Building a Resilient Business (in Nigeria)

Despite entrepreneurship being one of the main pillars of the economy, it is still extremely challenging to conduct business successfully in Nigeria. This is due to various unforeseen and unstable factors that can impact the business environment, such as low capital, infrastructural inadequacies, economic volatility, government policies, insecurity, etc.

A good illustration of this was the COVID-19 Global Pandemic which forced the world to stand still. So many businesses in Nigeria went from churning a consistent profit to complete bankruptcy. However, despite these challenges, there were still many businesses that thrived by learning to be resilient. In this article - we will explore business resilience and tips for building a resilient business in a growing economy like Nigeria.

WHY IS BUSINESS RESILIENCE IMPORTANT?

Business resilience is the ability of an organisation to withstand and recover from disruptions while safeguarding its personnel, assets, and brand reputation. In the current dynamic and unpredictable business environment, it has become increasingly important for businesses to be resilient. Business Resilience Management is key to business survival in the face of rapidly changing IT, cyber threats, and regulatory environments.

It goes beyond traditional disaster recovery and business continuity approaches. It encompasses a broader perspective, including post-disaster strategies to prevent costly downtime, fortify vulnerabilities, and sustain business operations despite unexpected breaches. It recognises that preserving business processes and workflows is essential for organisations to weather unforeseen events successfully.

Examining real-world examples of business resilience can provide valuable insights into its importance and impact. One such inspiring case comes from ‘TVP World of Wonder’. a growing company that has exhibited remarkable resilience over the past few years.

TVP is a business designed to curate unique and unforgettable experiences for people through various mediums, such as travel, games and more. The company has faced several challenges, including the economic volatility in Nigeria, the dwindling exchange rate, the COVID-18 pandemic, and various immigration restrictions. However, through resilience, TVP was able to overcome these challenges and continue to grow.

When they started, their primary focus was the luxury travel arm of the business, with group trips as their main source of income. However, this changed with the COVID-19 restrictions on movement and travel, making it impossible for group trips to remain lucrative. In a bid to survive, TVP had to shift their focus to personalised experiences - hosting more personal and corporate trips. To subsidise their losses during foreign currency transactions, they explored partnerships and collaborations with airlines and hotels to secure deals and discounts for their clients while maintaining a premium standard.

TIPS FOR BUILDING BUSINESS RESILIENCE

• Having a Solid Business Plan: A clear and comprehensive business plan is crucial to building business resilience. It should include a detailed market analysis, competition, finances, and operations. It should also outline the business’s strengths, weaknesses, opportunities, and threats and include a well-defined strategy for growth and expansion. It Is important to have a clear plan for growth and be ready to adapt it to current market realities.

• Diversifying Cashflow/Revenue Streams: Relying on a single revenue stream can make a business vulnerable to disruptions. Diversifying cash flow and revenue streams can mitigate this risk. To mitigate this, businesses can expand into new markets, develop new products or services, or establish strategic partnerships with other businesses.

• Invest in the Right Team: Building a resilient team is essential to building business resilience. It is important to hire employees with the right skills, experience, and attitude. A diverse team can also bring new ideas and perspectives to the business, making it more adaptable to change.

• Customer Loyalty & Trust Building Stronger Customer Relationships: Building strong customer relationships is essential to building business resilience. This can be achieved by providing excellent customer service, responding quickly to customer complaints and feedback, and building a strong brand reputation.

• Having a Crisis Management: A crisis management plan is essential to building business resilience. It should outline the steps to be taken during a crisis, including communication protocols, contingency plans, and procedures for managing the crisis. It should also include a plan for post-crisis recovery, including steps to rebuild the business and regain customer trust.

THE ROLE OF TECHNOLOGY & INNOVATION

Technology and innovation have become essential tools in building business resilience in Nigeria, and companies like Brass have embraced these advancements to thrive in today’s fast-paced business environment. Founded in 2020, Brass is a prime example of a business that has harnessed technology to its advantage and capitalised on its benefits.

Brass leverages technology to automate routine tasks, improving operational efficiency and saving valuable time. For instance, opening a current account with Brass can be done online, eliminating the need to physically visit a bank branch. By embracing technology, Brass has streamlined its processes, allowing entrepreneurs to effortlessly access banking services and carry out transactions from the comfort of their own devices. For example, Brass’ comprehensive Payroll product allows entrepreneurs to seamlessly manage their business payroll, set up salary payments in multiple locations, create teams and much more.

Innovation is another key aspect that contributes to business resilience. By continuously exploring new ideas, products, and services, the business can identify growth opportunities, secure a new revenue stream, anticipate market changes, and enhance customer satisfaction. To illustrate using ‘TVP Games’.

At the apex of the pandemic, TVP was forced to completely shut down operations. Since there was no travelling, they had to develop innovative solutions that could still cater to experience creation for their customers. This led to the birth of the second arm of the business, ‘TVP Games’, which affords people the experience of travelling the world from the comfort of their homes. Though the medium of service evolved, the mission remained the same.

By embracing technology and fostering a culture of innovation, businesses can build resilience and thrive in today’s challenging business environment. As more companies leverage technology and innovation, the Nigerian business landscape is poised for continuous growth and success.