There is a difference between Trading and Business

I was at a programme last week Saturday to speak to some students at Lautech, Ogbomosho, Nigeria. And, after my lecture, a students entrepreneur came to me and ask, "I heard you talk about grant and you said you are a recipient of one, How do I get funding for my business?' I said, What business do you do?" She said, "I sell bags" I further asked, "Why do you sell bags?" What approach are you using to sell bags? Who are your targeted customers?" What is the innovation in your business?" How do you engage your customers or the community?" I couldn't get a clear answer. 



I have observed that many people trade and call themselves business owners or entrepreneurs. When you trade, you exchange goods for goods or money. But when you do business, you are solving a problem and people are paying you for solving that problems because its a need. So, what needs are you meeting? Funders would not fund trading but will fund your solutions and approach. 


I gave several instance and examples of how she can move from becoming a trader to a business owner.

1. Why do you sell bags? Many people in low income communities want to look good and improve their self esteem. They can't afford to buy expensive bags. You can offer a low cost and affordable bag. So if I am asked why do I sell bags? I have a reason and a solution. Another dimension to this is, you don't just assume that, they need just bags. You have to carry out a survey to gain insights into their unmet needs. As a business owner, you are a researcher. 




2. What approach are using to sell bags? Over the years, I have learned that, a good business model, is a business that leverages technology. Virtually, everyone has a phone. Millions of people in Nigeria use mobile phones. You can create an app or web platform where people can access these bags especially women from low income communities. Well many of them might not be able to access an app or web platform. So you create a USSD code where they can buy bags. Another dimension is to get bags from Rich people. Many of them throw these used bags away. You can create a system to get these bags, rebrand and sell them at low cost to people in low income communities who want to look good. 




3. Who are your targeted customers? People in low income communities. You may want to do Market segmentation by having market for women, school age children, Youths etc. 


4. What is the innovation in your business? Technology is key! The use of their digital device to access low cost bags. 




5. How do you engage customers? Customer Care line, you may want to consider that or free trainings and Seminars etc. 


Ultimately, build a structure around your business. Get it registered. There are funds and Grant out there, just that you are not positioned to access them, because you trade rather own a business and solve problems. 


Willing to subscribe to Kayfactor Inspires group? 

Drop a comment below. Thank you for reading! 

14 comments:

  1. Very educative. Thank you Sir

    ReplyDelete
  2. Keep up the good work. May God continue to widen your knowledge. AMEEN

    ReplyDelete
  3. Good one my dear I wish to have more of your articles and also become my entrepreneurship mentor, thank you.

    ReplyDelete
  4. Hey, thanks bro,..I lost ur contact after we met at vi... danielruno39@gmail.com
    Mail me

    ReplyDelete
  5. I finally found your page. Thank you for the session you took @ chais sir will love to have your mail

    ReplyDelete
  6. I finally found your page. Thank you for the session you took @ chais sir will love to have your mail

    ReplyDelete
  7. However, after reading this article, you may realize that you cannot necessarily go about maintaining a successful home business in the same way that you would maintain a traditional business.Social media marketing

    ReplyDelete
  8. I respect this article for the very much investigated substance and magnificent wording. I got so included in this material that I couldn't quit perusing. I am awed with your work and aptitude. Much obliged to you to such an extent. penny stocks

    ReplyDelete
  9. Moving out of your comfort zones with encouragement from your business coach breeds confidence https://mailchi.mp/cc08635ff53e/solopreneursguide which is usually translated to the achievement of very big goals.

    ReplyDelete
  10. While this does not apply to bank loans, these are the requirements of private lenders, and private lenders are amongst the leading funders at this time.bookkeeping chicago

    ReplyDelete
  11. You will wait for the opening bell before placing any trades. After the preparation, there are eight steps for day "trading like a pro".Theforexwinner

    ReplyDelete
  12. You there, this is really good post here. Thanks for taking the time to post such valuable information. Quality content is what always gets the visitors coming. faysal bank credit card - personal loan

    ReplyDelete

Please, do leave comment before you go...