Latest / Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint / The Math of Failure: Lessons from a Consultant’s Notebook

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The Math of Failure: Lessons from a Consultant’s Notebook · Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint

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Today on the show, we're going to talk about how some of you
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are not setting yourself up the right way for business success.
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And the reason why we're doing this today is because, of
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course, you know that we've all just gone past 2025.
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We're into 2026. And I've been doing a little bit
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of cleaning, you know, just looking through old notes, you
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know, tossing stuff away, you know, old consulting notes, old
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podcast episode notes, you know, things like that.
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And I've seen a bunch of stuff that at the time I thought would
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have made good podcast episodes. But somehow it all just got lost
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in the, you know, just got lost in the heap.
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And one of them was from this situation that I had with an
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entrepreneur. It didn't turn out to be an
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engagement. We had a couple of meetings.
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We spoke about a couple of things.
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And at the end of the day, he didn't set himself up right for
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he didn't set himself upright for success for his business
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idea. I think he he was just coming at
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it from the wrong angle or starting from the wrong basis.
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Anyway, let me just go into some detail and then you'll you'll
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see what I mean. So this is your first time
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listening to the podcast. My name is Tavishima Ayede, I'm
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a former lawyer turned business consultant and I try to help
1:24
businesses grow and thrive, but I always start off from a sales
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and business development perspective.
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Just in case you hit me up, I want to see if I can help you
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solve a couple of your business problems.
1:34
I'll always start from the sales and business development
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perspective because that is what I know.
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That's my area of specialty. So of course, you have an
1:40
accounting problem. If you have a business
1:42
management problem, I'll have to refer you to someone else.
1:45
Now, if you love the sorts, these also things that we talk
1:48
about over here on the podcast, then subscribe on Spotify, on
1:52
Apple, on wherever it is that you listen to your podcast so
1:57
you can get this good business goodness that we talk about
2:01
every other day on the podcast. And yes, if you're discovering
2:06
the show for the first time and you're scrolling and scrolling
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and you're thinking, man, this guy has a lot of episodes.
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Yeah, you're correct. He's over 1300.
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And that's because I've been doing this for almost 6 years
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now. All right, so let's get straight
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into the meat of the podcast for today.
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Oh, yes, the usual apologies, I'm out and about.
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I'm just I'm in the parking lot, you know, as usual.
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So I said, let me just make this recording real quick before I
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move to where I'm supposed to be.
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So let's see. OK, yes, So with this particular
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guy now we we tried that for a while and there were a couple of
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problems that he had that I don't think he was said allowing
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giving himself the best chances for success.
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Let me put it this way. So First off, the guy was
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limited in human resources, so poor staffing, you know, is just
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him. And for his business idea,
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unfortunately he needed quite a bit of stuff.
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You know, there are some of you that have some business ideas
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that you don't need too many people to run this thing in the
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beginning. So I know some of you are trying
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to be lean, but unfortunately there's some business ideas that
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you're trying to start or some there's some business models
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that you want to pursue, unfortunately that require a
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couple of people to get things working.
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So this guy had poor staffing, had limited manpower, and then
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the business model was poor because the unit economics was
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poor. Now, unit economics is something
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I've spoken about over here on the podcast for those of you who
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are listening to the show for the first time.
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Unit economics just means when you're selling multiple items,
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how much are you selling per one?
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So that when you collect the money, there's enough for you to
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throw back into the business and there's enough for you to flex.
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If the unit economics are poor, it means that every single time
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you sell a unit, pair one, sorry, it's not as if you're
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trying to make the profit on one single item.
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But the idea is by the time you sell, you know, the average
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number of units that you sell, you know, in a week, in a month
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or whatever, and you take all those small, small coins, your
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profit and add everything. It will be nice, it'll make
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sense. So that is the reason why how I
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put it, OK, like a friend of mine who tried doing the rice
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business, although at the time, you know, I was, I was new in
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the game, so I didn't quite understand how some things
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worked. And he did his first run and I
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think he said he made like 5K or maybe 7 K on each bag of rice.
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In my mind I was thinking, you know, what the hell?
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Like I can't survive doing that. But of course, I lost sight of
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the fact that, you know, when you sell rice for a living,
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you're not trying to make your profit on that one single bag.
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So if it's like you're making 55K on top one bag, you know,
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the goal is, you know, hopefully you're selling, you know,
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hundreds of bags, something like that.
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I don't know whether you sell hundreds of bags in a month or
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in a week or whatever. Boscha, you're expecting to make
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up your money on volume. So all these kinds of questions,
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how much are you selling your bag?
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How much are you selling your earphones?
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How much are you selling your this?
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How much are you selling your that?
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So this doesn't apply to, you know, those of us who do
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services, obviously. So because we're not selling
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units of something, what we're selling is our time.
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So for those of you who sell physical products, the unit
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economics, it got to be there. You have to sell it at a certain
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price so that by the time you remove the profits, sorry, is it
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profit. So I'm trying to be precise so
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that, you know, those of you who studied accounting won't come
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and roast me because I made a mistake in using the wrong terms
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before. But sure, The thing is, by the
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time you remove the revenue on top and you know, whatever the
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accounting is, you want to be sure that the thing that remains
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is enough to invest back into the business and is enough for
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you to flex because business is not going to move on to you
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invest back in it. And then of course, nobody wants
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to do Jackie work indefinitely. So if you're doing Jackie work,
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you know, three years or five years or seven years, 10 years,
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you know, depending on the agreement that you have with
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yourself or with your spouse and you will are not flexing, it
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will affect the level of motivation that you have.
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So you need to make sure that the unique economics make sense.
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Then for those of you who are going to try and employ other
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people, because remember I said that this is my guy
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unfortunately had limited manpower and poor staffing.
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You need the right incentives for business development
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efforts. Summary What I'm trying to say
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is this, when you tell somebody, whether boy or girl, sales boy,
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sales girl, marketer, whatever you call them, go and sell on my
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behalf. If the package no makes sense,
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you know, at the end of the day or at the end of the week, at
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the end of the month, they look at the one that enters their
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pocket and the thing does not make sense.
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They will bounce, they will leave and you will have high.
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What's that thing called high? Is it turn out?
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I'll be turnover. You have high turnover, as in
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you hire salespeople, you hire marketer January 1st, then by
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February 3rd they don't show up to work again.
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Then February 15th you hire a new set and then by March 6th
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they stop coming to work. Then by March 28th, you hire a
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new set and then by, you know, June 1st they will show up and
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work again. You understand?
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So that's what human resource people, those of you in human
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resource management, IB people, resource management or whatever,
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that's what you guys call high turnover.
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Turnover will be high because the incentives don't make sense.
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So if you're starting off your business now, it requires people
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to to sell people to hustle on your behalf.
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The people you know, get the ones that you don't have the
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incentive is not making sense there.
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On top of that, the unit economics, the money, the
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pricing of the something, the pricing now no makes sense.
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How, how are you giving yourself a chance to grow?
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You know, but you know now Niger, you know, my God is an
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awesome God, you know, blah, blah, blah.
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I will succeed. I will prevail.
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And yes, you will prevail. You will prevail.
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But just try and start the whole hustle in a way that your
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chances for succeeding will go up.
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You prevail no doubt. Just make your job easier.
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So what was this guy doing? Now what he was doing was he was
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selling colored sand. Some of you are wondering
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coloured sand. Oh yes, coloured sand.
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For those of you who are wondering is because you don't
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have kids yet. And I was selling coloured sand
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to schools, educational institutions and the whole idea,
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see when I saw it, because you know me, I have kids.
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And I remember what back when the kids were little, you know,
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nursery school and all of that. I remember all the different
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exercises that schools do nowadays, you know, to get kids
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to, I think they call it a fine motor skills or something.
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I'll be gross motor skills or something like that.
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You know, you want the kids to be able to write well, to be
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able to, you know, write well, run well, jump well, throw well.
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So I don't like the the the good old days.
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OK, don't mind me. I'm saying good old days as if
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as if I'm old. But I mean, during my own set
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education wasn't, it wasn't, it wasn't really fancy.
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You know, you'll show up, you'll do your writing exercises,
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you'll do your reading exercises.
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You do 2 * 1 two 2 * 2 four 2 * 3 six, you know, and the heads
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of states are what against States and capita, Abya, Omaha,
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Adamawa, yo la Aqua bomb. So those are the stuff we used
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to do. But it's like in Niger, they
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become wise that that's not how you teach kids because when you
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try that, you bore the hell out of them.
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So they started making school interesting for kids.
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And so for like doing my own kids, you know, they'll, they'll
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play with clay, they'll play with what else, Clay, sand, you
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know, like all kinds of things. So like when it comes to writing
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number one, number two, number three and all these sorts of
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things. So back in our own day now you
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would trace it into the, into the book.
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But then in some schools, you know, you actually have the
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children out, you know, it's play time.
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And so they're playing in the little sandbox and then the
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teacher is there and then in the sand, they'll now be scratching
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one. Now scratch 2, now scratch
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three, scratch four. And The thing is, you know,
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since it's playing with sand, they, they are learning certain
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skills, learning, learning certain concepts and they're
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using play, you know, to learn. So when I saw that guy, I
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understood for those of you who don't have kids, you won't get
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it. But when I saw it and was time
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for the meeting, like bam, I understood straight because at
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that time I was in that stage of life, playing with sand, playing
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with clay, playing with this, playing with that.
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So coloured sand is a way that you can use coloured sand as an
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educational tool, you know, creativity, cognitive skills.
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Yes, because I was talking about, you know, how you write
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1234. I mean, think about it, children
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are playing in the sand. You say what is what is 3 + 3?
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If they have nice colourful sand, they can actually scratch
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it in the ground 123 and then one 2-3 and then count it
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123456. So you can use it as an
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educational tool and then also for creativity.
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And that was the part that I also really thought was cool,
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although I thought it was the downside of the product because
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they had sand or different colour.
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So in other words, if you take red sand and then you take
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yellow sand and you mix it together, for those of us who
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are adults, you know what I mean?
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You already know you get orange, but then this is a nice way that
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you teach children. You take red sand and you take
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yellow sand and then you mix it together and wow, orange, you
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know, so cool. Like I'm mixing different
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colours. But then that's also a drawback
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because once you mix red sand and yellow sand, it's not as if
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you can now separate the red from the yellow, you know, you
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understand. But anyway, beautiful product,
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Beautiful, beautiful, beautiful, beautiful product.
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Now as you're hearing this thing and how we can use this product
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for art, how we can use this product for science, for math,
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how we can use it for, you know, different things, excuse me,
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Obviously in your mind you now know that we want to sell this
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product. It's not going to be anyhow
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anyhow, schools that you sell it to.
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You understand what I'm saying? Because I went to, first of all,
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I went to IRA nursery and primary school.
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I was in Abuja. After that I went to Jabi.
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From Jabi I went to I went to festival Rd. then from festival
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Rd. I went to Woosen one primary
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school. So that's why I finished my
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primary school. Now don't ask me why I went to
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5-6 primary schools. I have absolutely no idea.
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I've asked my mom say my mom says like you know to be honest,
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we can't remember why. So that was it.
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I went to all those schools yes only me 5 primary schools.
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It wasn't fun. If I remember one day I got lost
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in that's why we I just got to festival Rd.
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Popsy had just dropped me off in school.
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I went to class, there was break time, I went out to play with
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some kids and after a break now I got lost.
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I couldn't find my way. And so I was, and I felt like
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blasting, if you understand what I mean.
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They did not use bad language on this, on this podcast.
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So I felt like blasting now and I didn't know what the toilets
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were. So I just went to the Bush and
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as I had to do my thing, they handled my business.
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Then when I finished blasting, now there's a problem.
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I didn't have tissue paper, so all I use now and I had to use
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my undies and then roll it up. But then that was not enough to
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finish blasting. Then I saw one leaf.
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I decided to use the leaf to, you know, you understand now
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sanitize myself. And I learned the lesson of my
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life that it is not all leaves that you can use to to sanitize
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yourself When you are, you're done with your business.
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So anyway, yeah, that that was it.
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Those are those are fun days. How did I enter that one?
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Now? I can't remember how I got here.
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OK, yes. So if you're going to sell this
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kind of product now, it is obviously not local government
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schools they're going to be selling this thing to.
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It is not what they want. Primary school.
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They're going to sell this thing to it is not the primary.
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What is it called? You know what all these
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government schools, it's going to be private schools that you
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sell this thing to. You need to reach out to the
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right kind of schools. You I researched the school.
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Well, the schools of a certain class of a certain cada, because
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local government schools, you know, they don't care about
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which one is gross motor skills. They say gross motor.
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What, like, will you sit down there and start reciting your
14:45
multiplication tables? They're not going to use sand,
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They're not going to use Montessori teaching method or,
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you know, blah, blah, blah, all those fancy modern stuff.
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So excuse me, I have a bit of a cold.
14:58
So to get this thing going, we need to identify the right kind
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of schools. And it had to be certain kinds
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of schools in Abuja, you already know.
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So let me not stress that. Then, of course, we have to
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build relationships in this school.
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You're going to have to build relationships with school
15:15
administrators. You know, teachers also like
15:18
therapists. Yes, therapists are needed,
15:21
unfortunately. You know, the good thing about
15:24
modernity now is, you know, before now, there were stuff
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going on with some of us. Well, not me anyway, but you
15:30
know, some kids in class learning difficulties, things
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like that. But back then, you know, we
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didn't know. You just said that this child is
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a non Ludo. But now, you know, kids struggle
15:40
and this help. So the good thing is that we
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have therapists for for for kids now.
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It's just unfortunate that they're expensive, really,
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really expensive. But anyway, athletes, they're
15:52
here. So we have to build
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relationships with teachers and with schools, with therapists,
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you know, things like that. Then to sell that kind of
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product, whether you like it or not, you'd have to do lots of
16:01
personalized presentations because you have to go to
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school. You will talk to the principal,
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you will talk to the class, the class teacher, the art teacher,
16:11
the math teacher, making presentation or showing how this
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thing works, maybe provide free samples, you know, things like
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that. So all these sorts of things
16:20
would have been part of a sales strategy.
16:24
Excuse me. And you can see, not already.
16:28
This is going to be quite a bit of work.
16:31
Unfortunately, the intrapreneur in question thought that this
16:34
thing will go big and it will go big fast.
16:39
But have some bad news for you. If it's just you, you can't make
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the thing grow big fast. It will require lots of time
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because it's just you. If you want to shorten the time,
16:52
you need to invest in the money and hire other legs and other
16:57
hands and scale beyond yourself. You have, you need manpower to
17:03
push it. But what I'm just saying is you
17:05
need other people or you need time for all these ideas that
17:08
we're talking about. Because if it's just you, how
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many schools can you see in a week?
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How many teachers can you see in a week?
17:17
How many of these relationships can you manage in a week?
17:22
So you have any lots of time or you need lots of people and
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unfortunately it was just this guy.
17:30
He was thinking he could get one salesperson and get it moving
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and of course he will work. He's just like he wanted
17:36
anything to be big and he wanted anything to be fast.
17:39
And unfortunately for this kind of product and for the kind of
17:43
sales ideas that are needed to make this thing work, it's not
17:47
going to happen. Not as quick as you want.
17:50
Then he was also thinking about wholesale distribution, that is
17:55
you take the product and then sell to other distributors and
18:00
you know, it takes a while to recruit distributors and then
18:03
bring them on board. And then then of course, this is
18:08
where unit economics comes into play.
18:10
Now the sand that was going to be selling, by the way, the
18:13
packaging was beautiful, by the way, really nice creative
18:15
bottles. So the, the, the pricing now you
18:20
know, unfortunately the thing was not priced how I put it now
18:26
understandably so, eh the guy no one price I'm premium because
18:31
it's sand. So if you say come and buy this
18:34
sand, one bottle of sand is you know, 7K8K10K people will look
18:38
at you and say what coloured sand I should buy 1 bottle
18:43
7K8K10K12K. There are how many children in
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this class? How much sand are we going to
18:50
buy? So I guess it was some of the
18:52
realities. So and if you know our price and
18:54
premium and then you say you're going to use distributors, what
18:58
would be the cost for the distributor every time they sell
19:00
one bottle? OK, you say you want to use
19:02
Commission salesperson, you want to hire one person.
19:05
What would be the cost of the person every time he sells 1
19:07
bottle? And you know, I tried to do the
19:10
math for the guy. I said, I look at the price that
19:12
you're selling this thing. I mean, somebody will have to
19:14
sell, somebody have to sell multiple hundreds of bottles in
19:19
a month. Just make a decent living.
19:21
And realistically speaking, like, is that possible?
19:27
I mean, of course it's possible. But to say that somebody will
19:31
agree to work 100% on Commission and he's taking X percentage of
19:38
something. But then if he wants a living
19:41
wage, this was a long time ago by the way.
19:44
So let's say by then at that time, I think if you are earning
19:49
like 200 KA month like was was OK, he'll be all right.
19:54
So the person wants to earn 100K200 KA month.
19:58
You don't want him to work for anybody else so that his time
20:00
will be devoted to you. But then for him to make that
20:03
100K in a month, you know, he has to be personally responsible
20:06
for selling, you know, 203 hundred 405 hundred bottles.
20:14
But because I mean to understand trying to see the picture that
20:17
I'm painting now about how some of you.
20:19
You want to start this business, but you're not setting this
20:23
thing up in a way that will make it easy for you.
20:29
It's a lot of work. One person alone will do
20:32
prospecting. He will go to different schools.
20:37
He has to research those schools.
20:38
He has to network into those schools.
20:40
Meeting with proprietors, meeting with head of academics,
20:42
meeting with this, meeting with that, He has to try and figure
20:46
out the priorities of the schools because not all schools
20:50
are this fancy. I mean there are some schools
20:53
that you know, yes, might be big men's school, but they are more
20:56
Nigerian attitude, their own is you know, what is all this
20:58
Montessori like when you sit down there and go and do your 2
21:02
* 2 four, 2 * 360 times, you know, no, not all expensive
21:06
schools are into this new age kind of stuff.
21:12
So then of course, you have to do lots of presentations, you
21:15
know, physical demonstrations. Then of course, you know that
21:19
plenty of follow up is required because it's not as if you go to
21:22
school today, see the principal today, and then talk with the
21:27
teachers today. And then all of a sudden you now
21:29
buy, they will now buy, you know, 100, you know, 100 cases
21:35
of colored sand from you. So anyway, what was I trying to
21:43
say? Look, the main point I'm just
21:45
trying to say is this business is hard.
21:49
Yeah, selling is hard. So you adopt yourself that if
21:52
you're going to start this journey, just try and pick the
21:57
easiest, the easiest path possible.
22:02
Make the thing easier for yourself.
22:04
You know, perhaps maybe product selection was also a problem in
22:08
this case. See, The thing is you never even
22:10
work together. So I don't even know if I was
22:13
able to validate the concept that in Nigeria people would buy
22:16
colored sands for schools. Well, for those of you who have
22:19
kids and you know, your kids go to school where they play with
22:23
coloured sand, then, oh, I guess, I guess the thing
22:25
actually works. You know, it's a product that
22:28
the Nigerian market was ready for.
22:30
But you know, right product. You also need to make sure that
22:34
unique economics are correct. You need to make sure that your
22:36
business model is correct. Just make things easier for
22:38
yourself because excuse me, because selling and business,
22:44
it's it's hard. So whatever business that you
22:47
want to get involved in, please make sure that you check.
22:52
Is this something that one person realistically speaking,
22:55
or maybe two people, you are one sales boy.
22:57
You are one sales girl. You are one marketer.
23:00
Is this something that realistically speaking, two
23:01
people can push and you will hammer ask around.
23:04
I'm trying to figure it out. The unique economics.
23:08
Does it make sense? Does it make sense?
23:12
Because trust me, no marketer, no sales board, no sales
23:16
whatever, even if the person is your own relative.
23:20
And I saw something like that as those one guy that I knew and I
23:24
just called him to say what's up.
23:25
And he said that he had to take off food, that he left Abuja and
23:27
he had to flee to, to to Lagos. And you know, understand, you
23:33
know, you're here with your relative, you're trying to help
23:35
out. But if the thing no make sense,
23:37
it did not make sense because even if person is your
23:40
relatively person who think it like myself, I want to marry one
23:43
day, I want to build house one day.
23:44
Can I stay here and be collecting coins?
23:48
Let me go where you know, let me go where the land is greener.
23:53
So every new person is your relative.
23:55
Eventually person will person will tear, the person will cut
23:58
out. So unique economics has to make
24:00
sense. The incentives have to make
24:03
sense for the people who are selling, right?
24:06
Let me stretch this one now for Nigerian business owners, there
24:12
are some of you that are wonderful, some of you are
24:14
really, really wonderful, like one guy based in Lagos, I would
24:19
say what business that they're involved in.
24:22
But the guy used to pay his staff well, the sales and the
24:26
chief sales engineer was collecting 750 per month.
24:31
So there are some of you who do well Nigerian employers, but the
24:36
rest of you unfortunately some of you are not being realistic
24:41
at all. But you're not being realistic
24:43
at all. See how this economy is harsh.
24:47
So as the economy is harsh, then you now tell somebody to work
24:53
for you, right? Let me say the one that I know,
24:55
this guy was a video editor. He was, he was working in a
24:59
church, I won't say with church, but it's one of those big
25:01
churches. And then at the time they were
25:05
giving him 50K in a month. I didn't want to use my mouth
25:11
and tell him so I started asking him some questions and then he
25:14
saw the light by himself. They'll give him 50K per month
25:18
and so one day I asked him 50K then how much do you spend on
25:21
transport? The guy said 35 KA month that's
25:25
how much he was spending on transport. 35 Ki didn't say
25:28
anything then. I now told him that oh I know
25:35
this guy, I know this guy. Sometimes they need other video
25:40
editors just to do work, you know, sharp, sharp, you know,
25:42
like give this guy a call. So he gave the guy a call.
25:46
And then I think he did one job for the guy and then he
25:48
collected 20K. And after a while, I spoke to
25:53
him and I said how far he said he had quit from the job.
25:56
And in my mind, I was rejoicing. I said thank you, thank you,
25:59
thank you, thank you, thank you, Lord.
26:00
Well first of all I was actually ashamed that actually is that
26:04
that he had churches that's back then who are taking their video
26:07
editors and then paying them 50 KA month.
26:12
And he asked the guy so why did you resign now?
26:14
He said that he just thought of it that even if he stays at home
26:19
and he's only able to get 2 editing jobs outside 20K20K that
26:24
is 40K that's staying at home and not spending anything on
26:27
transport and any 40K was better.
26:30
Now for him hustling every day to go to the church to do this
26:34
editing thing and then collect 50K of which we spent 35 on
26:40
transport and then it's only 15 that remain.
26:43
And unfortunately for the guy, you know, things are off at
26:46
home. So he was helping out his
26:48
sisters. So of course by the time you
26:50
send your sister 5K5K, like honestly what are you left with?
26:54
So that's it. He resigned and then he started
26:56
doing editing work. That's how the guy left, left
27:00
employee status and now joined those of us in the in the in the
27:06
hustler side of the market. Because back then I was a
27:09
wedding photographer. I just stopped doing law and the
27:13
civil service work. So to be honest, some of you
27:18
employers, you are honestly not paying people enough for them to
27:23
even hang around and turnover is very, very high.
27:28
And you guys are being small minded or short sighted that in
27:33
the beginning, you know, whether it's church or whether it's
27:36
coloured sand or whether it's whatever, you're just not doing
27:39
the math right. You're really not doing the math
27:42
right. I know this guy was a video
27:46
editor, not a salesperson, but especially for salespeople, you
27:50
know, what we want is the money, apart from the challenge is
27:53
money that we're looking for. So if you take somebody whose
27:56
money operated and then put him in a job role and then the money
27:59
he's not ever seen, what do you expect?
28:01
The guy will leave. You're being short sighted
28:04
because you're creating more headache for yourself.
28:07
And I'm telling you that is exactly what will happen because
28:10
the person is desperate. In January, he will say, yes,
28:13
give me this job once he collects his salary January
28:16
28th. And then he realizes that this
28:18
thing does not make sense. February 2nd, February 3rd, you
28:22
will see him in the office again and then he won't be answering
28:24
his call. And then you say that, oh, sales
28:27
people in Nigeria are unreliable.
28:30
Well, yeah, there are some reliable, you know, lazy ones.
28:32
But you think you're not setting stuff up the right way.
28:38
Anyway, 30 minutes. So let me just bring this to a
28:40
close. So thank you very much for
28:41
listening. I'll catch you all some other
28:43
time. Remember to subscribe to the
28:44
podcast if you love these sorts of things.
28:48
And then if you want to connect with me, you can call, send me a
28:50
text message or a WhatsApp message on 08064662140.
28:57
So that's it. Thank you very much for
28:58
listening. I'll catch you all some other
29:00
time.