Real Estate Investment: To buy or build: Which is better?

Are you planning to invest in Real Estate and you are probably thinking of buying or building a property for your home or business use, this article by Abiodun Doherty gives an insight into the advantages and disadvantages of each decision.

To buy or build: Which is better?

BY ABIODUN DOHERTY 

Abiodun Doherty

Everyone can be a homeowner; if you have the necessary information, will and the resources to start with. As important as having the resources is, several people are not home owners or investors today not because they do not have the resources but because they lack the necessary information and the will to put that knowledge into action. Information is power.

I believe you might have come across individuals who have lots of money but end up with properties badly located or poorly constructed because of ignorance and inexperience. You also have Managers in an organisation earning so much and who end up not having a property of their own or by the time they are celebrating their first home dedication a more junior officer with more articulate strategy and less resources has achieved much more than that.

But when you begin to consider owning your property, you may need to decide on the ideal model for you. One of the common considerations is whether it is better to buy a plot of land and build your own house or to search for an already built property and buy. Both options have their own pros and cons but ultimately you’ll need to consider both options and work with whichever goes well with you in the light of your present circumstances.

Buying a property is certainly less stressful. Basically, what you need to do is to decide on the type of property, location and price that will be good for you. You can also be very specific on the title to the property. If you are planning on using a mortgage facility to purchase the property you will need to ensure that the property has a Certificate of Occupancy, Land Certificate, Governors’ Consent or a Registered Conveyance which are the titles normally preferred by lenders in Nigeria.

As part of your options, you may chose to buy a new building or an old building. Whichever option you choose however, always remember that the strength of a building is not determined by its beauty or the years of construction but the integrity of the construction work done. We have seen individuals who bought a new building only to discover that it was poorly built and the cost of amending the defects run into several millions. We have also seen individuals who purchased old buildings that was so solidly or professionally built that with little renovation they assumed new values. The wisdom is in engaging professionals that will examine the structures and give you honest guidance.

One of the reasons why it may be cheaper and wiser to buy a building is that generally the value of an empty land and a built land are really not too far from each other. What you are buying more often than not is land and the location of the land. Thus, if a person bought a parcel of land for N10m and then built a property valued at N100m on it he may not be able to sell that property for N100M.But consider a person who built a property of N10m on a land of N100m.The latter may be able to sell the property for N150m.The difference is determined by the value of the land.

Sometimes the value of land may be so out of reach for many that the best they can get if they want to live in certain prime areas is to buy a flat. In an area where an empty parcel of land sells for N300m, for instance, several middle class investors who desire to live in such areas may have to settle for buying a flat or an apartment rather than building from scratch. The cost of acquiring land is simply too steep for them.  And by the way, flats in such prime locations may be as high as N100m or more. This amount is enough to acquire land and build a property on the same land in certain areas although not with the advantages of the prime locations.

This is one of the reasons why some investors prefer to buy a parcel of land and build it: it could be cheaper. I use the word ‘could’ because it is not necessarily cheaper or better. If you have the technical know-how of building a property, the time and trusted workmen, by all means build the house yourself or under your direct or indirect supervision. As many will attest to, we have a dearth of professional and reliable workmen in the land. Most of our workmen need to be seriously supervised before you can get an average work out of them. And you cannot compare yourself with professional property developers who have paid their dues in trial and error before having a team to work with. In summary, weigh the options and your circumstances .Whether you build or buy, by all means invest in real estate.

Source: Punchng.com

Successful businesses thrive on branding

Successful businesses thrive on branding – Tigidam

 BY SIMON EJEMBI 

Perez Tigidam

Perez Tigidam is the Chief Executive Officer, Arden and Newton Brand Management Company. He tells SIMON EJEMBI the importance of branding, some mistakes people make and how small businesses can build great brands.

Importance of branding to organisations

All organisational existence rises and falls on branding. Branding is the life and soul of any business that craves for sustainable growth and long term success.  It gives an organisation clear expression of its purpose and how to successfully express such purpose in a cluttered market space of similar goods or services. Beyond the external expressions people see in the form of identity, branding starts from the very process of conceptualisation, it helps the organisation answer such questions such as “WHAT, WHY, HOW, WHEN, WHERE? Based on these questions, during my brand mapping sessions, I love to tell my clients that the branding is in the thinking. If the thinking at this stage goes wrong, the product or service will go wrong leading to the death of such an organisation.

Branding gives an organisation strategic direction and focus; it is a navigational tool in the hands of an entrepreneur. According to Clamor Gieske of the British Brands Group, ‘brands ensure a competitive economy, ensure businesses are accountable for their actions and also help businesses cross geographic and cultural borders’. Where a free market system exists, supply must meet demands. Sellers must go to the market and it is through their brands they go to the market. An organisation’s brand provides the means of competition by allowing those in the market to distinguish one competitor from another.

The importance of branding cannot be overemphasised and I really do think this is the time for Nigerian/African organisations to begin to invest heavily in building valuable business and service brands across the continent. In the global scheme of things, there is a shift and Africa is meant to play a pivotal role in this economic disruption. Unfortunately it seems African businesses are not coming up to speed with the recent invasion of African economies by western businesses. I dare say, if we remain in this state of lax, we might be going back to history where our teachers told us about the scramble and partitioning of Africa.

Attitude of Nigerian business owners to branding

One thing I have observed over the few years of my practise as a brand strategist is the fact that there is an unconscious and overt lack of ambition and quest in most Nigerian businesses. Most businesses exist for subsistence purposes thus branding is the last thing to be worried about for most.  A typical Nigerian business will be worried about money; money seems to be the only factor for success to most. Money doesn’t make ideas work, ideas put money to work and branding is about carefully crafted ideas. What I think most businesses should understand is the fact that branding will strategically position you, help define your product or service and create demand even before you launch in the market. I know a few Nigerian businesses that ideas are working for and not their bank balances. You see, you speak with some business owners most times about branding and the response you get is, ‘why should I be worried about logo design?’ to most, branding is logo design and it takes an extra effort to make most businesses understand that branding is about getting strategy right, branding is about helping them understand the market they are in and how to Zig when their competitiors Zag. If a business is struggling, it can only take fixes at the level of strategy to get things right, it is at the domain of strategy that branding resides.

A dimension of branding which most people know is the issue of creating a perception in the minds of the consumers we intend to lure, this works well for most businesses these days who at a very minimal fee could get a creative young man to design their communications collateral with all manner of dexterity, which in most cases will serve its intent of attracting. But take a step further into actual transactions and you discover that most business owners are lackadaisical about service delivery which is one of the quickest routes to eroding a brand.

Determining a strong brand

The strength of a brand is determined in the market place over a period of time. Consistency in experience delivery is the most potent factor in determining the strength of a brand. How do we determine if Coca-Cola is a strong brand or if GTB is a strong brand? Check the yearly rating, they are consistent in doing something, that consistency forms the core of the brand story they tell; that consistency buys them loyalty and equity in the market place.

Building a great brand

I think I said a bit of that in the last question. Branding is at the intersection point of promise and expectation. Promise on the part of the business owner and expectation on the part of the consumer. A brand is not built from conception; it is formed over time from consistently meeting and even going beyond the expectation of the consumer.

Small businesses and professional help

Every business does need the services of a professional but in most cases depending on a business’s financial capability they may not be able to afford the services of professional at the conception stage but along the line of growth, they should seek professional guidance. For small business start-ups, there are a plethora of free resources out there, almost every bookshop these days has a book or two on branding, there are resources online also available for free.

Knowing when it’s time to rebrand

In every industry, disruption is a given. It must come at one point or the other and this is why the word innovation has become the most commonly used word in the business world. Who would have said that Sony will no longer be the “object of desire” in the mobile phone market? Who would have imagined that some of our children will be wondering what a cassette player is? Rebranding is not necessarily the answer. Brands can live beyond their time by innovating on their brand experience delivery. How do they innovate? By trend spotting, tapping into emerging technology, cultures etc.

Major branding mistakes people make

One very obvious mistake I have discovered is the fact that most people and even majority of the practitioners think that there could be a template approach to branding and brand management. Disruptions are happening every spit second, demographics are evolving by the minute these days and what works for one will not work for the other, what worked yesterday night by 11pm might not work by 7am the following morning. Every brand has its own life and soul distinct from any other brands even in the same industry.

Source: Punchng.com

Starting out on your own

BY SIMON EJEMBI

Over the years, many experienced employees have resigned their paid employment to set up their own business only for it to collapse before long. In this article, Simon Ejembi writes about what it takes to succeed in that regard

For many workers, the ultimate goal is to set up their own business. It is a ‘simple’ plan; after years of working in an organisation, after gaining what is perceived as the necessary experience, you set up your own company. As plausible as the plan may be, many people who have tried to execute it failed miserably.

Experts say while the huge number of failed startups has led many to conclude that starting out on your own is an uphill task, the reality is that many of the businesses failed due to avoidable missteps.

According to them, one of such mistakes is the belief that all you need is a great idea.

Co-founder of online retail company, www.jumia.com.ng, Mr. Raphael Afaedor, however, says it takes more than having an idea.

Afaedor, who is also a Managing Director in the company, says in order to succeed, one also needs capital and the ability to overcome the infrastructural challenges in the country.

To succeed, he says you need “the mind-set of overcoming challenges, the capital, and to run (the business) as fast you can.”

Experts explain that the ability to execute the plan, to bring the idea to life, is very important. They stress that skills in networking, negotiating, among others are also important.

To increase your chances of not just achieving your goal of establishing your own business, but to sustain it, make sure you:

Prepare properly

Unlike those who decide to become entrepreneurs after they have lost their jobs or failed to get one, experts say those who are planning to leave a job to set their own company should not rush things.

Rather they advise that they should take all the time needed to carry out their survey and prepare properly. This, they say, is because without a great plan is the foundation of the business; and it is impossible to have one without proper research.

Through your research (i.e feasibility study or market analysis) you will be able to determine whether you need additional preparations. For instance, are there skills you require to run the business that you don’t have? Are you really ready to start the business? Will you be able to put in the required hours? Or do you need to wait for a year to resolve some issues in the family, for instance? So, take your time; do not be like those, who started a business believing that they will improve on their plan in time, only to end up failing as a result.

Develop your networking skills

Patronage is key to the success, but many people pay little attention to their potential customers or ‘partners’, when drawing up a business plan or setting up their business.

Experts say your ability to network will play a huge role in determining whether your business succeeds or fails. The explain that networking is part of the reason why some individuals have been able to successfully run businesses from their homes – via the phone or Internet – without setting up offices; whereas some other people have elaborate offices but very limited clientele.

Consequently, experts say as you go through the process of setting up your own business, keep your target market in mind; talk to people and consider their views. You will be amazed at what that can do for your business in terms of goodwill and publicity.

Determine your capital

Are you willing to put all your savings and retirement benefits into a business? How much can you really spare? If you are taking a loan, can you repay it back even if the business fails? How much are you ‘willing’ to lose? These are all questions experts advise that you consider when starting out on your own. According to them, while optimism is good, it is important that you put the risk you are taking in perspective. This, they explain is because, when you invest everything that you have in the business, there is tendency that you will be desperate for quick returns. This can make you take decisions that are detrimental to your business.

To avoid this, they advise that you start with a realistic capital; stick to a budget and cut costs as much as possible. If it is a business you can run from your phone or via a website, why rent an office?

Know your market

When it comes to the steps you need to take in setting up your business, one of the first things experts mention is importance of research. This is because it not only helps you plan or develop your idea, it also determines many other things such as where to get your needed items from and where to set up your business. According to experts, one of the most important things research can help you achieve is to know your market. Is there a need for your product or service? Who are your competitors? Experts say you must bear in mind that not everybody will patronise you because it is not everyone that needs your product.

Seek professional help

You may want to avoid this because it may cost you, but the cost of doing everything by yourself is even more costly. In starting your own business, you need to talk to lawyers, financial or investment experts, accountants, etc. According to experts this professionals will not only guide or advice you on what needs to be done, they will help you get it done. For instance, in registering your business, and drawing up employee contracts you need lawyers. Similarly, an investment expert or your financial adviser will tell you if your business plan is too risky or overly speculative. You could also get a successful entrepreneur to be your mentor.

Uphold the law

In every sector of the economy, there are regulatory bodies. Consequently, ensure that your business is properly registered and that it operates within the confines of the law.

Advice from successful entrepreneurs

BY AGENCY REPORTER

While the list of inspirational quotes is like the universe, vast and constantly expanding, here are six seeds of wisdom from successful entrepreneurs.

Mary Kay Ash – founder, Mary Kay Incorporated.

“We must have a theme, a goal, a purpose in our lives. If you don’t know where you are aiming, you don’t have a goal.”

After being passed up for a promotion after 25 years in the direct selling business, Mary Kay Ash took her $5,000 in savings and created Beauty by Mary Kay. The company was founded on the belief that women could foster their talents and realise unlimited success. Today, Mary Kay Incorporated has more than 2 million Independent Beauty Consultants worldwide. In addition to founding Mary Kay, Ash authored three books which all became best sellers.

Thomas Edison – Inventor

“I have not failed. I’ve just found 10,000 ways that won’t work.”

Edison developed the phonograph, commercially practical light bulbs and the motion picture camera. He was a pioneer in applying mass production to the process of invention, and he was known for his systematic approach to research and development. He is credited with creating the first industrial research laboratory.

As holder of more than 1,000 United States patents, Thomas Edison was one of the most productive inventors in history. Edison accepted the progression that is inherent to success. He demonstrated that each step in the process is vital to meeting the goal.

Yvon Chouinard – founder of Patagonia

 “How you climb a mountain is more important than reaching the top.”

As a member of the Southern California Falconry Club, Yvon Chouinard, dissatisfied with the climbing equipment that was available, decided to make his own. He purchased a coal-fired forge, an anvil, tongs and hammers. He set up shop in his parents’ backyard. By 1970, Chouinard Equipment became the largest climbing hardware supplier in the United States.

Since founding Patagonia, one of the world’s most successful outdoor clothing and gear companies, Chouinard has been a pioneer in mixing environmentalism with sound business practices. How we play the game, whether in business or in life, can matter more than how we finish.

William Rosenberg – founder of Dunkin’ Donuts.

 “Show me a person who never made a mistake, and I will show you a person who never did anything.”

In the 1940s, William Rosenberg founded Industrial Luncheon Services using $1,500 in war bonds and $1,000 in borrowed seed capital. Following its success, and noticing that a significant percentage of revenues came from coffee and doughnuts, Rosenberg founded the Dunkin’ Donuts franchise in 1950. Dunkin’ Donuts is now represented in 32 countries with more than 10,000 locations.

Bottom line

 For thousands of years, entrepreneurs have discovered, invented, created, developed, improved and theorised. Their quotes help explain their mode of operation and the reasons they believe they have become successful. Their words of wisdom may also motivate others to set goals, embrace failure and learn from their mistakes.

Source: www.investopedia.com

How to run your business more effectively

 BY SIMON EJEMBI

Biztoon illustration
| credits: Chukky Nwakky

After scaling the hurdles of setting up a business, experts say the next major challenge is running it successfully. In this report, SIMON EJEMBI, writes on ways you can keep your operations smooth and efficient.

Running a business comes with a lot of challenges. According to experts, these challenges are likely to increase as the excitement business owners feel when they first set up the business wears off. Those who went into business just to because they want to be their own boss or because that’s what their peers are doing, will find it more difficult to overcome this challenges and keep their business running smoothly, experts say. This is because they are likely to lose interest in the business and therefore fail to put in the creativity and drive the business needs to grow. To help you improve your business and run it effectively, experts suggest that you:

Avoid hoarding knowledge

Yes, you are the boss and employees look up to you to provide direction and leadership; many of them even expects you to ‘know everything’ or more than they know. As a result, you may be tempted to hoard information. But this is one urge experts say you have to resist. According to them, while there is the need that, as an entrepreneur, you need to strive to have as much knowledge as possible about your industry, and about how your company functions, there is also a need for you to freely share your knowledge. By sharing information or knowledge experts say you can boost staff morale. This is because your employees will truly feel like a part of the company and make more effort towards its growth. When you hoard knowledge, however, you may leave them alienated and ‘force’ them to be less loyal. If your business is such that has branches or offices in other parts of the country and you can reach your employees regularly, such steps as having a newsletter can help you pass information to your employees. Information contained in newsletters do not have to be strictly about the organisation or the industry; it could contain safety or personal finance tips, for instance.

Stay up to date

One of the reason why some businesses have failed to live up to expectation, according to experts, is because their owners are stuck in the past – they do little to know research, neither do they follow happenings in the industry. According to experts, in every industry there are facts or data upon which decision making ought to be based. When you ignore such information, you may end up with a business that is out of touch with reality.  This is more so because the information keeps changing. Your competitors, consumer expectation, etc. constantly change, and experts stress that you must keep tabs on similar developments and make appropriate changes. You need to constantly find out what people want, what is the trend, who are my competitors now? Etc. Regardless of whether you have employees who are responsible to monitor such information, you need to have an idea about it.

Take your customers seriously

As many businesses grow, as the customers flood in, there is the tendency for them to be taken for granted. Experts say you must guard against this. Don’t forget that the way you treated your customers on their first visit, is part of the reason why they came back again. Experts advise that you must always ensure that customer service is a priority for you. This they say is because without the customers, you will be out of business. While doing your best to keep existing customers happy through an excellent customer service, experts say you can also attract more customers via networking and existing clients.

Don’t just set the standard, keep it

Many businesses that are battling for customers today once had customers queuing for their services and products. Experts say many of them raised the bar when the first started, but failed to keep after years in the business. So, you did your research then, found out what was obtainable in the industry and improved on it. What’s stopped you from making it a habit? Once your competitors see that one approach is effective, they are likely to not only copy it, but to try to improve on it. This is part of the reasons, why experts, warn that business owners should not just set the standard, but also keep improving on it. The idea is to start off strong and when the business get busy, strive not to let your standards slip. To achieve this, and possibly improve the standard, experts say it is important to keep your staff motivated and happy.

Lead by example

As the boss leading your team is not just about giving directives and laying down rules, it is equally about playing your role and keeping the goal in focus at all times. Experts say your team is likely to take a cue from you, your actions and mood. Once you lose your focus or relax so will they. They advise that you stay motivated and on top of the game. According to them, keeping your eye on your goal is essential to successfully running your business.

 The Chief Executive Officer, R&S Consulting Limited, Mr. Olufemi Adebiyi,says your passion for the business will play a huge part in your ability to stay focused. According to him, if you are not passionate about your business, over time – as the challenges increase, you will be more likely to quit the businesses and move on to something else. He explains that if you are passionate about your business, “if there are challenges along the way your heart will tell you ‘keep on, you will make it; and then you will start using your skills to address the challenges.”

Stay creative

Experts say a great entrepreneur wakes up every day thinking of ways to improve his business. By doing this, they say he is unlikely to get complacent. While it may not be possible to improve the business every day, by thinking this way the say a business owner is unlikely to get left behind as he will almost certainly seize every opportunity to add something new and creative to his business. Experts say it is therefore important that business owners make research a constant thing and review the performance of their business regularly. Are you doing better than you were last month? What is responsible for the change? Asking yourself such questions are important.

Outdo yourself

Regardless of what has been achieved, experts say great business owners always strike to do better. So, you set a target and after 10 years you achieved the target. What is going to happen for the next 10 years? While it is up to you to decide experts say failure to set a target which is an improvement on your initial target will only leave room for your competitors to displace you – that is if you were already at the top.

Source: Punchng.com

How to calculate your net worth

BY ABOUT.COM

Your net worth can be a useful tool to measure your financial progress from year to year. Your net worth is essentially a grand total of all your assets minus your liabilities. There is no magic net worth number, but you should use your net worth to track your progress from year to year, and hopefully see it improve.

Calculating your net worth can be easy. It only requires some basic financial information regarding the things you own and the debt that you owe.

 Difficulty: Easy

Time Required: 10-20 Minutes

 Here’s how:

1.  Start by listing your largest assets. For most people, this would include their home and possibly vehicles. Make sure you use accurate estimates in current dollars.

 2.  Next, you’ll want to gather your latest statements for your more liquid assets. This includes checking and savings accounts, cash, CDs or other investments such as retirement accounts.

 3.  Finally, consider listing personal items that may be of value. This could include jewelry, coin collections, musical instruments, etc. You don’t need to itemise everything, but list items that are worth $500 or more.

 4. Now, take all of the assets you have listed in the first three steps and add them together. This number represents your total assets.

 5.  It is time to look ad liabilities. Again, start with the major outstanding liabilities such as the balance on your mortgage or car loans and list those.

 6.  Next, list all of your personal liabilities such as credit cards, student loans, or any other debt you may owe.

 7.  Add up all of your liabilities to come up with a total.

 8.  Finally, subtract the total liabilities from the total assets and you will have your net worth. It doesn’t matter how big, how small, or even if it is negative. This is just a starting point to have something to compare against in the future.

 9.  Repeat this process once a year and compare it with the previous year’s number. You can then determine if you are making progress or getting further behind.

 Tips:

 -Be conservative with estimates, especially with home and vehicle values. Inflating the value of large assets may look good on paper, but may not paint an accurate picture of your net worth.

 This is potentially quite a scary thing to set out to do, but it shouldn’t be. Having a complete and unadulterated overview of your finances is fundamental to having a good grip on them. It can provide motivation either to keep going if you’re doing well, or it can be a reminder that you need to make some changes financially.

Source: about.com

Dangote now world’s 43rd richest man

Dangote now world’s 43rd richest man –Forbes 

 BY ADEMOLA ALAWIYE

Dangote

With a net worth of $16.1bn as of March 2013, the President, Dangote Group, Alhaji Aliko Dangote, has moved up in the latest world richest ranking to number 43 from 76 in 2012.

According to the list which was released on Monday by Forbes, Dangote and the Chairman of Globalom, Dr. Mike Adenuga were the only Nigerians on the list.

Dangote, 55, however, retained his position as the richest man in Africa and the richest among manufacturers in the world with a net worth of $16.1bn.

Adenuga, 59, on the other hand, ranked 269 on the list with a net worth of $4.7bn.

The world billionaires, list presented Carlos Slim Helu, a Mexican as the world richest man with a net worth of $73bn, while Bill Gates of United States came second with a net worth of the $67bn.

Others are Armancio Ortega of Spain ($57bn); Warren Buffet, United States ($53.5bn); and Larry Ellison of US with $43bn net worth, coming third, fourth and fifth, respectively.

Forbes said, “To compile net worths, we value individuals’ assets, including stakes in public and private companies, real estate, yachts, art and cash – and account for debt.

“We attempt to vet these numbers with all billionaires. Some cooperate; others don’t. We also consult an array of outside experts in various fields.”

The past year has been eventful for Dangote. In October, he sold off a controlling stake in his flour milling company to Tiger Brands of South Africa and pocketed $190m in cash.

In February, his Dangote Sugar Refineries acquired a 95 per cent stake in Savannah Sugar in a bid to maintain its dominant position in the Nigerian sugar industry.

Dangote started building his fortune more than three decades ago when he began trading in commodities like cement, flour and sugar with a loan he received from his maternal uncle.

He delved into full production of these items in the early 2000s and went on to build the Dangote Group, West Africa’s largest publicly-listed conglomerate, which now owns sugar refineries, salt processing facilities and Dangote Cement.

Source: Punch

How to Walk Your Talk

Leadership and Sponsorship in Action

By Susan M. Heathfield, About.com Guide

If you work in an organization, you’ve heard this complaint repeatedly. Leaders and managers say they want change and continuous improvement but their actions do not match their words. The leaders’ exhortations to employees ring false when their subsequent actions contradict their words. A CEO once asked me, “Why do they do what I do and not what I tell them to do?” Another asked, “Do I really have to change, too?” These are scary questions coming from leaders.

The power of an organization’s leaders in creating the organization’s values, environment, culture and actions is immeasurable. Want to know how to “walk the talk” to enable organization change and improvement? Want to take the power away from the oft-repeated employee complaint that managers don’t walk their talk? Start here to learn how to walk your talk. Or, use these ideas to help your organization’s leaders and managers walk theirs. It’s the shortest journey to empower change and the work environment they desire.

Tips for Walking Your Talk

The most important tip comes first. If you do this first action well, the rest will follow more naturally. If the ideas you are promoting are congruent with your core beliefs and values, these actions will come easily, too. So, start with a deep understanding of “why” you want to see the change or improvement. Make certain it is congruent with what you deeply believe. Then, understand and follow these guidelines.

·         Model the behaviour you want to see from others. There is nothing more powerful for employees than observing the “big bosses” do the actions or behaviours they are requesting from others. As Mahatma Gandhi said, “Become the change you wish to see in the world." And, it will happen.

·         you make a rule or design a process, follow it, until you decide to change it. Why would employees follow the rules if the rule makers don’t?

·         Act as if you are part of the team, not always the head of it. Dig in and do actual work, too. People will appreciate that you are personally knowledgeable about the effort needed to get the work done. They will trust your leadership because you have undergone their experience.

·         Help people achieve the goals that are important to them, as well as the goals that are important to you. Make sure there is something for each of you that will result from the effort and work.

·         Do what you say you're going to do. Don’t make rash promises that you can’t keep. People want to trust you and your leadership.

·         Build commitment to your organization’s big goal. (You do have a big, overarching goal, don’t you? Other than to make money, why does your organization exist?)

·         Use every possible communication tool to build commitment and support for the big goal, your organization’s values and the culture you want to create. This includes what you discuss at meetings, in your corporate blog, on your Intranet, and so forth.

·         Hold strategic conversations with people so people are clear about expectations and direction.

·         Ask senior managers to police themselves. They must provide feedback to each other when they fail to walk their talk. It is not up to the second level managers and other employees to point out inconsistencies. (Confronting a manager takes courage, facts and a broad understanding of the organization.) Senior managers must be accountable to each other for their own behaviour.

In 1513, Machiavelli wrote, “There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old system and merely lukewarm defenders in those who would gain by the new one.”

Given these thoughts from Machiavelli - true for centuries – provide leadership and sponsorship through walking your talk. Incorporate these tips and behaviours to ensure the success of your organization. Walk your talk.

What People Want From Work: Motivation

Motivation Is Different For Each of Your Employees

By Susan M. Heathfield, About.com Guide

Every person has different motivations for working. The reasons for working are as individual as the person. But, we all work because we obtain something that we need from work. The something we obtain from work impacts our morale and motivation and the quality of our lives. Here is the most recent thinking about motivation, what people want from work.

Work IS About the Money

Some people work for love; others work for personal fulfillment. Others like to accomplish goals and feel as if they are contributing to something larger than themselves, something important. Some people have personal missions they accomplish through meaningful work. Others truly love what they do or the clients they serve. Some like the camaraderie and interaction with customers and coworkers. Other people like to fill their time with activity. Some workers like change, challenge, and diverse problems to solve. Motivation is individual and diverse.

Whatever your personal reasons for working, the bottom line, however, is that almost everyone works for money. Whatever you call it: compensation, salary, bonuses, benefits or remuneration, money pays the bills. Money provides housing, gives children clothing and food, sends teens to college, and allows leisure activities, and eventually, retirement. To underplay the importance of money and benefits as motivation for people who work is a mistake.

Fair benefits and pay are the cornerstone of a successful company that recruits and retains committed workers. If you provide a living wage for your employees, you can then work on additional motivation issues. Without the fair, living wage, however, you risk losing your best people to a better-paying employer.

In fact, recent research from Watson Wyatt Worldwide in The Human Capital Edge: 21 People Management Practices Your Company Must Implement (or Avoid) to Maximize Shareholder Value, recommends, that to attract the best employees, you need to pay more than your average-paying counterparts in the marketplace. Money provides basic motivation.

Got Money? What's Next for Motivation?

I've read the surveys and studies dating back to the early 1980s that demonstrate people want more from work than money. An early study of thousands of workers and managers by the American Psychological Association clearly demonstrated this. While managers predicted the most important motivational aspect of work for people would be money, personal time and attention from the supervisor was cited by workers as most rewarding and motivational for them at work.

In a recent Workforce article, "The Ten Ironies of Motivation," reward and recognition guru, Bob Nelson, says, "More than anything else, employees want to be valued for a job well done by those they hold in high esteem." He adds that people want to be treated as if they are adult human beings.

While what people want from work is situational, depending on the person, his needs and the rewards that are meaningful to him, giving people what they want from work is really quite straight forward. People want:

·         Control of their work inspires motivation:including such components as the ability to impact decisions; setting clear and measurable goals; clear responsibility for a complete, or at least defined, task; job enrichment; tasks performed in the work itself; and recognition for achievement.

·         To belong to the in-crowd creates motivation: including items such as receiving timely information and communication; understanding management's formulas for decision making; team and meeting participation opportunities; and visual documentation and posting of work progress and accomplishments.

·         The opportunity for growth and development is motivational: and includes education and training; career paths; team participation; succession planning; cross-training; and field trips to successful workplaces.

·         Leadership is key in motivation. People want clear expectations that provide a picture of the outcomes desired with goal setting and feedback and an appropriate structure or framework.

Recognition for Performance Creates Motivation

In The Human Capital Edge, authors Bruce Pfau and Ira Kay say that people want recognition for their individual performance with pay tied to their performance. Employees want people who don't perform fired; in fact, failure to discipline and fire non-performers is one of the most demotivating actions an organization can take - or fail to take. It ranks on the top of the list next to paying poor performers the same wage as non-performers in deflating motivation.

Additionally, the authors found that a disconnect continues to exist between what employers think people want at work and what people say they want for motivation. "Employers far underrate the importance to employees of such things as flexible work schedules or opportunities for advancement in their decision to join or leave a company.

"That means that many companies are working very hard (and using scarce resources) on the wrong tools," say Pfau and Kay. (p. 32) People want employers to pay them above market rates. They seek flexible work schedules. They want stock options, a chance to learn, and the increased sharing of rationale behind management decisions and direction.

What You Can Do for Motivation and Positive Morale

You have much information about what people want from work. Key to creating a work environment that fosters motivation are the wants and needs of the individual. I recommend that you ask your employees what they want from work and whether they are getting it. With this information in hand, I predict you'll be surprised at how many simple and inexpensive opportunities you have to create a motivational, desirable work environment. Pay attention to what is important to the people you employ for high motivation and positive morale. You'll achieve awesome business success

THE KEY TO HAPPINESS

THE KEY TO HAPPINESS

By Brian Tracy

Your ability to achieve your own happiness is the key measure of your success, of how well you are doing as a person.

You learn the key to happiness that has been the same through all of history. You learn how to dispel the two myths that may be holding you back and how to achieve more happiness in everything you do.

Dedicate Yourself to Your Best Talents

The key to happiness is this: dedicate yourself to the development of your natural talents and abilities by doing what you love to do, and doing it better and better in the service of a cause that is greater than yourself.

This is a big statement and a big commitment. Being happy requires that you define your life in your own terms and then throw your whole heart into living your life to the fullest. In a way, happiness requires that you be perfectly selfish in order to develop yourself to a point where you can be unselfish for the rest of your life.

Please Yourself First

In Edmond Rostand's play Cyrano de Bergerac, Cyrano is asked why he is so intensely individualistic and unconcerned with the opinions and judgments of others. He replies with these wonderful words: "I am what I am because early in life I decided that I would please at least myself in all things."

Your happiness likewise depends upon your ability to please at least yourself in all things. You can be happy only when you are living your life in the very best way possible. No one can define happiness for you. Only you know what makes you happy. Happiness is an inside job.

Your Happiness is Up to You

The biggest myth about happiness is when people say that it is not legitimate or correct for you to put your happiness ahead of everyone else's. Throughout my life, I've met people who have said that it is more important to make other people happy than it is to make yourself happy. This is nonsense.

The fact is that you can't give away to anyone else what you don't have for yourself. Just as you can't give money to the poor if you don't have any, you can't make someone else happy if you yourself are miserable.

The very best way to assure the happiness of others is to be happy yourself and then to share your happiness with them. Suffering and self-sacrifice merely depress and discourage other people. If you want to make others happy, start by living the kind of life and doing the kind of things that make you happy. 

Action Exercises

Here are three steps you can take immediately to put these ideas into action.

First, define for yourself the activities that you really love and enjoy, at home and work, and then organize your life so you do more of them.

Second, believe in yourself and trust your own feelings. Then, please at least yourself in all things. 

Third, determine what it is that you do that brings the most happiness to others and then organize your life so that you can do more of it.

To your success,

Brian Tracy

Beauty Boutique & Salon Business - Your greatest assets are people

Your greatest assets are people - Fadina,CEO Blush Nigeria

• Written by  Ruth Olurounbi

Bola Fadina is the CEO of Blush Nigeria, an upscale beauty boutique and salon in Victoria Island, Lagos. Fadina completed her primary education in Nigeria and then headed for the United Kingdom (UK) for secondary and university education, where she graduated with honours degree in Business Administration, after which she worked in investment banking for several years. She came from a very closely knit family.

Her Blush Brand has a lovely beauty boutique with some of the latest and trendiest beauty brands including Moroccan Oil, Essie and Mizani. The company has an international standard salon; Blush Cosmetics, a complete range of products including primers, foundations and bronzers, while adding facial and massage services based on essential and natural products.

Speaking on why she left investment banking for business, Fadina said she has a passion for products. “I am always up for trying the latest beauty products\trends on the market. My main inspiration to enter the beauty industry is my mother; I remember growing up, her dresser was full of products such as Clarins, Elizabeth Arden and Must de Cartier. My sisters and I spent hours playing with her products and loving every moment of it,” she said.

Speaking on how she started, Fadina said her business, which was founded in 2009, came into being in response to the void she noticed in the “simple, flattering and wearable makeup that is readily available. I found that there was no store in Lagos that retailed any new, cutting edge or the latest products. Yes there are many beauty stores in Lagos but I couldn’t find one that was exciting or current enough for me. I wanted to have a beauty boutique similar to the cosmetics section in Saks, Henri Bendel or Bergdorf Goodman which Lagos did not have. I also want to be a trendsetter when it comes to the beauty industry in Nigeria.”

She said although her business is currently booming, like all businesses, it started small, saying “it took me about two years to really get to this point. You probably have read in the news that Moroccan Oil is the rave right now. It is actually here in Lagos because we have the franchise to sell it here.”

Of course, starting any form of business is daunting no matter where in the world, she said in response to the question if she found doing business in Nigeria daunting, she said, however that, “there are so many situations/issues that come up unexpectedly in Nigeria but if you can do business in this country, you can do business anywhere.”

But the challenges that come with doing business in the country, she said, could be addressed if work and business ethics were improved.

“Also the level of customer service is an area many companies need to work on. You have to remember that in any business, your greatest assets are your people resource,” she offered.
Fadina is more of a realist than a romantic and would unwind by cooking and baking. Those two, she said, “definitely help de-stress. I love keeping fit though it’s a bit harder to exercise consistently in Lagos.” Her sense of style is elegant and feminine, would her favourite era are the 40’s and 50’s.

Secrets to start-up business

Secrets to start-up business

THE idea of starting a business is romantic. But like all romances stories, they abruptly end if they are not properly nurtured and cultivated. You cannot claim you have a relationship if you do not follow through with the initial contact you made (hustle) and you most certainly say you know your partner inside out if you didn’t ask questions (curiousity). Relationships are like that. And so are businesses. Graduating from the stage of conceiving the idea is hustling. That extra mile you go is what hustling means, in this context.

Aaron Schwartz, the Founder and CEO at Modify Industries, Inc., which designs interchangeable custom watches known as Modify Watches, once said he estimated that five per cent of his time was dedicated to strategy, five per cent on sales calls and the other 90 per cent was focused on everything else. Like what? Packing boxes for 14,000 watches his company had sold; exchanging over 200 emails per day with customers; working with his team on re-designing their watch not once, but twice; sending watches to non-profits to help with fundraising; “remembering to eat while working! With rare exception every day at a start-up requires “fighting fires” – handling issues that have immediate deadlines. To us, “Hustle” does not just mean working really hard (though that is critical). “Hustling” means being industrious and figuring out clever ways to solve problems so that we make our customers happy and improve how we work.”

Next step is to follow through. In some ways, following through is the life partner to hustle. Prince Kayode Adeshola, CEO of Remmy Kay Travel Services in Abuja said follow-through means going the extra mile even when “you’re busy, stressed and even too tired to make sure that you never lose the sight of the company’s big projects and the company goals.” He said with his company, he follow through with phone calls, emails and by keeping tabs on his employees and the customers, being in their consciousness, at all times.

Curiousity means you want to know. You want to learn and as such, you have to wide extensively. You have to ask questions. Ask questions because you want to know and ask the important ones. Travel a lot to discover what the world offers, ask your customers about your service delivery and seek ways to improve on them.

 Here is the good news, these skills can be learned. Thankfully, they are not all entirely in-born. Schwartz said practice does make perfect – but also that you can still deliver good results while you are improving. And here is how he said that could be achieved. First, set yourself up for success by choosing a company and team you care about. That way you will show up to work energized each day; happiness can make even the most mundane tasks exciting.

Second, think of your customers as family and friends. It sounds silly, but when you believe that folks you care about rely on your product or service, you will work harder to make sure they are treated well.

Third, make lists. Finish each day by creating a list of the 5 small tasks that you need to accomplish the next day. Then do them the next day. Each weekend write out the one or two big projects that you want to focus on for the next week. Both of these steps will help with the follow-through, which is one part organisation and one part effort.

Fourth, while I cannot tell you to “be more curious”, I can let you know that great start-ups have a forgiving environment. Learning from mistakes is the key to success. Knowing that you will make mistakes will take away some of the stress of trying new things, which will allow your natural curiosity to shine!

Fifth and finally, ask your teammates to hold you accountable for even the smallest things. You will start to deliver everything that is expected and you will also improve team communication, which is always critical.

A start-up is scary because every day is uncertain. But it is also a great place to learn, to meet new people and to try new things. Whether you are starting a venture or joining a team, simply working hard, completing your tasks and being open to new ideas will set you on a path to success.

Published in Tribune Entrepreneurship
Written by Ruth Olurounbi