How You Start Your Business Matters:
In 2001, I was working for a company called Compaq (now part of HP), we organized a Banking and Technology event for Banks in Nigeria, in the UK.
During one of the product presentations with Oracle, the then Head of Technology for Bank of the North (now part of Unity Bank) asked one of the Compaq VPs a business and technical question, that went like this “ I know Compaq makes excellent products but what if a company like HP decides to acquire Compaq today – what would be the future of our investment in the Compaq Himalaya Servers?”.
For a few minutes, the VP was silent, he was obviously taken aback by this question. His first response was “That is impossible but if that ever happens (which seem very remote), those lines of Servers would be maintained “. Then he corrected himself and then said, “when we get to that stage (if we ever get there) the new entity will do everything to support its existing commitments to our clients”.
There was dead silence for a few moments after he spoke then everyone started laughing, the gentleman from Bank of the North, said he was just joking (that it was only a hypothetical question).
A weeks later when we got back to Nigeria; HP announced the merger with Compaq (or should we say, HP acquired Compaq). The announcement of that merger shook the IT industry, and it sent some staff of both companies on a tailspin (people started struggling and angling for positions).
There was a palpable fear in the Nigeria office, it was the first time I was experiencing a merger – Our faith hanged literarily hanged in the balance, other big operations around the globe were talking about resignations, redeployment of staff etc, changes in product line, stoppage of certain programs etc. Though we were assured that staff in Nigeria had nothing to fear since there wasn’t a HP office in Nigeria as that time and that our careers were assured but I was still worried.
Given the uncertainty that was clearly in the air, it was the first time it crossed my mind of striking out on my own. Some other things happened then that precipitated my move to start my entrepreneurship journey (will share that in another post). As we approached the third quarter of 2002, my mind was made, I was going to start my own business. I was 32 years old then and I was single – my risk appetite was high. I took the plunge. Looking back, I would have done things differently.
Given the upcoming banking consolidation in Nigeria due to the Central Bank's new minimum share capital requirement, many in the banking industry might face uncertainties like what I experienced during the HP and Compaq merger. This can be a turning point, inspiring individuals to embark on their entrepreneurship journey. However, the startup challenges are real, and one must assess their business readiness before taking the plunge.
As banks rush to meet the new minimum requirement, some Banks will downsize, some of them will be swallowed up, some will gain more market share, and yes, some people will be forced to leave the banking industry forever. Retirement will stare some in the face, the “sudden” job loss may put fear in some, and they may end up taking some rash decisions, and for some, it may spur them to start their own business.
For those considering entrepreneurship, understanding these challenges, and being prepared can make all the difference. This is where our R.A.T.E Tool comes in, designed to guide aspiring entrepreneurs in evaluating their business readiness and setting them on the path to success.
Stay tuned for the launch on the 29th of April 2024. Something big is coming…"
In the end how you start your business matters, would it be out of fear, frustration, confidence, adventure, anger, or peace ? Your choice…
#RATE #Entrepreneurship #StartingOut #Startup
