There are many business models in the business world among which is the sole proprietorship.

Sole proprietorship is a business entity where a single person is in charge of the day to day activities of his business.

Then in secondary school, we usually call this business model, “one-man business” because that`s what it is… a business of a single man/woman

There are other business models, partnership (where two or more people come together to be in the business together), limited liability (where the liability of the members is limited to the amount contributed as capital and unlimited liability company (where the liability of the members is not limited to the amount contributed to the business i.e. their liability could affect their other assets).

There are few other business models (e.g. public limited liability and private limited liability) depending on where you are and the name they are given.

In this tutorial, I will be sharing with you what single man business is, advantages and disadvantages.

Let`s get started!

One man business (sole proprietorship) is the simplest form of business anyone can start.

This is because it can be started by a single individual without any (or much) legal documents.

Many today`s successful entrepreneurs started as a single man in their businesses, so if you`re planning to start a business single handedly, you are not doing anything strange or odd.

Let`s check some of the:

Advantages of the sole proprietorship

1. Sole proprietor have 100% control

No other business entity gives you all of the control like sole proprietorship.

If you`re in partnership your partner demands accountability. If you are in limited liability, board of directors gives you duty and expects you to do certain things, in some specified ways.

As a single owner of your business, you`re having 100% control.

Nobody tells you when to work or how to work. Nobody tells you what to do and what not to do.

If you`re someone who loves freedom, you may want to consider this business model.

2. Sole proprietor takes all the profit

Since you`re the sole owner and no partner or board is involved in the business, you single handedly take all the profit.

Sometimes when you get a bright business idea and invite others to partner with you, the business end up in mighty success. Since your coming together is with some legal agreement, you have to share your profit with other people (even when it may seem as if they are not the originator of the idea).

As a sole proprietor, you enjoy your profit and success alone.

3. Sole proprietor takes quick decision

Even if you`re the CEO of a public limited liability company, you may not wake up one morning and take a major decision, without consulting the board of directors or other persons in the organization.

As a sole proprietor, you can wake up at 6am and make a decision about your business.

4. Sole proprietorship requires little legal document and registration

In fact, in some countries, you may not have to pass through any legal registration before you start a business as sole proprietor.

In cases where business registration is required, it`s usually very simple.

For instance in Nigeria, you can start a business as a single individual without any serious registration.

Some people simply join the trade association or something similar. However If you don`t want to do this, all you need is a simple business registration with the Corporate Affairs Commission (CAC).

CAC will register the name of your business with a token amount.

5. Sole proprietor has no need for financial statement

Other business models demand high level of accountability because the other party is evolve. You may be required to give accurate financial statement of the day to day business activities, even if you`re the CEO.

As a sole proprietor, you`re accountable to nobody.

Yes, it`s very important to keep financial records, even as one-man business owner, but you see, some of us simply hate records.

I try hard to keep financial and non-financial records for my business, but not always. I am not just meticulous enough to keep every detail.

Soon, a partner will join me to take care of this my weakness.

Ok. Now to the;

Disadvantages of sole proprietorship

1. Limited expansion

Anybody could know how start a business on his own, but to expand and grow, it becomes the work of a team.

You rarely can become a successful entrepreneur as a single man in the business world. Business is a game of team. Just as I explain above, you may lack one major business skill (in my own case patience to keep records). This single skill may cost you some businesses and growth.

Get me right, you can start business as a single person (in fact, that may be the best way to start) but as you`re growing, you will need the help of a partner or two, one employee or two and the more your business grow, the more people will be needed to keep you moving.

2. Sole proprietors carry the liability alone.

Sometimes in the business world, we fall and fail. To stand up is easier if we are two or more.

For instance, one of us could have a source of loan we can take advantage of. One of us could have some savings we can quickly use to recover. And even when nor of us have anything as such, we could both encourage each other and struggle to rise up together.

I think Bible is right when it says, ‘Two are better than one”.

3. People respect corporation than individual

Naturally, people tend to respect your business if it sounds like there is a team behind it.

When you look around the internet for instance, you will see many blogs with individual names. When we wanted to start this website, I should have called it StephenAfolabi.com, but how will that sound? How many people will respect such name compare to the Africa Business Classroom?

Since most one-man business adopt the owner`s name for the business, this stands as a disadvantage in the business world because people don`t usually respect lone rangers.

4. Sole proprietorship business is not a separate entity from the owner

In a normal business setting, the owners are different from the business.

For instance, if you have any issue with Dangote Cement, you may sue Dangote Cement into the law court and not Aliko Dangote (the owner).

Dangote and his companies are seen as separate entity in the eye of the law. This is not so in one-man business.

You and your business are the same.

The debt your business acquires is on your neck. The lawsuits against your business is yours and just any other thing that concerns your business concerns you.

5. What if you`re Sick?

Since sole proprietors are single individuals, when they get sick their businesses also gets sick. This may not happen in the case of partnership or other forms of business.

Conclusion.

Sole proprietorship as a business entity is usually a perfect option for anyone just starting out in the business world.

Yes, I listed some of its disadvantages but none of them is actually breath-taking as you can manage yourself through all of them till you have roots and become a successful business owner.

I wish you best of luck!

 

Network marketing as a business model has been in existence for a very long time (as early as 1950s).

Some people call this business model MLM, multi-level marketing, referral marketing or pyramid selling.

Network marketing is usually a marketing strategy by which a company engages people in direct selling and recruitment in which the person involve not only earn commission on his actual sales, but also on the sales of others below him (that is, his downlines).

Some people are in recent time coming up with some so called MLM without product, just referrals. Wait a minute! I will tell you something about that soon.

Hundreds of people have made millions of naira from their multi-level marketing business and, you see, millions of people have lost money and time too.

My first exposure to network marketing was in the year 2007/2008 through GNLD and few other MLM companies. I got involved with one or two and got some experiences.

Since 2007 till the time of writing this tutorial I have discovered some truths about network marketing and that is what I am about to share with you.

Let`s go inside…

1. Network marketing is a business

Joining an MLM company is not going to make you rich next week. It is just like starting a business of your own. The only advantage you have is that the company you`re joining has created a system that will make YOUR business easier.

Can I think of a single skill you need to succeed in a business that is not needed to make it in the network marketing industry?

I really cannot tell.

The most important business skill is marketing skills. In fact, because marketing and selling skills are the most important in the MLM industry, it is called network marketing.

Other business skills such as communication skill, leadership skill, persistent and hard work are as important in MLM industry as it is in the other businesses you can think of.

I think this is the first thing I need to let you know… MLM is a business and you have to prepare your heart for it as a business of your own.

2. Network marketing is not get rich quick

There is this pathetic get-rich-quick mentality in our society. Most people simply want to know about a formula that can make them huge money NOW.

I know the reasons for that and I will tell you.

First, because 99% of us were never trained in the art of money making. By this I mean most people really never knew what and what is required to make money. This is because the science of money is never taught in schools (where most people spend their first 25-30 years). The lie we were told at school was that if we could have good certificate we would get a company to employ us and that is the end of our poverty.

Most people are in the dark until when they finish school and see that there is nothing like good job any longer.

At this point, what can they do? Look for ways to make money… very fast.

Another reason is movie, T.V and Newspaper.

Movies show us how people rise from poverty to prosperity, just by luck. T.V shows us business and riches of people and makes it seems as if they made it cheaply. Newspapers carry rumors about how rich people make a lot of money in a short period of time, but never the hidden secrets behind such wealth.

Every legitimate wealth requires so much of smartness, hard work, business and financial skills. Persistent and patience are both needed too.

Muti-level marketing will not make you rich without work (a lot of work), persistence and commitment.

3. Network marketing without products is a fraud

As I am writing this tutorial I’m having some leaflets in the next room to me that are about “network marketing” that a friend told me about some weeks ago.

This so call “network marketing” has no product whatsoever. All you have to do is to introduce people, they too introduce others and you`re being paid commission.

This is a fraud!

Let me explain.

If you`ve ever come across any MLM leaflet, you`ll see the way their chat goes. I join, invite 4 people. 4 people invite 16 people. 16 people invite 64. From 64 to 256 to 1024 to 4096, on and on like that.

What you`ll observe is that, at a time (in a very short period of time) there will be 10 million people as members of that company (especially because there is no product to sell, so it`s easy for people to join)

What happen next? Market saturation and decline, then death.

If there is any MLM that doesn`t have product and you`re invited to be part of it, you`re getting inside fraud… my opinion.

But wait! What if they have product?

4. Well, every multi-level marketing company eventually declines in growth and die except…

According to research, from 1956 till date, thousands of network marketing have opened their doors in different part of the world, and to date less than 70 have ever celebrated their 10^th anniversary.

Let me tell you why this is so.

We are living in a finite world (that is, we are limited in number) while the network marketing system can only succeed in an infinite world.

Just as explained above, if an MLM company is taken to Nigeria for instance and the first person registers. He would invite 4 people, 4 people would invite 16 people, on and on like that.

Assuming the available market for that company in Nigeria (that is, the total numbers of people who will be willing to be part of that company, since no business can ever be loved by everyone) is 50 million, at a point, there will be 5 million Nigerians as members of that company who must invite 20 million people (5 million multiply by 4). Here, decline has started and the death is near.

Soon there will be 20 million Nigerians who must each invite 4 people. Since the available market is finite (i.e. 50 million), it is impossible for these set of people to make any money from the company they jubilantly joined.

Though the people at the top as at this point must have made a lot of money, they are very few. While the earlier tens of people who joined MLM might make millions, you have to look below the chat to see 20 million people who make nothing (but lost their time and money).

If you`re old enough (I know you are) you may know how GNLD came to Nigeria and other African countries.

Didn`t you see something like this happened?

I will remind you.

There are few people who made money, a lot of money from GNLD. But just look around and see whether there isn`t anyone in your family who lost money in GNLD.

I`m not sure but I want to suppose that there could be more than 15 million Nigerians who joined GNLD but never made a penny.

I don`t have anything against GNLD or any MLM company. I am only explaining something here.

Network marketing works as a system of infinite referral in a finite world. It must one day start to decline and eventually die.

That is the reason why some countries of the world have outlawed network marketing in their territories.

5. This is the only way out…

Yes, there are MLM companies that have been operating for many years (Amway since 1959, Melaleuca since 1985, USANA since 1992, Forever Living since 1978, Herbalife since 1980, Newways since 1992, GNLD since 1958), this is not evidence that network marketing is a trusted scheme to invest time and money in.

The only solution to the problem of infinite referral, decline and death of the MLM companies is that, any MLM company you intend to join must reward you for selling their products and for the products your downlines sell and you must be willing to continue selling and inspiring your downlines to sell.

Whenever you see any MLM company which promises that all you have to do to make money is to refer people or which places much commission on referral, you can be sure it`s a matter of time for that company to stop growing and start declining… for the obvious reason… market saturation.

If you are willing to join a network marketing company, make sure its reward system rally round commission from sales of its products and be willing to work hard.

I love you.

There are many negative traits our society seriously frown at.

If you have any of these traits, you`re seen as a stupid person. As children, we were punished for displaying some of these attributes and as adults we are criticized or neglected.

Unfortunately, society is not always correct in its judgement of what is good or bad.

There are some very good traits that are being misinterpreted as bad. There are some other very good traits that show themselves in another colour, so our environment sees them as bad.

Below, I will be sharing with you some of the traits and attributes which could actually be an indication that you can become a successful business owner.

If you have one or more of the below attributes, you may consider working hard to build few others so as to succeed as an entrepreneur.

Let`s get in:

1. If you`re stubborn

Being stubborn is frown at in our society. Many times as children some of us were criticized and tortured for being stubborn, so we think stubbornness is a very bad attribute.

No. it`s not.

The number one trait of every successful business owner, you will be surprised, is stubbornness.

How do I mean? You go and interview any successful business owner you know and ask him to tell you the number one secret of his success. He will tell you it is persistence.

What is persistence? Persistence is stubbornness, period. It is when we want to repackage some words we give them a better name. Persistence is when you continue pursuing what you believe will succeed, even while other people around you think you`re stupid.

How else can we define stubbornness?

Stubbornness is when you continue doing certain thing, though you have been warned not to do it any longer.

This is my point.

If you have a child who is very stubborn, if well nurtured, that child is likely to grow up and become rugged, determined and persistent in pursuing his/her goals (in life or business)

Without a rugged, determined and a stubborn heart, I doubt if you can ever achieve anything worthwhile in the business world and life. This is because you will make mistakes, fall and fail many times. It is your stubborn heart that will keep you going.

Let`s listen to what other people have to say:

“You need a stubborn belief in an idea in order to see it realized” James Dyson

“I am a very stubborn person. I think it has helped me over my career” David Beckham

So if you have perceived yourself to be very stubborn, if for many times as a child you were been beaten so many times for being very stubborn, congrats. You`re not a bad person. In fact, you have got one major trait you need to achieve success as a business owner.

2. If you hate receiving instructions

Some of us hate it when we are instructed (especially by someone we really don`t respect or to do the task we hate doing). If you`re the type who always frown at the way your boss sends you around or the way other people around you instruct you, look deep inside you. You have a powerful motivation inside of you.

Most people who are successful business owners today started in that way not because it was easier than getting job. No. it was never easy.

Most entrepreneurs are “proud” people who love freedom. They hate being guided by organizational rules. They hate being giving instructions. This “proud” attitude in them is the reason why they decided to be in business of their own so they will have no boss.

I`m a living testimony of this.

Ever since I was a boy, I love freedom. Not just that, I hate receiving instruction from people I don`t respect (and I know I will likely not like my boss at work). I hate being ask to do the job or task I don`t have passion for.

This “pride” in me is the reason why I told myself, “Stephen, you will rather become a business owner or die!”

Let`s face it. Most of us actually hate being instructed. We hate doing what is not our passion. In fact, most of us don`t like or respect our boss at work, but we have not taking time to actually face this our threat.

You don`t have to die enduring instructions from people who you don`t have any regard for, to do the task you hate doing.

I know you`re angry. But I’m here to tell you that you can (and should) convert your anger to freedom.

If you hate receiving instruction to do what you don`t like, it`s a trait that shows that you can actually get enough passion from your anger that will sustain you while pursuing your business vision.

3. If you love to defeat people and win in competition

Some of us love to take other people`s girlfriends. Some of us feel good when we fight because of a girl and she eventually becomes ours.

We are competitive in nature. We love it when our football team wins. We love to drag things, make plans and defeat some other people. What a very good business trait, but misdirected.

Business people are highly competitive in nature. In fact, if you`re not competitive you cannot succeed in business. I remember thinking earlier this year, “Stephen, you have to ‘kill’ that man by all means’”. By “kill” here I mean, defeat him out of business.

If you have discovered that you are highly competitive in nature, you love winning, you love to defeat others and win, don`t see it as a complete bad attribute. It`s a sign you will do well in the business world.

4. If you love doing things in your own way

I remember as a little boy, if my father asked me to get him a cup of water (for example), I may bring a jug full with water. My father (and others) would complain, “why don`t you know how to follow simple instruction?” I would protest saying, “Daddy, I thought you would need much water, since you`re just coming from farm”

In our society, it is stupid to do things in a different way other than the lay down way. You`re considered a lawbreaker and an idiot, but I’m here to tell you, it`s a very good trait to love doing things in your own way.

Darren Hardy posted a photo of some great men on his facebook page as I saw it this morning, titled, “Do you DARE stray from the herd?” by this, Darren means, can you have courage to do things in your own way? If yes, you can become a successful business owner.

You ask why?

I will explain.

Innovation is the blood of any successful business. Without innovation, there will never be a successful business.

How do we get to be innovative?

By straying away from the herd. By doing things differently.

If you`ve discovered that you`re a “stupid” Joe who receives so much criticism for doing things in your own way, you have got a very great business skill.

5. If you complain about many things

Complaints is a negative attribute. I hate it. This is not to say that I don`t complain, but I don`t love to complain only with my mouth. I love to tackle issues. Complaint leads us to negative emotion (either of hate or of resentment) but we can redirect that emotion into another (positive) emotion of passion.

Many entrepreneurs started their business journey by finding solution to certain thing that really make them angry.

Not just business, all other greatness emanate from the emotion of hate turned to passion. It was when Martin Luther got angry that he started leading protest against racism. It was when our forefathers (Awolowo, Azikwe etc) got angry that they fought for independence. It was when Isaac Durojaiye got angry that he started mobile toilet business in Lagos.

Anger is a furious emotion that is very powerful. If properly directed, your anger can solve a national problem that will make you rich, so stop complaining and see how you can create solution to some problem you`re complaining about.

6. If you talk too much

If you talk too much, I personally may not like you. But that doesn`t make you a bad person. Sales people are usually talkative. Now you see, selling is an integral part of business. Every business person must have selling skills.

If you have been criticized as being a talkative, that may be a strength in you which can help you to succeed faster in the business world.

7. If you`re domineering

Being domineering is a very bad attribute. I`m guilty of this trait. I have started working on myself for some times and I cannot tell how far I have improved now (until situations test my heart).

Domineering people are people who always want to have their ways. When you`re arguing with them, they want to prove they know it all. When they are contesting election they want to win with 80% (I remember I did this on campus). They just want to dominate.

A bad trait (I’m ashamed), but which can be turned into a business success.

Most business people are domineering. They want to get all the market, though they know it`s not possible. They are just too pasionate to win, win and win.

I remember reading from wordpress founder, Matt Mullenweg. WordPress is the most popular website hosting platform in the world. It powers over 60 million websites and blog, yet I heard Matt saying, “There are still many websites not on wordpress!”

Only a domineering person can think that way. For most business people, taking 70% of the market share doesn`t please them. Why not ALL, is the way business people think.

Call it greed if you like, the truth of the matter is, it`s the domineering spirit that keeps entrepreneurs working very hard.

Were you criticized of being domineering? Then you may be a successful business owner.

8. If you`re too inquisitive

Are you the type that asks too many questions and you`re told it`s not good? Don`t mind your critics. The fact that you ask too many question (maybe when you`re a child) is an evidence that you are a researcher.

Business people are naturally researchers. They are people who search around to find out what others don`t know. They are people who search for information their competitors don`t know, then use such information to win their competitors.

If you`re inquisitive, you are a researcher. If you`re a researcher, you can succeed in the business world by learning few other business traits.

9. If you love to fight

Lol. This is really bad if you`re over 18. But maybe you loved to fight as a little boy. This may be because you`re confrontational. It`s a good business skill.

How? Many times there are so many people in the market already doing the kind of business you want to start. You need a confrontational spirit to be able to get in.

Business person must be able to say, “I will face them and win them”

Conclusion

If you look at the above nine traits and find that 3 or more of them are in you, you may just be the next richest man in Africa.

No. it won`t happen by magic. You will need to acquire other business skills and be willing to take action.

You will as well need to learn how to discover business opportunities and ideas so has to showcase your business traits

(You can get our training on how to discover business ideas and opportunities)

 

You probably have heard about franchise business before now. In this tutorial, I will be explaining some important things you should know about franchise  business opportunities for Africa and few other crucial things you have to do to make your franchise business a success.

To start with,

what is franchise?

Franchising is a business practice in which a successful company (franchisor) allow other entrepreneurs (franchisees) to use its business model and brand for an agreed period of time.

This model is becoming increasingly popular because it is easier to succeed in business by buying a franchise than by starting a new business afresh.

You ask me why?

Because a franchisor who is selling you a license to use its name, trademark and brand has worked so hard to overcome the earlier (toughest) period of business. By the time a business had succeeded and had earned a significant place in the hearts of consumers, it`s easier to succeed using such company`s name.

Take for instance if you`ve got a business agreement from Coca-Cola (just for example) to follow their formula and produce coke, how hard do you think it will be to sell the coke you produce as a Coca Cola franchisee? As easy as attracting ants to sugar.

Why?

Because Coca-Cola has successfully built a brand (name) in the minds of the people.

That`s why Michael Gerber claimed that franchisee`s failure rate is just 25% while the independent start-up`s failure is around 80% in a period of 5 years.

According to the International Franchise Association, around 44% of all the business in the United States are franchise.

There have being much innovations in this industry which have created many more franchise opportunities. Now you may hear of Social Franchises, Third party logistics franchising, Event franchising, Home-based franchises and more

What to do before obtaining franchise permit

1. Search for franchisor who is already a success

This seems obvious, yet I have to emphasize it. Why do you want a license to start a business under someone`s name in the first place? Isn`t it because of his brand awareness and success?

So if there is a business advertising franchise but has not even become a well-known brand, what do you need them for? What if that business has become grossly successful in another country?

Except your local market is very much aware of that company`s integrity, you may still fail. You think about it. Great Clips is a hair salon`s franchise. Did you ever hear of that name? Probably no if you`re in Africa. What good can it do you to get Great Clips` authorization to use their trademark in Nigeria?

Similar things may be applicable to 7-eleven, Subway, Hampton Inns, Servpro and many other franchisors. If your target market isn`t aware of the integrity of your intending franchisor, you may not obtain its permit (even if it has become successful in other part of the world)

2. Do you understand and love the products of your intending franchisor?

I was in a church program about two weeks ago when a police officer who happens to be a member of the church announced an opportunity to join police and the attractive salary attached.

Many youths in the church made some envious noise about that amount and are willing to be part of the police force… just because of the money.

When later I had an opportunity to speak in that congregation I told them, “you don`t choose a profession because there is a lot of money to be earned there. You only choose profession base on your love for it”

As you can guess, they are too young to understand what I am saying, though some of them are above 25.

We grew up with this erroneous thought that what is most important in a job is the pay (and what is the most important in business is the money we can make from it).

How wrong!

If you`re into a business or profession which gives you #100,000 per month and love it, you`re far more successful than a man who is into a business or job that gives him #200,000 each month but who hates his job.

The reason is simple. If you love what you`re doing, it will no more be a work, but a hobby. In other words, if you hate what you`re doing, it will no longer be work, but a punishment and enslavement.

That is why it is easier to succeed while doing what you love.

Don`t go for a franchise simply because the entry fee is low or because the profit margin is high. Choose only the products you love, care about and have passion for when considering franchising.

3. Is there a good market for the products you want to be a franchisee for?

There is no point in getting H&R Block`s permit (a company franchising tax-preparation and e-filling service) because you love their business, if there is nobody willing to patronize your service.

This law is applicable to every business out there. You don`t start if there are no willing buyers. So do your homework and see that there are enough people who are willing to buy the products of your franchisor before you will obtain the permit to operate in it name.

4. Find out about the necessary fees the franchisor demands

There are usually three important payments a company may require when franchising:

1. A royalty for the trademark
2. Reimbursement for the training and advisory services given to you, the franchisee
3. A percentage of the individual business unit`s sales

A franchisor has right for all these fees. First for their brand name you want to be using. Brand name is the most important asset of any company. The trademark is far more important than whatever products any business is selling. Also the advice and guidance you will need your franchisor for and lastly, a percentage out of the sales in your business.

All these fees are well deserved and it will in turn favour the franchisee.

All these fees could be put together in a single payment and called “management fees”.

5. Understand the franchising agreement

There will be a partnership agreement between you (a franchisee) and the franchisor (someone giving you the permit to operate with his brand name.)

You have to understand the content of this contract and agreement so you will know what is require of you. This business contract may vary from one company to another.

The numbers of years you will be having the right to use the particular trademark before you`ll have to renew the contract will be stated (you may buy a franchise permit for 5, 10 or 20 years)

The territories you will cover with your franchise and few other things will be in the contract.

Some countries are having franchise brokers who can help in locating good franchise and their conditions. You may locate one if your country has these brokers.

6. Prepare your mind for some strict guidelines from the company franchising to you

But why?

Well, just as I have said earlier, the trademark, brand names and integrity are the most valuable assets of every business. These are the things the franchisor wants to lend you. He is at risk of losing what he has spent many years or decade building.

In order to prevent some negative attitudes or business policies that might stand against these invisible assets of the company, there have to be some “rules”, some of which could be a little strict.

7. Business is a business. Franchise is a business.

Over the years I have seen people looking at some businesses as easier way to harvest money. Some will think of making money online as an easy thing. Others will rush to network marketing hoping to make quick money.

No business is easy, not even franchise business.

To be a franchisee, you have to be prepared that you`re starting a business. Every important business skills will be needed if you want to make money in your intending business.

Your leadership skills, your communication skills, your marketing skills. And many other entrepreneurial skills you can read here

Business is business, get prepared. Read business and financial books. Sharpen your business skills and you will be successful.

What other things do you want me to tell you?

Ok, what are the most profitable franchise businesses you can look in to?

This question remind me of my discussion with one of my friends about blogging. While we both are aware that Nigerians love news and entertainment and so news and entertainment blogs are making it good time, both of us are not having what it takes to succeed as entertainment or news bloggers.

How can I succeed in entertainment or news blog when I hate reading about them (except important news of course)?

So to our discussion, we cannot conclude here about a profitable franchising business you can look at. Instead, we`ll say “it`s all about you”. what your interests and passions are.

3 Franchise Business Opportunities You Should Consider

But just to make things easier, let me list some potential areas you can look into:

1. Food franchises: this is because food is the most essential commodity for man. People may not buy clothes, but they must eat. People may buy phone every year, but they have to buy food every day.
2. Health related products/service: though people hate to patronize this sector, they are forced to do so and are willing to pay whenever they have to (though by force whenever they have issues with their health)
3. Business services, cleaning services, coffee shop, hotels and lodging, etc. are other options you can look into.

My final word?

Be business minded. Acquire more business skills every day. Fight the war of the business and win.

Last weekend I was with my in-laws and as I was talking with my father in-law, he talked about the course I studied in school (accounting) and was jokingly (or really) saying, “Accountants are usually stingy”

Is that true?

Maybe.

You see, as an accountant, we were trained to be accountable for even the penny spent. If any expenses could not pass the “audit examination”, we usually take caution.

At school when people asked us for money, me and my accounting friends would ask them, “which account do you want us to record this expense?”

That`s a way to avoid such expenses.

A special trait is nowhere peculiar to the accounting profession. In fact, every profession has certain traits that make the professionals in those field successful.

Lawyers are known for their argumentative nature.

Doctors are usually cool, patience, meticulous people.

Just any vocation you could mention has certain attributes and characteristics that are common to the players in that field.

There are characteristics of successful entrepreneurs and I will explain 31 of them in this tutorial.

Cool down.

That doesn`t mean that you must have all of these characteristics before you can ever become successful in the business world.

Many of these attributes of the successful entrepreneurs can be learned and mastered.

So can we check them?

Thank you.

1. Vision to see what most people cannot see

One major characteristic of the successful entrepreneurs is the ability to see opportunity before it becomes too obvious. I got to a new area in one of the Nigerian states some days ago and I asked them how much the cost of land in that area is.

I looked at few others real estate “influencers” factors and saw what most people in that area may not see… soon, the land and housing in that area will be on high prices.

Business people look around for “market indicators” which could hint them on what people will be willing to buy soonest.

Entrepreneurs are visionaries. They could use their imagination to see what a small beginning could lead to in the next few years.

If you want to be a successful business owner, you have to be able to see business opportunities around you, even before they are visible to the public eye

(Click here if you wish to get a training about how to discover business opportunities and ideas in Nigeria)

2. Courage to start

One other characteristic of entrepreneurs is the courage to start. Some other people call this risk taking.

By this I do not mean to say that a business person must be fearless. In fact, no human being is fearless, not even soldiers. Courage is the ability to act despite the fear of failure.

When I took the decision to resign my job, I was afraid. I never could tell what was ahead of me. I never knew how I will live, yet, I felt like I had to get out of the work I hate.

That`s courage.

You will never get to a point in your life where you`re fearless. All you can do is to take action despite the fear in your heart.

3. War spirit

I have told you before now that business is a war. Yes, it is.

One of the attribute of successful entrepreneurs is that they handle business with all of their hearts. They are not passive. They are aggressive. They are strategists. They are warriors.

4. Game spirit

Though successful business people see business as a battle, at the same time, they approach it as a game.

Okay, what do you think football is?

A game?

Yes, in the 15^th century. Today, football is not just a game. It has become a business. Because it has become a business, you can see the battle on the field.

Though a footballer knows he`s in for battle, he still has to play with the sport man spirit. So it is with business.

Though you know you have to defeat your competitors, that doesn`t make them your enemies.

5. Selling skills.

Business is all about selling. No, not just your products/services. You have to sell your ideas to investors in order to raise capital. You have to sell your vision to your employees in order to get their devotion to your business.

You will have to sell your vision to your partners, your suppliers and even your wife.

Successful business owners are all having this characteristic

6. Negotiation skills

Just as selling skills, you will find yourself always amidst people who want to do business with you but are willing to get one reward or another. You will need to get the best from them without being dubious. That`s why you have to master the art of negotiation.

I recommend you should read a great book call, You Can Negotiate Anything by Herb Cohen.

7. Leadership skills

Successful entrepreneurs are like military generals. They have a team of people they have to lead.

That`s why it`s very important that you as a business person develop your leadership skills.

8. Tick skin to criticism

When people decide to be business owner in a society where job is the noise of everyone, what do you expect?

Worse still when you start your entrepreneurial journey and things are not working for you as expected, your family members may be the first to criticize you, then your friends.

This Tick skin attribute is very important to anyone willing to be successful as a business owner because many times you`ll find yourself at the opposite side of the general opinion.

Develop a tick skin.

Don`t let the criticism and opinion of others pull you down.

9. Healthy self-esteem

Successful business men and women are people who believe in themselves and their business vision.

Most people in the world are “self-doubters”… even when they have business ideas they don`t believe in themselves to be able to pursue them and succeed.

10. Tenacity to continue after failure

If you see anyone who claims to have succeeded in business without ever failing (I mean terribly), please run away from him because he probably got his money from some frauds.

You will make mistakes. You will fail. The courage to continue is what differentiate successful business owners from the failures.

This characteristic of entrepreneurs is likely the most wanting in our society today because most people have been wrongly trained by school that failure is a bad thing and should be avoided.

School is a liar.

Failure is a ladder you must climb to the city of success.

Have you failed before?

I encourage you. Stand up and start all over again.

11. Flexibility to change the plan, not the goal

Sometimes when you fail, you will have to sit down and reassess the whole thing about your business. There may be need to change you plans, in fact, there may be need to change your line of business, but never the goal.

Your goal is to become a successful business owner. Even when circumstances could lead you to change the plans you earlier had, your goal must not be changed.

12. Let your business be your wife

A distinguishing attribute of successful entrepreneurs is that, they love their business.

They are passionate about that business. They love what they are doing. That`s the reason why they could work extremely hard and still love what they are doing.

If you don`t love your business, there is no way you can become rich through it.

You may read this tutorial about 13 reasons why it`s easier to be rich when you`re doing what you love.

13. Don`t take your business into your bedroom

I once read about a man who happened to be the richest man in the world but who has divorced about four times. What will you say about such a man?

A (truly) successful man?

When I advocate that you should go into business in the area you are really passionate about, I am not suggesting that you should neglect your wife and family.

14. Take care of the king

Sam Walton has said it probably before I was born. Customer is the one who employed all of us and he can sack us simply by going to our competitor.

Successful entrepreneurs are people who, from the beginning of their business have taken customers to be the kings.

15. Brand yourself

Many people in Africa just start selling stuffs and call that business.

Business has to be packaged and branded. This is because the customers are emotional people who are attracted to packaging and brand.

This characteristic of entrepreneurs can be visibly seen all around you by looking at the successful businesses.

Click here to read about how to brand your business

16. Investigate your competitor

You must know your competitors just as a general always seek to know his enemy.

Investigate your competitors. What are their strengths and weaknesses? How can you outsmart them?

Successful entrepreneurs are investigators.

17. Take time to know your customers

Business people know that if they don`t know their customer`s needs, wants and behaviours, they won`t be able to serve them very well.

It is typical of entrepreneur to investigate the lives and thoughts of their customers.

18. See business as a ministry

Really, if money is the number one motivation for your business, you are not going to be successful.

Richard Branson once said a statement that goes like, business is charity. This attribute of entrepreneurs is what makes them to serve their market with better products and service.

The goal is to make the world a better place, before making money.

19. Great products/services alone

So many people (especially in Africa) are into business with substandard products and fake services. No entrepreneur ever became rich that way.

20. Don`t be afraid to promote yourself.

Be proud of whatever you`re selling.

21. Don`t ever go alone

A typical entrepreneur always work with people.

John Maxwell has told us, have you forgotten? That one is too small a number to achieve greatness. You lack many skills and strengths which other people have. That`s why you need them.

22. Specialize

If I mention MTN, Facebook, Coca-Cola, what did you see in your mind?

The picture of specialized businesses.

Even if you`re going to diversify in the future, starting out you must be a specialist. This characteristic of successful entrepreneurs is very obvious, isn`t it?

23. Create a unique selling promise

Every successful business differentiates itself from the competitors. This differentiation is what is known as USP (Unique Selling Promise)

24. Make it easy for your customer to buy your product

People are lazy. That`s the reason why successful business owners try every time to make their products/services easy for their customers to get.

25. Don`t forget to play

Many times it is when you`re playing you get inspirations and business ideas

26. Delegate authority

There are too many things to be done. Delegate whatever anyone can do for you

27. Have business-minded friends

This characteristic of successful entrepreneurs is one of the reasons why poor people hate them, but you see, you can`t fly with eagle if you spend your time with birds.

28. Manage money frugally.

Delay gratification. This is not time to show off and spend on big clothes and shoes, not to talk of cars.

29. Give back to those you own

One distinguishing nature of most successful entrepreneurs is that they give back to those they own. When I said those you own here, I am not talking about those you borrowed money from.

You see, all of us are debtors to our friends, family and society. We have to give back to them after we have become successful

30. Manage the problem of too much money

Yes, there is a problem in having too much money. You`ll start having too much (fake) friends, too much hatred from the poor people, too much criticism from the media etc.

You must manage all these.

31. Never stop learning

If I had my way, this would have been the first point to talk about because even before you start on the journey of entrepreneurship, when you start, as you grow and till you die, learning is the number one thing in the life of successful business owners.

How much anger I have when I see Africans who never read business books or who are not reading enough, yet wish to be successful in the business world!

I have proved it so many times that school is as good as black and white television.

How will you feel if you`re to come to my house and you find me watching T.V, black and white colour?

I know some young generation will one day be reading this my tutorial and they will ask, what is black and white television?

Black and white television was the kind of television that was not having all colour combination as today`s televisions do.

In those days (8os and early 90s) when we wanted to watch T.V, we did so through the black and white T.V. nobody dare do that today.

It is now ugly (though it was the best we had that time)

So why do I compare school with this ugly television?

Because, truly, it is.

If you take time to study the trends of things in the present world we are, you`ll see that school is more harmful than helpful.

The reason is simple. School prepares nobody for the practical world.

Over the time when I tell people this, there are usual three questions they ask me and I will answer them now.

First, without school, will you be able to speak English or become an author?

The answer is, English is a language. Since it`s a language, we learn it in school simply because that is the avenue our fathers thought was right. There would have been better medium to learn English (if English would be needed at all). I`ll explain this soon.

Becoming a writer doesn`t have anything to do with school. It has everything to do with education. School didn`t teach me how to be creative with words and how to market the words (which are the major works of a writer).

I taught myself. Yes, myself.

Second common question people ask me is, without school, what will you have been? A friend still asked me this about five days ago, and my reply to him was, without school if my father understood the true meaning of education, I will today be the richest man in Africa, or (I didn`t tell him this) a great inventor or an international evangelist, or something greater than who I am today.

The reason why this will be so is because I would have been in the real world earlier and learning the right things, making the right mistakes, instead of being caged to some four walls and being taught so many unrealistic, theoretical jargons.

The third question someone may want to ask me is, now that you are advocating that we should destroy school (though I am not saying that), how can we have doctors, lawyers or other professionals without school?

The problem we have is this.

We have been so much used to school that we have all forgotten that school is not the real source of education.

There are three ways by wish human beings get education in any field.

First, by observation. Second, by experience and third, by reading … all these in a pleasant and natural way.

For God shake, education is not what you get when you are compelled to get it.

I have a lot to say here but I am afraid so many people will not get my points if I keep on talking and talking, so let me give some practical examples.

I need you to give me two boys, age 16 each. Our assignment is to make two of them medical doctors.

You take boy A and give me boy B.

Take your boy A to the best university in the world and I will take my boy B to a good hospital.

Let your boy A pass through everything school has for him (including the stress, pains and compulsion)

My own boy B will learn by observation, involvement (experience) and library. He will not have any professor to shout on him. His major work will be to observe, ask questions and read on his own.

Six years after, we will bring both boy A and B to examine them. Which of these boys do you think will be a better doctor, a boy who learns in school or a boy who learns in the practical world of hospital?

You and I know the answer.

You will learn far much things observing lawyers and staying around law courts in two years than reading law for five years in the best university.

By nature, human minds don`t learn in theory or in strict, formal environment. We learn in practical and in a natural state (without any compulsion).

Can there be doctors and lawyers without school?

Yes, and better doctors and lawyer even.

However, there is a problem.

The whole world has been grossly deceived and it may take us a century or two to be free (if at all we will ever be). And you see, fighting against a trend that started thousands of years before you were born requires patience and understanding.

That is why I don`t advise people not to go to school. If you don`t go to school, you can have education, but you will have a real time problem if you intend to be something that depends on social approval (i.e. certificate)

Get me right. We can have excellent medical doctors, lawyers, political leaders etc without certificate and school, but who will validate them as excellent?

How will they cope in a society like ours when certificate is what everybody uses to judge you?

Now you got my point.

Someone like me do not have any certificate. I left my (good) certificate in school and I will never go there to get it because I believe certificate is not the right meter for anyone to measure me.

How far can I go fighting against this common trend?

Well, I am not even fighting against it. I am creating my own life instead. I will never become a professional anywhere where the certificate will be the gate fee. I will never contest for any project or award if my certificate will be the gate fee, and please, don`t cry for me, I can never become the president of my country (Nigeria).

I am okay by all this. But certificate cannot stop me from becoming a millionaire or an evangelist of Jesus.

Certificate cannot stop me from teaching Africans entrepreneurship, can it?

Then, I am okay.

Conclusion.

As I always say, I will not tell people not to go to school (because the world system is still, unfortunately, all around school), but I will always tell Africans, don`t believe in school more than you believe in your shoes.

The reason why you wear your shoe is to protect your foot from stones and maybe, to add to your beauty. You don`t really care about your shoes, do you?

The real thing you (truly) care about is your feet.

Care about your education. Be educated. Learn. Read. Research and try life.

You want to be a successful business person? You need education. You have to be educated, not by getting some degrees, but by reading many financial and business books.

After then, pull yourself into the real world and try things, make mistakes, learn and grow your business

I love you and wish you best of luck.

Did you know?

About 2,500 years ago, most people of the world believed that (every) sickness is caused by some gods and demons.

So whenever they got ill (even headache or malaria), they would be begging God to make them whole.

We never could tell how many lives have been lost into that ignorance.

But there aroused a man … a man who dared to think different.

His name is Hippocrates.

He was a Greek physician and philosopher.

He stood up and confronted other Archaic Greek philosophers and physicians (and the whole world).

He shouted, “Ailments are not from gods!”

He claimed that body gets sick naturally and can be cured with medicine.

You and I really cannot understand what it looked like and how hard was it to believe against what the whole world believed (that sickness was from gods, even malaria).

Hippocrates didn’t go scot-free for his beliefs. He was (according to history) sentenced into 20years imprisonment.

Even inside the jail, this rugged man continued writing about medicine.

That’s why today Hippocrates is recognized as “father of modern medicine”.

Where am I going?

I want you to think about it.

Years ago human beings believed that sickness and ailments were the work of devil, so even if you had headache, you would go and be praying to God.

The same thing is happening about poverty today.

In Africa, many ignorant people believe that poverty is caused by devil.

That’s why you’ll see Prayer Mountains filled with people praying against poverty.

Now, like Hippocrates, I Stephen Afolabi stand to tell you, devil isn’t the cause of our poverty in Africa.

God wants us to be rich.

The longer we remain ignorant of this fact, the poorer we’ll be.

Wake up!

Learn the secrets of riches!

Pull yourself out. Start that small business. Work smart. Grow and be rich!

And you see, telling people that God is not the cause of our poverty usually doesn`t get people to kick against me. The real thing that get people angry and furious is whenever I tell them that school is a mess and an enemy that brainwashed most people to love job that is not in existence.

I guess one day someone could hate me enough and gun me down because of this, but before that happens, let me talk.

There are some trivia stuff we learn in school (things such as how to write and how to speak), but the central theme and objective of school is to teach us how to be good employees.

Check it very closely. Every other things are taught to support this aim of teaching us to be employees.

So I start my argument with you. If you agree with me that the major thing our formal school system does for us is to teach us how to be employees, then, I will find it easier to convince you that school has expired.

The reason is simple… no more good jobs.

If you have someone who want to train you how to fight with arrow and sword now (in 21 century), how will you react to the person?

Outdated weapons, I guess you will say.

Learning how to fight with arrows and swords now can be compared to learning how to be employee in the 21 century.

The time has changed.

The old weapon is not useful anymore, so nobody should continue teaching people how to fight with the old weapons.

I have suggested that we should kill our universities and polytechnics and build some better institutions which will train our children how to be entrepreneurs. I know someone will say, “But Stephen, all of us cannot be entrepreneurs”.

You`re right. But I want to ask you, is it a good idea that school is teaching all our children to be employees?

I leave you to answer that question.

If you want to read my previous tutorials about how and why I hate school and what I think is the solution to the problem school has caused us, please read, 7 reasons why I hate school,  and our free business course, 10 secrets school did not teach you about business and how to make money

 

Thanks.

 

As a business person (or organization), your number one asset are your people … your employees or staff.

Quality of your people/employees determines your success (or failure) in the market place. How good you are at training and motivating your employees determines your productivity.

This is the reason why human resource management is a topic every entrepreneur, CEO and business students have to pay attention to.

What is human resource management?

Human resource management is the process of acquiring and developing employees so that they become more valuable to the business or organization

Human resource management (HRM) is a department in an organization that deals with recruitment, management, and directing people within the organization.

Issues such as hiring, compensation, performance tracking, organization development, safety, benefits, communication, administration and training of the staff and employees are the functions of the HRM department.

It will be good to note here that the name given to, functions and approach of HRM can be different from one organization to the other.

The term, human resource development (HRD), Personnel Department, Talent development etc. can be interchangeably used to mean the same thing.

Some other people wonder whether small scale business and non-profit organization can have HRM department.

Well, the question is, do they have people working with them (even if only 2 people)? If yes, then, they have Human Resource Management “department”

The whole concept of the HRM is to bring out the best in people in order to achieve organization`s objectives.

As a business owner (whether small or big corporation), your goal is to win the competition in the market place.

Though you`re having many resources to do this (money, materials, etc.), ultimately, human beings are the “blood” that drives all other resources.

You`ll want your human resource to input their best into your business.

To achieve this, you will want to hire the right person for the right job, you`ll want to provide a suitable working environment and tools, you will want to give compensation and incentives appropriately, you`ll want to measure performance, you`ll want to communicate effectively with your most important business asset… human etc…. all these are the work of the HRM.

How to get the best out of Human Resource Department?

This department is without doubt, the most important in any given organization, considering its functions. To get the best out of this department, the head (or leader) of this department must be a good leader, a good communicator and a qualified and experienced person in the line of the company`s business.

The above is very important because of the duties involve in this HRM, basically four: staffing, training, motivation and maintenance.

Staffing is about employing qualified hands for the jobs an organization has to get done. As simple as this sounds (especially when you think about the huge numbers of the job seekers), it`s as well difficult for a few reason.

First, most job seekers are not qualified for the job. Second, if you`re carried away by the certificate they`re carrying, you`ll choose the wrong person. Third, if the HRM leader is someone who can easily be influenced in any dubious way, then, he may choose people of less merit.

Some organizations have discovered how to best handle this, by adopting various styles and tactics to select the best of the applicants. Some of those methods is to disqualify most applicants with some academic tests and then get other few people involve in the real life situations in order to test their abilities to cope with stress, pressure or any other challenges a particular business or organization may require.

I have a method I use which can be applied to your small business recruitment or Human Resource Management.

I would talk with the job applicants on phone, then fix a particular place for an interview.

Before he or she comes, I’ll be at the interview venue, but I will pretend as if I’m just one of the interviewee. We`ll start talking. I will be driving him/her to the topics about my business.

I will be asking him/her questions that will reveal his/her true temperament, mindset and even intention for deciding to work with me.

This method works like magic.

It works because human beings are easy to get, when they are not on guard. People always prepare their minds for formal interviews. They have the ideas of what and what you`ll ask them.

Even when they don`t have the idea, they still manage to answer with the best of “packaging” they can borrow.

They know your organization and try to pretend they can cope with the whole job specifications (even when their temperament or mindset cannot allow them).

Some of them are thieves and dubious, yet they will pretend they`re angels.

I`ve used the above method to hear an applicant saying something like, “all I need is money”. You know what that means?

When later I introduced myself as the interviewer, most of them would be shaking.

You can borrow my method or invent your own. Just know, it`s better, less expensive and less stressful to employ the right person than to lay off the wrong person and start all over again to be looking for another applicants.

Training the employees. Human Resource leader (or small business owner) must be someone who understands the business of the organization very well. When training staff, he/she must know how to use off-job and on job training method.

Off-job could be a theoretical training of the employees which may happen anywhere. On-job training is the training of the employees’ right in the work place or with the working instruments.

Most employees are not intuitive. They need to be guided, just like a machine (don`t blame them, that`s how school trained them to be), so they need to be well instructed.

Motivating employees. Your organization`s jobs are likely competitive. Employees get bored, tired and unmotivated with the job. They need a master motivator, a leader and a friend who can inspire them to meet the set goals.

Don`t make the mistake most business people make by thinking that money alone can get their staff working hard. Human beings need more things to get them inspired than money.

They want to be appreciated.

They want to be loved.

They don`t want to feel used.

They will love to feel like a partner to your organization. Why do you think some smart entrepreneurs/companies like Sam Walton and google give certain shares of their company to their employees?

They need them to feel as if they`re working on their own businesses.

Small business owners and human resource managers have to be great motivators.

Maintaining all of the above. Communication is a continuous task in the organization. Correcting the wrong and rewarding the good behaviours is a continuous task too.

HRM for Small Businesses

Do small business owners ever care about anything call Human resource management?

Whether they care or they don`t, they are having human resource… even if they have just a single worker.

The issue with small business is, you`re everything at the every time. You`re the marketing manager, the accountant, the manager… the everything. Yet, all of the above functions are what you have to do.

You`ll have to interview applicants and choose the perfect one (even if just a single person). You`ll have to train him/her. You`ll have to motivate him etc.