Category : Business Management

Business Management

How to Revive Your LPG Plant & Make it Successfully

Revive Your LPG Plan

If you want to Revive your LPG plant, whether it’s abandoned, refurbished, unprofitable, reacquired or poorly managed, I will show you how best to revamp it and make it very successful again.

Reviving existing LPG plant cannot be a one size fits all plan. You have to treat each plant based on the nature of its current state and what you want to achieve. But one thing can be constant here, if you follow the right process you will get the best result in no time.

However, having a professional LPG consultant to work with would help along the way. It can be cheaper to just seek advise of a consultant and pay him for advising – while you do it yourself. That’s if you cannot afford to pay a consultant for a full service.

But if you can afford it, using a consultant to do the planning, implementation and restarting of the plant might just be the best strategy – especially if the plant is a large one.

Whatever you choose to do is fine as long as you get the desired results. So, let’s get started on the guidelines.

✅ Why Do You Want To Revive Your LPG Plant?

To start solving the problem, you have to first identify the problem. I mentioned some reasons you might want to Revive your LPG plant. It’s important you identify which one your plant falls into. Here’s the list again:

🔹️Abandoned LPG Plant
🔹️Unprofitable LPG Plant
🔹️Poorly Managed LPG Plant
🔹️Reacquired LPG Plant
🔹️Refurbished LPG Plant

These five reasons are common for those reviving their LPG plant. Each of the reasons may require different approach to Revive it. The reason for reviving the plant will determine your approach to revamping it.

What if you have more than one reason in the list here that applies to your plant? Let’s see how this reasons play out and what are your possible solutions.

✅ Reviving Abandoned LPG Plant

Before you start reviving an abandoned LPG plant, understanding why it was abandoned would help a lot. There are several reasons anyone could have abandoned a business.

Moreover, no one abandons a successful business unless it’s in a dispute situation. Any other reason is worth investigating. Well, assuming you were not the one that abandoned it.

What to do in this case to Revive your LPG plant that’s abandoned it to take a look at the level of decay in the facility and start with cleaning out the debris to reveal what beauty is till remaining of it. It’s at this point you can take stock of what’s in working condition and what needs to be fixed or replaced entirely.

Fixing up the plant is basically what’s needed first before any other considered problems fixable. But you should be aware of all the problems before attempting any fixes at all. You may also need to update its trading licensing with DPR.

✅ Reviving Unprofitable LPG Plant

A plant that’s unprofitable is a very delicate one to Revive. You don’t just treat it like an abandoned plant. Before you think of fixing it up, the most ideal thing to do is explore what make its unprofitable in the first place.

Things like:

🔹️How many KG of gas does it sell daily, weekly, monthly or yearly should be reviewed. If sales are low is a tale sign that more work needs to be done.
🔹️Review its location as well to ensure its targeting the right audience. Location do have a lot to do with LPG plant profit potential.
🔹️It can also be Management issue. And Management can comprise of several component both visible and invisible (LOL). Who manages the plant is as important as well.
🔹️Finally, supply could also be a reason its unprofitable. A bad supply schedule can affect a plant. If it constantly doesn’t have supply, it discourages customers and soon enough they start going to the competitor to buy.

If the issue is just with location, you can easily decide on a new one. Although the cost may be huge moving a plant to a new location. It’s like starting out completely new. Any other issue identified can simply be addressed with appropriate solution.

✅ Reviving Poorly Managed LPG Plant

Its sometimes difficult to classify a plant problem as being poorly managed, especially if the owner is the manager. Sadly, that’s the number one reason most plants are not profitable.

It starts from setup stage. The setup was poorly done. They were inexperienced but they never sort professional guidance mostly because they taught the consultant was asking for too much.

If you consider how much and years lost, you would have paid the little fee the consultant asked from you. However, the best solution for poorly managed plant is to identify the immediate management error before preferring any solution.

It could also involve changing the management. Surprisingly, most plants are being run by inexperienced people. Hire a professional or get a consultant to be a behind the scene manager. The fee is not much and it can be monthly or on retainer-ship.

✅ Reviving Reacquired LPG Plant

This one is not easy as well. Unless the plant is at optimal profit level – which is usually not the case, because no one would sell a very profitable business unless the offer was irresistible.

So, when you acquire an LPG plant, whatever condition you may think it’s the current state, always do some assessments. Review it’s market potential and opportunities. Examine its turnover, Cashflow and supply rate.

Check what the former owners were doing and review what more can be done to improve the profit status. If possible interview the former own and learn of their challenges and what they felt they could have done differently.

✅ Reviving Refurbished LPG Plant

I like this one the most because it’s less challenging. Any plant can do this at different time of their lifespan. It’s always good to have a refurbishing plan – like every year or after every two years.

You need to keep the plant shining and looking attractive. It doesn’t necessary have to be only old and abandoned plant that require refurbishing. If the plant paint starts looking dirty and you start noticing facility decay, it’s time to think of refurbishing.

Don’t forget that people like new things. Customers are attracted to new and good things. Any little improvement will excite your customers and probably bring back old customers.

✅ Conclusion

Don’t watch the investment go down without a fight to Revive your LPG plant. But don’t go about it the wrong way. It’s better to use the services of a consultant to achieve a better result than making the same mistakes doing it yourself.

However, if you had past experience about running an LPG plant and you think you know what you should fix that’s okay too.

My advise to do it yourself is to apply what works for you. Understand the problem first before attempting any fixes. Moreover, doing it yourself doesn’t mean you don’t need a consultant as adviser. Always be willing to pay someone who understands better to help you.

Read More
Business Management

21 Reasons Businesses Fail In Nigeria

Reasons Businesses Fail In Nigeria

Businesses don’t just fail. Some things are responsible for such failures. In Nigeria, I have reviewed some of the reasons businesses fail and what you can do to prevent your own business from failing this year.

Investopedia also listed 6 reasons new businesses fail in a report on its site. While those 6 are valid, this post explores many more reasons, which are also peculiar to Nigerian businesses – whether they are startups or existing businesses.

The idea of Reasons businesses fail is to create watch lists for entrepreneurs who are looking to grow their business can avoid. Most of what causes businesses to fail are in the businesses itself. They could be what should have been done or not to have been done.

This report would seek to explore these watch lists, explaining how they could impact negatively on your business, and what you could do to prevent those negative outcomes.

✅ Understand Reasons Business Fail

Sometimes there’s erroneous belief that once a business is successful it can never fail again. Those perceptions are fallacy. One should think about Nokia phones and relive their experience. Nokia was leading the mobile phone industry, but all of a sudden it vanished and lost all of its market.

Successful businesses can fail. Business failure can happen at any time in the life of a business. Even when sales seems to be increasing, it may nor be so for your repeat sales volume.

If the business is failing to retain existing customers, it won’t be long before potential customers starts seeing the same problem.

It’s not only unsuccessful businesses that fail. A business can fail at any level. But it’s within your power to quickly identify those signs that’s pushing your business into failure.

✅ Understanding Business Growth

The idea of starting any business is so that it would grow. But sometimes, growth can be deceptive. It’s not all growing business that is growing to be successful. Some growth are just trends that would fade out with time.

Any business that’s not built on a long term human problem would eventually fail – unless it changes its direction towards something else along the line of business.

Growth can be exhausted. Some kind of growth can also be a sign of an end. That’s why some businesses fail even when they seem to be doing well at the time. You have to understand what kind of growth your business is experiencing. Because failure is often found in growing businesses.

If you are wondering what could cause business to fail, here’s a list of my pick below, and you can add yours in the comment section as well:

🔹️No Business Plan
🔹️No Marketing Plan
🔹️Not Understanding Your Real Business
🔹️No Adequate Experience
🔹️No Proper Funding
🔹️Low Customer Retention
🔹️Hiring the Wrong People
🔹️Wrong Choice of Location
🔹️Targeting the Wrong Customers
🔹️Using Social Media Wrongly
🔹️Not Understanding Your Best Marketing Channel
🔹️Not Managing Cashflow Properly
🔹️Too Much Overhead Cost
🔹️Not Having Appealing Brand Image
🔹️Poor Quality Products or Services
🔹️Over Pricing and Under Pricing
🔹️Bad Customer Reviews
🔹️Selling With Fraudulent Intent
🔹️No Customer Support
🔹️Bad Service Delivery
🔹️Using Wrong Data

✅ No Business Plan

A lot of Nigerian businesses overlook writing a business plan when starting their business. Maybe because they don’t seem to understand the most important reason for writing a business plan.

However, for those who had a business plan, it’s mostly outsourced to a consultant. That in itself is equally not good enough. While the purpose of business plan is to give direction to your business idea, it also conveys the spirit of the business.

If you must outsource it, let it just be the writing of it and not the concept and direction of your business.

Moreover, it’s a great business sin not to write a business plan when starting your business. It doesn’t matter how small the business is – every business needs a plan to give it the best direction possible.

Failure to do so means you have a business without direction – and starting out without proper direction is prone to failure. Not having a business plan is in itself a plan to fail.

✅ No Marketing Plan

The most important success factor of any business is marketing. Without marketing you don’t have a business. If you don’t plan your marketing you are not expecting any form of success in your business.

It’s either you are doing trial and error or you are just an ignorant startup. If you are hoping that customers would walk in to buy from you, then you have to position your business where customers can walk in and buy.

But if your marketing strategy is not to target walk in customers, which in itself is a marketing plan, you need to plan how you intend to market your business to potential customers.

✅ Not Understanding Your Real Business

One of the biggest mistakes for most startups is not understanding their real business. I want you to do a brain game. If you are sick, where do you go to? When you are hungry where do you go?

You must be able understand your business like this. If you don’t understand your real business you will be trying to sell to the wrong customers – and they won’t be interested in your offer.

Another scenario for a brain game is this – What’s the business of a hotel? A hotel primary business is to provide hospitality. If your hotel is not competing to provide customers with hospitality services, then that hotel doesn’t understand it’s real business.

If a startup or any business fails to understand what it’s real business is, it’s a business likely to fail.

✅ Not Defining Your Business Properly

If you understand what your real business is, you are now able to define it properly to your target customers. You will be able to use the right words to attract the right customers. You will see what your competitors may not be seeing in your industry. It will Position to think ahead, plan ahead and introduce futuristic products that beats any competition.

This is so important because every business has a niche. The clearer you can define what niche you are serving the easier for customers who needs you can identify your business in the midst of the crowdsourcing market.

But, if you can’t define your business, it’s left for each customer to try to guess what your business represents. And that could cost you more customers and might likely cause your business to fail.

✅ No Adequate Experience

Experience is the best teacher, but most startups lack this very vital ingredients that could make their business very successful.

If you study the Igbo traders in Nigeria, one thing that distinguished them from other tribes is their apprenticeship program. This program helps to groom successful entrepreneurs . The success of this apprenticeship program has been a case study in Harvard.

You need the right experience in any business you want to engage in. If the Igbo’s could employ apprenticeship in common buying and selling business, there’s no business that doesn’t require apprenticeship.

If you lack the right experience it’s might eventually cost you time, money and success. Even if you appear to be doing well, little challenge can cause the business to fail.

✅ No Proper Funding

Money answers all things. Getting the right funding for your business is key to avoiding one of the pitfalls of business failures. The amount of funding available to a business can be directly responsible for its success.

Most startups lack this all important funding. They are either starting on a shoestring budget or struggling with low Cashflow. If your business lacks funding, it’s like lacking oxygen.

Get proper funding or you could be risking your business failing. It shouldn’t be too much or too little funding – non of it is good for your business. What you need is the right funding to be successful.

✅ Low Customer Retention

Customer is the life blood of any business. Businesses exist for customers. Without customers you cannot have a business. So, you have to do everything possible, not only to win more customers but to retain existing customers.

If your customer retention level is low, your business is at the risk of failing. You have to watch how many customers you are retaining. It’s more important than how many customers you are wining.

You can say your customer retention level is good if your repeat sales is growing. If your customers don’t come back to patronize you, check what you are offering, and what your competitors are doing better than you.

✅ Hiring the Wrong People

Some people don’t deserve to work for you. It doesn’t matter whether they are family members or friends. Your business should have employee handbook that defines the roles, qualifications and character of the people you employ.

Three things that must define your employees are experience, intelligence and character. Note that educational qualification wasn’t part of the three. If the person is not experienced they make a lot of mistakes. If they are not intelligence they lack ability to make good judgments. Without character they chase away valuable customers and partnerships.

If you already have people working for you, revaluate them by these three factors. It may be time to fire and hire new workers.

Don’t allow your employees destroy your business. And if you have these three factors as your hiring watch word, it protects you from favoritism and wrong hiring.

✅ Wrong Choice of Location

Every business is based on location. Even an online business deals with location. If you ignore location choice in your business, you will be missing the target. Target-less marketing is easy road to failure.

Location helps you identify the right customers for your business and focus your marketing to eliminate waste and increase ROI per CAC (customer acquisition cost). If you have higher CAC its either increasing the cost of your product or service – or it’s decreasing the revenue of your business.

Don’t take location for granted. Businesses fail because they ignore the importance of location to their business. There are markets in Nigeria that are known for selling certain products. Those who sell or buy those kind of products go to those markets.

If you locate outside those markets, you will be missing out of very important customer based – especially if you sell in bulk.

✅ Targeting the Wrong Customers

Your product is not meant for everyone. To think that anyone would buy from you is an expensive error in marketing. It’s not everyone that needs your product. Your business should have a niche market.

If you try selling to everyone you will be wasting your marketing resources and getting little or no results. This mistake is what makes businesses fail. The wrong customers won’t patronize your business.

Identify who your customers are and focus mainly on them. That would help you save cost, and also reach out to mainly those who are more likely to buy from you. While saving you from those who may like your product but may never buy because they may never need them.

Your target customers are only those who have immediate problem your business is providing solution for – and who are also willing to pay for it

✅ Using Social Media Wrongly

You can use social media wrongly. That would cost you a lot too. The reason for social media is to engage with your customers, and not really for advertising. That’s not to mean you can’t advertise on social media. But you should advertise the right way too.

Learn to explore social media marketing the right way. The powerful nature of social media helps you warm yourself into the hearts of your customers. If you do it well. It’s stronger and more effective than even advertising.

Many startups fail to explore this advantage and it’s costing them so much. And if you use social media wrongly it has its adverse effects, which including helping to fuel customers rejection that causes your business failure.

✅ Not Understanding Your Best Marketing Channel

Advertising is important to the success of your business, but you have to understand the best channels for your business. There are different types of marketing strategy that works that you can apply.

If you understand what works best for your business it’s better and would be more cost effective. It can also effect your business wrongly if you are expending resources on the wrong marketing channel.

How to know the wrong marketing channel is if the result is not commiserate to the kind of cost you are expending on a marketing channel. You have to identify what channels are giving you the most result at a reasonable cost.

✅ Not Managing Cashflow Properly

Cashflow is an integral part of business success. You must handle your Cashflow well. A healthy Cashflow means your business is healthy. And it’s vice versa.

Cashflow can be negative or positive. For someone who doesn’t understand Cashflow – it means how money comes in and goes out of your business. A record of how much goes out of your business for what purpose, should be followed by how Much comes in.

If Cashflow is not managed properly your business is at a risk of failing. Most companies fail because the money is flowing out into things that doesn’t support the growth of the business. If that’s your business situation, it’s bound to fail at some point – sooner than later.

✅ Too Much Overhead Cost

This one is directly related to Cashflow. But the reason I’m singling it out is because some startups tends to ignore it, especially if the Cashflow is seemingly healthy. They assume every overhead is part of the cost of business operation.

Some overhead cost could be too much and needs to be reduced. Being able to identify those overheads costs and cutting them down can save your business from failing. But where they were not discovered, a business can continue until these costs destroys the business.

✅ Not Having Appealing Brand Image

Image is everything. The kind of impression you create about your business has a way of attracting the right customer base to it. If your brand image is appealing to the target customers, they will not only patronize you but also refer you to their network.

If the brand image is not appealing, it might only be attractive to the wrong customer base. Your brand image tells your business story in a way nothing else can. If the story it tells is bad the result will be bad for your business.

Also, an appealing brand may lose its appeal over time. You have to constantly reappraise your brand appeal and reposition to trends driving your market.

✅ Poor Quality Products or Services

A Japanese proverb says – good thinking, good product. If the thinking is right, it will necessarily produce good product, which will equally attract good customers. We can say, good thinking will produce good products that good customers would patronize.

In the same way, poor quality products is bad business. While some may get away with selling poor quality products for a while, the business eventually fails as more customers discovers the scam.

The real business growth lies is repeat sales. But where the product quality is poor, repeat sales is difficult.

✅ Over Pricing and Under Pricing

Sometimes it’s difficult for startups to properly price their products. A little overpriced or underpriced could hurt your business in ways you never imagined. Pricing product is an integral part of successful businesses.

However, the problem is not really about the over price or under price, but how you come up with the price. If you deliberately priced your products, then you are then prepared for customers reactions and inactions as well.

Not many businesses gets away with over priced products. It can only work if your product is high end and your target market is luxury goods customers. If you are dealing with mass market, over priced model will kill your business. Same way under priced model won’t help your revenue either.

✅ Bad Customer Reviews

Don’t do things that attracts bad customers review. A lot of buying decisions today are based on reviews. Like they would say, the Internet doesn’t forget. As online platforms provides avenues for documenting customers experience with your business, you should be careful what they are saying about your business.

I noticed that most businesses don’t take this seriously. You may not even know how much damage bad customer reviews are doing to your business. If you are offering any service that has online presence, always scan the net to know what customers might be saying about your business.

To erase bad reviews, try to create better reviews by creating better customer experience. Intentionally over pamper your customers and after a better service experience, ask them to write a review about their experience. If possible let be on the same platform you found bad reviews of your business.

However, don’t try manipulate customers to drop good reviews about your business. Rather, improve your service and let it speak for you.

✅ Selling With Fraudulent Intent

Don’t think people can’t read through your intentions. If you have a fraudulent mindset it will show in everything you do. It won’t be long before customers starts classifying you as dubious.

Words spreads faster than you can imagine. And before long people won’t like dealing with you. Businesses fail faster if the owner has a fraudulent mindset. If you are always thinking of ways to cut corners to make more profits, you have a fraudulent mindset.

There’s no way you can hide a fraudulent mindset for too long. It will always find a way to escape and find expression in what you do. And if you noticed that you have a fraudulent mindset, don’t try to deny it, rather create systems in your business that can help automate processes without your personal involvement or manipulations.

✅ No Customer Support

This one is a major problem with businesses in Nigeria. Support is never part of what they offer. Lack of customer support is a major reason most businesses never experienced repeat sales.

Customer support is not really about treating customers well but solving customers problems. They are two different things. If you solve problems customers will always return back to patronize you.

But if you don’t provide support, your customers will end up looking for solutions elsewhere and eventually find another business that provides same services as you. Each customer lost is additional revenue lost. More loses causes business failure.

✅ Bad Service Delivery

How your customers feel after transacting with your business can either be good, better, bad or worse. Choose your options wisely.

Most Nigerian startups fail for this singular reason. There services leave a bad taste for the customers. And most of them blame the economy and never get to know some of the reasons their business failed.

Although, part of the reason for bad or poor service delivery is hiring the wrong people. If you want to deliver better services, use the best in your industry. There’s a huge difference between an employee who works for the pay and one who works to be paid.

✅ Using Wrong Data

Businesses are built on authentic data. You need data to make realistic business projections and to perform effective marketing. Most startups are either not willing to pay for authentic data or ignorantly work with assumptions.

The easiest way for any business to fail is to work on wrong data. It will mess up your projections and mislead you in every way.

To avoid this, always hire the right consultants to do your work for you. Note that most of the information you find online are based on assumptions of the writer. Hiring a consultant that would conduct physical study when needed is a good investment. It will cost more but it’s ROI will far outweigh the cost.

✅ Conclusion

This list is to help you find what areas your business is lacking and how to correct them. I believe that anyone reading this article up to this point really wants to know how to stop the business from failing.

These are just symptoms. But it will help you diagnose the real problem in your business. Every symptom is a sign of a problem on the way. Dealing with the symptoms early would prevent the problem in the future.

You may also need a consultant to help you find better ways to protect your business from failing. Sometimes, you need someone else to take a look at how you do your business, to help you discover what you may have overlooked.

Read More
Business Management

How Do You Earn With Position Exchange?

earn with position exchange

If you are new in crypto, you may not fully know the huge potential of opportunities as presented by Position Exchange. But let me explain it briefly for you.

✅ What’s Position Exchange?

It’s simply a decentralized exchange. Which means you can trade any type of crypto on Position Exchange. You can see it as Binance of decentralized exchange. That means you don’t need to buy your cryptos from other exchanges like PancakeSwap anymore.

✅ What’s POSI Token?

POSI is a native token of Position Exchange ecosystem. You start your investment in Position Exchange by owing some POSI token. There’s no minimum of POSI you can own. Buy as much as you can afford.

✅ Brief Facts About POSI Token

?️It has only 100 million tokens in total
?️Less than 15% of it is currently in circulation (in September 5th, 2021)
?️The current price is around $7.4 (in September 5th, 2021)
?️It’s just 5 weeks old (in September 5th, 2021)

✅ How Do You Buy POSI?

POSI is available option buy on Position Exchange app. You can use the link provided here to buy POSI token with either your Traustwallet or Metamask wallet. You can also buy POSI on Lbank exchange and other exchanges that will soon be listing POSI.
POSI is also available from PancakeSwap. But the best place I recommend you buy POSI is on Position ex hanger app. Use link.

✅ Steps to Buy POSI Token On Position Exchange

?️Click on the POSI link to connect with your wallet, or copy and paste into your DApp browser
?️Select bsc Smart chain network
?️Connect your wallet address with the App
?️Click on the Menu icon
?️Select “Exchnage”
?️Enter the number of POSI you want to buy below
?️Above select the token you want to use in payment
?️Click on swap
?️Verify your order and confirm
?️Confirm to Make network payment

✅ How Do You Earn Money With POSI?

Position Exchange provides several products in its ecosystem that can earn you more POSI. Here are a few operational ones.

?️POSI Staking Pool
?️POSI LP Farm
?️POSI NFT Pool
?️POSI NFT Marketplace
?️POSI Derivatives Trading Protocol

Each of the products has daily earning power for your POSI. You can earn up to 1,000% APR from your POSI token depending on the pool you choose to invest your POSI.

Once you follow the process to stake your POSI in any of the pools available on the App you will start earning more POSI immediately. And you can harvest your earnings, sell it and send the money to your bank account.

✅ Steps to Earn More POSI

?️click on the menu icon
?️Select the pool you want to invest your POSI token
?️options to choose from (Pool, Farm, NFT and Trading)
?️For single Pool, select pool, approve POSI Staking, enter POSI to stake and stake it
?️For Farm, select Farm, approve POSI farm, create LP token pair (see how to create LP token), add your LP and start farming
?️For NFT Pool, buy your NFT, approve POSI NFT, select NFT and stake

✅ Conclusion

You can watch the following videos to help you understand some of the processes to invest your POSI in the pools.

?️Watch how to buy POSI
?️Watch how to stake POSI in single pool
?️Watch how to Farm POSI LP token

? POSI contract on BscScan:
0x5CA42204cDaa70d5c773946e69dE942b85CA6706
? Name: Position Token
? Symbol: POSI
? Decimal: 18

? To swap, stake or farm POSI copy Link below paste in your Trust Wallet DAPP to connect to Position Exchange

Read More
Business Management

Crypto Shitcoins – Practical Guide For Beginners

Crypto shitcoins

This newbie guide to Crypto Shitcoins is helpful for those who are new in Crypto. Please read and understand. You may not understand the entire crypto market in one article but you should know how to buy and sell crypto. That’s the first principle of crypto investment.

Every crypto token or shitcoin are not the same. Each coin or token is developed for a purpose. That’s why the developers release white paper to explain their crypto to buyers. Always look out for the lite paper and white paper before buying a coin or token.

Remember this, crypto investment is risky. The crypto market is volatile. Always Do Your Own Research (DYOR) before buying any crypto asset.

✅ What’s Crypto Investment

There are 3 types of those who are on the crypto market.

?️Crypto holder
?️Crypto trader
?️Crypto investor

These 3 group of people are easily identified in the crypto market. Crypto holders buy tokens and hold them till their prices appreciate and they sell for profit. While the crypto traders buys cryptos at their low price and sell immediately a certain price increase is achieved.

But crypto investors acquire crypto assets and explore those assets to earn regular returns. They earn passive income from their crypto holdings. Which group would you like to belong to? If you been in Crypto Lessons, you will notice I don’t teach crypto trading at all. I only focus on crypto investment and encourages crypto holding.

✅ Different Types of Crypto Assets

You need to know what type of crypto assets to invest in. Most newbie only know of Bitcoin, and any other one they have heard from friends and colleagues. You need to know the 3 different classes of cryptos, so you know which one you should be buying.

?️Bitcoin
?️Altcoins
?️Tokens or (Shitcoins)

You already know about Bitcoin or you have heard much about it. That’s the first successful crypto coin. Altcoins are other coins built after Bitcoin Success. Ethereum, ripples, Tron, etc fall within this category. While token or preferably shitcoins are tokenized cryptos built untop of existing blockchain. If you are going to excel in crypto investment as a newbie investor, you have to start from shitcoins. With little money you can buy different types of shitcoin assets, and at very large volumes.

✅Understanding Stable-coin

There are crypto coins called stable coins. These type of coins usually have the maximum prices pegged to the US Dollar. That means their price can appreciate above $1 USD. While people don’t usually buy them for price appreciation, they use them to stop loses or store their coin when they are not sure of the market movements.

Examples of popular stable coins are USDT, BUSD, USDC, etc. Also, you can invest in a stable coin when it’s being launched, like eUSD, USDR, USDDex, etc. at launch stable coin would sell their coins to investors at a lower price to gain holders and grow like every other coin. However, the volume of most USD pegged coins are usually smaller, making it possible for them to sell out their coins and grow their price to $1 USD.

✅ Crypto Tools You Should Know of

One thing you must master a lot is how to pick the coins you buy. You need some tools or apps. To help you do your own research (DYOR) you need to know the following tools and how to use them.

✅ TrustWallet App

You need to download TrustWallet app from Google Playstore. Most of what we do in Crypto Lessons are done on TrustWallet. This wallet is also easy to use for a newbie. It’s the number crypto wallet, so you won’t miss anything if you use only it.

✅ Create Social Media Accounts

You will need the following social media accounts:

?️Telegram
?️Twitter
?️Reddit
?️Discord

Note that these are not mandatory but it’s helpful in following your crypto developers for more update on the project. And also to participate in any future airdrop.

✅ How to Find Contract Address

Each crypto token has a contract address (CA). To buy a token or setup the crypto coin wallet address on TrustWallet you will need to find the contract address.

?️The tool to use is https://bscscan.com
?️You can also use https://poocoin.app

On this site you can search for any token or coin and it will display details of any coin built on the Binance Exchange Protocol (BEP) or compatible token type. However, with popcoin you will need to click on the INFO button and click the token contract. It will still lead you to bscscan. The reason for going to through poocoin is to be sure it’s the exact token you want, not a copycat or clone token of the one you want.

✅ How To Buy Your First Crypto Shitcoins

TrustWallet is like your ordinary wallet. It only helps you hold your shitcoins coins. But it gives you a window to link up with other apps using the web browser or DApps feature on TrustWallet to buy any shitcoin you want.

If you can’t find PancakeSwap when you open the browser just type in PancakeSwap.finance in the web browser to open PancakeSwap. Another way to do this is to copy the buyer link of the coin you want to buy, if you have one and paste it in the browser to open it.

Some links will connect you directly to PancakeSwap to buy the coin, others might just open the coin company website and ask you to click on buy option, usually when it’s in presale mode.

?️ Change Network Option

At the top right corner of your screen you have the network logo. By default it shows Ethereum logo. You need to click on this logo and change the network to Smart chain network.

?️ Enter the Amount of BNB

The amount of bnb you chose determines the quantity of the coin you will get, based on the current coin price. It’s always advisable to buy already existing coins during their DIP. That’s when the price falls, rather than when the price is bearish or increasing.

?️ Change Slippage to Approved Percentage

The slippage percentage is the amount of Token Gas fee required for the transaction to be successful. This rates are different for each coin. Though some coins share the same percentage. The percentage starts from 0.1% to as much as 25%. You need to find out what the slippage rate for the coin you are buying is and use it to set your slippage rate.

If you use a higher slippage rate than what’s approved for your coin you only lose some coin but the transaction will be successful. But if you try using a lower slippage it will indicate an error.

?️Click Swap

Once you have set all the buying parameters in order, click on the SWAP button to continue to the next page for confirmation.

?️ Verify Transaction And Confirm

Here you need to verify that the quantity of coin you are paying for and the quantity you might likely get is agreeable to you. Once you are in agreement with the figures display, you click CONFIRM button.

?️ Verify Payment Amount and Confirm

The payment page gives you opportunity to verify the amount you are being charged for the transaction and the amount of network transfer fee payable for it. If the total amount to be deducted from your bnb is agreeable to you, then you go ahead and click the CONFIRM button. This leads to the successful completion of the purchase. The coins will be deposited in your defied coin wallet address as you requested.

✅ How To Setup Coin Wallet Address

There are best ways to get a token wallet address setup on trustwallet. You can search if the token already exist by copying the contract address and paste it into the token search box. The other best way is to set it up yourself. Let’s use ripple as an example.

Setup wRipple wallet. Follow the guide below:

To start the claim you need to first setup this coin on your Trustwallet. Use these parameters to set it up.

?️ Change Network to Smart Chain
?️ Enter the Smart Contract: 0xbbc9fa4b395fee68465c2cd4a88cde267a34ed2a
?️ Use Name: wRipple
?️ Use Symbol: wXRP
?️ Enter Decimal: 18

✅ How To Claim Free Crypto Shitcoin On TrustWallet

?️Open your TRUST WALLET. Make sure you have some BNB smart chain coin to pay for the network fee. If you don’t know how to setup coins on Trustwallet please ask questions.
?️After setting up the coin, Go to DApps
?️Copy the link and paste into your DApp search bar
?️Click to Change the Ethereum logo and Select Binance Smart Chain Network
?️Click on claim if you are claiming the free wRipple coin
?️Or enter the amount you want to pay if you are buying
?️Click Approve and connect your wallet
?️After its approved click Buy – The amount of wRipple will automatically transfer to your wallet

✅ Conclusion

Starting out as a newbie in Crypto investment may look too technical but it’s really not so. You just need to get used to how things are done here. Most people may give up just by looking at what’s there to learn and do. But they forget that it’s so simple that all they need to do is to get used to it.

However, your best chance at getting smarter in the crypto world is by practicing everything you learn as a newbie Crypto investor. The more you practice what you learn the faster you learn, and the easier you can remember next time what you did before.

Read More
Business Management

How To Rank Fast Without Backlinks

Backlinks

Read More
Business Management

How To Register Regulated Product With NAFDAC

Register regulated product With NAFDAC

When starting a business in Nigeria, there are several considerations you have to make. One of which is registering your regulated product With NAFDAC – The National Agency For Food And Drug Administration And Control.

NAFDAC is one of the bodies in charge of regulated product registration in Nigeria. It covers both locally manufactured and imported products. However, it’s not the only body approved by government for the registration of products in the country. There’s also SON – Standard Organization of Nigeria.

But NAFDAC covers just food and drug related products. Anything that Nigerians are meant to consume falls within the purview of NAFDAC. While SON covers those products that falls outside of food and drugs.

For an entrepreneur, you need to register your regulated food and drug products with NAFDAC to avoid falling into the wrong side of the law. That would also help build consumer confidence on your product.

Why Register Your Product?

NAFDAC registration is about certifying the product and approving it for consumption and sale, while a registration number is issued to notify the public or help in verifying the authenticity of the product being consumed.

A registered product gains consumers confidence, meets all regulatory conditions and helps promoters avoids battles with the laws of the land. Any responsible business entity knows that registering their products with the appropriate authorities is an important business decision.

Moreover, you need to know how NAFDAC operates to enable you register your products without hitches. The process is not difficult but sometimes can drag for a while before your product would be approved fit for consumption.

What Are Regulated Products?

According to a Science Direct bookon An Overview of FDA Regulated Products, a product is considered regulated if a government authority determines when and how the product is allowed to be commercialized.

Although, regulated products differ by countries and territories. What may be regulated in the United States for example, may not be regulated in Nigeria. Countries regulate their products based on their own unique market challenges.

Also, a product may have been regulated in the past but later withdrawn from regulated list of products.

 

Register regulated product With NAFDAC

Some regulated products in Nigeria

Products To Register With NAFDAC

Based on the definition of regulated product above, you can site some classes of regulated products to fall within these categories. In the United States, the FDA separates products into specific categories:

  • Food
  • Dietary supplements
  • Cosmetics
  • Drugs
  • Biologics
  • Medical devices
  • Veterinary products
  • And tobacco

The same applies to NAFDAC in Nigeria. Water also falls within the food category. These products are regulated due to the grave implication if their are adulterated or subsatndardly produced.

I also feel to give some few examples of previously registered products by NAFDAC to help you fully understand the Nigerian regulatory environment. I picked products from different categories, and in no particular order:

  • Revup (water, yoghurt, and juice)
  • Infini Clear (cream, soap and lotion)
  • De-Zack Water 50Cl Sachet
  • Flexi Joint Capsules And Cream
  • A1 Pat Life Water
  • Brave Herbal Capsules
  • GINO magic pepper and onion tomato seasoning mix (MILD)
  • MR CHEF seasoning
  • FAMKO sweetened yoghurt

You can search and find any NAFDAC registered products on this website link.

Who Can Register Product With NAFDAC

In case you are wondering if your business qualify to register a product With NAFDAC, let me clarify those classes of businesses that can approach NAFDAC for product registration. Below are the categories of entrepreneurs that can register a product With NAFDAC.

  1. Manufacturer
  2. Distributor
  3. Marketer

These three classes of entrepreneurs deals directly with products, and your business have to fall within any of these three to register a product With NAFDAC. Although, it’s not like NAFDAC has restriction on classes of business as a condition. It’s even because you cannot have the right over a product unless you fall within these three classes of entrepreneur, especially as a manufacturer.

A retailer only has exclusive retail rights. It’s only a manufacturer, distributor or marketer that can have an exclusive product right in a market. That’s why NAFDAC demands that only among these classes of entrepreneurs can register a product with the commission.

NAFDAC Registration Process

The process of registrating a regulated product With NAFDAC has been further simplified. It used to be solely by visiting any of the following NAFDAC offices in Nigeria.

  • NAFDAC Central Laboratory Complex, 3/4 Oshodi ? Apapa Expressway, Oshodi ? Lagos.

This office is where registration and regulatory affairs, legal process, inspections, food Laboratory tests, narcotics and controlled substances are handled.

  • NAFDAC Central Drug and Vaccines Laboratory (CDVL), Edmund Crescent, Yaba, Lagos

This office is in charge of drug laboratory tests and ports Inspection jobs.

  • NAFDAC Enforcement Directorate. Ahmadu Bello Way (Behind Nigerian Air Force Camp by Legico B/stop), Victoria Island – Lagos.

While this office sole responsibility is the enforcement of all NAFDAC laws.

To begin the registration process, you start with the purchase of the relevant registration application form from the NAFDAC office closest to you and pick up the applicable guidelines. This guidelines gives you proper directives on how to make your applications with the support documents required. Also read how to register a business in Nigeria.

How To Begin Registration Process

It’s takes about three months to complete NAFDAC product registration process, if all requirements are met at stipulated times. There are processes to follow when registering a regulated product. NAFDAC has laid out rules to guide applicants. Let me list each process for you:

  • Application Letter And Document Submission
  • Registration description of intent
  • Samples for laboratory analysis
  • Payments for category of registration

The first step is to submit letter of application with all required documents. Your letter of application gives NAFDAC information about your request for registration, and your documents helps them to understand who is making the application. But you have to ensure all the documents are complete, with the appropriate description so you won’t encounter any delays in the process.

The next step in your registration process is the description of your intent. This includes the purpose of your registration, and the product description itself. You are letting NAFDAC know what you want to register, what it does and your reason for registration.

Then, you submit your samples for testing. Here are the requirements to bear in mind when submitting your samples for laboratory analysis.

  1. Make your labelling clear, accurate and informative
  2. And your label must carry the following details:
  • The brand name
  • The name and address of manufacturer, distributor, marketer
  • The provision or slot for NAFDAC Registration number
  • The batch number to be tested, manufacturing and expiry date
  • The net content
  • The complete list of ingredients
  • Any product warnings that consumers should be aware of

And finally, you pay your registration fees according to your registration category.

NAFDAC Application Fees

It’s equally important to know how much it cost to get the NAFDAC number in Nigeria? The number is a symbolic representation of the product that it has been approved by NAFDAC.

So, registering your product With NAFDAC is not only to prove the quality and authenticity of it but also to get NAFDAC seal of approval, which is the NAFDAC number. And these fees are charged in two variants.

Register regulated product With NAFDAC

Infini clear product range

Since Nigeria imports a lot of products, NAFDAC also classified the registration fees into two. One class is for imported products, while the other one is approved for locally made products.

For imported products, NAFDAC charges as much as N200,000 plus VAT to register any imported product to be sold in Nigeria. These products that are not manufactured in Nigeria are made to pay more than those manufactured in the country.

While the locally manufactured products gets a lower fee of just N50,000 plus value added tax (VAT).

What’s NAFDAC Registration Number?

When you register a product With NAFDAC you will be issued with a registration number. This number is what NAFDAC uses to identify your product and it equally gives consumers a sense of confidence that your product is under the purview of the regulatory authority of NAFDAC.

NAFDAC issues this number as a final approval for each product that has successfully undergoes its rigorous examinations under its quality and health considerations.

Each registered product is issued a unique identification number to help NAFDAC monitor and control the quality of such product. While these efforts are meant to curb fake and substandard products, it doesn’t completely eliminates it from the market.

Unscrupulous importers and manufacturers also explore the porous nature and the inadequacies of NAFDAC to exploit consumers by using either fake or unapproved registration number on their products to deceive buyers.

Apart from the issue of registration number, NAFDAC also issues product certificate after registration. But this certificate is not issued immediately. It takes about a maximum of six months after the product approval date. So, it can be issued anytime within the six months period after registration.

Conclusion

Inasmuch as you can process NAFDAC registration yourself, it’s usually helpful to seek the services of a consultant. It helps to simplify things for you and make it work faster. An experienced consultant knows the process better and understand NAFDAC modus operandi better than you who is doing it for the first time.

Since China dominates Nigerians import destination, NAFDAC also has a Chinese office, which enables Chinese products to be registered right there in china before being imported into Nigeria. This option may be suitable for you, but try and check the cost implications compared with registering in Nigeria before choosing this option.

Finally, any product you want to sell in Nigeria, find out first if it requires registration. If it’s not a product under the NAFDAC purview, it would be under the Standard Organization of Nigeria (SON). Avoid importing or selling unregistered products in Nigeria.

Read More
Business Management

How To Pick Best Selling Diaper Products

Best diaper products

Do you know what consumers like to buy? In this article I’m analyzing the best diaper products for retailers and consumers. The number of baby diapers in the market can be confusing for both retailers to pick the best selling ones and consumers to know which one is good for their children.

If you are a startup retailer who needs to stock the best diaper products that consumers want to buy, you may have a problem making the right decision at this point. Although, what is easy is to pick and stock the most popular brands. But that may not be ideal for every location.

In each local markets, there are certain diaper brands that consumers have come to like more than others. They may not necessarily be the most popular ones. There are several factors that may affect what diaper products consumers patronize the most,

One of such reason is by recommendation. Most consumers buy products based on recommendations from other people. It may be from friends, colleagues at work, church members, experts, or just from family members. These recommendation can make consumers buy any product regardless of their quality and price.

What Consumers Think Of Diaper Products

It’s important to always know what consumers think about a product. Their perception is key to knowing what you should be selling as a retailer. For example, Guilder beer is a very good brand, but there are locations you will never see good demand for Guilder.

It has nothing to do with whether the product is good or bad, but what the consumers in that area think of it. The best diaper products may not be what’s selling in your location.

You need to understand how the consumers in your target area think about the diaper product you want to stock. It will not be wrong to investigate it properly. While I will analyze what informs consumers decision about best diaper products, it may be slightly different in your location.

So, my advise would be to also do your own little research as well. What you may find out would help you apply my advise better. Moreover, your target market maybe different from another market location. So, it’s wise to do a little bit of your own findings to balance your knowledge.

About The Best Diaper Products

In the eyes of the ordinary consumer, the best diaper products maybe the most popular brands. The one that is advertised the most, or the ones everybody seems to be using in that area. Or the ones used by those that they know and relate with on a regular basis.

Best diaper products

There are over 50 diaper brands in the country, and most of them can pass off as best diaper products. Yet, that would not be the right assessment for every market in the country. For some markets, their best diaper products could be Molfix, while another could be Dr. brown.

For a retailer, the best diaper products would be the one that most people in your market buy regularly. It doesn’t matter what brand or price of the diaper. What matters is that it makes business sense to sell such diaper brand.

Since the COVID-19 pandemic, price point is defining the best diaper products consumers are patronizing. This post is not about making a case for any brand, but the Chinese brands are gaining strength in the diaper market with cheap unbranded diapers.

And that raises a lot of concern, since most of these products are not registered with NAFDAC or SON CAP approved.

Identifying Special Diaper Features

Diaper products have evolved over the years. It has not always been diapers. There were times it was a reusable napkin that mothers used for their babies. It was washable but so messy – as mums had to deal with cleaning poop and pee from off the babies and the napkins.

At the introduction of diapers or nappies, things changed. It became disposable, making it better for mums to deal with poop. Once a nappy is soiled with poop, the mother unwraps it from the baby and dispose it together with the poop.

But this nappies also had their own problems. Some of which was also being experienced with napkins. When the baby pooped the nappies would ooze off poop smell. It’s wasn’t pleasant for mums to always had to deal with, especially when in public places.

Also, since these nappies are more or less worn like panties, some don’t fit properly on the babies, and had gaps between their legs from where poops and pee could be leaking from. Mothers often got messed up with poop and pee.

Not to mention the health problems babies experience as a result. Some of these nappies also make babies so uncomfortable.

Top Key Features:

Now, manufacturers had to include features to help solve the main problems mums had with nappies, which are majorly rashes and itching, poop smell and nappies leakage. These were solved with:

  • Dry nappies
  • Perfumed nappies
  • Stretch nappies

The dry nappies provided the comfort and dryness for the babies skin, helping to prevent babies from having rashes and itching on their skin. These dry nappies absorb liquid collected in the nappies, which is primarily the main causes of rashes and itching.

More so, the nappies are perfumed to help hide the smell from the poop and pee, relieving mothers from the public embarrassment of smelly poop. And the stretch help to fit the nappies properly, blocking any gap for leaks, so the mums don’t have to worry about poop leaking into their cloths when in public.

How Price Affect Sales

Although diaper products are not expensive but that doesn’t mean price doesn’t affect sales of diapers. It does affect it more than you know. If not, why do you think Pampers lost its number best diaper products to Molfix?

The two products may not even be the same quality. So, many mothers should have preferred Pampers over Molfix, but the price of Pampers compared to Molfix discourages some. It’s a like a case of the best brand with a cheaper price wins. Although, there are mistakes made by Pampers which they may not want to correct.

And it has nothing to do with quality. Rather, I would blame it on Income and expenditure. Inasmuch as every family would love to give their children the best of diaper products, not many can afford it. Buying just one pack of diaper may not make significant impact on their income, but having to buy it for like 2 to 4 years of the life of that baby will drill significant hole on their finance.

Even the so called cheaper diapers are not super price friendly. So, the consumers are making choices of price as they consider their income and how much they would spend on diapers in a month or a year or years.

How Consumer Interest Works

You may be surprised how consumer interest affects product sales. I did a market research on best diaper products and I was amazed at what I found. The most interesting was consumer interest. They may differ from market to market, but something was rather off and similar in my discovery.

It has to do with Prince and Princess diapers. At that time the product was very scarce in the market. So, my respondents thought I was representing all diaper companies. They asked me when I would be bringing Prince and Princess diapers. That made me curious about the brand.

At that time it was a fast selling baby diaper. I’m not saying it’s among the best diaper products now since it’s hardly in the market, but it seems to be then. When I inquired further why they wanted that diaper, the sole reason being that it comes with free wipes.

I wasn’t surprised, because their reason was in order. Mothers save cost of buying wipes when they buy Prince and Princess baby diapers. And diapers and wipes are used together.

You cannot divorce consumer interest when picking the best diaper products. The latest interest now being the stretch and affordability. While some may not consider affordability since diapers are not that expensive, many can’t ignore the stretch. It helps hold the diapers on babies and eliminate size option for many children.

The Competition With Diaper Brands

You need to know that each diaper brand is unique in some ways. Apart from the brand name, the sizes for age brackets may also not be the same with another brand diaper. Even your child who maybe 6 months old may be bigger or smaller than diaper size for 6 months old babies.

Best diaper products

So, no two diapers are actually the same. You need to learn about every diaper as a retailer. Find out what the manufacturers are promoting about their diapers, and compare it with the reasons consumers are actually buying it.

Find out about the features that makes each diaper product stand out from the rest. There may be some features the manufacturers didn’t consider huge but might be what’s selling the product in your market.

For example, I learnt about the key reason that’s making consumers pick Chinese unbranded diapers over the Nigerian big brands, which is the lower price point. As consumers make purchase choice on limited income, price is a major consideration.

I heard they have also added stretch to make it irresistible for most mums, who merely see diapers from the disposable point of view, Even though the Nigerian big brands has stretch as well, the lower price point gave the Chinese Diapers some market advantage.

Opportunities And Market Demand

So many diapers are being sold daily across the country. Although, there’s still huge potential for diapers, as some mums are still not using diapers for their babies yet, especially in the rural areas. That still means there’s an untapped potential in the diaper market. There’s room for growth and market demand can be increased.

Although, untapped diaper markets are under the purview of the brand owners, but a retailer is in better position to understand its market. You can find out what is hindering growth in your target market and seek solutions to it.

For example, sometime in Lagos, the Aboki shops started selling ladies sanitary pads in single retail units. These Mallams didn’t know initially that it was supposed to be sold as a pack. That mistake helped ladies who couldn’t afford to buy a pack to still use pads instead of tissue paper.

A retailer can also provide such single unit sales to help mothers who couldn’t afford a diaper pack to buy as they need it. Sometimes, some mothers might only need a diaper if they are taking their kids out, and not when they are at home.

See opportunities and capitalize on them to grow your target market. It can also help increase your profit, as selling single unit will cost more as opposed to selling in packs.

The Economic Impact Of Diaper Products

Diaper products are creating Income and employment opportunities for many people in the country. There are hundreds of thousands of Nigerians who are gainfully employed in the diaper market.

We can number the brands that are importing or manufacturing diapers, but we cannot number for a fact the thousands involved in the retail of diaper products. The number keeps increasing by the day.

As a consultant for startup businesses, I get a lot of enquiries daily on people who are desiring to startup a diaper shop. This number is so high that you will question if diapers are the only product worth selling. You can also read: How To Start A Profitable Diaper Shop.

The annual diaper sales is currently at over 2 billion diapers. According to a report on Nonwoven Industries website, the growth will continue at a 9% forecast to reach 3.6 billion units sold by 2022.

Conclusion

The best diaper products are not necessarily the ones most consumers are buying. The idea of diapers was to solve problems mother have with caring for their babies. And I have explained the three most important ones.

As a diaper retailer, these are things you should watch out for. Even if that diaper is not selling fast already, it would sell in the future, as more and more mums found out about it’s good features. Although, I also mention price and consumer interest.

It’s not just one factor that defines the best diaper products. You have to examine several things along the line to pick what would sell for your market. That’s your key to success with selling the best diaper products.

Finally, the wearable pants are now trending. They are easy to wear the babies. Even fathers can now do the nappies without worries. This new nappies are same as baby pants but with full diaper features.

Read More
Business Management

How Cybersecurity Should Works For Startups

Cybersecurity guide

A cyberattack is a malicious and deliberate attempt by a cybercriminal to breach the information system of an individual or a business. Cyberattacks have become so common these days, barely a week goes by without news of a high-profile data breach or cyberattack.

Attacks are happening all the time to computers with internet access.

A recent study at the University of Maryland found that in America, hackers launch cyberattacks against computers with an internet connection every 39 seconds on average.

While only attacks targeting large corporations make the headlines, studies show that most of the cyberattacks are targeted at small businesses. In fact, 43% of cyberattacks target small businesses including start-up companies.

Start-ups are especially vulnerable to malicious attacks in their first 18 months of operation. In this article, we look at why start-ups should pay attention to cybersecurity and some proactive steps these small businesses can take to mitigate the risk of a cyberattack. Read on to learn more.

Why Cybercriminals Target Small Businesses

Large organizations have more customer data, more money, and are naturally a big-ticket target for hackers. It makes more sense for cybercriminals to target large organizations as opposed to smaller businesses.

Following this logic, it’s easy for entrepreneurs to operate under the assumption that their businesses are too small to worry about cyberattacks or their data is not theft-worthy.

But that can’t be further from the truth. No business is too small to worry about cybersecurity.

Any business that uses technology to store and manage customer information is a potential target. And it doesn’t take the attackers a lot of effort to find vulnerable systems, they use automated scripts to find entry points to access valuable data.

Since most start-ups don’t have an adequate computer and network security, they automatically become an easy target for cybercriminals. Due to limited resources, start-ups often fail to respond to cyber threats quickly enough — some won’t even detect attacks at all.

Common Cybersecurity Threats Start-Ups Face

Cybersecurity threats are everywhere. Data breaches and other forms of attacks happen on a daily basis. Small businesses are an appealing target for cybercriminals and fall victim to the vast majority of cyberattacks.

If you are running a start-up, know that you are a direct target of an attack. What are some of the most common cyber threats start-ups face? Here are some of the most common threats that entrepreneurs should be concerned about.

 

Cybersecurity guide

image from pixabay.com

 

I. Phishing

Reports indicate that phishing accounts for over 90 percent of cyberattacks. In a phishing attack, hackers will send out emails to multiple targets posing as a trusted source. These emails contain malicious code in an attachment or link.

Ransomware attacks tend to utilize phishing as a method of delivery. You may also be prompted to enter sensitive information, such as password and account details, allowing the attacker to gain access to your PC or account.

II. Malware

Hackers will often deploy malware to exploit vulnerabilities in your system. Depending on the type of malware, there are many forms of malware attacks. Once it has found a way into your system, a trojan virus allows the attacker to perform several functions.

For instance, the attacker can delete, modify, or steal your data. Other forms of malware such as worms, bloatware, adware, rootkits, etc. can be just as damaging.

III. Ransomware

As the name suggests, ransomware is a form of malware that makes your data inaccessible and holds it to ransom. It’s nearly impossible to get rid of ransomware without parting with significant amounts of money.

These attacks are spread through phishing emails to unsuspecting employees. Ransomware is becoming increasingly common these days. Forbes predicted a 300% increase in ransomware attacks in 2020, mostly targeting small businesses.

IV. Data Leakages

Data leakage is the unauthorized transfer of secure or private/confidential information from within an organization to an external environment. Data leakages can be intentional or unintentional. The data may include contact info, user credentials, payment card information, etc.

Start-ups, especially those that have implemented interfaces with financial service providers, are highly vulnerable to financial data leaks.

V. Human Error

More often than not, the root cause of most data breaches or cyberattacks is human error. Research shows that the vast majority of cybersecurity incidents are directly or indirectly caused by negligent employees, contractors, and third parties.

Employee actions such as continued use of default passwords, loss of company smartphone, sending sensitive company information to the wrong email, etc. can easily result in a data breach.

Cybersecurity threats are constantly evolving, and attacks are becoming more frequent and more damaging. New types of phishing attacks, spear-phishing, and whaling are on the rise.

The former targets a specific person or entity while the latter specifically targets senior executives within an organization. Understanding the different types of threats out there will help you protect your start-up from a cyberattack.

The Cost of a Data Breach

As the media focuses on mega data breaches, cyberattacks are rapidly becoming the norm for small businesses — often with catastrophic consequences. The average loss per attack is more than $188,000, that’s way more than your average start-up is capable of recovering from.

Reports suggest that more than half of small businesses don’t survive a cyberattack. Most of these businesses will go under, six months after the attack. What can you do to protect your start-up from cyberattacks and avoid these consequences?

Securing Your Start-Up

Running a start-up, or a business of any kind for that matter can be demanding. Between endless client meetings and finding the right market for your product, entrepreneurs have their hands full and don’t have time to think about issues such as data security.

Cybersecurity may not even cross your mind until there’s a breach. But that doesn’t make your start-up less of a target. The frequency of these threats calls for the highest level of preparedness.

Here are some proactive steps you can take to mitigate the risk of a cyberattack or data breach in your start-up.

I. Perform a Risk Assessment Exercise

Risk assessment is an important part of cybersecurity. To be able to defend against the wide range of cybersecurity threats out there, you need to know where you are most vulnerable.

Carrying out a risk assessment can help you do that. You can start with an audit of the most valuable data and information in your possession. This audit will give you a clear picture of where your start-up needs the most protection.

If you are not well-equipped to carry out a proper risk assessment, there’s no harm in hiring an external consultant to help you out.

II. Install Cybersecurity Software

Consider cybersecurity software such as antivirus and VPNs to add an extra layer of security. Antivirus is a set of programs designed to protect your system from viruses, trojans, spyware, worms, and other malicious software.

Anti-malware can help you keep your start-up’s data, company information, and identity secure from attackers. You might also want to add a Virtual Private Network to your cybersecurity toolkit.

You can ensure that you have a secure connection with a VPN and prevent Distributed Denial of Service (DDoS) attacks and a wide range of online threats.

III. Employee Training

As stated earlier in the article, the vast majority of data breaches are a result of negligent behavior by employees. No matter how secure your system is, you are still vulnerable to cyberattacks if your employees lack proper training.

Regular employee training sessions on cybersecurity best practices can help. Provide guidance on how to handle sensitive information and come up with clear rules regarding password security.

Come up with a cybersecurity framework that outlines key processes and procedures in the event of an attack.

 

Cybersecurity guide

image from pixabay.com

IV. Protect Your Company Data on the Move

Keep in mind that sensitive company data will accompany your employees wherever they go. Negligent behavior by employees even outside the office can lead to a cyberattack.

There are steps that you can take to ensure that company information is protected at all times. For instance, encrypting all mobile devices used for work purposes is a good place to start.

Also, block access to websites that compromise the security of your company data on devices used for work purposes. Ensure that your security policy covers the use of personal devices and remote working.

V. Control Access to Company Data

As an entrepreneur running a young start-up, you must be aware of who has access to sensitive company information from the get-go. Sometimes you have to share sensitive credentials with third-parties when you launch your start-up, that’s okay.

Problems arise when you fail to revoke these privileges when your relationship with a certain vendor ends. Some third parties may not see the need to protect your company data with the same level of urgency when you are not working together.

Also, limit employee access to sensitive company data.

VI. Update Your Software Regularly

We cannot stress the fast-evolving nature of cyber threats and its significance to the security of your company data enough.

Hackers are always coming up with newer, more clever ways to launch cyberattacks. Software updates are vital to your start-up’s digital safety and cybersecurity. Using old, outdated security systems puts your business at greater risk of a cyberattack.

Software patches are essential to your online security. Check your systems regularly to make sure that you are running the latest software version.

VII. Create an Incident Reporting Mechanism

Cyberattacks and data breaches are inevitable. Create an incident reporting system within your organization to ensure that all cybersecurity incidents are reported and properly documented.

The goal of an effective incident reporting mechanism is to process incidents as effectively as possible and minimize the impact of an attack in your start-up.

With an effective incident reporting mechanism, your employees will always know what to do when a threat is detected. Your IT security team will also be able to take the necessary steps to prevent the attack or minimize the impact of a cyberattack in your business.

VIII. Outsource IT Services

Due to strained resources, start-up owners often lack the resources to optimize their business for cybersecurity. In this case, it’d be wise to get professional assistance.

IT services provide a convenient and reliable way to protect your company’s data. Start-ups and other small businesses are often targeted by hackers due to their lack of experience in dealing with cyberattacks and the tendency to use outdated software.

Outsourcing your cybersecurity functions to a company that specializes in IT security gives you a chance to focus on expanding your business.

IX. Set Up a Reliable Backup Strategy

Employees are often targeted with social engineering attacks such as phishing. Just one inadvertent click on a phishing email can lead to the loss or destruction of data and bring your business activities to a screeching halt.

But if you are properly backed up, you can quickly recover your data and get back to business. Backing up mission-critical company data is the last defense against a cyberattack.

A good backup strategy gives your business a way to restore lost or destroyed data and can help you recover from a ransomware attack.

X. Periodically Assess Vulnerabilities and Keep Up with the Latest Hacking Trends

If you are serious about data security, you need to make sure that you carry out periodic assessments of the vulnerabilities in your network. As stated earlier in the article, cyberthreats are constantly evolving and a single, one-time risk assessment just doesn’t cut it.

Frequently stress your system to identify new loopholes. Additionally, it helps to stay on top of the latest hacking trends. That way, you learn about new risks as they emerge. Staying ahead of cyber threats will help you ensure that potential vulnerabilities are patched before it’s too late.

Conclusion

As an entrepreneur, you may even find yourself thinking that your young start-up is not at risk of attack but you couldn’t be more wrong. While news of their attacks doesn’t often make the headlines, start-ups and small businesses account for almost half of all cyberattacks.

Factors such as inadequate or non-existent security systems, lack of dedicated IT staff, etc. make start-ups an easy target for cybercriminals. Failing to put serious cybersecurity protections in place is just asking for trouble.

Read More
Business Management

Remote Working – How To Protect Your Device

Remote working

Do you want to start working from home? A lot of organizations now, including Facebook are brainstorming on the ideas to approve remote working. This would provide help even in time of crisis, natural disasters or like the recent pandemic.

Since covid-19, a lot of measures are being put in place to reduce the risk of infection. The coronavirus has forced the government to encourage social distancing techniques.

This includes isolation in various homes, consistent use of hand sanitizers, and a distance of at least two meters for people who need to leave their homes.

Social distancing has negatively impacted various economies around the world. Production lines in factories have been stopped and nations are closing borders and halting the free flow of travel.

However, because of the level of technological advance in the last few decades, we no longer rely on physical contact to facilitate certain kinds of work.

Some individuals work full-time on their computers as online freelancers. Firms have also set up remote workplaces for workers to connect to periodically. As a result of the pandemic, offices have been instructing employees to work from their homes.

This way, tasks can be continued while the world is awaiting the end of the coronavirus pandemic.

Understanding Risks Of Remote Working

Remote working is very convenient and can be handled from the comfort of your bed, your couch or even a park. However, just like everything else, it comes with its own disadvantages.

As you’re diligently working to complete your office tasks, there are also others working to disrupt your activity. They’re known as cybercriminals or hackers.

These hackers understand a lot more employees are working remotely in the world right now and are doubling their efforts to breach the security of your device.

When you connect to your online work from home, you’re highly likely to use your personal devices and network. This way, it would be easier for a cybercriminal to penetrate your system. When you work in the office, there’s a cybersecurity team to protect your work device from the security risks.

Working from home is a totally different story. Your device could have several security leaks and lack the necessary tools to prevent hackers from breaching your privacy.

Cybercriminals typically hack devices for two major reasons. To get financial remuneration or to target specific information. Either way, the consequences are devastating and could have long-term negative effects.

Because of you, sensitive files about your company could be leaked or your firm’s online workplace could be compromised.

There are certain threats that exist on the internet to target remote workers. These risks are explained below.

Remote working

Breached Public Wi-Fi

Hackers use public Wi-Fi to obtain information from a large group of people. Individuals may connect to public Wi-Fi when they are in places like cafes, restaurants, malls, etc.

A cybercriminal would then perform a man-in-the-middle attack to place a device between the users and the network. This way, information can be gleaned from the numerous users that link to the Wi-Fi network.

In essence, all activities performed online by users would be seen and recorded by the hacker. Unencrypted chats, social media login information, email logins and even internet banking login details could fall into the hands of the hacker as you work remotely.

Malware and Ransomware

Malware is one of the most dangerous threats on the internet. Depending on the type of malware, a device could be remotely controlled by the cybercriminal. It is one of the ways hackers can get a lot of information from your computer.

Malware could be gotten from several sources. You could get it while surfing the internet and downloading files that seem useful. You could get it from email attachments sent to you. You could even get it while installing an ‘antivirus’ from one of those pop-up adverts you see on the internet.

Possibly the worst thing about having malware on your device is that you would be ignorant of its existence. The malware could perform activities like mining cryptocurrency on your device or stealing passwords to your various accounts.

Ransomware is considered the most damaging type of malware on the internet. Cybercriminals behind ransomware typically seize all of your information in exchange for a ransom. Threats would be made to leak your personal information on the internet until you make financial remuneration.

Phishing

Phishing is the act of duplicating a website, usually one that facilitates logging in to an account, to steal a user’s details. Hackers have typically used phishing right from the mass adoption of the internet. The bad part is, a lot of people fall victim to phishing because they’re not tech-savvy or cyber-conscious.

Phishing is usually facilitated with an email. The email would create a sense of urgency, stating that action would need to be performed immediately. The email could even mention your account is being threatened. In the email, there would be a link to ‘log in’ to your account.

The cloned page would be an almost perfect duplicate of the original website’s login page. Immediately you fix in the details on the page, your information would be sent to the hacker.
Phishing emails usually target online banking and social media accounts.

Low-Security Level for Remote Working Devices and Network

Despite the fact that you’re working from home, you’d most likely not use your work device and network. Your office system and network are adequately protected with tools like antiviruses and firewalls.

You may not have an antivirus on your PC and your firewall might have been deactivated to stop those ‘annoying’ pop-ups. This way, you’re more vulnerable to the risks on the internet.

Your Wi-Fi system could also lack necessary security updates, especially if it is an older version. A cybercriminal near your place could breach your network’s privacy and spy on your activity. Professional hackers could even hijack your connection.

Even an action such as using the default Wi-Fi password could lead to a breach of your network. A simple search engine query could reveal your password for anyone to connect to.

Once inside the network, the hacker could do anything he/she wishes, such as turning your Wi-Fi router into a bot.

Tips to Protect Devices From Remote Working Threats:

  • Strengthen your Passwords

During remote working, it is more crucial than ever to change your passwords if they’re weak. An example of a weak password is one used for multiple accounts. In the event that a cybercriminal gets a password from any of your accounts, your other accounts would be exposed.

In this case, the hacker would utilize a method called credential stuffing. It involves using a single password to breach the privacy of other online accounts.

Another example of a weak password is one that contains elements of one’s personal life like a pet’s name or a relative’s name. All it would take for a security breach by the hacker would be a visit to your social media account. A few guesses would eventually lead the hacker to gain access to your account.

Different strong passwords should be used for different accounts. An instance of a strong password is one with at least eight characters with a mix of upper and lower case letters, symbols, and numbers.

If you’re finding it hard to remember all your passwords, you can use a password manager. Password managers save different passwords across your accounts and can even autofill your passwords for you. Their features also include creating a secure password for you if you’re not keen on racking your brains for a password.

  • Activate Two-factor Authentication

When massive data leakages happen, several passwords get leaked. In this case, having a strong password wouldn’t do you much good. This is why you need to activate two-factor authentication for your remote workplace account.

Two-factor authentication is an added layer of security that protects an account. To a hacker, your password would prove to be useless if your account is protected with two-factor authentication. The extra security could be in the form of a code sent to your registered email or phone number.

Also, remember to activate an extra layer of security on your devices such as fingerprint or iris unlock. In that case, when your device gets lost or stolen, the cybercriminal would not be able to steal sensitive files about the firm.

Remote working

  • Pay for a VPN

VPN stands for Virtual Private Network. It works by routing your Internet traffic through a server in a region you chose to connect to, thereby protecting your online activity. Practically, a VPN acts as a protective barrier between the online traffic flowing to and from your device. In fact, it stops your Internet Service Provider (ISP) from tracking your activity.

VPNs protect your personal information by hiding your IP address, ensuring that you are anonymous on the internet, browsing with no worries. It’s very much ideal for remote working.

A VPN is so effective that if you’re connected to a Wi-Fi network that has been hijacked by a cyber-attacker, he/she wouldn’t be able to spy on your activity. This is because the encrypted information would be unreadable to the hacker.

VPNs come with various perks applicable during the lockdown such as allowing you to connect to geo-restricted content from any location. That way, you can watch your favorite shows on Netflix or download geo-blocked games. All you’d need to do is to connect to a VPN server in a location that can access the content.

  • Boost Your Router’s Security

Some individuals never bother to change their router password after purchase. These networks can easily be broken into by anyone searching the internet for the default password of your router. A hacker can even get onto the network, spy on your internet activity, and steal your files.

For remote working, you need to change your router password to a highly secure one. But that’s only the first step. Boosting your home router’s security goes beyond just changing its password.

You need to make certain firmware updates are installed on the router to prevent security leakages. The router encryption should be set to WPA2 or WPA3. You also need to add a firewall to your router. You can opt for a hardware firewall.

  • Activate Your Firewall

A lot of people tend to switch off firewalls on their devices to stop its numerous ‘annoying’ pop-ups. They’re ignorant of the fact that firewalls protect devices from malware attempting to sneak into devices.

A firewall is considered the first line of defense against spyware, malware, and ransomware. It works by closing communication ports between your device and the internet. Suspicious data packets would be blocked from penetrating your device, thus freeing your system from all forms of malware.

Operating systems typically come with default firewalls. To activate Windows Firewall, you can head over to the Control Panel, click on ‘System and Security’ and select ‘Windows Firewall’. If you are a Mac user, you can go to ‘System Preferences’, then ‘Security & Privacy’, then ‘Firewall’ tab and enable Firewall on Mac.

  • Default Suspicion of Emails

You need to be suspicious of emails that you receive. This is effective in preventing malware from being installed on your device or your account details from being phished. Make certain you’re familiar with the sender of any mail you’re receiving. Even then, you’d still need to watch out for other stuff.

Phishing is typically used to take over accounts and siphon internet banking information. To stop your information from being phished, you need to double-check the sender’s email address for spelling errors. Phishing emails also typically have several spelling errors and sometimes poor grammar.

If a link has been sent to your mail, hover over the link to see where it leads before clicking on it. Phishing links usually have misspelled domain names so you’d have to take your time to view the link sent to you. If you click on the link, ensure it is HTTPS protected (showing a symbol in the address bar) before fixing in your information.

If you’re sent an email attachment, ensure that you’re familiar with the sender before download. You can do this by scrutinizing the email address.

  • Use Encrypted Chat Applications

If your work requires a high level of privacy, such as journalism, and you need to secure the information sent to your colleagues, endeavor to use encrypted chat apps. Chat applications that use end-to-end encryption ensure that your messages can only be seen by you and the party you’re sending to.

Any hacker attempting to get your conversations with another person would be wasting his/her time.

There are super-private encrypted chat applications such as Signal and Jabber/OTP that employ a high level of encryption, with no information logs stored on company servers.

  • Update your Device’s Operating System and Software

Some major hacks in the world could have been stopped if the devices utilized updated operating systems. Operating systems have full-time developers working day and night to make security patches, enhancing your level of protection when you’re using your device.

Often, outdated operating systems could increase your vulnerability to hackers. Cybercriminals never stop working around the clock to install different forms of malware on your device through obsolete software and browser plug-ins or extensions. To frustrate their efforts update your operating system to the latest one available and upgrade your software frequently when you’re prompted to.

You can activate automatic OS updates on your device if you’re not certain you’d remember to update your device.

  • Use Office Tools for Messaging and Uploads

If tools like Microsoft Office 365 or corporate messengers like Slack are being used in your office, you can utilize them for communication and file sharing from home. This way, you get to keep company messages and files secure.

Uploading files on a different service like your Google Drive could make your company files public. For instance, when you create a link to a Google Drive file that could be accessed by a colleague in your office, search engines would read that information as public an index it.

Anyone searching for anything on the internet related to the file would be able to access it.

Conclusion

The world has been forced into isolation since the coronavirus pandemic. Workplaces, in a bid to obey government and organization health guidelines, are asking employees to work from home.

However, despite the increased convenience that comes with remote working, there’s a looming threat.

Hackers are increasing efforts to get more victims for their selfish activities. They’re using methods such as Wi-Fi hacking, malware, and phishing to get sensitive information out from remote workers’ devices.

To foil their efforts, you can use a VPN, scrutinize emails sent to you, strengthen your passwords, and use private chat applications. For a heightened level of security, you can activate two-factor authentication for your devices and accounts, boost router security, and update your device’s operating system and software.

Read More
Business Management

How Diaper Business Works In Nigeria

Join Diaper business

If you live in Nigeria, you probably know one or two things about diaper business. It’s becoming like bread these days, the way everyone wants to go into diaper business. Everyone, I mean anyone wants to join the diaper business, and no matter what you say, their eyes are just on the heap of money pile there’s to make from it.

Of course, the huge revenue potential of baby diapers would make anyone beg for a share of it. Well, I want to clarify much of what’s going on in Nigeria when it comes to diaper business. It may be different in your country, but if you hope to do diaper business in Nigeria, you might have to follow my lead on this one.

The two main diaper competitors are Molfix and Pampers. Both are leaders in the market in their rights. Molfix is owned by Hayat Kimya Nigeria Limited, while Pampers is owned by Procter and Gamble. However, Molfix leads the diaper business in terms of retail volume, and Pampers is leading in the retail value.

Both leading brands enjoys huge market share of 81.6 percent, leaving just 18.4 percent for the rest of the brands to share. Huggies leads among the remaining brands in the 18.4 Percent market share, that puts the brand in the third leading diaper brand in Nigeria.

The Diaper Distribution Channel

If you are planning on starting your own diaper business, it’s important you understand how others who started the business before you are doing. I have classified the different value chain in the diaper distribution business.

Most diapers in Nigeria come from twos major countries, Turkey and China. In fact, Turkey has positioned itself as a major manufacturer for diaper brands in Nigeria. Any expert you ask about the best country to bring in diaper would recommend Turkey. Yet, China seems cheaper but lacks the trust to maintain quality after the first production.

Join Diaper business

All the classes of distribution are themselves important in the value chain. Your role as a diaper business owner helps to integrate all these values together for your success. Another thing you would learn from these value chain is where you can possibly start the business from.

I strongly recommend that you take the market one at a time. For example, wanting to cover the whole nigeria with your diaper brand is not a problem, but winning one state at a time could help you focus your marketing efforts to achieve market share in one state at a time. Being the third market leader in Ogun state is better than not leading in any market across Nigeria.

The Diaper Manufacturers

Manufacturing diapers in the country comes with so many advantages, but the most relevant is retail price control and regularly supply of products to markets. The diaper companies that manufactures locally are also leading the market share with over 80 percent of the market.

Although, it’s not the easiest option to manufacture locally due to the infrastructural issues in the country, but it’s the best choice against increasing exchange rates and irregular product supply. If you are regularly found in the market, your customers would keep making alternative choices, and that’s not good for your brand.

The only diaper brands that are manufacturing in Nigeria is Molfix, Pampers and Dr. Brown diapers owned by Wemy Industries. The rest for now are all importing from Europe or China. However, starting a diaper manufacturing plant doesn’t come cheap.

These brands mentioned above all have the financial muscle to support a local manufacturing outfit for their brands. For a startup, it may be a huge undertaking to start manufacturing a product that doesn’t have market acceptability yet. Starting as a manufacturer is not for startup diaper businesses who doesn’t have the right financial backing.

The Diaper Importers

This group of diaper business owners are in different categories. Some are diaper brand owners, who have built a brand for their diaper business but still manufacture them outside the country. Majority of the diaper brands in Nigeria falls within this category of importers. They own the brand but outsource the Manufacturing to factories in Europe or China.

Another group are those who buy large quantities of existing brands from America, UK and Germany to sell in Nigeria. This category of importers usually buy clearance sales at major supermarkets abroad at lower prices. Their main target are customer who used to live abroad that prefers those foreign brands.

The third category are the unbranded Chinese diapers. They mostly come in transparent nylon packs. Some are branded but not registered brands in the country. I have explained more on this Chinese brands below to give you more clarity on the Chinese manufacturers encroachment into the diaper business in Nigeria.

However, diaper importers are faced with serious issues that are hampering their brand market share. They are not able to import regularly or meet up with demand before stock dries out in the market. These delays helps the locally manufactured diapers to gain more market shares. That’s why Molfix and Pampers are the strongest brands because they are constantly available.

Another problem is the dollar exchange rate. It keeps going higher and affecting regular market price for the diapers. There’s no end in sight that the Nigerian import market would ever win in this dollar exchange war. So we expect dollar to keep rising and prices of imported products, including imported diapers to keep rising. This inconsistency in retail price discourages consumers from being loyal to their preferred brand.

Chinese Diaper Business Imports

There’s so much increase in the number of Chinese diaper brands flooding the Nigerian market in the last one year. In the past, most marketers have ignored them, but I think you shouldn’t ignore them anymore. The brands are growing, with over 50 of them counted, and many more still to come into the market without government regulatory approval. Their market share is also increasing by the day, which is one reason they should not be ignored.

Interestingly, most of them are not NAFDAC approved. How they got into the markets is another thing, but they are really taking over, especially in the rural markets. According to some retailers I approached, they make more profit from selling the Chinese diapers, which are also cheaper than the branded ones. Also, they claim the customers are buying them now more than the brand diapers because they are cheaper. One of the retailers begged me if I could help her to import it that she really need to stock it more.

Nigeria has a large number of poorer population, and that’s what this Chinese brands seek to explore. However, there could be some challenges with these Chinese brands, and that may have somethings to do with the informal market being well flooded with diapers, and the fact that they possesses no brand advantage.

These are just calculated disadvantages, since these Chinese brands will have to still fight for market share without a brand to sustain their individual gains. So, anyone can bring in these Chinese diapers and compete with other Chinese importers too. It doesn’t enjoy market exclusivity and it’s also not sustaining.

Moreover, from the market view, these unbranded Chinese diapers are also considered unreliable. A retailer told me how they pick the average reliable ones, by checking if it has rubber on the sides. Generally, the only consideration for these Chinese diapers is their low prices for the consumers and higher profit margin for the retailers.

Join Diaper business

The Marketers

This category is an important piece in the whole diaper business value chain, but it’s mostly ignored and neglected. The marketers are the gold miners in the diaper business distribution value chain. For any brand to succeed in the diaper market, it must learn to utilize the power of good marketers.

Well, I’m going to give you the exact direction this kind of marketing takes, because my team and I have been involved in some successful diaper brand market insertions that worked very well. Showing that this kind of marketing works in Nigeria. However, finding the right marketer with experience in product insertion is not that simple. It’s not every marketer that does this well.

The real job of this kind of marketers is to build a solid distribution network for your diaper brand, which includes signing up distributors and retailers from each state or city, who has the capacity required to represent and maintain your brand availability in their respective markets.

This kind of marketing doesn’t come cheap but it’s the fastest and the best way to introduce a new diaper brand or even any other brand product into the Nigerian market, to start making sales immediately. Molfix used used sales representatives and gave them commission from sales. That seemed to work for them, but with so much difficulty and problems.

Here is again the benefits of using the marketer to build your diaper distribution network:

  • They help to building strong distributors network
  • Helping to network retailers to the approved distributors
  • Helping to drive products deeper into the local markets

The Diaper Distributors

If you have signed up with an experienced marketer, then the job of finding distributors for your diaper business is made easier. The marketers are not only finding you distributors, they also find you money. The distributors are highly important to your diaper business.

The right distributors are those who understand the business, are passionate about it, and has the money to finance supply, with a chain of retailers to buy diapers off them. If you are trying to get such marketers through media advertising, you may not be lucky. It’s the job of your marketer to find you distributors in any city you want them.

I explained more about distributors in this post: How To Join Diaper Distributors In Nigeria. This will also give you insight on how to Franchise your distribution model as well. One thing to note about distributors is that you can’t do without them if you hope to build a strong diaper business in Nigeria. Even if you are a foreign diaper brand based outside Nigeria, you can tap into this distributors strategy to build your diaper business in Nigeria.

Although, there are limited number of distributors you can accept per state, based on the size of each market or structure of the cities. The best way to implement distributorship is to use the Franchise model of exclusivity. The power of exclusivity is the secret many traders will pour their money into a brand to secure their supply for your products.

The Diaper Retailers

When it comes to retailers it should be done aggressively. The number of retail points would greatly impact your sales figures. However, this should be strategically done to give your brand proper coverage in any given location.

However, this part of the distribution chain cannot be controlled. Many of them are in the business for the wrong reasons, which has little to do with the success of your brand, but you can’t do without them.

Imagine, you can have just one distributor in a location like a state or city, but you can have thousands of retailers without such exclusive restrictions. That’s how important the retails are to your diaper business. Also, the nature of Nigerian markets, which controls the highest percentage of diaper sales, about 70 percent of the total market sales volume, is not a sector to ignore.

The Local Retailer Networks

If your diaper brands don’t have a share of these local retailers you are not yet in the diaper business. They are the closest to your customers. How you handle this line of your distribution network would impact on your brand positively or negatively. There are many ways to handle this market. I would recommend you also read this post on How To Start Profitable Diaper Shop.

This group is also the easiest to deal with, because they don’t have much request than the usual commission per product. Although they won’t openly argue about the commission but they won’t hesitate to jump to another product that’s offering better commission.

Some smart diaper brands uses incentives to drive this segment of their value chain. This group loves incentives. If you could, they can be used to influence new customers to buy your diaper brand. Most customers are not really brand conscious, and can be influenced to move from one brand to another.

An effective use of local retail network can increase your turnover. Imagine how much ten thousand retail points can bring into your diaper business regularly. That’s the power of strong retail network.

Shoprite And Supermarket Retail Outlets

One other important channel of retail for diaper brands is supermarkets, of which Shoprite is leading the market with both national spread and volume. For a new brand, pushing your diapers through retail outlets like the supermarket could give you instant sales volume, and save you huge marketing cost as well.

However, there are things to consider helpful when considering retail outlets as supermarkets. The first one is quality diapers. The supermarkets have brand identity to protect, and they sell their brand promise through the quality of products they allow on their shelves, but you only going to get paid after they have sold your products.

The next thing is stock availability, which is even more critical to supermarkets over quality, because it creates a wrong impression on the minds of their customers. So, you have to have a proven record of product availability to gain the trust of supermarkets, especially Shoprite. In 2017, Shoprite threatened to take off Dr. Brown diapers from their shelf due to product availability issue.

Another key strategy when dealing with supermarket brands is price. These supermarkets love to use price as a selling point. If you can play this price point to your advantage they would like to stock your brand.

Hospitals Retail Partnership

Molfix diapers explores this strategy to its success, even though it was originally Pampers diaper business strategy that has worked so well for them. If these two major diaper brands are doing something it’s surely because it works so well.

According to recent statistics, an estimated 20 percent of total diaper market volume sales are generated through hospital partnerships. That’s a lot of market for any diaper brand to overlook. It’s opportunity to impress a brand upon mothers, and they might continue using it after they leave the hospital.

The huge selling point here is just lower prices. It’s done as promotional marketing, lower than market rates but a better way to sell your diaper brand to mothers using their doctors or nurses influence. It’s a type of influence marketing, and it has worked so well, generating about 20 percent of the total diaper market volume.

One major issue with this option of retail is that you have to risk a large percentage of your diaper stock, as you only get paid when sales are made. You don’t get upfront payment for the stock like with the local retailers.

Conclusion

Diaper business has proven to be a lucrative business. However, it’s not all success stories for all the diaper brands. Some have closed shop after losing market share due to certain challenges. Some others simply came to offload their shipment of diapers and disappeared after just one shipment.

The dominance of Molfix and Pampers with over 80 percent of the market is proof that there’s enough room for new entrants in the diaper market. The problem is that the majority of other diaper brands either don’t have the required financial muscle to fight for market share, or they don’t know or want to do what is required to gain substantial market share.

There are two ways you can use a marketer to build your diaper distribution network. You could either hire them and pay them for their services, which is good but requires huge capital outlay if you want to do it faster. The other option is to sign them up on a commission based service. You can sign them up for the next two years or more depending on the commission type agreed with them.

The major advantage of the hospital retail partnership is the power to win you new customers. Nigerian like recommendations from qualified people. They take their advice seriously, and would do as told. That’s why you should have a hospital partnership for your brand if you hope to build new customers. How you do this is important. It’s one good reason you need to hire an experienced marketer for your diaper business.

 

Read More
1 2 3 5