Get a registered business name with a business bank account. Look BIG before your clients.
The easiest and simplest way to double your revenue as a small business in Africa is to operate as a “company”. When you approach a business transaction as a company, you look big, but when you go as a person, you are small.
It is easier for Mrs Kalu Fashion Universal to increase the price of a hair wig by 10% than for Mrs Kalu to add an extra 5%. The former is a company while the latter is a person.
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T Adamu Autos (with a business bank account) will easily collect $400 than T Adamu (the person) going for $350 before most clients. Institutionalize your trade by operating under a company. Sell that wig on Facebook as a company, not as a person!
Comment on LinkedIn Feed
Comment 1: Our market is quite asymmetric, the same way being a company can help you command bigger fees, it can also cause you losing many deals as well.
It’s the buyers’ market, not producers, the people paying have more options and leverages than those selling, except you are offering uncommon services. The profile of the client matters more than what you may believe to be the standard.
A company can quote N150k (plus VAT) as cost of building a standard website, a standalone developer can jump out and quote N50k (freestyle), before you know what’s going on, the job is gone.
There’s no price control or standard procedures in our market system, so the same thing that could increase your fees can also limit your opportunities. At B2B level, it’s more tenable, but again, we do not have many businesses here yet, rather individuals starting a business, the price sensitivity in both instances is quite different.
The market space here remains a betting scene, with hits and misses changing hands all the time.
My Response: Everything has pros and cons but operating as a company offers overwhelming advantages. Someone can say taking medication as prescribed by a doctor has a disadvantage since you have to spend money to buy it . But that does not make it better. Most government benefits go to companies. While we always look at tax and fees, when the government has something, the goodies also go to companies.
Kannywood’s Ladin Cima And Using Registered Business Name To Improve Negotiations
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