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Crowdfacture Could Become The Tesla Of Africa

Gudtalent Chrisent

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Crowdfacture

Yes, Tesla (TSLA) is currently one of the top manufacturing companies in the world right now, yet it is so young compared to other manufacturing brands.

Here is why,

Tesla has managed to use modern technology to scale up and become one of the top companies in the world with over $700 Billion in valuation, making it the highest automobile manufacturer in the world and seconded by Toyota.

Some people call Tesla an overhyped company, but let’s appreciate the fact that Tesla’s competitive advantage comes as a result of its dedicated emphasis on research and development (R&D). In fact, many of its rivals have admitted that Tesla’s electronics far surpass their own—a teardown revealed that its batteries and AI chips are roughly six years ahead of other industry giants such as Toyota and Volkswagen.

On this end, Crowdfacture is an African-focused community-driven manufacturing and distribution company with a focus on food production and processing (even though it is poised to go into other sectors).

While Crowdfacture never made any claims about wanting to become the largest manufacturer in Africa, Let’s also appreciate the fact that this is a company that is first to design and build on this kind of business model around manufacturing where it gives anyone the opportunity to become a co-owner of a manufacturing and processing line for life.

Crowdfacture is not playing into car manufacturing like Tesla but got huge potentials and fast growth toward reaching its goals of helping solve the problems of Nigeria by improving local production and creating jobs for the unemployed Nigerians.

Just like Tesla, Crowdfacture is also leveraging on dedicated research and development (R&D) to launch its production lines across several sectors that is considered very vital and crucial to the economic growth of Nigeria.

The company is also promising to back 3rd party manufacturers to foster the growth of other promising manufacturing companies by dedicated founders/manufacturers.

If all things being equal and core goals delivered, Crowdfacture stands a chance to become a fortune 500 company on or before 2030 with a complex production and distribution chain across the shores of Africa.

I personally believe this will be a highly valuable tech company in Nigeria just like what Flutterwave, Paystack, Sumotrust and the rest have done in the fintech space.

It is time to produce and manufacture locally and cut down on the high import rate.

Join Crowdfacture and become a co-owner of a manufacturing line for life. Enjoy 30% dividend on your investment.

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I'm that Lazy and controversial entrepreneur, Popularly known for my Quora Secrets. Founder and CEO of SumoTrust, Motute and CrowdFacture. Read about my Bio at personal website. Connect with me on Facebook, Twitter, Google, Linkedin and Instagram.

Business

How To Own A Fast-Food Franchise In Nigeria

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Would you like to own a fast-food franchise in Nigeria? Well, a fast-food franchise also known as quick-service restaurants is a business with almost instant clients. It is one business opportunity which business visionaries can bounce into and make cool Returns On Investment (ROI) within a very short time.

Fast-food franchise business includes banding together with ready-made fast food brands like KFC, McDonald’s, Burger King, Mister Biggs, Chicken republic, Tastee Fried chicken, and other fast-food brands. Fast-food franchise owners pretend to be the real brands in the area they set up their business whereas they are just cover entities for the real brands they are franchising with.

Although setting up a franchise business is not cheap, it is rewarding and brings a lot of profits within a short period.

Fast-food joints also are known as eateries are patronized by almost all age-groups and ever-occupied workers like bankers and medical personnel often resort to eating at these joints.

How To Own A Fast-Food Franchise In Nigeria

How To Own A Fast-Food Franchise In Nigeria

As a fast-food entrepreneur, there are a ton of objectives you offer to your clients. One of such is the fast and efficient nature of the business. This means that food can be packaged for take-out at any time.

Another value that fast food entrepreneurs offer to their customers is the convenience and affordability of fast food. As such, many people prefer to buy ready-made foods at fast-food outlets thereby saving themselves the stress of making their meals.

Now, having established the background, what is a fast-food franchise business?

A fast-food franchise means your business will ride on the personality of an established food chain. You will be a retailer bearing that established chain’s name and operate as a branch of the company that you franchise with instead of being a solitary business trying to make your way in the gigantic fast-food industry.

So, what are the benefits of buying a fast-food franchise?

The Benefits of Buying a Fast-Food Franchise

The advantages of buying a franchise are many and huge when compared to starting your own fast-food business from scratch. Below are some of these benefits;

  • You don’t have to stress yourself whether clients will like your product as the real brand has already spread their products.
  • You don’t have to worry about designing a logo, copywriting, and advertisements as the real brand has already worked this out for you.
  • You don’t have to stress over the amount you should charge for your services as this has been set and is already know to the public. All you have to do is sell, market and manage the business.

These advantages apply to other forms of Franchise and you can find more on the advantages and disadvantages of franchise business in Nigeria in this article.

Steps To Owning A Fast-Food Franchise In Nigeria

There are four steps you need to follow before starting a fast-food franchise in Nigeria. They are

  1. Research,
  2. Apply,
  3. Fund,
  4. Obtain the legal permits, and
  5. Operate.

1. Research

Just like any other business, you need to formally research the business before venturing into it. Exploring the fast-food industry in Nigeria will help you, to see how things work in the industry. It also outfits you with necessary and detailed information about the impositions of setting up a fast-food franchise in Nigeria.

Before setting up a fast-food franchise in Nigeria, you should know the Federal and State laws governing the industry and the policies and permits needed in setting up a fast-food franchise.

For a list of legal requirements and documents you need for establishing a business in Nigeria, please check this article.

Also, it is important that you study the franchisor’s brand to have an idea of the business and intellectual property rights you will be buying or inheriting and implementing in your franchise from your franchisor. This research also enables you the intending franchisee to know the help/assistance that you will receive from your franchisor.

Likewise, research helps in anticipating the expenses for setting up the business. These expenses include all the charges the franchisor will demand from you, the intending franchisee.

When doing this research, you should visit other fast-food franchises working with the franchisor you intend to work with to gather relevant information.

2. Application

After conducting deep and detailed research on your intending franchisor, the next thing to do is to apply to the prospective fast-food franchisor of your choice. The franchisor will provide an application form for you and provide you with information concerning the franchise.

The information which will be provided in the form of a brochure or videos will provide a guide to you, the intending franchisee in filling the application form.

In the application form, you the franchisee will be required to provide information like your bio-data, education, experience, and business interest. The franchisor will use this information to see if you deserve to be added to their brand.

After this, if the franchisor agrees to let you in, you will be given a Franchise disclosure document. This document gives detailed information about the role of the franchisor and the franchisee. You will also find the royalty-fee(s) and the manner of its payment in this document.

This document gives chance to you the intending franchisee to decide whether you are still interested in the franchise or not.  If the two parties (i.e., the franchisor and you) agree to the terms of the application, then the both of you can enter into a franchising agreement. It is recommended that the franchisee should consult an advocate before signing the franchising agreement.

3. Funding a Franchise

After signing the Franchising agreement, the next thing to do is to fund the franchise. This is very important as you cannot start the business without funding the franchise.

More often, the franchisor helps the franchisee with the funding. This is later repaid in the form of royalties or percentage profit. Franchisors that do not provide funding usually guide the franchisee on how to obtain the funding.

This funding is used to cover all the working expenses require to start a franchise which includes buying inventory, buying machinery, staffing, and obtaining permits.

4. Obtaining Legal Permits

You cannot start a fast-food franchise in Nigeria without having the required legal permits to do so. Although there are no specific legal frameworks guiding franchise business in Nigeria, certain principles are applicable to fast-food franchises depending on their location in the country.

Some of these legal frameworks include obtaining a permit from the State’s Ministry of Health to ensure that you are complying with the basic health measures and also that you are working in a safe and clean environment. Also, the National Agency for Food, Drug Administration and Control (NAFDAC) expects you to take a general hygiene practice before starting your fast-food franchise.

Other permits that you are required to have before commencing your business includes a tax clearance certificate, a business registration certificate, and an intellectual property transfer certifications. See a list of other certifications, legal documents and permits you should get for your Fast-food franchise here. In some cases, the franchisee may not obtain these permits because they have already been obtained by the franchisor.

5. Operate

Once you’ve put everything needed to be put in place, you may proceed to run the business.

Conclusion

Franchising a business has many advantages among which are that you will get support from your franchisor, you don’t have to market your brand or at least take full responsibility of the marketing, and it is a tested and trusted business model.

However, there are disadvantages with starting a fast-food franchise in Nigeria and some of these disadvantages are arguably the reason why many of these fast-food franchises don’t last in the country. You should know about these disadvantages by going through this article which explains the disadvantages of starting a franchise in Nigeria including fast-foods.

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Advantages And Disadvantages Of Franchising A Business

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There are several advantages and disadvantages of franchising a business. This article explains them one by one. before I get into the full review, what does the term, franchising mean or what does it mean to franchising a business?

Franchising is defined as the practice of utilizing a brand for a given period with the intent of making profits. The proprietor of the business that is franchised is known as the franchisor while the individual or organization that gets a franchise is known as a franchisee.

Enterprenuer.com defines franchising as, “A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offer assistance in organizing, training, marketing, merchandising and managing in return for a monetary consideration. Franchising is a form of business by which the owner of the business [the franchisor], service, or method obtains distribution through affiliated dealers known as the franchisees.

Popular examples of franchised businesses in Nigeria include Chicken republic, Tantalizers, Mr. Biggs, Total, Forte Oil, Mobil, ABC transport, Ekeson, Mc Donald’s, Tranex, Nobel, Oando, Samsung, Tecno, IPhone, Infinix among others.

I have a case study article that explains one of the above-listed forms of franchise in Nigeria – fast-food franchising. It shows step-by-step how to start a fast-food franchising in Nigeria. Get the article here.

Now, let’s continue.

advantages and disadvantages of franchising business

Advantages and Disadvantages of Franchising a Business

Before you settle on what franchise you want to purchase, make sure that you comprehend or have a concrete understanding of the business and business model that you want to enter into. Choose a product that is highly demanded and spend time and energy to research on the product.Also, you should find out about the competition in the region and set sensible targets. Get a legal practitioner to look into the franchise agreement and hit the ground running rather than face the pressure and slip-ups of beginning a business off the ground.

In this article, I discuss some broad advantages and disadvantages which any intending franchisee considering a franchise agreement ought to take note of.

Advantages of Franchising a Business

(1) You Will Get Support from Your Franchisor

When you franchise a business, you stand a high chance of getting support from the franchisor. This support includes training, finance, funding, and discounts. Lack of support in dealing with public authority and other parties is one of the major problems that small business owners experience.

When your business is franchised, you will get a lot of support from the franchisor to deal with this.  Also, you will benefit from the economies of scale from the bulk purchase of materials thereby significantly lowering costs for your new business.

(2) You Will Spend Less on Marketing and Branding

As the real brand has already spread its products, you will spend less or even nothing on marketing your business. You are saved from the stress of coming up with a Brand Logo Idea, Flyers, Banners, Television commercials and other forms of advertisement as the real brand has already done all these.

(3) Employing Staffs May Be Easier

Most top quality staffs prefer to work for an established brand. As such, they apply for jobs in these brands more than in new businesses. If you franchise your business, the name of the brand will attract these staff to apply for jobs thereby giving you the opportunity to enlist from the best among them.

(4) It Is a Tested and Trusted System of Business

Over the years, thousands of people have franchised their business and did well. For you to choose a company as a franchisor, that company must be well-known and successful. If you are frail in sales and marketing, at that point franchising is the most ideal alternative as there is an instant market from the brand name alone that you are franchising with.

Disadvantages of Franchising a Business

Like any other business, franchising has its disadvantages, although the advantages are by far more than the disadvantages. I will balance this discussion by telling you the disadvantages of franchising a business.

Below are some major disadvantages of franchising a business:

(1)  The Start-up Capital is Expensive

Most franchises are very expensive particularly the more fruitful ones. Franchisors have norms and expect their franchisees to live up to them. From construction materials, machinery, raw materials, staff uniform, franchisors have high standards which the franchisees must live up to. For example, to set up a fast-food franchise, you need up to $750,000 which is equivalent to N285,750,000.

(2) You Are Mandated to Pay Stipulated Royalties

In return for the branding, advertising, and operations a franchisee has to make a yearly royalty payment to his franchisor. Irrespective of whether he benefits from these things or not, this royalty must be paid.

If the franchise is foreign, the payment must be done in dollars or any foreign currency of the franchisor company. This opens franchisees to exchange rates problems and devaluation risks as the Nigerian currency has never been stable.

(3) There is No Secret in the Business

As a franchisee, you have to keep your franchisor updated about your developments. Therefore, they know when you are doing well and vice versa and based on this information, they might take certain actions for or against your favour.

(4)  Lack of Support

Though this is very rare, some franchisees suffer from lack of adequate support from their franchisor. This is because in some situations, brands decision must be taken to the head office before it is made or before approval is given. This slows down decision making.

(5) There is little or No Room for New Innovations

As a franchisee, you will be operating under a fixed template of the real brand. So if you like coming up with new ideas always, you better don’t opt for a franchise. In short, these are the major advantages and the disadvantages of franchising a business. Although there are other minor pros and cons, these are the major ones. By the time you have finished reading this article, I hope that you make a decision of whether to franchise your business or not. For a clear explanation on this concept, see by step-by-step guide on how to start a fast-food franchising in Nigeria.

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Top 10 Startups In Nigeria To Watch Out For In 2021

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start-ups should prepare for investors

There is no doubt that Nigeria is a very tough place when it comes to doing business or founding a startup. However, despite the challenges faced by startups in Nigeria, more and more of these are springing up trying to meet the needs of Nigerian and the world as a whole. Some of these startups have been blossoming over the years.

startups in Nigeria to watch out for in 2021

10 Top Startups in Nigeria to Watch Out for in 2021

This article reviews some of these startups in Nigeria to watch out for in 2021.

1. Sumotrust

SumoTrust is a platform that automates the process of saving and investing for its users. It is designed to help you manage your finances better by regularly saving up for you and giving you an interest of 10-15% on your investments annually. This platform was created to encourage Nigerians to save and invest more. It is targeted mostly at the younger to medium age group. You can start saving on this platform with as low as 100 Naira and enjoy all the benefits it comes with.

Related: Comparing SumoTrust Vs PiggyVest Vs CowryWise

Here are some of the features of the SumoTrust Platform

  • Hedge Fund investment of up to 24% per annum
  • Account Security
  • User-Friendly interface
  • Group Saving
  • NUBAN Account
  • Money Transfer

5 Key Reasons Why You Should Enroll on Sumotrust Today

SumoTrust is a great platform for those who are looking for save or invest some money. Below are some of the benefits of choosing SumoTrust as your savings platform.

  • Secure Hedge Fund Investment: Sumotrust is the only savings platform offering hedge fund investment for users with medium to a large amount of money looking for security on their investment. With a minimum of N500,000 to as much as N100 million, the SHIFDA fund allows users to earn up to 24% secure returns on their investment per annum.
  • No Hidden Charges – Many people save their money in commercial banks and end up getting charged for things like maintenance fee, SMS alerts, etc. You do not have to worry about these charges on SumoTrust. They do not charge you for SMS fees nor withdrawal fees. SumoTrust is totally free.
  • Great Security – SumoTrust boasts of a highly secured platform even in a case of a hack, your bank details and money would still be secured. They use the highest level of security to keep the funds of their subscribers safe. A 256 bits SSL security encryption is used to secure the platform and it also uses a powerful block chain security protocol to make sure its users account is absolutely safe.
  • High Interest Rate – You stand a chance to earn interest as high as 10 – 15% on your investment annually (0.83% monthly and 0.028 daily) on this platform. Nigerian banks do not give an interest rate as high as this, and even if they do, they end up sucking it all up with their maintenance and SMS alert fees
  • Creates an Avenue to Learn and Connect – Another incredible benefit of this platform is their provision for people to connect and collaborate. You will have access to Nigeria’s online business academy (Motute) owing to the fact that SumoTrust has a partnership with these entrepreneur platforms.

To start saving on SumoTrust visit sumotrust.com to sign up.

2. Bundle Africa

Bundle Africa is a startup in Nigeria which amongst other things has an application through which people can send and receive cryptocurrencies (digital currencies like Bitcoin, Ethereum, Litecoin, etc.) and fiat currency (regular money) to people free of charge. With the Bundle app, you can send money to anyone on your contact list, you can even request money from them. This is possible as long as they also have this bundle App installed on their mobile device(s).

Basically, the Bundle app gives one the opportunity of buying, selling and depositing cryptocurrencies and also allows one to securely store cryptocurrencies in his/her Bundle wallet.

The Bundle app provided by Bundle Africa is a fun app to use that makes money transactions easier. You do not have to worry about unnecessary bank charges as bundle app does all transactions for FREE.

Here Are Some of The fundamental Things that You Can Do with Bundle Africa App:

  1. Send and Receive cash or crypto instantly

Bundle makes it very easy to send and receive cash or crypto for free. You do not have to carry cash around in your wallet with the bundle app at hand. All you just need is a few taps and you have paid for a meal or refunded your friend of some money you owe him.

  1. Send cash or crypto to your contacts not on Bundle

Maybe you need to send money to someone and they are not on bundle yet, you do not have to worry. You can send them cash or crypto through their phone number for FREE. All they need to do is to download the Bundle app to receive it.

  1. Buy and sell crypto

Bundle app includes a feature that allows you to buy and sell cryptocurrencies right there on the application. You can sell cryptocurrency such as Bitcoin, Ethereum, BNB and others. After making sure you have Naira in your bundle account (You can fund your wallet with the “ADD CASH” feature), you can then buy any crypto that is featured on the bundle APP. You can as well sell your cryptocurrencies and get Naira withdrawn directly into your bank account.

  1. Withdraw and deposit crypto

You can also transfer cryptocurrency from your Bundle wallet to another wallet. Just click on the withdraw button to proceed. You can also store your cryptocurrency in the Bundle app smart wallet by depositing into it for free.

N/B: Bundle is not a cryptocurrency exchange. They are just there to bridge the gap between individuals and cryptocurrency exchanges, this way making it easier for you to buy, sell and store cryptocurrencies.

3. DABA

Led by Chris Ani, DABA is a platform that enables individuals and organizations to gain the relevant strategies and in-demand global skills needed for scaling, wealth creation, and financial freedom. The startup aim at equipping 1 billion people with high income and digital skills to better compete in the global market. They are interested in helping people and businesses to grow their capacities, start/grow their businesses, and gain financial freedom.

With the online courses offered on DABA, you would be equipped with the necessary real time skills that would help you make cool cash from the comfort of your home. These courses are taught by real-time experts, practitioners, and business leaders who have adequate knowledge, expertise, and experiences with the digital skills that they teach and have also gained financial freedom themselves with these skills.

DABA does not operate on monthly fees; you only pay once and upon successful payment, you would be granted the eternal access to learn the skills you paid for on the platform.

There is no need for any kind of degree or qualification before you can enroll on the website.  Anyone, just anyone with any skill level can enroll on DABA and begin his/her journey to digital skills acquisition/expertise within a short time frame.

4. LifeBank Nigeria

Founded in 2015 by Temie Giwa-Tubosun, LifeBank (formerly One Percent Project) is a startup that aims to tackle the problem of blood shortage in Nigeria and across Africa. They deliver critical medical supplies needed by patients in a faster, cheaper, and safer way.

This SME’s innovative ideas have saved over 10,000 lives by ensuring blood donations are delivered to the hospitals in need of them. They impact vulnerable communities located in urban, peri-urban, and rural areas in Africa by delivering to the very last mile.

The start-up has within the short time of its existence won several awards including Cartier 2020 Women’s Initiative, Sub-Saharan Africa Laureate, African Netpreneur Prize Initiative Award by Jack Ma and others. Besides assisting with blood-donation services, LifeBank also delivers other medical products such as oxygen, blood products, and vaccines.

5. Kuda Bank

Kuda Bank is a full-fledged digital-only bank which is operating with a banking license. Kuda is designed for your smartphone, free of the ridiculous charges that regular bank charges, and it is also great at helping you to budget, spend smartly, and to save more.

some of the features include no ATM card maintenance fees, no Charges for cash withdrawals, and no transfer fees to Other Nigerian banks”

6. Crop2Cash

Founded in 2018 by Emem Essien, Michael Ogundare, and Seyi Paul, Crop2Cash is a startup with the aim of digitizing the supply chain of agro-processors. It also aims to provide farmers with access to financial services to increase their agricultural production.

It makes sure the supplied agricultural products get to the farmers at the best qualities. Farmers in rural areas are also enabled to receive digital payments thereby building their financial identity.

7. Judy

Leveraging the power of Artificial Intelligence, Judy Innovative Technologies solves the challenges faced by researchers in the African legal space. It was founded in 2018 by Sadiq Okocha and Bright Oleka.

Judy gives its users access to over 20,000 cases, rules of court, and statues. They provide lawyers with a comprehensive database of common law case Judgments, thereby making it easier for them to make research and provide quicker judgments. Judy got seed funding, a sum of $100,000 from Switzerland-based Meltwater Foundation in 2019.

8. CredPal

With CredPal, lending and borrowing has never been easier. It is a Fintech startup founded by Olorunfemi Jegede and Fehintola Olaogun in 2017. CredPal provides funds for consumers by bringing them in contact with willing lenders to finance their purchases while they pay back in fixed monthly installments.

Providing their users with ATM cards which functions as a credit card. These cards enable the user to access credit for purchases made. The user is required to input their bank details on the app, this is where the decision to pay a lump sum or pay by installments is made.

9. Publiseer

Publiseer was founded in 2017 by twin brothers Chidi Nwaogu and Chika Nwaogu. Having both struggled to get their book and song out to the public, they birthed the idea if helping independent artists and authors meet their publishing needs across Africa. They promote the creativity of Nigerians by offering free publishing, designing and technology, to artists and authors.

First you would have to get approved on the platform which does not take much to accomplish. After getting accepted, the platform takes care of the media and publishing work for the author and artist.

The team works overtime just to provide artists and authors with good publicity. Authors get access to professional book covers, ISBNs and worldwide book distribution. While artists have their songs distributed across online stores and also get free professional cover art.

10. CrowdyVest

This crowdfunded platform was founded in 2019. CrowdyVest enables individuals to participate in multiple investment options by giving them the opportunity of selecting the kind of project they are willing to sponsor.

After making a choice, the sponsors procure the funds needed to carry out the project and its operation.

Their focus is various sectors available in communities and cities which seem to be underutilized.

They make use of the sponsor’s funds to engage the projects, secure the land, provide the facilities with improved services, complete the full production and marketing circle.

After this, the profit made is used to pay the sponsor a return on their investment. They also provide regular updates of the project circle to the sponsor through text, pictures and videos.

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