This is an opportunity to inject the vital and desperately needed funds into your business by tapping into the vast funds thrown up by the banking sector consolidation process

DESPITE the many challenging obstacles, political and bureaucratic bottlenecks that have bedevilled our business environment, Nigerian business owners and corporate entities still had pockets of progress that cannot be swept under the carpet. And with improved funding for businesses, available expertise and more secure payment plans on the way, the way forward is bound to bring new light into businesses.

The Bank Consolidation

With mega banks raising a total of N184 billion Naira through initial public offering (IPO) in the capital market, the ball may be in the court of entrepreneurs that are sensitive to opportunities. There is more money to go round for those that can spot opportunities and create value from the opportunities. Scanning the environment, banks will be keen to find viable projects to back though they may be partial to service oriented ventures and lesser to manufacturing. The financials of service industries look better, the value to be created from is intellectual in most cases and also expertise and contacts that can easily be sized up. It is easy to wind up should it turns out to be a loser? On the other hand, with the manufacturing cousin, there is much sunk cost in the areas of infrastructure, raw materials, work in progress and receivables, hence the involuntary nature of funds for such ventures.

It would be important to show a niche that is identified, a good opportunity yet to be tapped, a gap that has been created as a result of other business developments in the economy, a viable business model and a clear strategy backed up with knowledgeable human and or technology resource. Another important feature is to show that the edge or advantage of the opportunity cannot be easily or quickly replicated or eroded. This may be because the expertise concentrated in your organisation is unmatchable or the technology you have is patented or the networks you have caused a bridge that cannot be crossed by other players till your networks have reaped their dividends.

A strong cash generating venture is a winner any day. Multi-Naira or dollar generating businesses are high in demand; affiliated businesses related to oil and gas, banking, telecommunications are also high on the uptake for the bank’s assistance. Support services in these sectors are strategic to their performance and it removes distractions from the sectors core competencies. We must start thinking in line with these sectors at the back of our minds.

The Unseated Or Transition Bank Professionals

As a result of the above implementation of the consolidation of the financial institutions in the country, there may be a two-pronged glimmer of hope for us entrepreneurs that are seeking funding and expertise. Firstly, there are now former bankers with great severance packages and the thirst to invest in businesses would be great if we, the ideas generators, pair up with the money having, financially savvy ex-bankers, I think we will make formidable teams. They can now represent us to sell our business ideas to their former colleagues, after all they speak the same language and will be better prepared to answer questions as they have been on the other side of the fence previously. Secondly, the ex-bankers will be willing to sell their expertise to small business at this time. Do not forget they are vulnerable and need to keep busy. Engaging the bankers during their brief sojourn in unemployment land may be a great move to our advantage.

The Dud Cheque Bill

The waiting-to-pass bill sponsored by the Central Bank of Nigeria will facilitate a jail sentence for any dud cheque written, especially those that were never meant to be redeemed by the issuer.

This is one of the ways for entrepreneurs and small business owners to turn their receivables into received. This will improve our collection process. With the reality of the bill on the way, we can now encourage all our creditors to issue a cheque upon purchase; dated for when they are due to pay. They could either affect the payment by your presentation of the cheque on the due date or by paying cash and retrieving the issued cheque. The issued cheque thereby acts as a guarantee. This is a victory at last.

2005 was not so bad, we are moving forward, let’s take advantage of the changes taking place and keep our eyes on the ball.