Starting Business Without Money - Dr. K. N. Jacob

Kenya's economy has been recipient in fact World Bank predicted a 5.9 percent economic growth in Asia 2016 and a further rise to six percent in the year 2017 you cannot effectively learn about practical skills about business from someone who's not a practicing enterpreneur one can only effectively teach what they consistently model I'm Aldo enterpreneurship you too can be the next enterpreneur you too can be the next employer I'm dr. Kennedy nana thank you there is someone in this life audience who has started a business several statistics suggest 90 percent of all businesses in sub-saharan Africa fail yet yabbos amongst us who seem to succeed whatever they touch with your hands seem to flourish such need to be studied such need to be examined we are not going to study them tonight so that we can copy them but so that we can emulate their success stories so that we can analyze the common denominators this is because business is Buddhist science and not businesses are not in the sense that it involves ingenuity creativity innovativeness that are inherent the outside of business analyzes the relationship between man and his environment but business is also science meaning it invokes universally acceptable rules policies and procedures that any of us can study and be successful I hope you came with your notebook I wanna take you through some nine lessons are you ready and let me just give you a glimpse the very first lesson I'll take you through is why businesses fail in Kenya the second lesson I'll take you through is business might set that that lesson business idea the fourth lesson business timing the fifth lesson business modren the sixth lesson products differentiation lesson number seven competitive advantage lesson number eight team execution lesson number nine and the last one business funding and before I begin on the very first lesson lesson number ten I'll be giving you ten sources or business funding stay with me number one why do businesses fail I'm going to propose some eight key reasons why businesses in this country fail I went into business tree from je crois thought I completed my undergraduate studies in mathematics statistics and I'll try to flush out but the letters are planting the business world through this presentation let alone as I continue I am NOT suggesting that this list is exhaustive but it will give you the primary reasons that you need to watch out for in retrospect I'm giving you critical success factors why do businesses fail number one lack of purpose we do business because we have to not because we want to we are looking for an occupation we hit littleness as a country and you're looking for something to do not necessarily because it connects with you at your heart level but because you are virtually looking for an occupation you see you will never be fulfilled in life unless you operate in your domain your gift easier domain your gift is your natural element outside your gift is flying against the weeds swimming against the current and growing against nature fish never enrol for swimming lessons but Navin R or for friends go nor do three siblings study afforestation they just flow the gift and here's the deal every time you don't operate in your purpose you're swimming against the weeds against the current you operating against your natural element so what I invite you to rethink of how you can connect with your deepest purpose and have a sense of mission and stop working and begin loving what you do and doing what you love find in your place why do businesses fail number two lack of focus we spread too thin you can't afford a broad strategy on a start-up budget a lot of Kenya's diversify right at incubation of the business idea sometimes when I speak in business forums and many of you in the cockpit would have met many places of work people ask me a question we know people like Richard Branson who have very many businesses over in profit why do you tell us to put our eggs in one basket and he had a trade-off reasoning time and again please speak to me if you can let's just be honest with each other what do you recognize Bill Gates will give me the name Microsoft Jack Ma Alibaba Mark Zuckerberg Facebook ok that's America that's China let's come back to Kenya dr. James monkey equity fantastic tabatha kuraha Karachi Tara mughal-e-azam look you never mentioned two names that doesn't mean dr. James monkey has not invested in real estate insurance bank and elsewhere but he has his place so you cannot diversify until you succeed in your business it is out of the extras excess of your business that you can afford to broaden your strategy you can afford to open to many verticals on a startup business or even to scale up to fast concentrate and optimize on the existing market before considering diversification why do businesses fail in Kenya number three we give up too soon we are a generation that sends defeat our this latest toothache I wanna tell you right now every time you're getting into a new territory you'll be confronted by an familiar Giants who try to stop you from expert in your domain you've got to fight it or trouble with us away you've got to fight it or Giants fade away you've got to pop us in your heart somebody's ship will see this year but that's not my ship the greatest difference between winners and losers is the ability to hold on the real mark of faith in the ability to hang on you must choose not to be the losing type now another problem with a fast my love a risk even infants will do relatively well maturity is staying the course and finishing your risk and finishing strong the fact that the road is bumpy and the red is misty doesn't imply that you're headed in the wrong direction doesn't call you to question your vision the road to success is uphill I don't need a strong get there if success were easy who wouldn't be successful why do businesses fail number four copying others your favorable Natasha with a huge meeting and the next moment you start one without studying what it takes to reach there you fight some uneven m-pesa without even investigating you begin to observe the visible signs of success premium homes hi ed cars designer clothes flying first-class expensive jewelry without realizing you are gazing at a mirage glaring at an illusion true success cannot be seen in the physical eyes it is what happens inside such a person mahegger rosamma yuki-onna Borrelia women Udrih there is an incredible amount of work because I guarantee you masters work hardest they are the last ones to for that's why Jesus thought the greatest amongst - you must be the servant of all you prepared for this meeting but maybe I didn't sleep preparing for you you just came because we're all it's free and it's not raining and why not it's a nice way to spend an evening but do you think that was my attitude absolutely not they paid a higher price you can't choose to be a master and choose to sleep at the same time you just can't admire what others are doing admiring the fruits without studying the roots why do businesses fail number 5 Plan B we can so very fond of this coming up with an out scheme just in case brainwave falters I have an escape route you can't come up with an escape route and fail to use it someday if I may use an illustration other they gave me some water this is our typical behavior assume this is a cooking pot I'm gonna use my seat no can you see this now typical Kenyan behavior this is how I'm going to boil my water this is my cooking pot and this is my store gonna put a drop and watch it from a distance if you do it boys properly I land a drop watch it from a distance what's gonna happen to the water if I keep on adding drop by drop it's gonna pop on it this only one way for me to hit this certain half may what at the same time put all of it in my cooking pot so we put some photos at Bob in a business we watch it from a distance if the business behaves I gonna add some twenty thousand eventually you have no business the only way are to succeed in business is to destroy your escape routes have no plan bees decide is only one way out success destroy the point of return decide is no breach to go back have your two feet deeply rooted in the air like a radical Jesus taught your treasure is there your heart is the more you diversify the more you spread your heart learn to focus i define focusing things on electron as this the ability to say no there are many good opportunities before us premium opportunities but the essence of strategy is identifying what not to do wisdom is not just knowing what to do but even more importantly knowing what not to do why do businesses fail in Kenya number six lack of time display family and friends recognize that those in the corporate world cannot be caught anytime you want they are answerable to a supervisor but what about the camera what about the man in business oh he's available in our and we begin to misuse the concepts of becoming your own boss because whoever interferes with your time interferes with your success you can afford to attend to every Tom Dick and Harry and succeed at the same time the mad understood espect of your time number seven why do businesses fail the vision of project fads a lot of Kenyans start a business and I know some of them are guilty they're listening to me right now a lot of Kenyans start a business at one month later they decide to remove just a few hundreds for their bus fare just a few hundreds for emergency rent just a few hundreds for a barrier or a wedding or afraid without realizing the business goes under if you talk to any bank a nor minute the uteri perhaps the most common source or business failure in Kenya is something to do their cash flow it takes on average six to 18 months for most businesses just to break even you've got to separate between your personal bank account and your business bank account bite the bullet and say you're not touching any coin you've got to plow back do your maths calculate your payback period and say no to getting your fingers into that cashbox number eight lack of business planning we just have this notion things will work out somehow Sunday so we have not done any serious analysis of projections we are not true we have not thought through business mode we know competition or how we are going to deal with it as the old adage goes if you fail to plan you plan to fail business planning is not something we go to it's something you grow through we don't go to it we grow through it it's a lifelong commitment lesson number two business might set business might set you a die and majority of Kenyans our we're intended parent and school teachers prepared us for a job they told us to up very hard to get a good grade so that we become a what a doctor and a lawyer finery and engineer they didn't even know various types of engineers so they told us to color along the lines they began to build parameter walls around our thinking and that began to limit our imagination we may not o have eco capital but we all come equipped we are born endowed with capital where I agree there some of us who are born more privileged than others but even if you came from a more privileged background than the rest of us someone can take away your father's car someone can sell your inheritance but there is something within you that no one can take away from you there is something within you that cannot be robbed in a court of law and that's your imagination at your inalienable right as you sit here tonight you are in one place at this particular point in time you are restricted by time and space but there is something within you the knows no bounds there is something within you that can transcend time and space and that's your imagination just to give you an example Michael Faraday was born 1833 sorry he discovered electro magnetic induction 19.3 which gave birth to what we have in tonight as power everything around us is powered by electricity 18.3 electricity discovered man dies 1867 25th of August it's a hundred and fifty-one years to date and the man is Peru Lena's he never reached Kenya I guarantee you he has translated his time he has transcended his piece in all likelihood he never travel 90% of the nations of the earth as you see T here tonight you can take a walk around the yard and get back to your seat in just a millisecond through your imagination you see many of us wish to be better 10 years to come I can tell you exactly where you will be 10 years from now exactly where your thoughts are today you'll never rise above your thoughts you will never rise above your imagination you don't have a mind you are you mind shall I be a great investor someday answer what thoughts are in your mind today your life will never exceed the quality of your thoughts let me put it this way the quality of your life will never exceed the quality of your dot the very polarity of the human mind is made in such a manner that once you might be stretched by new knowledge it can never go back to its original position your mind is elastic that's why it's your responsibility to tell great stories to enliven the imagination and to stretch you might be you the cognitive you see if you sleep on bed for two weeks in a row non-stop you will require physical therapy to learn to walk again or let me put it in a simpler way if you just fold your hands like this for two good weeks in a row and we tie them with ropes you know how to be done therapy for you to stretch your hands again because your your hand to begin to atrophy to waste away what is true for our other physical muscles is true for our mental muscles once you don't stretch your mind with new information your imaginative faculties we are waste away you could be one thought away from becoming a millionaire you could be one vote away from becoming an investor entrepreneur it will never heat your wallet before it hits your mind it will never reflect in your bank account before it is bumped in your mind you can change your spouse you can check your residence you can change your car you can change the country of residence and go to other big economies but unless you change your mind you'll never change your reality Nations life partners change of churches change of clothes does not change who you are you are your mind that's we've got to take care of your inputs are you a victim of other people's minds do you allow every piece of media to sink in your system I invite you to a higher growth process information before you allow it filter it before you allow it do not even be a puppet of what other people are teaching you be a student don't be a follower test every dot even the ones I'm going to share tonight again these timeless truths because you are never created to be studied by any set of circumstances you are created not to be a creature of circumstances but a creator of circumstances you know there is something that even medics in our midst and elsewhere and biologists have never decoded how come it been Manos they got twins twins will develop from the same say God share in the same DNA have different fingerprints this is not a scientific cause question this is a real logical question your fingers present your creative power that's why scripture talks about the work of our hands that's why no one had the same fingerprints like the other person this is the basis for DNA testing what's the importance of what I'm saying you are created as a creative being you are created to come up with solutions for any circumstance in your neighborhood in your place of work and in your nation Kenya will never be made by other people only Kenyans who solve this problem if you believe what I've told you then I want to suggest that God did not finish the creation story on the sixth day on the contrary he began the creation story literally on the sixth day because he created another set of creative beings he created you to create you know created an image of God has many ramifications interpretations definitions but I believe part of what that means in that you are created in the image of God in that you are also a creatively in some city to six you are gods you are created to create solutions for mankind none of you suffering from polio because Jonas Salk revealed himself and give us polio vaccine in 1955 you've gotta watch over 99% of you he are not going to travel to Russia this June you're gonna watch World Cup from the comfort of your houses because John Bardeen 1926 gave us the television many of you fly to distant places not realizing to bicycle mechanics with no education in an Oracle genie arena in 1903 seven dot disabled made us to fly the Wright brothers the question is what are you bringing to this place you just consuming products are the human beings made you sneaked in life and noticed exist and noticed sneak out unnoticed we read your story for the first time in obituaries seriously every time you use somebody's innovation whether it's m-pesa whatever it is ask yourself what contribution are you adding to mankind because you are creatively in a lesser number three business idea Everett that exists is an expression of an idea that was in someone's might someday the phone you have the watch you have the clothes you have the mic I'm holding while all ideas in somebody's mind they were expressed are the physical things that we appreciate in tonight you see money does not generate ideas on the contrary ideas generate money yeah a lot of people read me funny emails doc if only I had this capital out I've started a business nothing could be further from the truth I know I have people listening to me right now who took a bank loan invested in a business drew a Fred or a relative a few months later perhaps a year or two the business was not there and the poor fellow had the audacity to come before you to you for more money deductively then if money is all we need to start business then all we need is to work for a few two three four years take a loan and launch into business but the reality of the world is this if you start business without what I'm about to teach you on product differentiation business modern competitive advantage team execution without the temperament to have employees and customers without their composure to deal with sudden wealth that money may destroy you and go by the wheels yet many of us still believe what is between me and my idea is just capital that's not true most businesses were started from scratch I'll prove to you in just a moment stay with me a business idea attracts investors when you have a sound business idea nobody cares your gender your race your age because ideas rule the worldé idea people rule the world you don't climb up the Copley trunk based on your papers and qualifications or even years of experience it is the ideas you bring on the table at a strategic mind business idea is more powerful than any other source of capital Amazon Apple Google HP Microsoft were all started from a car garage the entrepreneurs in these cases that I have mentioned never launched multi-billion dollar factories but multi-billion dollar ideas and so s Alibaba and Facebook and uber taxis because the sound idea is more powerful than any other form of capital the real test of an idea is its ability to solve a real human problem an idea that does not serve a real human problem will face existence challenges Sunday a few years ago someone observed that toilets of the City Council narrow me the current County city of Nairobi you and me avoided those toilets they were not usable we saw a problem to evade someone so an opportunity to exploit and the business began to grow now he brings even portable toilets for many functions corporate functions and the like I don't know his current figures but I understand he has already hit a billion the problem you are voting to sauvignon neighborhood in your place of work in this nation could be the idea that is sustainable why you know money will come and go but human problems who persist and they're more persistent the most tough on a human problem the greater the business idea if you're looking for a serious business idea look for that persistent nagging human problem that has refused to go away the one that everyone else has refused to solve does the giant to slay and greatness is preceded by slain a giant how do you identify a giant identify what everyone else is avoiding see greatness is preceded by dealing with extraordinary challenges in a very ordinary manner a good idea is not a one that you possess rather the one that possesses you your relationship with your idea is far greater than any obstacle to the execution of that idea the good news is this an idea whose time is ripe is irresistible someone might resist the idea once or twice or a dozen times but believe me an idea whose time is due is just like a baby whose time is due that idea has to be delivered lesser number for business timing in life timing is not an option the Lord Jesus knew his mission even before he was born but he started his ministry when was that years of age scripture teaches at the fullness of time God sent his son God believes in time in you see I have met a lot of single ladies no meetings during Q&A they tell me the minister because they met this dude who looked so handsome doing where in his professional life and because they didn't want to lose him they engage with him in premarital sex just to realize were played by yet another player loved the wrong time hugs a newborn baby is a gift to mankind but unplanned pregnancy often the North Huts in many ways business timing Reserve was various aspects of timing in life because business time you require that the enterpreneur is totally at peace within himself and in harmonic agreement with market dynamics I didn't want to get academic from an academic perspective business timing means the right balance between supply and demand business timing means you've got to analyze whether this is the right time to release your product to the open market because there's no idea that is absolutely new today using social media platforms like Facebook and whatsapp LinkedIn Instagram but they could not be existing if we did not have another idea called internet internet could not be existing if it was not the idea called Electric Power and also the telephone there to precede the internet so as you think that your idea is entirely new charges are very high it's a building block on other Diaz so you need to check their supporting ideas why do I say that when you do the right thing at the wrong time you don't get rewarded you repay you strike to ally or you strike too late and you risk striking out so doc what is it striking to early in a business if people are not discussing such a problem that your solution is proposing you are going to be faced with an uphill battle let's face it at times Tempranillo are way ahead of the market they have ideas that the mass market has no clue that they need these solutions but even then be sure that the solution you're proposing is addressing and need a very pressing need when is it too late you're proposing a solution that has attracted various investors who have gained mass audience and momentum and they have satisfactorily addressed such a need believe me you'll have a harder time dealing with the existing cattails when is the right time when you sense a pain point exists from your market research people are discussing the need for a solution and nobody's stepping forward be the hero in the story be the brave one don't wait for the courageous to step up and step forward go ahead and pounce this is the right time according to Bill Gross one of the most respected market researchers in the world business timing accounts to 42 percent of success in business you see business has a clock and you've got to go through every single hour you can also convent the hands of time you cannot shortcut the enterpreneur process if you are woken by waking emotions your business will flop even before you begin what awakened emotions you start a business simply because you are fired you are still emotionally unstable you set a business to prove a point to someone that you've got the material catalytics you start a business to frustrate a lecturer because you filled a unit and you've refused to graduate so then you need to show them that there is something more than graduation if you begin a business because you're woken up by waking emotions you are likely to have an appear assignment no one is going to implement your business irrespective of the threads the economy the customer base so be sure you are peace with yourself you can get along with others unless you learn how to get along with yourself and business relationship is organic just like any other human relationship you've got to fight harmony with your newfound business relationship so let's go to business more dream number five lesson number five this is a very simple concept don't complicate it it is a question of how am I going to come up with my product or service distribute it until it reaches my consumer that whole process is called business moderate similar to business planning in substance except that business planning is futuristic trying to give predictions about the future business modern analyzes the past what makes an existing business to stand each one of you please give me your eyes I bought two eyeball and I want to give you an illustration we pick a lesson right now are you ready I'm holding an axe and I want to cut down a tree I sharpen my actor I swing I hit the tree one two three four five I get tired I keep the axe now today's Tuesday to Mirage sharpen my axe same three same sport five times one two three four five I get tired I forget about it I relax I repeat under the same tree same spot I repeat on Friday Saturday Sunday Monday Tuesday next week but one the whole speak to me all of us unanimously if you can the tree will I can't hear you the tree wheel what's this some trees may take two years others two months or two weeks or two days or two of us Shriya that they follows the night that tree we all fall the average kenyan tries this tree today gets exhausted leaves it trains day three tomorrow it's mahogany leave it hardwood so by generally they are doing Yama Yama by Marjane salon by June the trainer restaurant and then they say business does not work now the primary mystic number one now give you the mystic number two for me I found my five long ago every day read every day write everyday robots every day I do refractive thinking and ask myself critical questions one more time every day read every day right every day I follow what I do critical thinking or reflective thinking and then ask myself questions before I spoke to you I was alone at the lounge refracting over the message asking myself critical questions that could be in your mind and never make any presentation without going through that doc do you do that on Sunday yes because I stopped working do you do that during Christmas oh yes because I stopped working reading is no longer work for me I felt thoughts every day this is my oxygen some people tell me talk but you know what there is so much money in oil I say that's a good business you're right for me every day read every day write every day for those ask myself critical questions and I do refractive thinking sell your oil some people saw me there is so much money in construction and thus true everyday read every day write every day of all thoughts I ask myself questions I do reflective thinking am i dumb my dumbness has taken me to every continent I've talked to many interpreters I have too many stories I can't finish tonight but let me give you one I was picking Mombasa thus hosted by Casey beam there are a number of people to introduce themselves I singled out a guy who was selling tea he was 66 then and I say this guy must be a multi-millionaire a dear friend of mine by the name Jin se ho the regional manager kcb stood and say doc how did you identify the guy in the largest bank in Khost province where I see it his account alone accounts to 30% of the deposit he asked me how did you know that simple people here introduced ten businesses these guys eight since he was 19 to the 10 in sister 6 he has done one business tea business he started 70s most curious in a pickup a canter a lorry trucks containers or ships every day this is the only game I have mastered what I'm doing tonight and this is the only thing I'll do until the Lord comes for me we have failed in a concept of mastery because we are copying what other people are doing a guy told me during Q&A dr. King and Joey I sell a restaurant mimic a restaurant Iago kunam a Tsukuba sauna I lift my neck like this now Daria guarana Paraiba Naga Leah Tanaka gotta be beyond drop oh I wanna PT a hot pan as Jocasta NASA Nagar II mean of Obama too heavy so how many restaurants can here yes how many nests live audience I've ever had the name Kevin Ashley lift up your head please anonymous ever heard the name Kevin Ashley one or two hands but a hundred percent of you know nairobi java house but you don't even know the owner and you don't need to know him why acha Givi the guys offices in ABC please he has over 40 restaurants to date he's not even a Kenyan he came here when I was 22 but every day restaurant coffee restaurant every day coffee restaurant every day coffee restaurant he has what I call a business system I gotta give you some six features of a business system number one owner absence the ability to operate on you're not there if you must be in the business for it to operate hear me well you don't have the business you are the business and when you fall sick your business falls sick Jim Rohn said while products will make you money our business system will make you a fortune number two a business system feature number two our trucks talents you get people who are brighter than you more skilled than you because they feel secure there's a clear HR system clear staffing system clear procurement system they know you can't wake up one morning in a certain emotion and tell them toka and auto car number three are trots resources a business system attracts resources the major reasons some of these businesses are succeeding phenomenally is because investors have seen the system and they're ready to invest right there number four a business system scalability you can scale it if I can have Java coffee house from Agena or say the very first one Adams a kid then I can open one at kyunki I can open one at my McGinest rates I can open another one at a Baretta I can open another in Kisumu in a kuru in yearly mambas why the system is scalable if equity works in up a hill it can work integrally in Bujumbura in kampala in the reason why it's a system number five a business system has a succession plan there's a clear line between the owner and the business the business has its own life number six a business system complies with statutory requirements the average Kenyan entrepreneur has three sets of books the actual box of accounts he knows the actual profit set number two the one that goes to Kiet records losses for ten years and that set the one that goes to the bankers when they're looking for a loan exaggerated profits without realized in when you said those books of accounts of the bankers you'll be unable to service the loan why did I tell you about a business system because it is the basis of business modeling now quickly give you ten examples of business models it is up to you to choose the model that you use for your business model number one direct sales model direct sales model a lot of producers a lot of manufacturers sell either a through the retails like supermarkets or B through distributors like breweries like coca-cola that's one model at housing I've talked to these groups of people at Karachi and I've seen distributors who are exceptionally successful sometimes you don't have to start another brewery because you admire in Karachi or another coca-cola you could be a super distributor that's a model modern number to Commission model in Kenya Commission is very common with insurance but many nations Commission locks with many many organizations when you choose not to produce the product but to sell it so you don't take responsibility for the quality and standard your walk is to sell the product number three franchise model franchise model you buy into an existing business and some of you need to go that direction then you pay them royalties like KFC or mock donut or Starbucks number four freemium model now this is new lemme spell for you might be tricky for many of you free2go from the word free very common in service industries you give a service for free and then you harvest the contacts for example a beauty shop may call people for manicure services for free 90 percent free they harvest the contacts hoping that the contacts will eventually come and buy something like care or any other product number five auction model you present your products to the open market and you give the product to the competitive bidder you subject them to competitive bids number six ads on model let me spell for you a BD s - om a BDS - om ads on model a business model where you add additional features to your original promise for example I don't know how many of you can identify with this you buy a house in a gated community then the very same guys who so to your house they come back to you and tell you you need to be part of the management system because we are bringing electricity we are cleaning the comp out and they exaggerate the prices you thought you bought your house but then you have some $10 to continue paying them per month in the name of service do you identify with that people are becoming that tricky it's not in the original offering the additional features and they don't give you a choice they are compulsory number seven advertising modo advertising model common with the media houses where they don't church the consumers but the guys who advertise through them not just the mainstream not just reduced newspapers and TVs but even social media does the same you listen to my YouTube videos and you see adverts there you don't pay for that but somebody pays for YouTube and if you choose to go that direction even if you are not going to launch into the mainstream media then most likely are going to that model to recoup your investment and make your profits number eight bait and hook model bait and hook model mobile phone companies especially in Europe gave people mobile phone hot sets and then they made money through usage so the paid was the hot set the hook was the usage number nine pay on usage model pay on usage model mobile from companies in Africa used this model whereby you paid through the curtain quote minutes consumed credit consumed number ten on the last one subscription model where the investor decides to put up an infrastructure like for power or water and then you continue they tie you with a long-term contract I know afraid of mine who is in session on life trouble done that he's put up a water system where he lives and over fifty families are getting water from his borehole so they're paying him consistently but unfortunately for many of us here we think its own in Arabi whatever can do that and these options we need to think through not every one of us doing restaurant in Kenya seriously everyone overdue in a boutique seriously are you with me lesson number six products differentiation products differentiation how do you differentiate your products from the rest not the question and to differentiate yourself it doesn't have necessarily to be very major changes it can be meniscal even pure as the tick all it matters is to alter consumer perception it can be the way you do packaging or simple advertising for example and by the way I'll say this I'm not holding brief for anyone but I'm deliberately going to be mentioning local examples I'm not marketing for anyone but we need us I just want us to identify with the cases for example Karachay water they did executive water and I know some of you could be producing water I repeat again we are just using local examples for the sake of runnin is there okay executive water to me it has differentiated it so because most water companies I see the bottles look in the same like the bottles we have here I don't know whether you can you've seen that you struggle to see whether this is quencher Kelly get the sunny and I see with a lot of respect when our son Zig was little around three years of age we used to give him 7 CS and many mothers I don't know why they give children such terrible fish oil but one day the boy saw an advert on the TV scurry Masha aims me grow the boy wanted to grow he refused to take seven C's he said mama I was caught a Martian why it helps me grow that changed the primary consume of the product and the boy Corinne take seven C's anymore maybe the two cod liver oil had no single difference in the chemical composition but it has altered the consumer perception and that's what is called differentiating your product we are two types of product they're mini for the benefit of the economies in our midst but I'll mention two for the sake of Alani the two broad categories of products number one complementary products these are products that I used together for example coffee and sugar we are used together so when the B mod of one product goes up the demand of a complementary product goes up in retrospect if the price of one product goes up the demand of the complementary goes down that's why producers of complementary products should work together they should collaborate the second category of products are substitute products these are products you use in place of one another for example tea or coffee you must be very much to use tea and coffee in the same cup either all you don't use them at the same time substitute products is what ships the competition in the industry I believe with all my heart when Kenya power will get proper competition will have less blackouts in the country and those from Kenya power say Amen yeah the big deal Turk almost mr. Putin and I says it if you're from Telecom business just local real examples Telecom Kenya was busy putting posts all over the nation when the world had since moved mobile funny Safaricom used just to be a department there when they realized that we have been locked behind right now I know telecom is doing the very best they can to lead in a market lost but to refresh the memory of Kenyans and especially those telecom guys doing our middest tell command the advantage of the good of the country the asset the infrastructure but they simply did not move at the speed of the market the question you have right now for me how then do I differentiate myself I can answer that question by giving you four examples it's up to you to see how you can do it four simple examples number one Java coffee house Java differentiated through creating a strong brand and maintaining quality their coffee is the same irrespective of the restaurant you go so their quality has been consistently predictable number two uber cos uber differentiated through creating a business system now we have more professional drivers the cars are cleaner the users are more and the price is more friendly is our fact more people using taxis today with the entry of uber in the market number three equity bank to refresh your memory quit is to be a tiny tiny building society not equitable differentiated men read through financial inclusivity a concept whereby a belief that all should be burned while some other banks were busy brewing arrack customers because they did not have quality accounts equity was going for that member boga and before realizing it is the largest bank in the country by the number of customers number for example number four m-pesa m-pesa differentiated through mass accessibility and technology eventually as I speak with you tonight 15 billion shillings transacted on a day-to-day basis through m-pesa in fact m-pesa is accountable 42 percent of the GDP in Kenya through it not in million subscribers making the parent company Safari combs capitalisation larger than GDP so of economies like Swaziland Lesotho and boo Rudy that's what product realization can do for you so the real question is after this meeting what's your take home how shall you differentiate yourself in your market this takes me to lesson number seven competitive advantage I would prefer to give you four methods but in the interest of time I'll discuss with you just two because every time you get into any business as long as there is money that business people will come into that business if they don't come there then there is no money so another is Manitoba competition and if you come up with new strategies competition will react there is no final battle there is no resting place it is a luta continua producing compete or perish let me suggest to is very non-conventional of Deline or other rather in competition irrelevant the first one I'll call it blue sky strategy there is a place be you the clouds where the sky is always clear the sky is always blue a point Bude which only the ego can fly last month with a team of 10 members from since 1:1 left Club week late Mount Kenya and after a certain altitude where we left Shipton camp 4,200 meters above this syllable there was no life plant or animal it was just a slippery rock and by the time we were reaching Lilliana peak the only life we could see were a few egos hovering even the clouds of believers and the Gracias were beneath us there is a point build which competition ceases and Giants meet at the conceptual level you see small mites fight of inheritance small might fight of our loot collected from corruption because of scarcity mentality if you go to Silicon Valley I've been there a couple of times they don't fight over the things we fight for in Kenya they fight over ideas because the toughest battles have another conceptual Ram's the toughest fights are conceptual fights they fight over ideas disappoint so high that computation ceases because others cannot be the temperature and the pressure and the oxygen level so tech partnerships are formed by like-minded giants beneath the clouds are crowds the competition is live in drive atomic competition cutthroat competition Coppa cotton is the hallmark of identity similarity is the hallmark everyone looks like everyone else the area is gray duk-goo me and i want to invite you to a higher ground an area that is clear you know when you find distant places and you begin to close at 40,000 feet above the sea level remember the Everest is only $29 at that point the planes are able to get a maximum speed sometimes between nine thousand nine hundred and one thousand kilometers per hour and at that maximum speed although they are over thousand planes in the air at any given moment on this planet you never notice any other plane you never notice any other plane because the space is adequate and that's the space I want to invite you identify your blue line what's that it is not how superior you are from the rest but how different you are if I was in the jungle and were confronted by a wild ferocious tiger if everybody strategy was running away from the tiger then I don't need to be the fastest amongst us to reach home alive I only need to outrun the slowest amongst us well I may arrive home alive but that doesn't mean I can compete with using board because I was just competing with very slow people perhaps but if I'm the slowest amongst us then if I have to reach home safe I've got to get a different strategy to deal with the tiger and here's the deal precious friends brothers and sisters in real life in business the dangers may not be fatal like in the jungle but failure to get on profitability fast enough may have devastating emotional consequences that's why turnaround strategies need to be taught on the feet and implemented at heartbeat watch a blue line if somebody asked you in a language your differential factor how different you are from the rest let me give you the second strategy of rendering competition irrelevant number to identify and run your race in the 1968 Summer Olympics John Steven Avery was shaded from marathon in Mexico on the 19th minute he hurt his leg so badly that he couldn't run he dragged his feet to the finishing line he closed the finishing line one hour and a few minutes after the stadium lights had gone out and the medals were already awarded the reporters went over to him and asked him Sir what kept you running out of the stadium lights had gone out and the maid was already awarded John Stephen a worried and looked at a generator eyeball-to-eyeball and say excuse me gentlemen and ladies when my nation the country of Tanzania sent me to this country thousands of miles away they never sent me here to compare myself with the other treats they sent me here to finish the race there's a reset before you you will never be awarded for running someone else's race let me ask you it I want you to be honest with me how many days live audience can confess just be very frank just be very frank right now one day you are driving say to Nakuru just after keno there was another guy who passed ukhimath around you got so upset and stepped on that accelerator to prove you have a point graciously you are able to overcome this dude but after that shot celebration the guy turned on the left to my ma who he wasn't going to Nakuru after all how many are guilty quite some Hans you know in the race of life we get into the high of life at different times we travel at different paces we exist at different times the idea is to finish your race and finish strong and finish fade-free the good news is this you are being waited for at the finishing line don't give up a crown ahead if you stay the course but you will only be rewarded for the race you are enrolled the Apostle Paul talks about the race I have finished my race to quote him verbatim 2nd Timothy 4:7 for the good fight kept the faith finished the race else when he says run the race with perseverance disarray said before me that's the reason I wanna run it is practical let me let me tell you my own case I never ever ever check what any other speaker in Africa judges I'll even go build that and I know I hope you don't take this to be rude or arrogant I never even check how they train why do you say that dr. Kenyon Yui because I decided to compete against my previous self I decided I will never utter once I go out in public that is I know I never ever utter one I do word in public I believe it all my heart every single sentence I'm telling you has the power to transform you and I decided I will do for the audience of one the one who caught me it had decided to be faithful with that what is the benefit of that I've never done direct marketing for I do since the two 0:08 let me tell you this there is a place where you will never compete with anyone they can copy you they can look like you but you'll never become you thank you very much there is something God designed for you alone and when you run away from it there is something you're denying the world there is a need than meets you this is a responsibility that no one else can replace you there is a place where you are irreplaceable identify that please and if you haven't identified I plead with you my precious friends I do this this is the reason I take people for the cruces lot took people to Egypt three days of thus teaching them to connect to their purpose in three weeks time I'm taking guys from Singapore to Malaysia to tell ad in the high seas to connect to their purpose in order to do the same from Saddam Tony in the UK or dari to Italian back I know you're live for those cruises but you can plan to join us next year April if you can't manage that you can't afford there is therefore now no condemnation this is what you can do come on that team of October we have a cross program for you here local with a quarter of hours of transformation from 7 a.m. to 7 p.m. at Lillian towers and I'll help you connect your god-given talents you connect the dots between your god-given talents the resources at your disposal the skills you've acquired and your deepest passions and interests there's nothing more dangerous than walking through this life never knowing the reason for your existence what if you reach the end of the road and realize it was all wrong you never lived your god-given assignment was perishing within you did you know God has no afterthoughts everything that you need for your life is already in you God declares the end from the beginning there's nothing you'll ever need that he has not given you God doesn't wait for you to recollect who you are and correct yourself and then release your gifts anything you ever need for your purpose is trapped within you lesson number 8 can you get an average team execution now maybe you'd be more interested for me to teach you technical skills about business the reality is the most important skill you'll ever learn about business is about people if the soft skills they poor work very hard with their hands the rich work very hard using your hands while the poor concentrate working harder and harder the rich concentrate on building people great entrepreneurs long ago that you don't build a business you build people and then people build the business have you ever heard someone say I don't know what's wrong with people I don't understand them what's wrong with them if you don't know if you don't understand people you have no chance to run business business is a democracy business is done by people for people through people if you can't get along with others a eucalyptus tree that requires a lot of water has a higher chance of survival in the Sahara than you I have so much to say about team execution let me just draw you some 10 gems very quickly some 10 gems food for God food for thought number one understand your team people have different temperaments and personalities they are going through different seasons they have different tastes they work at different speed don't compare them do not even compare customers do not tell employees if I was yet it could have happened like this like this you are not there if you toss me why it's not you they can talk like you you've got to bite the bullet that we are all different number two protect your team emotionally don't hear each other in public correct them in your privacy let them know that you want to protect them emotionally when there is faith in the future there is power in the present employees have the same needs just like the employer they want to take their children to good schools they want to go for holiday they want to drive nice cars just like you when they realize you care they care for your business they don't care how much you have they care how much you care number three role model your team mode of the language you want them to use do you want them to go away you go early don't tell them what to do leave them in what to do if you're a businessman a woman that you came for this conference after this don't tell them what I told you show them what I told you don't be a travel agent pointing to places you've never been take a walk and then make an invitation to where you are you cannot effectively teach what you consistently model murder the behavior that you want employees to use guess what this is profound treat your employees the way you want them to treat your finest customers timid employees are a reflection of an intimidating boss confident staff members are an indication of a boss who are schewe them over and over again if I come to your office and your secretary bullies me it tells me the kind of a person the boss is you don't you don't produce who you want you produce who you are you don't attract who you want you may want to attract cabinet secretaries in your life governess in your life but in reality you don't attract who you want you attract who you are you produce your type you produce your kite number four connect with your team members create the time don't be mechanical create a humane environment go there when they have our loved one who has died study them when they have a wedding can you imagine what we do in Kenya funny behaviors someone loses a loved one and then the first thing every Kenyan does like like like what are you like in please if I've lost a loved one don't like it if you can't come to see me just pass leave it you can't begin to like what are you like him it is not enough to give a street boy he some bread it takes more effort to go and pick them take them to a restaurant and then embrace them that's the time you see God in you number five learn to communicate don't leave them guessing when you don't give people information they fill in the gaps they decide the story for you assumptions are the termites of relationships don't make assumptions agree the communication policy for example refuse to text at midnight be clear with your communication channels agree that you're going to put it in writing make a two-way make it a dialogue number six learn to listen every time a company collapsed and employees were interviewed the first one thing we said we knew we were collapsing but nobody was listening have you ever thought about this everything you see you already know unless your mother a kiss every time you open your mouth to speak you already know what you about to say you begin to learn when you listen a lot of people listen with the attitude of replying the reason we are listening is to give a response I add you to do something different there are medically different listen as though you are meant to make a presentation of what is being said when you listen you don't just hear what is being said but you hear what is not being seen you get to know what they know and then you identify the gaps you get to know what they do not know number seven empathize with your employees empathy is not sympathy sympathy is feeling for empathy is feeling with another human being listen into the nonverbal cues including body movements and gestures using questions to clarify whether you understad their emotions appropriately acknowledging their feelings even if you disagree with them and refusing at all costs to be judgmental or to belittle their feelings Priska you came together you've just met here oh good men are linear women are cyclic one of the lessons I teach is women are linear and women are cyclic and I teach it at mode kilim iboga twice a year on top here is a lady with a very warm jacket he is a gentleman with a shot only be in the same venue one is feeling hot one is feeling cold and they are both right don't fight over feelings you know they a lot of couple who fight we have just eaten hey are you hungry excuse me are you cut are you carrying his stomach feelings are not positive they are not negative we are just feelings so brother it is a very cold even in period system it's a very hot evening and let's not fight over it people are divorcing over feelings we can be in the same place that we have in different feelings do not be literal any other person's feeling even in your marriage not even in the office is that okay you miss it thank you thank you thank you very much I you know buy it dig for the gold dig for the gold there is something good in every person look for the good what we praise is more likely to flourish than what we caught them there is no company that was put up by superhuman but average men and women who are given an opportunity you will get what you're looking for I assure you if you're looking for bad people you will see it if you're looking for food you will see it you see some people give their food fighters as though there is a reward for it if you're looking for God you'll see it I used to teach at the University of Nairobi in J quad both masters and PhD classes and I used to start the classes on part-time basis I used to start my classes by telling students so I'm about to tell you when you're mining gold you remove tons and tons and tons of that but you don't go in there looking for the dirt you go in there looking for the gold you develop people by looking for the gold in them not the dirt in them the gold could be a small of this glass and the dirt could be trucks and trucks and trucks dig for that gold look for the good in that pisaq you will see it number 9 land to a spot not to react sometimes we be upset they were late to take the tender they missed it with five minutes you have a choice to make you can hit the silly and call them names of our domestic animals but the Ted I still not in the tender box is that a fact what is changing the situation is not changing it is just making you more upset as a business leader composure is not an option one incident accurate to made Moses means the land of promise he's chalk the rock and then he broke the tablets and he missed the land of promise don't lose your cool don't lose your composure they will never do things perfectly but to his perfect are you know number 10 on the last one believe in your team show your employees that you don't trust them and they will go an extra mile to prove they're jacks show them that you trust them and they'll go an extra mile to prove you're trustworthy they eventually give you what you give them learn to trust them delegate but never lose control be aboveboard but let them know you believe in them I've found them speak it your thoughts don't bless them love never spoken is not love you've got to speak it verbalize it and let them hear you say I love you I need you say it although this is the only person who matters in your business you'll be surprised to go an extra mile to deliver for you in all likelihood before I give you the 10 sources of business funding no matter how gifted you are none of you will retain 10% of what I've spoken tonight in the next two months no matter how gifted you are this is my suggestion for you I have a program which anna-marie there are 10,000 it's done online the same same thing you've done right now it's available online not YouTube I many of you listen to me on YouTube but I know money sell them at ten thousand you cannot download it you can only go through it on right good news is this you can study from your kitchen from your sitting room from your office in the planes in the trains in the cars the program is just indefinitely you can even study from your phone let's go to business fighting can we go there ten of them number one what is in your hands that's my first question number one what is in your hands if you have nothing in your hands you have nothing to give the world I was at another graduate student when I began speaking to students in high school I knew those days I couldn't speak to corporates I spoke to the people where I qualified to speak to some of the schools I went they invited me to speak to parents in those parental meetings some of the parents who heard me speak were corporate leaders we began to invite me in their companies have not travelled virtually in every continent but it began with one question what is in your hands it is only true for me absolutely not Douglas and Jacob left more University age 24 and 25 I carried Jacob he's here in our midst you can look for him after this I carried him he asked me questions about something he wanted to do and finally the longest Africa car a car tracking system using mobile phone you have gotten awards in four countries Tony Idris he's in a Mideast again you can talk to him after this and he a friend of mine who did mass communication the investor Nairobi he asked himself in those days when there are no jobs in Kenya what can I do with my hands he decided to become a hair stylist most of you who follow me on social media you know up launched a business in beauty I don't run it it is run by my master who is together with me here we have a couple of them and some of the products we use are Tony arrows products because the guy so obsessed with quality and standards he insured even his products meet the same criteria my friend Peter Canova did the same he loves it in the night and when he's so nice and lovely he saw the troll read at two billion shillings and I've written a story of kanuda right in his book of you don't need a job because this book I analyzed eight stories of eight successful Kenyans who started from scratch and how they succeeded can imagine Kanodia sued nice and lovely at two billion Kenya shillings he didn't sell a factory he didn't tell anything you can touch just a brat he just gave the name and two billion went to his bank account where is the money coming from number two own savings yeah the deal most entrepreneurs were employed somewhere that's a fact and most of you listening to me here tonight you employed somewhere that's a fact do not leave hard to mouth if you do not learn the discipline of saving why do you expect other people to invest in your idea it's much easier to say look I have seven three hundred thousand shillings can you talk me up with seven hundred thousand because you put your treasure there it means you put your heart there where is the money coming from number three financial institutions Tsakos MFIs banks the bank is the only place where the poor and the rich meet the poor takes the money to the bank and says fix the money in a fixed deposit account for the next three years I have no idea I'm so poor with anything I don't know what to do just fix it fix it I'm empty for three years fix it and the rich man rich with what rich with ideas goes for your money if you feel loans you definitely have not clarified your thoughts you are fearing failure you cannot control the risks you manage risks but you cannot eliminate them so banks exists to support you they have supported me and I'm studying here to tell you before he was president Dona Trump say this I never bought anything that I could afford if you only grow through in your pocket as nil is faster where is the money coming from number four supply us of goods and services one of our members incense on one life club I don't know whether she's in our meetings tonight Melanie we took her she borrowed two hundred thousand for my mama to pay her cash on libras when she decided to get into construction an industry that is predominantly mill it this such male chauvinism in construction that even they put a road sign Maine Heart Walk but Melanie decided to get in there the first letter she got from the lock from the CDF was 1.5 million she didn't have the rest but she was able to do that Ruth primarily because she got partnerships with suppliers of machinery equipment caterpillars and then she used to be paid again a certificate as the traditionally doing roadworks the next project was five million the next project was twenty million she was finally awarded in 2014 the National woman contract of the year and in 2015 the Africa contract a woman of the year but there many times she felt like quitting I've been mentoring Melanie every time I go to kazuma she'd race all the way from Kaka mega dog please can I get ten minutes with you just ten minutes and of course she knows if she meet me she cannot resign and I told her this is the reason I'm registering this book don't embarrass me you must win where is the money coming from number five from your customers the interesting thing is this in my training profession almost always somebody pays me 30 percent advance they pay my flight they pay my hotel accommodation together with my personal assistant now this is money in kite capital in kite why my reputation every time you occur in your customers dolorous advance you and even if they don't advance you do not delay payments which in itself is capital because one of the things that destroy businesses is delayed payments where the money coming from number six partners sometimes we may decide hey there's something I can do I'm good in teaching but I'm not good in marketing get a partner in marketing to complement you or I'm I'm a pharmacist but my friend is not he's an accountant he can be registered to run this but he can be a finance director if people can't give you money clarify your vision people don't give people money people invest in a vision even the Lord taught as much when you go before the Lord to make your petitions clarify your thinking because God knows is very impressed with people cannot honor their vows do not use repetitious words Jesus thought as the Pharisees do be sure in what you ask him be precise where is the money coming from number seven strategic investors the difference between investors and partners is simple partners come in the business to run with you investors give you the money they don't come into the business initially they may want a report at the end of the month after that they may ask you on quarterly basis then annually investors are people in excess money that we are not using they are comfortable your own business but they don't mind investing in a shop brain in a shop idea where is the money going to come from number eight project finance those of you know middest who have interest in real estate I want to give you a secret here you can add up doing so well in real estate without ever spending your own money that's exactly what integrins did with Kenyatta University when you are putting the ten thousand hotels they came up with a contract we call it a special purpose vehicle so you get a contract from the engineer's from the attics from Canada inverted that gives the land and is the same thing that the governor for machakos honorable Alfa Muto suggested to the private investor through a PPP arrangement if you're interested in real estate particularly how to make use of project finance which is different from financing projects financing projects is getting money from the bank and then you find out that the construction project maybe or in some apartments project finance is coming up with contractual agreements and I'll take you through of the contracts concessionary contracts where the money coming from number nine venture capital venture capital venture capital is coming to the business they give you the money usually after a period of seven years they probably investment and the profit and they leave you to run the show no matter the interested with three areas I City NIJ and climate change how many of these live audience I've ever heard about the guys calling himself the Sharks the shots fantastic these are venture capitalists where is the money going to come from number ten on the last one negotiate on a profit sharing scheme with a collapsing company that's not funny never wash it on a profit sharing scheme with a collapsing company now I'm not joking on this point I know we have many people here from equity bank but this is exactly what dr. James monkey did equity was a building society that was not doing so well when dr. monkey went in there and it is human now as an executive director starting in finance he became the turnaround see you this is the story of James Moria when st. Thomas on it needs today's centum is the best performing investment vehicle in East Africa he became the turnaround see you and so I invite you to rethink about that don't always join the companies that are doing well get to someone who is ready to the doldrums and prove your worth you see the average person wants to be paid based on the number of hours they work the strategic mind wants to be paid based on the value they add the average mate is complaining a half all for twenty years and they have not promoted me and they have not given me a salary raise the strategic might does not complain about how many years I've been working this company they check the value earth or difference of I made since I came here that's the difference and is the kind of a person who can say wait a minute why are you closing already why are you closing kogoro Foods Minich these companies closed last year last year but one many of them closed we just need one of us here to see I think perhaps softer needed a strategy to get it right I want to make my parting shot if people like you they'll listen to you if people trust you they will do business with you do not deviate business funds plough back it takes six to 18 months for the average business to stand do not confuse in comes with profitability keep your eye on profitability if accounting and Finance is not your thing hire a professional consultant to come once a month they don't have to be employees agree on terms they come for two three hours to keep your books right while I spoke about a business system at the preliminary stages of your business you've got to build on sweat equity in a corporate world you had structures there was a marketing department there's a procurement department there was a HR department but now in your business you ability girl they see you the marketer the sweeper the guy who opens and the one who closes the shock Saru the pride say no to inhibitions don't let the grease that between you and your business the best marketers in Kenya diploma holders because many of you graduates you allow that degree you allow your degrees to interfere with your education if you need to buy something downtown so low your pride they don't kill people in Canoga route go there lady numata two does not define you there's not anywhere that gives us ignitions there's nothing you drive that gives you value your value comes from God and so finery lean not in your own understanding proverbs 3:5 trusting the Lord God with all your heart ultimately all said and done it is God who leads upon and puts down one promotionally that comes from the east or from the west put your trust in the Lord your God I want to tell you this for a fact if you analyze all said and done it's God who leads a person and puts down another one and therefore I command you to the one who owns cattle in a Thousand Hills the Lord bless you and keep you the Lord bless you and be gracious to you the Lord bless you and turn his face toward you in Jesus name you

Channel: Dr. K. N. Jacob

Views: 99,419

Rating: 4.7881622 out of 5

Keywords: Venture Capital, Project Finance, Business Modelling, Shark Tank, Business Success, Business, Conference, Business Money, Money, How to, Job Opportunities, Starting Business, Entrepreneurship, Business Management, Motivation, Competitive Advantage, How to Succeed in Business

Id: jlILvNEO0j4

Length: 87min 52sec (5272 seconds)

Published: Mon May 21 2018