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The big challenge is still on energy. The set of entrepreneurs suffering its fate is medium entrepreneurs. In short, it is bringing in daily forgone alternatives.
While I also look forward to stepping up expenses and covering it with an increased service price, the calculations still call for some forgone alternatives.
I had an opportunity to talk with an SME entrepreneur, the complaints were high. I was imagining how difficult that can be; paying rent, National Electric bills and also having to burn a generator daily. What I mean here is the inability to easily switch prices when customers have become used to a certain price.
This remains the big challenge of SME’s and until you fight hard enough with bravery it can be difficult to see a tangible revenue after 365 days.
This was what I had to let my co-partner know this year, we are not after ‘customers per say’ but a unique set of patronizers who will be able to value our business products and services by paying its needful price.
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The latest report I got about this is that band A electric supply (estimated at 20 hrs daily) has been shifted to the estate areas at 4 units per N1000 naira. Those in the estimated area will have to settle for band C and below (12 hours and down). It boils down to which is even favourable at the moment? Making the right calculations, prepaid meter at 20 hours light doesn't favor medium scale entrepreneurs. The issue still boils down to their target customers who won't want to pay more.
I can remember I discussed this with my contract worker; ‘you will have to step up’. It was a clear message I told him, delivery quality at an unfair price will not allow you to scale. I have experience and I had to take time and do this analysis. My first office was ALL about expenses and energy.
I will often close late night on Saturdays without anything to write home about. There is rent to cater for after 365 days, general electricity to put in-between, a worker to pay and well ,when all this calculations is put in, it was my external job that was feeding in.
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Where was I getting it wrong; ‘a quality service in the wrong environment or people marking everything completely wrong’. Let me not go there anymore, a lesson learnt, corrections made and we move on.
So how will we resolve the entire poor electricity supply. From my current research, if more should come back, it might be at the cost of a prepaid bill or a hyped estimated bill and well, they are also forcing us to step up because everyday will have to count as profitability.
To conclude, let me add, while thinking of how to bring in a much bigger generator, the bigger target is expanding our customer base and also pegging products and services at a favourable price that covers expenses and keeps us in profit. It is customers that pay for day to day businessing; you may ask, so how come I get annoyed with traditional banks. Ok, let's not go there.
This is an article covered by dani-EL; a broad niche writer. I write on faith, life facts and daily living, business and economics, small scale and daily businessing, cryptocurrency and technology. And yes, I do cover articles on financial education and investment updates. And note, if I happen to be a financial adviser to you, the TOP financial advice should be ‘DYOR’ (Do Your Own Research), I can't afford to break your heart
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