THE LOOP: PITCHDAY 2022
Investments will range from a minimum of NGN500k to NGN5m or more depending on each business case.
Interested investors will indicate to ask questions, pledge funding amount, and engage further with any business that gets their attention.
Investors are individuals seeking to get their money working for them while making an impact on small businesses seeking to scale up. ROI will be short and mid-term.
Only one business owner will be in the room per time.
There are three selection stages and we are targetting just about ten finalists.
Time: 11AM
Do you think you are ready to move your business forward? Click on APPLY below.
THE END OF THE APPLE IPOD: A CLASSIC CASE OF CREATIVE DESTRUCTION
Written by Robinson Tombari Sibe (originally published on Facebook)
There was a time when the Apple iPod was the most desired gadget anyone could wish for. Gradually, it began to diminish in market dominance, until two days back when Apple announced the discontinuation of iPod production, after 21 years in the market. This was a classic case of creative destruction, for students of strategy.
Coined by Joseph Schumpeter in 1942, the term creative destruction refers to “the incessant product and process innovation mechanism by which new production units replace outdated ones.”
Steve Jobs, the Apple co-founder was a master of this strategy. Not only did Apple’s rapid innovation creatively destroy other competitors’ products, but they also applied it to themselves as a survival strategy.
Apple knew that with the technological trends, iPod was going to suffer and lose the battle eventually. Competitors were already incorporating music download and play functions on smartphones and gadgets, and it was only a matter of time before iPod will lose its charm in the market.
Rather than wait for that moment when the competition will drive the iPod out of the market, Apple decided to creatively destroy it themselves, by using another innovation. This birthed the iPhone.
The iPhone had not just the capability to download and play millions of music but could do more. It was a mobile computing device, with internet connectivity and massive processing capabilities. Why have an iPod when your iPhone can do much more?
In the rapidly evolving technological landscape, you either innovate or die. iPod is dead, but it is gratifying to note that its funeral was not organised by “strangers”. In Africa, it is said that it is better for a child to bury his parent than the other way round. iPod died a fulfilled gadget. It was given a befitting burial by its offspring, the iPhone. It will be missed, but the music plays on through iTunes.
So long, iPod.
Photo Credit: Pexels.com
- Published in Business, Strategy, Technology
ONBOARD YOUR NEW EMPLOYEES RIGHTLY
We read the employment letter of a certain business some time ago and it sounded more like a court judgment sending someone to imprisonment.
No life in it, no line saying welcome, not to talk of the company’s vision and how new recruits fit into it. Basically, it’s a “this is what we employed you for, just come and do it daily and have your pay” kind of letter, not bad at all if that is how the business wants it.
However, we once had a discussion with the owner of the same business and she was lamenting how the employees weren’t diligent enough. They quit without prior notice a lot of times. She had lost a lot of good hands, “just like that”, and the process of rehiring for the same positions was draining.
Reading through the employment letters she issued, we saw exactly what the problem was for many other businesses. It’s the hiring process and how we onboard those we expect to “own the business”.
Many business owners don’t realize it, perhaps due to the prevalent job scarcity, but you also have to market your business to potential recruits, especially millennials and generation Z. You have to give them reasons why your business is a COOL place to work and WHY they should give their best to it beyond just earning their monthly pay.
Recruiting, motivating and retaining good talents is serious work. You don’t wish it into existence.
#DoBusinessBetter
THE EVOLUTION OF THE HOTEL INDUSTRY
Written by Comfort Adebayo, Janefrances Ibezim, Esther Julius, and Blessing Kamanu.
The hotel industry is one of the many industries that has witnessed a lot of transformations in the past decades. Globally, there has been tremendous growth in the hotel industry and this has helped in promoting tourism to a large extent.
Before we go further, what is a hotel?
A hotel is commonly defined as an establishment providing accommodation, meals, and other services for travellers and tourists. A hotel is a place where one can sleep away from their home. This could be for a holiday, business purposes, or convenience when travelling for other reasons such as a hospital appointment in a different area. Hotels are also establishments that provide paid lodging on a short-term basis, which ranges from one night to a few weeks and even months. Hotels take all shapes and sizes and there are varieties of them found throughout the world today.
FROM WAY BACK…
The first hotel in the world named Nishiyama Onsen Keiunkan was established in 705 AD in Japan but before that time, it was recorded that inns were opened by most people in different towns to accommodate and keep guests or travellers but it was mostly businessmen, travellers, and mail carriers that patronized these places as of then, because of the difficulties while travelling and safety too. These were predecessors to the modern hotel we have today.
Nishiyama Onsen Keiunkan Hotel in Japan
The different technological, economic, and social development in the world around the 18th, 19th and 20th centuries led to huge changes in the hotel industry. The advent of leisure cruising that started with the formation of Peninsular & Oriental Steam Navigation Company in 1822 led to growth in the hotel industry. The company started as the shipping line between European countries but grew quickly and cruised to other continents as well. Transatlantic liners made the travel industry richer and hotels more sought.
Peninsular & Oriental Cruiseliner
Travelling also became more accessible and appealing as a result of the industrial revolution that brought about regular but structured work, more income and more time off. The increase in the number of people travelling led to increasing in the demand for suitable hotels, and as their social statuses differed, the hotels were also created to suit the different social classes.
EVOLVING WITH TIME…
At the beginning of the 1800s, the Royal Hotel was built in London. Holiday resorts began to flourish along the French and Italian rivieras. In Japan, Ryokan guest houses sprang up. In India, the government-run Dak bungalows provided reliable accommodation for travellers.
Mivart’s Hotel opened in London in 1812 (later becoming Claridges), In 1822, in Venice, a certain Giuseppe Dal Niel transformed an old palace into a hotel and gave it his name, “Le Danieli”.
Tremont House in Boston, USA opened later in 1829 and it was an American architect Isaiah Rogers that designed and constructed this luxurious hotel in Boston, Massachusetts USA.
Tremont House, Boston
It was the first hotel with a private attached bathroom and lock on the doors. “Tremont Hotel” had set a benchmark for luxurious hotels in those days. It was the first hotel to have indoor plumbing with toilets and baths, as well as free soap (a tourist favourite) and a proper reception desk area that did more than just take payment.
The Holt Hotel in New York City was the first to provide its guests with a lift for their luggage.
Holt Hotel, New York
The invention of trains and cars also contributed to the fast growth of the hotel industry because there was now an easier way for people to travel, visit friends, explore the world and also have fun at their leisure.
THE EMERGENCE OF MODERN HOTELS…
By the 1900s, there were many hotels around the globe. The hospitality industry had by this time expanded and also recorded continuous growth, and had more modernized hotels.
There were changes from Europe to America to Asia and the rest of the world.
The introduction of Funiculars (the ropeway) made high altitude mountains accessible, leading to the growth of many hotels in the Alpine ranges. Burgenstock and Giessbach are among the hotels in Switzerland that owe their existence to the development of the ropeways.
The two world wars, especially the second (1939-45) took their toll on the hospitality industry. The massive destruction caused by the war and the resulting economic depression proved to be a major setback to the travel business, but the post-war consumer boom brought some growth to the travel industry.
The 1950s brought the Club Mediterranean SA and this company was selling all-in holidays in exotic locations.
The coming of the jet aircraft in the 1960’s skyrocketed the evolution of the hotel industry.
International and even intercontinental travels were significantly shortened and that gave the visitors more time to explore their destinations and created income for the hoteliers. Passenger flights were now common, and throughout the years, became cheaper and available for wider traffic of travellers.
In 1983, the hotel real estate market came to life, more people were interested in building and buying hotels. The interest in creating more of them grew and hasn’t stopped growing ever since. That is why today we can choose from over 17.5 million guest rooms all around the globe.
One big move for the hotel real estate industry was the sale of the Intercontinental Hotels to the Japanese Seibu Holdings, Inc. by the Grand Metropolitan. It was one of the first major acquisitions that started the trend.
The inception of the Internet in the late 1900s also contributed to the growth of the hotel industry.
This global system of computer networks changed the World. It was the beginning of the hotel websites. Hotels could now promote themselves and as a result, gain more guests. Also, the guests could rate their stay and either warn other travellers or persuade them to go to give it a try.
It was easy for people to find the hotel they like, in the perfect location, and even make the booking without leaving the comfort of their own house. The birth of smartphones and tablets in the 21st century made the booking process even easier. People could now control almost every aspect of their journey from any place and at any given time. Each day new apps emerged, not only for the hotels and Online Travel Agencies but also to proffer innovative solutions for travellers and guests. They make trips easier and solve a myriad of problems.
The often-exaggerated expectations of guests in this present century have led to the creation of new hotel types. Modern hotels are bigger, more technologically advanced and even extravagant. You can now enjoy your stay in a designer hotel, an overwater bungalow or even an ice hotel or glass igloo. Recently capsule hotels are a novelty. These tiny rooms, called capsules or pods, are perfect for travellers seeking a cheap stay, without excessive luxuries.
We may actually observe a duality in the industry. With the rising popularity of both budget and luxury hotels. It is the answer to the division between the travellers. While some want to save as much as possible, others like to use their holidays as an excuse to splurge on anything they want.
We’ve discussed the past and present of the hotel industry, but what could be its future?
The answer is automation!
Machines will become a vital part of many hotels and with time we believe they will be crucial for their growth.
Today we can already see robots as receptionists and janitors They can give you fresh towels, bring your food, or greet you at the entrance. The hotel rooms themselves are also technically advanced, with voice detection devices and advanced electronics.
The only logical next step is the incorporation of Artificial Intelligence (AI), which is already happening in some top range hotels in places like Dubai. Although technology may probably not take over completely, it will be the major driver of future hotels.
We certainly look forward to what’s next for the hotel industry in the coming years.
HORRIBLE BOSSES: AN OUTCRY ON WORKPLACE TOXICITY IN NIGERIA
Written by Janefrances Ibezim
There was a social media outburst recently triggered by an article published by TechCabal and a session on Twitter spaces. Tech giants like Kuda, Bento Africa, Prospa, Life Bank, Ulesson, Wallet Africa amongst others were called out as toxic workplaces according to documented records by Trendinalia, a social media monitoring platform. Bosses like Sim Shagaya of Ulesson, Ebun of Bento, and the founder of Kuda Bank were accused of being high-handed and abusive towards employees in their organizations.
Techcabal did a detailed report on this issue of tyranny and toxicity at the workplace and put Bento Africa as their major focus. Bento Africa (formerly known as Verifi.ng) is the brainchild of Ebun Okubanjo and Chidozie Okonkwo his friend, business partner, and Bento’s chief operating officer (COO), headquartered in Lagos Nigeria. Bento provides payroll management software to 900 businesses, including Hygeia, Paystack, Kobo360 and others. Ebun who was the CEO and co-founder of the company was described as a “narcissistic boss” who dictates the day-to-day operations in the company while his co-founder Okonkwo is rarely around or heard from in the company.
Sim Shagaya is described as one of the champions in the tech world, he has built many businesses such as Konga, eMotion, DealDey, and Ulesson, which is his recent start-up. He was said to be born to military parents in Jos and equally has a military upbringing which many saw as one of the factors that led to his success but also contributed to his tyrannical behaviour.
A Twitter user identified simply as Deji accused his former employer, Goodness Kayode, CEO of Sprinble, of making employees work overnight. Responding to this; Kayode admitted that working late and overnight is a possibility to get things done. In his words, he admitted to shouting at the employees for reasons which he described as “pressure from clients”. Kayode responded to Deji and mentioned that it was stated clearly before employment that overnight work may be required sometimes when deadlines are pressing.
Also, Daniel Emeka, a founding partner and creative director of Surkreo was also accused of maltreating employees and going as far as sacking someone for not singing him a birthday song. Thirty ex-employees were allegedly said to have accused him of harassing them both physically and emotionally while working with him. Responding to this; Surkreo CEO said his methods were different and his passions could be misinterpreted, he equally described himself as “a young experimental genius who makes mistakes”. Benjamindada.com, a publication that reports events across the African tech space, highlighted the need for more active and influential boards that check the excesses of and hold the founders accountable.
On March 24, according to The Will, the chief executive officer of Bento Africa, Ebun Okubanjo in the “Toxic or Horrible bosses” saga, has apologized to former and current employees of the company. Earlier Ebun was said to be known for using abusive and derogatory words on his workers and never seeing their opinion as useful or needed in the company’s decision-making process. According to an ex-employee described as “Pascal” by Techcabal, Bento Africa took everything from him – his sense of humanity, sanity, confidence and trust. Just like Pascal who’s an ex-sales executive, other employees like Kunle, Bola, Tare Johnson and others stated that they worked around the clock and there was no rest for them or break from work. And the present employees despite being diplomatic in their responses as contacted by Techcabal agreed that everything the publication exposed about Bento Africa’s work culture “was not false”.
Bento’s board of directors has opened an investigation into the workplace culture of Bento Africa under Okubanjo. A statement jointly signed by Obinna Ukachukwu, Manpreet Mann, and Adedayo Amzat on behalf of the board said it was reviewing the HR and people practices and guidelines at Bento while working with HR consultants to make the company reflective of “human values” that drive sustainable performance.
The #HorribleBosses hashtag started trending after a Twitter space hosted by a journalist, Kiki Mordi received massive contributions against alleged toxic behaviours of founders and chief executives in the Nigerian tech ecosystem. Others mentioned are the CEO of RadioNow 95.3fm, Mrs Kadaria who was also called out by her former employees for being toxic.
“In many tech startups, the founder usually wears too many hats (for a long time), so what happens is that there is a lot of pent-up frustration, pressure, and inadequacies that the founder is dealing with,” reports Benjamindada.com. “The founder might have his own core functions — like business development or partnerships — so he is now probably managing a team of business development associates and maybe the business development targets are not being met, so he’s already frustrated.
Now, where inadequacy comes in is that he might not have even been trained as a people manager and was just an individual contributor in his previous employment and that is if he has even worked elsewhere. The average 20-something-year-old founder has never worked anywhere, and founders who are older might have been used to toxic workplaces growing through their careers. So, they don’t know what the expectations of a good manager are, and nor do they have the right training.
The blogger, Benjamin Dada advised that “when you start hiring past 10 employees, you should start critiquing your competence — find out what you are stronger at, and where you could use some help either by going for coaching or hiring a People Lead or both.
It is also important to get more awareness about people management. But the active and influential board comes in when they need to help founders point out areas of weakness, and suggest the training/coaching, discipline and hiring components that could save the future of the company.
“I think there’s a lot the tech ecosystem (including future employees) stands to gain, as I think it’s a lesson for everyone involved to assess themselves through the lens of the recent revelation,” Dada added.
The happenings in Bento Africa and other places are not a new thing nor are they surprising, the various interviews carried out showed that it’s been happening, still happening and will continue to if these red flags are ignored. And this shows the fact that most people are used to this toxicity and would prefer to work in such places for the payment instead of leaving for their own peace of mind.
7 LESSONS FROM INDORAMA RETIREES
Written by Maple Dappa
I was certain that they were all above 50, possibly the youngest among them was 55 years old. They looked well-fed, they were jovial, and of course, they were all old enough to father me. My colleague accompanied me there and we were both pleasantly surprised to see her Dad as one of these amazing men. My guess was that they all started working in their 20s because they’ve all worked for about 30years.
They were employees of Indorama, a multinational firm, at a training session organised to prepare them for retirement. I was invited to facilitate the session on relationships and networking. At first, the look on their faces was “this young man, has he seen what we’ve seen? has he experienced retirement before? well, let’s hear him out”. To break the ice and help them get into the mood, I acknowledged the age gap and voiced the thoughts I perceive they had on their minds. It worked, as I saw them ease down in anticipation.
In Africa, Fathers typically talk to their Sons, but there was a context and opportunity for a Son to talk to his Fathers. I had once spoken to Professors and Senior Lecturers at the university I graduated from during a breakfast meeting, and the Professor who was VC in my time was quietly seated in the audience as well. So, I was very mindful of this privilege as I led these would-be retirees into my presentation. They paid rapt attention and kept nodding their heads to my thoughts and illustrations on how to rekindle old friendships, start new friendships and connections, be more involved with their family, the sober look on their faces reflected the reality of transiting into retirement.
Some of them had turned their back on their old friends as they went neck dip in the corporate world, and then they didn’t really create good connections at work. Many of the work relationships they’ve had will end as they go into retirement.
So the major concern was how to forge new relationships and revive old ones. Some of them will always be missed by colleagues, others who were too curved into themselves will probably fade away into oblivion. One thing we all agreed on as I concluded was that relationships matter.
When I was done, many of them walked toward me and shook my hands with gratitude and said things like “you did a great job, this was really timely, needed and very helpful. God bless you.”
Below are seven lessons I gleaned from that experience:
1. Good relationships are more valuable than money.
2. 30years is not such a long time as we may think. Start investing as soon you can in relationships, assets, etc
3. Each birthday you celebrate, your energy level and agility is dropping. What safety nets are you weaving for yourself?
4. Procrastination could last you an entire 30years. Do what you have to do, at once.
5. Habits you don’t form now may be harder in your later years.
6. Listen to elders, they have a wealth of experiences that will serve you a lifetime.
7. Live life to the fullest in each passing moment, you can’t rewind time.
I hope you found this helpful in some way.
Your Co-Traveler,
Mister Maple
REPLICATING YOURSELF IN BUSINESS
From our years of business consulting, we discovered that one of the constant worries of business owners is how to replicate themselves in their business.
Well, here are some tips we share we them:
First, you have to accept that it is not possible for anyone to become just like you.
Secondly, the way to replicate yourself in business is by creating standard operating procedures. People are not concerned about who cooks a meal in a restaurant, they are only concerned for the food quality and taste to remain consistent.
Thirdly, you replicate yourself by documenting the processes involved in every job function and having templates for future purposes.
Fourthly, you have to make sure your standard operating procedures are not dependent on individuals.
Fifthly, standard operating procedures can be upgraded and improved upon, it shouldn’t be too rigid.
Lastly, if you are worried about people stealing your ideas or template, just make sure they sign a Non-Disclosure Agreement before they resume.
Successfully replicating yourself in business will help you have time to do other stuff, give the business life of its own, reduce stress and workload for you.
#DoBusinessBetter
#BuildYourBrandRight
As young people continue to redefine work culture, how should business owners and leaders respond?
My experience with Winny opened my eyes to the gradual shift in the work culture and aspirations of young people, especially those who have great work ethics and discipline.
She mentioned to me that she was learning how to make hair via YouTube. I didn’t hesitate to encourage her initiative because I knew she deserved better pay but the business could not afford to pay more at the time.
She focused on a particular hairstyle and started making it pro-bono for her friends until she perfected the craft and started charging 5,000naira per client for home service. Within a short time, she was getting a minimum of 8 clients each month. She provided this service mostly during weekends. The implication was that she was making as much as her salary just by providing this service on weekends alone.
This new reality boosted her confidence to return to Asaba since it has always been her utmost desire to be closer to her family. We steered these conversations further till the point where she notified me of her intention to resign. That was three months ahead of the resignation itself. We got walking through things together as the business employed someone else, whom she trained. Her hand-over was smooth. That was a few years ago.
YOU CAN TAKE A BREAK FROM YOUR BUSINESS.
I look forward to a time when I can take leave from work and business is still going fine. I am currently about 40% there and still putting in the work.
Presently, we are developing a marketing and sales system for Mapemond that wouldn’t be halted if I go on a vacation to enjoy life. It’s part of our 2022 plans.
Can you take leave from your business?
Or do you look forward to such a time?
A business where nothing happens unless you are actively involved with daily operations is a trap and you should be working your way out of it over time.
Yes, in the days you are still trying to figure out things and getting a good footing, you have to be readily available and actively involved, but that is different from being obsessed with yourself in the business.
Imagine those who own multiple branches of their business, how do they keep them running without being present in all?
Systems, my friend. Systems.
The elderly woman who sells foodstuff in my neighbourhood now spends more time resting because, after the first few years of starting the business and teaching her children the ropes, they now have the competence to handle most things themselves. Her suppliers now also bring the goods to her shops.
Your employees are not your children, loyalty and long-term service is something they choose to give, it’s not something you force. They could leave at any time and you would have to replace them. How do you minimize the effect of people exiting and people coming onboard?
Systems, my friend. Systems.
Many of the primary and secondary schools that those who are 35years and above attended are struggling to survive mainly because they were centred around the founders who are now ageing and their children have their own career paths to pursue. What could they have done differently?
Systems. As the years went by, they could have kept revamping their business structure to enthrone a system that can provide better sustainability.
If you intend to do your current business for long, you will come to this same realization and it’s my hope that these lessons I freely share would enable you to navigate things better.
If this strikes a chord in you, then you are my Co-Traveler in business and it’s your kind that Mapemond is looking at working with, that’s if you are willing and open-minded. Let’s start the conversation early enough, reach out via inbox or send an email to wecare@mapemond.com
It’s our desire to see reputable brands and sustainable businesses emerge from Africa.
#DoBusinessBetter
Captain,
Maple
HAVE YOU REALLY THOUGHT ABOUT THIS?
In all honesty, do you run a one-man business?
If yes, how do you intend to mitigate key man risk?
You can have a hundred employees and still be a one-man business.
Can critical decisions be taken without you?
Can business move on without you?
Over the weekend we had a virtual meeting with two investors abroad on behalf of a business venture here in Nigeria.
They sought to know what happens to their investment should anything happen to the business owner.
When the business is a sole proprietorship and the investment sum is small, it is easier to take the risk, but not when the investment sum isn’t a small amount.
Typically, we say “God forbid. I cannot die. Nothing will happen to me”. It is okay to have faith, but the preservation of people’s investments shouldn’t be on the basis of your faith.
You need to have a clear plan on how to mitigate key man risk (a concern for most investors), especially if your business is incorporated.
What should you do?
1. Find an IDEAL co-founder or partner, IF YOU CAN and give some powers to the person.
The next one is more important in the context of this discourse.
2. SET UP A BOARD.
Set up a functional board of directors. I don’t mean an advisory board, but a board of directors that is listed with the corporate affairs commission.
A board of directors can take crucial decisions. The board can even hire a new CEO to continue with the business.
You don’t have to consider death to think about these things. Government can create a regulation tomorrow that says the CEO of a company shouldn’t serve for more than a period of time.
You may decide to establish another company that requires your attention while someone takes over as CEO to run the other company.
So when an investor throws that question at you someday, tell them you have a functional board of directors that will take decisions in the best interest of the company and stakeholders should anything happen to you.
This issue is one major reason why we are not building trans-generational companies in Nigeria. Our sense of control and power limits the potential of the company and our vision doesn’t develop deep roots for sustained growth.
If you have registered a limited liability company, what is keeping you from setting up a proper board of directors?
You know that the listed directors you have on your CAC documents were just to meet the criteria for registration.
When do you intend to do the right thing? Are you even considering it?
If you really want to go big and build a sustainable company, think about these things and ACT.