments. According to her, she was underperforming at work because she had a mother who had just turned widow. So she had to be juggling work and seeing her mother who had just lost her husband, leaving her mentally and physically drained. 

Michelle said, ”I had a widowed mother who was still shocked about the death of her husband (my father). I told our HR to excuse me for some hours during a meeting I wasn’t even needed. She refused. Instead, she sat me down and told me to tell my mom to “move on and be independent” and I need to set my priorities right. I was speechless for a moment gauging her sincerity. In the end, I told her if my mom tells me to resign, within a heartbeat, I’ll leave.”

Looking at Michelle story, everyone will blame HR for being heartless, but the truth is – the company’s policy is responsible for everything. ”Missing Empathy” in the corporate world is not HR’s fault. Stop blaming HR departments. Blame top management. They implement those policies HR act on. 

HR are the reflections of the company’s policies. Top management most of the times will never admit their mistake. Statistics show that up to 60% of people leave managers, not the job. This example is a stark reminder that there are people in positions of responsibility for the success of others who have forgotten about helping those in their area of responsibility to be successful. 

Once a manager sees a person only as a disposable, replaceable resource, that can’t help but affect the view of everyone working under that person. And the effect is what we see in a large percent of people not engaged at work. Care about employees as people. Invest in your people like you never want to lose them and watch for a reciprocal effort to perform, to be loyal, and to be productive. 

Employee recognition, engagement and reward programs have a real purpose and when used wisely can codify and support stronger manager/employee relationships. However, it is hard to come by in the corporate world. HR can’t show employees empathy because top management won’t show HR departments empathy as well. Everyone is under pressure. Bringing results is all that matters. 

Instead of blaming HR, the values of the organisation should be questioned. If a person can not understand the pulse of his/her direct reportees and need HR to tell how his team is feeling or need HR to inform him about them. Then the organisation culture is in question and the responsibility lies with all leaders on the Top not HR.

The challenge is that in most of the organisations, people think and interpret that Culture is some creation of HR which is a misconception about culture. Blaming HR departments, in this case, is a reflection of the shortsightedness of the leaders of the organization.

Organizations need to revisit their values and need to develop a culture which is displayed in the behaviour of the people of the organization.

On Tuesday, President Muhammadu Buhari, directed the Central Bank of Nigeria (CBN), to immediately restrict forex access to any sort of food importation. The president made this known while hosting All Progressive Congress (APC) Governors for Eid-el-kabir in his home town Daura. He said Nigeria’s foreign reserve will be conserved and utilized strictly for the diversification of the economy, and not for encouraging more dependence on foreign food imports bills.

“Don’t give a cent to anybody to import food into the country.” He said.

That sounds similar to many other steps that have been taken by the CBN recently, only that it didn’t involve everything food, and it’s not taking orders from the president. Many believe that the recent statement of the president is an evidence that the Federal Government sees importation as a serious threat to the growth of domestic products, even when there is not enough domestic products to go round.

President Buhari noted that some states like Kebbi, Ogun, Lagos, Ebonyi and Kano are already taking advantage of his administration policies on agriculture by going into rice farming which is yielding good results for them. He therefore urged other states to plug in to ensure food security.

He also praised the efforts of the FG so far, saying that it has yielded hunger quenching results.

“We have achieved food security, and for physical security, we are not doing badly.”

President Buhari said he is happy that young Nigerians, including graduates are now seeing agriculture as part of entrepreneurship, and many have been publishing testimonies of good return on investment. An evidence he said should spur others to join the quest to feed the nation.

The president assured that incoming ministers will be trained to effectively work to achieve the targets and goals of the APC-led government. And there is going to be close monitoring through the office of the Secretary General of the Federation (SGF).

The APC Governors who were in attendance pledged to do their best to implement policies that will work out well for Nigerians. They said their party had been repositioned after the 2019 elections, to work for the benefit of the majority of Nigerians.

However, Nigerians have condemned the president’s statement ordering the CBN not to give anybody a cent for food importation, saying that the CBN is an independent institution that should not take orders from the government. Some urged the FG to always follow due process when trying to implement any policy, even though it is in the interest of Nigerians.

There is also complain that Buhari’s administration is insensitive to the plights of Nigerians to come up with such an idea at this time when most Nigerians are dying of hunger. According to Poverty World Clock, over 91 million Nigerians have been plunged into multidimensional poverty since 2015, and are living below the poverty line of $1.90 per day. A situation that many believe that the current economic policies cannot improve. And the ban of food importation could only make it worse since Nigeria does not have the infrastructural capacity to produce enough food that will bridge the demand gap that the food import ban will create.