INSIGHTS ON STRUCTURING YOUR BUSINESS.
We came across a Facebook post suggesting that certain businesses perform better when they are unstructured compared to when they are structured. The person asserted that a renowned Nigerian blogger, Linda Ikeji, is struggling ever since she became structured, but that is quite a baseless assertion without specific indices or metrics to measure the performance of her business. The argument had so many holes in it, we didn’t even know which one to address or ignore, but our take away was that many people do not understand what structure means.
Here are some insights on structuring your business:
1. Structuring does not mean leaving your product-market fit. If you were doing very well by selling food to Tricycle Drivers and then you go build a gigantic edifice with air conditioners in the name of structuring, you are just burying your business alive. The drivers won’t follow you but will switch to another option.
2. Structuring does not mean leaving what is working and going to experiment with the unknown. If Linda Ikeji leaves what has been working for her to new terrain, she may struggle before getting it right again, if she does.
3. Structuring does not mean you stop innovating. If you become relaxed simply because you got structured, you will lose out. The more structured you become, the more you have to be on your toes innovating.
4. Structuring does not mean fancy offices and glam. It is not about “I have arrived”, you will be pushed over to the sideline.
5. Structuring is about becoming BETTER ORGANIZED as the business grows gradually. When a bukka woman teaches her daughter to cook the meals as well, it is structuring. When she teaches her Son how to go buy foodstuff from the market, it is structuring. When she keeps proper inventory of the foodstuff to check them against daily sales to ensure there is no theft or unrecorded debts to customers, it is structuring. When she can take a break and business is still ongoing, it is structuring. The list goes on.
6. Structuring is about creating systems and processes, no matter how basic. You cannot seek a serious business loan with your personal account, you need to open a business bank account and that requires BVN, a registered business, Tax identification, etc.
Our investor at Mapemond asked us, “what if I die, what will happen to my investment in your company?” our answer was all around systems, processes and ultimately, structuring.
You cannot desire to be another Dangote, Otedola, Elumelu, Jason Njoku, Ibukun Awosika, and all these people and not be thinking in terms of structure over time.
Davido and WizKid will direct you to their managers if you want to do business with them, even personal brands have their own approach to structuring. That is why they create DMW, Mavin Records, and the likes.
We have to break the fetters and manacles holding us spellbound to the hustle and survival mentality while thinking that we can build a big business by staying unstructured and evading FIRS and the rest perpetually.
Conglomerate this…,
Global Ventures that…
International Empire…
All the fancy desires will not happen by mere wishes, you have to build structures diligently and consistently for several years.
If your clients’ work will be on hold because you have malaria, your business is an endangered specie.
We don’t like to think about it, but what if you die? What happens to the monies you collected from people? Pending salaries? Etc?
Please share this, let’s empower more entrepreneurs with the right knowledge.
If you think otherwise, then this post is not for you.
We wish you well in your endeavors.
