Thriving Amidst Chaos: The Nigerian Entrepreneur’s Guide to Navigating Turbulent Economic Times
In the histories of Nigeria’s business and economic landscape, the prevailing chaos sweeping across the country is arguably unprecedented. Since the inauguration of the new government on May 29, 2023, the economic turbulence has reached levels previously unseen. The president literally ‘hit the ground running, by announcing the removal of subsidies on the inauguration day, and to compound matters, the central bank abandoned the fixed forex rate in favor of a floating exchange rate. This volatile mix, coupled with bloated government expenditures, has triggered hyperinflation that’s impacting every corner of the nation. The costs of essentials like petrol, electricity, imports, logistics, diesel, and transportation have risen out of reach for many Nigerians. This dire situation is putting both new and established businesses in jeopardy, from startups to large corporations. The undeniable truth is that Nigeria is now entrenched in a VUCA environment: Volatile, Uncertain, Complex, and Ambiguous.
As of July 2023, inflation rates have skyrocketed from 22.41% in May to a staggering 24.08% (as reported by the NBS website). This alarming increase is taking place against a backdrop of eroding public confidence in the current administration, fueled by allegations of electoral malpractice that are currently making their way through the court system. Meanwhile, the exchange rate between the Naira and the Dollar has climbed to an unprecedented N950.00, with the possibility of further devaluation looming. Diesel prices have surged from an average of N650 per liter in May to N750 per liter in August 2023, with these numbers continuing to fluctuate at an alarming pace. Nigerian entrepreneurs are unquestionably facing a period of tumultuous change.
Reports have emerged of businesses folding under the pressure, and farmers grappling with despair. Yet, as history has shown, it is precisely during these tough times that the resilient ones emerge strong.
Nigerian entrepreneurs, particularly those managing micro, small, and medium-sized enterprises (MSMEs) and startups, are at a crossroads between survival and surrender. While some may falter, others will rise above, emerging stronger and more formidable than ever before. The choice lies before you – to join the ranks of those who innovate, adapt, and conquer. This path won’t be a stroll in the park, but it is undeniably achievable. After all, crisis often creates opportunities.
Let us examine six things you must do:
1. Cultivate the Conqueror’s Mindset
Economic volatility such as this is calculated to demoralize the bravest entrepreneur. Yet, now is the time to summon your inner conqueror. This isn’t mere motivational jargon; it’s about wielding the power of your mindset to shape your reality. Your inner stance, more than external factors, determines your experience. Embrace the understanding that challenges harbor hidden opportunities, each with an expiration date. This is your chance to break free from conventional thinking and uncover latent prospects. Confront adversity head-on, knowing that no matter how daunting it seems, you possess the resilience to overcome. This mindset sparks creativity and empowers you to craft innovative solutions. Remember, problems persist as long as people exist, ensuring a perpetual demand for solutions and, in turn, market growth. Know this: Chaotic times create new markets and demands.
2. Arm Yourself with Knowledge
In these tumultuous waters, knowledge is your compass. Every solution is obstructed by the barrier of ignorance. Now’s the moment to dive into the right books, engage consultants, and seek advisors for fresh insights and inspiration. Acquiring new skills, market insights, technical acumen, and economic savvy is your armor against uncertainty. Armed with the right knowledge, you’ll make informed decisions to steer your business through the storm.
3. Embrace Empowering Information
Knowledge is essential, but it’s information that empowers action. Don’t navigate the VUCA landscape blindly. Seek information that propels you forward. Your next breakthroughs lie concealed within classified information. Make information acquisition a deliberate pursuit. Forge connections with industry experts, finance authorities, and platforms offering the latest tech trends, innovations, and methodologies. This intel will guide your strategic decisions, leading you towards uncharted territories of growth.
4. Assemble Your A-Team
In the turbulence of VUCA, your team is your anchor. Evaluate your members, align them with your vision, and foster a unified, empowered collective. A diverse team, boasting various skills and attitudes, is indispensable. Encouragers, analysts, creatives, coordinators – they all play a pivotal role. Identify your team’s strengths, ensuring you know who to tap into at any given moment. Rather than wielding the layoff hammer, channel your team’s collective creativity to unlock new opportunities. Through inspiration, collaboration, and strategic focus, your team will be a driving force in your evolution.
5. Decisive Action for New Horizons
With the foundations laid, it’s time for bold yet calculated decisions. You’ve cultivated the right mindset, armed yourself with knowledge, embraced empowering information, and united a formidable team. Now, you’re poised to make choices that not only ensure survival but propel growth amid chaos. Strategic thinking and innovation are your compass. Strive for differentiation – standing out amidst a sea of businesses is your key to thriving. Seek to create a blue ocean opportunity through innovative ideas even within the red ocean you are swimming in. Blend reactive decisions to address existing problems with proactive ones that pioneer solutions. Focus on enhancing performance, cutting costs, expanding markets, and maximizing revenue streams. This is your time to orchestrate change that drives your enterprise forward.
6. Translating Strategy into Action
With decisions made, the time for action arrives. Ensure your actions are coordinated, empowering, and synchronized with your team and clientele. Undertake a comprehensive evaluation, clarifying your “why” and assessing your business across dimensions like SWOT, PESTEL, and Pareto analysis. Shed what hinders progress, improve where necessary, and innovate where opportunities lie. Foster a collaborative environment, tapping into your team’s collective ingenuity. Swift, smart, and assertive action is essential.
In this era of turmoil, Nigerian entrepreneurs stand at a crossroads: disrupt or die! Amidst chaos lies the crucible of innovation, where the brave transform adversity into triumph. The Nigerian business landscape beckons you to redefine possibilities, challenge conventions, and usher in a new era of growth. Disruption isn’t just a choice – it’s a lifeline.
Conclusion:
Helping founders, businesses and organizations navigate Chaos is our expertise. At Chirality Partners we offer strategic advisory and solutions that enable Nigerian businesses survive and thrive through operational and organizational transformation and innovation.
Visit our website at www.chiralitypartners.com, email us at info@chiralitypartners.com or call us at [+234 806 915 4222, +234 708 9709596] to schedule a consultation and learn how we can help you survive and thrive amidst chaos. Don’t miss out on the opportunity to make your mark in the market. Contact Chirality Partners today and let’s build something exceptional together.
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