A business is a unique legal entity and is regarded as being distinctively separate from its owners by law. A business partnership takes the same form but more or less becomes even as legal binding as a marriage for the partners involved. I'm a business-man, some might call me a serial entrepreneur since I'm always thinking up new ideas and turning them into projects or on-going business concerns. Now most folks that haven't ventured into the field of entrepreneurship may think starting and building a business into one that is highly profitable is rocket-science. Well it isn't exactly so; however for a fresh start-up entrepreneur in modern day Nigeria with limited access to finance and an even more restricted social capital (a professional high-end network of key decision makers in organisations) or a deficiency of the technical know-how hence demanding the necessity of someone with the required intellectual capital; soon it becomes imperative to gain access to any one or a combination of the aforementioned type of capital- social, intellectual or financial.
In choosing the right partner while it is important to have one who shares the same passions and ambitions as you do concerning the business venture being proposed; it is even more important that the partner has much more than just passion, he/she must be able to supplement and make up your deficiencies or lack thereof. Hence if a creative director of an advertising agency desires to break out of the 9-5 rat race and start up his own agency but soon realises that he obviously requires the services of a art director but can't afford to pay for one with his limited start-off capital, he's better off partnering with someone that fits the profile with high proficiency in graphics design. Likewise if a lady with a flair for haute couture desires to open her fashion label but has limited experience in tailoring; she's better off partnering with a proven skilled tailor and drawing designs while the tailor actually does the sewing and stitching. Likewise a person starting a NGO for children with disabilities and has good rapport and experience with these kids might consider partnering with another individual with limited knowledge of autism and other child related disabilities but does possess a vast professional network in order to solicit for support and sponsorship on the marketing front.
A partnership especially one within the context of the service-based industry allows both partners to work in the best interest for the company at all times. An ideal partner would usually work for longer hours with lower pay initially and with far more dedication than a paid employee for the simple reason that he has more at stake and higher profits for the organisation translates to a higher rewards for him. Generally an ideal partner is also more loyal than a paid employee and would resist the urge to jump ship at the slightest whim due to the lure of a higher salary someplace elsewhere.
The same qualities that one finds desirable in a life partner is similar to that of an ideal business partner. Dedication towards making the (marriage) partnership work. Sincerity of the partner is key for trust and loyalty to be built. To achieve this from the onset issues regarding to finance should be agreed upfront i.e retained earnings, percentage for partners, salary and job roles. Dependability is equally a major point- you must be able to rest in confidence that your partner is able to deliver on his job and constantly learn to improve and hone his/her skills. Flexibility to change and adapt to mitigating circumstances that might arise in the course of building a global brand.
While I do realize that not everyone is opportune to be born with a silver-spoon, and even for those that were fortunate at some point somewhere along life's journey some have lost the spoon- think Donald Trump. However the case maybe, all hope is not lost because I've discovered that while poor people focus on money, rich people focus on ideas and adding value. The goal therefore for an small entrepreneur is to come up with an idea that is so huge and bold that it demands the assistance of a partner to contribute value either through social, intellectual or financial capital towards bringing the goal to reality. Money comes and goes. The dollar may rise and fall but ideas would forever remain the next big thing. Modern day billionaires such as the co-owners of Apple- Steve Jobs, Microsoft- Bill Gates, Facebook-Mark Zuckerberg and several other co-founders of Fortune 500 companies understand the concept behind having a brilliant idea and finding the right partner to work with towards achieving it. So don't allow your dreams and ideas die in 2011 for lack of financial, social or intellectual capital- write a mini business plan, reach out to interested individuals and exchange and collaborate after all two heads are better than one!
Good Luck and have a productive New Year!
Ebuka Anichebe is the Managing Director of Jean-Paul and Associates Consultancy. He has an uncommon approach to marketing media consulting, business development and customer experience evaluation. He’ll like to hear your views on this article and more, write to him at ebuka@jeanpaulconsult.com or call 07040448749
Thursday, January 13, 2011
Friday, December 10, 2010
AN EYE FOR AN EYE
We’ve all heard about trade by barter. Most of us practiced it as kids growing up with our siblings and classmates. Examples are a pack of cards in exchange for some shiny marbles or a doll for a diary. Perhaps it was because we didn’t have money to buy these things and so we we’re bound to get what we want using what we have. Some ladies have used the terminology and given it new meaning, but that is a different story still.
Trade by barter is a method of exchange by which goods or services are directly exchanged with a different set of goods or services, without using a medium of exchange such as money. No cash is involved in an ideal case. In such cases value is the preferred scale of measurement not price.
These days especially with the world economy just recovering from a recession, cash money seems to be hard to come by sometimes. But our needs as business owners are ever pressing as usual. Perhaps it is time to take a step back and look on ways to save precious cash money to pay your staff salaries and then cut on the overheads and major recurrent expenses through offering of your goods or services.
As a partner in one of the nation’s fast growing consultancy firms, we’ve quickly found out that the prices of organization’s services are usually overrated by firm’s who are more than willing to be more generous or agreeable when there’s no financial commitment by means of actual parting of cash. The brain registers a pain level during any cash expenses and individuals and corporations alike have a certain “pain threshold” they call a yearly working budget. However from experience I know most organizations if not all, will bust their yearly budgetary plans if a business proposal has no tangible financial obligations on their part.
A mechanic workshop would give us a year of free maintenance for our official vehicles in exchange for advertorials. A government agency would consent to us the use of their logo and brand value in exchange for publicity and a more favourable P/R within the community. For a free interactive website, we could have a free booking on an airline for a 6 month period, okay frankly we’re still working on nailing that but you get my drift.
In today’s current economy a solopreneur (a one-man business) or entrepreneur must be really creative and think laterally, drawing imaginary connecting dots and lines on the possible needs of others and how his services could satisfy both the need of another organisation and his/hers without any major debit entry on the balance sheet. Even big organizations and in cases countries with good bi-lateral ties partake it this practice of trade credit.
Now there are certain rules in this gentlemanly game of trade by barter that must be adhered to in order to develop a meaningful insightful relationship that lasts far longer than money can buy.
Rule 1: Don’t say what you can’t deliver: It’s easy to get carried away and make promises with an indefinite timeline that you’ll probably get tired of and getting out seems trickier than staying in; at least not without a legal wrangling. A media consultant offering free advertising for an event that’s supposed to come up within a month’s period may have some issues if the date is postponed by 6 months.
Rule 2: Keep it simple. State exchange terms clearly and in some cases if it’s on black and white, the better. A contract is there to avoid ambiguity and risk and is necessary even if the managing director of the other party is your golf buddy. One service for another equals value service in return; try not to bundle different sets of goods or services in exchange for a different set of equally unrelated goods/services which you may offer or have in stock. A legal firm might find it easier to offer its tax related services to a publishing house but would rather not extend their legal services if the publisher later comes with an expensive divorce case settlement.
Rule 3: Think of the other person’s needs and try to match it with what you’ve got to offer. Don’t go out there looking like a perfect clown by offering a company what they already have or worse don’t really need!
Rule 4: Have respect for the client and treat him/her as though they were your most valued partners. These clients from experience are going to be your best brand ambassadors and would give you referrals like they were hungry marketers working for a commission. You get far more than you ever bargained for!
Within the past year, using these guidelines we’ve managed to rack up invaluable media placements, goodwill and brand exposure using creative thinking and trade by barters with various organizations both great and small. It’s exciting and works beautifully if you only follow these rules! Imagine a free hotel front desk office in exchange for referrals for your upcoming conference or nationwide event. Or a few pages of advertising in exchange for designing a website for a new upstart magazine or newspaper. Or my best trade by barter scenario yet, a free pair of designer sunglasses each to the 33 brave miners in Chile by Oakley in exchange for over $44 million worth of media exposure worldwide! An eye for an eye!
So go ahead, dare to be more creative and imaginative and just give it a shot. You can thank me later.
Good Luck!
Ebuka J.P Anichebe is the Managing Director of Jean-Paul and Associates Consultancy. He has an uncommon approach to marketing media consulting, business development and brand building. He’ll like to hear your views on this article and more, write to him at ebuka@jeanpaulconsult.com or call 07040448749
Trade by barter is a method of exchange by which goods or services are directly exchanged with a different set of goods or services, without using a medium of exchange such as money. No cash is involved in an ideal case. In such cases value is the preferred scale of measurement not price.
These days especially with the world economy just recovering from a recession, cash money seems to be hard to come by sometimes. But our needs as business owners are ever pressing as usual. Perhaps it is time to take a step back and look on ways to save precious cash money to pay your staff salaries and then cut on the overheads and major recurrent expenses through offering of your goods or services.
As a partner in one of the nation’s fast growing consultancy firms, we’ve quickly found out that the prices of organization’s services are usually overrated by firm’s who are more than willing to be more generous or agreeable when there’s no financial commitment by means of actual parting of cash. The brain registers a pain level during any cash expenses and individuals and corporations alike have a certain “pain threshold” they call a yearly working budget. However from experience I know most organizations if not all, will bust their yearly budgetary plans if a business proposal has no tangible financial obligations on their part.
A mechanic workshop would give us a year of free maintenance for our official vehicles in exchange for advertorials. A government agency would consent to us the use of their logo and brand value in exchange for publicity and a more favourable P/R within the community. For a free interactive website, we could have a free booking on an airline for a 6 month period, okay frankly we’re still working on nailing that but you get my drift.
In today’s current economy a solopreneur (a one-man business) or entrepreneur must be really creative and think laterally, drawing imaginary connecting dots and lines on the possible needs of others and how his services could satisfy both the need of another organisation and his/hers without any major debit entry on the balance sheet. Even big organizations and in cases countries with good bi-lateral ties partake it this practice of trade credit.
Now there are certain rules in this gentlemanly game of trade by barter that must be adhered to in order to develop a meaningful insightful relationship that lasts far longer than money can buy.
Rule 1: Don’t say what you can’t deliver: It’s easy to get carried away and make promises with an indefinite timeline that you’ll probably get tired of and getting out seems trickier than staying in; at least not without a legal wrangling. A media consultant offering free advertising for an event that’s supposed to come up within a month’s period may have some issues if the date is postponed by 6 months.
Rule 2: Keep it simple. State exchange terms clearly and in some cases if it’s on black and white, the better. A contract is there to avoid ambiguity and risk and is necessary even if the managing director of the other party is your golf buddy. One service for another equals value service in return; try not to bundle different sets of goods or services in exchange for a different set of equally unrelated goods/services which you may offer or have in stock. A legal firm might find it easier to offer its tax related services to a publishing house but would rather not extend their legal services if the publisher later comes with an expensive divorce case settlement.
Rule 3: Think of the other person’s needs and try to match it with what you’ve got to offer. Don’t go out there looking like a perfect clown by offering a company what they already have or worse don’t really need!
Rule 4: Have respect for the client and treat him/her as though they were your most valued partners. These clients from experience are going to be your best brand ambassadors and would give you referrals like they were hungry marketers working for a commission. You get far more than you ever bargained for!
Within the past year, using these guidelines we’ve managed to rack up invaluable media placements, goodwill and brand exposure using creative thinking and trade by barters with various organizations both great and small. It’s exciting and works beautifully if you only follow these rules! Imagine a free hotel front desk office in exchange for referrals for your upcoming conference or nationwide event. Or a few pages of advertising in exchange for designing a website for a new upstart magazine or newspaper. Or my best trade by barter scenario yet, a free pair of designer sunglasses each to the 33 brave miners in Chile by Oakley in exchange for over $44 million worth of media exposure worldwide! An eye for an eye!
So go ahead, dare to be more creative and imaginative and just give it a shot. You can thank me later.
Good Luck!
Ebuka J.P Anichebe is the Managing Director of Jean-Paul and Associates Consultancy. He has an uncommon approach to marketing media consulting, business development and brand building. He’ll like to hear your views on this article and more, write to him at ebuka@jeanpaulconsult.com or call 07040448749
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