I am your friend, Dr. Charles Apoki. In a few hours, I will be delivering a lecture to the University of Ibadan Alumni Association on entrepreneurship and the area of diversification. This topic is significant, especially for young people looking to invest in the current volatile, uncertain, complex, and ambiguous (VUCA) economy. As someone who has navigated a variety of challenges in life, I will share insights into investment and diversification that can help you make informed decisions.
1. Diversification Should Be Strategic
The first piece of advice I give is that diversification is not always necessary. In economies like Nigeria’s, where the volatility is high, diversifying without careful consideration can be risky. For example, if you took a loan in dollars to start a business, and the dollar exchange rate fluctuates drastically, the repayments could become overwhelming. It’s crucial to assess the risks before venturing into diversification.
2. Focus on Basic Needs
One of the most reliable areas to invest in is meeting the basic needs of people. This aligns with Maslow’s hierarchy of needs, which includes food, shelter, clothing, security, and mobility. In a country like Nigeria, with a population of around 230 million, a large percentage (about 75%) of people spend less than $2.5 daily. Providing affordable products and services in these areas guarantees demand, making it a steady business.
3. Deepen Your Business Instead of Diversifying
A common mistake many entrepreneurs make is scratching the surface of business opportunities instead of delving deeper into one area. For example, Albert Bartlett Potatoes in the UK generated $481 million in annual revenue through one product: potatoes. They did not diversify into other areas but deepened their expertise in potatoes, offering various products and recipes.
Similarly, my primary business involves selling knowledge. By expanding this business into schools, books, YouTube education, and online training, I am deepening my focus. I also diversified into real estate, but even within this field, there are opportunities to deepen my business. This can include expanding into rental businesses like AirBnB, which generates consistent income.
4. Develop Your Business to Be Less Dependent on You
For your business to grow sustainably, it must not rely on your constant physical presence. You need to develop systems, structures, and order so that your business can function smoothly without you being involved in every detail. Additionally, create a platform where people can engage with your business 24/7—whether it’s for purchases, services, or communication. This way, you can scale your business more effectively.
5. Slow, Strategic Diversification
If you do choose to diversify, do so slowly and strategically. One area worth considering is renewable and clean energy. Focus on smaller, smarter solutions that save energy, time, and money. If you can reduce stress and provide cost-effective solutions, your business will stand out in the marketplace.
6. The Key to Success: Depth, Organization, and Consistency
In conclusion, you don’t need to diversify just for the sake of it. You can achieve greater success by deepening your existing business, making it more organized, wider-reaching, and capable of serving customers globally. This approach will help you generate more revenue and ensure long-term sustainability.
I remain Dr. Charles Apoki.
Remember, your investment should be secure, and integrity is key in all Endeavors.
God bless you.
