Today, we will wrap up the series. So far, I have told you 8things to do in a bad economy. Please see Parts 1 & 2 of this series.
9. Turn intangibles to tangibles
This is the time when more than ever before you need to look inward and begin a process of turning INTANGIBLES to TANGIBLES. In plain language, SELL YOUR BRAIN. Look, one of the key areas where this country is blessed is in human resources (brain power) but unfortunately it is little harnessed.
This is the time when I encourage everyone to look inward and turn USELESS looking skills, ideas, knowledge etc to money in the bank.
Here is an example to make things clear:
- You know how to cook. You also have vast experience setting up resturants BUT you now work in a regular 9-5 Job and money flow is tight.
What do you do?
Start consulting and help people who are looking for what to do setup and run food vending services AT A FEE! Do you get the idea?
10. Get in debt
Okay.. I know you have been told otherwise.
I know you have been trained to avoid debt like the plague BUT listen.
98% of people with a 9-5job I have related with in the last 10years ALWAYS get loans (they use debt instruments). The problem is that they use it wrong. You see, there are 2 kinds of debts. Good debts and Bad debts.
In a period like this 98% of people who get in debt will do so on the basis of
consumption. That is bad bad bad. You want to get into investment debt this period and keep consumer debts to a minimum level.
So, do not borrow to get a car to impress and oppress your neighbours and church members BUT by all means, buy a car to move eggs from farms in Oyo state to Lagos!
Get the thinking?
11. Do more of what works
Please sit down and ask yourself a simple question.
What set of moves or efforts has worked well for you in the last 3-10years. Which year was most productive and what did you do?
This is most applicable to businesss owners. THINK! THINK!!, then THINK AGAIN Friend!
Locate the set of steps you took that produced the most results for you and then start doing those same things EXACTLY again.
You see, when things gets better for us, and we move up in the social or cashh ladder, we tend to forget and ignore those actions that took us from ground zero to prominence AND that is the action that eventually leads to trouble.
So, go back to what worked for you. Do it again and do more of it!
12. Focus on marketing & networking
I am speaking to business people more here again but the same rules apply to everyone reading this.
The bulk of your efforts should be in the 2 directions I just itemised. For one, you
need to know that after a low, comes a journey upward - it is a law that is unbreakable. It is not a matter of IF, it is simply a matter of WHEN.
So, you need to start attracting more business now. You need to meet new people. You need to get social BECAUSE if you shrink up, you will miss vital information.
13. Buy land
Yes! Do it! I will recommend 4 types of lands shortly but first let me explain.
In times like this, you WILL get bargains. I am a real estate person and should not be telling you this but it is true.
For example, a piece of land that has an intrinsic value of N350,000 will be available for less than N250,000 or N150,000 AND then you can further
negotiate to pay the N150,000 in 2 splits over a 3months period.
Don't tell anyone I showed you that trick but by applying this simple strategy you
will have a value of N350,000 with just about N75k down because no one wants it now. By the time people want it, you will be talking like N500k to N600k for
same land.
A word of caution. Do not out of sentiment buy land in your village EXCEPT there are viable economic markers. That is why I recommend these 4 types of land.
1. Farmlands in areas not more than 3-5hours drive from Nigeria's MAJOR markets
2. Lands in 'BEDROOM' states or cities. This usually is on the path of growth like in places like Lagos/Mowe, Lagos/Ifo (people work in Lagos, build houses in Mowe and Ifo, and sleep in Mowe and Ifo)
3. Lands around high population universities ONLY in States where you intend to live or you have people around. I particularly love places with CONFLUENCE of higher institutions (like a university + college of education + Federal Medical Center rolled up in same area)
4. Lands around locations where it is easy to build AND rent is moderate. For example, I have a secret location right now where you will do 2 or 3 houses with the same amount it takes to do 1 house in Lagos and where rent can get as high as N65k per room and N250k for a sweet 2bedroom.
14. Do your life maths
What do you need to survive per annum? That is you life math. Most people do not know because they have never done it.
I spend more and more of my time around farms and in remote places these days and the more I do, the more I see new perspectives.
Take for instance nomads, the Igedes and Togolise. Amazing people! The live in simple housing, eat fantastic VOLUMES of food, convert land to wealth and live happily ever after.
Their life echos the fundamental truths a man should never forget. To survive, you need ONLY the following (food, shelter, warmth).
Your life math is the cost of providing these 3 things and you must analyse it. Then add other costs like the cost of education, healthcare, basic entertainment and communication and come up with a monthly figure.
Once done, CONTROL your spending!
15. Attempt to go for self sufficiency Start with food
Look, your primary assignment is to reach self sufficiency. Remember this series is not about Nigeria or its economy.
This series is about the economy of Nigeria! Your economy!
Self sufficiency is that stage where you can live well for any length of time no matter what goes on around and with very little effort. It is what is called financial freedom but we get it ALL wrong by trying to implement it the wrong way.
What you should do is to solve STOMACH problem first. For instance, by 2018, we here plan to be self sufficient in the area of food for the entire business (its staff and family).
See Friend, our MAIN typical diet consists of:
1. Carbohydrates
2. Protein
For 1, in this country, it is based around yam, cassava, rice and processed food (at least for the South west). Our diet centers around these.
For 2, we are talking beans, egg, fish, chicken products etc.
Now, the first class is easy to produce. For instance, it takes just around N50k to produce about 400 pieces of yams in first year of farming and about N20k for same number of yams every year after first.
By planting 800 yam sets in January 2017 therefore, you have sort of sorted most of your carbohydrate needs for 2018 AND created a means to acquire some
of your protein needs.
Rough estimate:
Eat 1 tuber of yam per day for 365 days = 365 tubers
Sell rest of tubers of yams you do not need and convert the cash to rice, beans etc at the going rate in the market as you need and your food pressure REDUCES drastically.
If you think like this, you will be fine! I am not saying you should go to farm or that you must plant yams.
I just provided this as a template. Use the model in creative ways and move towards self sufficiency!
I hope this series has helped you. If you you have questions or comments, feel free to hit reply and send them in.
Enjoy!
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