Introduce yourself and your business

My name is Elsa Bankole, an entrepreneur who runs a fashion brand that curates fashion pieces in Lagos. I am also a first-class graduate in Biochemistry from the University of Lagos, Akoka. 

First class purrrr. Well done!

Thank you so much. 

So, why did you start a business in school?

I started the business to relieve the financial burden on my family and to make money in school. At that time, I didn’t even have the money to start, and I had to borrow #5,000 from my cousin and promised to pay her #10,000 in two weeks. So, I went to the market with my coursemate at the time in school, and I was able to get about 10 pieces of earrings to start. 

Cool. Why jewelry business, though? 

Before gaining admission into school, I used to bake cakes. However, I knew that continuing the baking business would be very stressful. For example, if I bake a cake, I can become very tired and not be able to do anything else. So, I needed a business that wouldn’t take much time and one that could move fast in the school environment I was in at the time. 

Oh cool. Now, you were a Biochemistry student, and that would have required a lot, considering that you even graduated with a first class. How did you manage business and school work together? 

Like I said, the business was easy to manage because I didn’t make the jewelry. I just had to buy the jewelry from the market and go around the hostels to sell. It was a low-effort business. So, it was easy to juggle it alongside school work. 

Also, I am great with time management, so I can plan my time for reading and other things. I also take breaks during exam times at times, and I always come back afterwards, which shows consistency. 

In the first year of the business, how were your sales? 

When I started my business, I didn't set any goals or have any targets, I just had a little book where I wrote what I sold per time.  It was literally just to get by. I had no plans of expanding beyond that, and that reflected in the kind of sales I was making. 

Whether I sold per day or not was really not my concern. Till I began to see the potential of the business. Then, in 2022, things changed when I met someone, and the next month, I made 1 million naira in sales in my business. 

Oh wow. That’s interesting. How did that happen?

So, I met a business coach, his name is Mr Daniel. He spoke to me about how my business can make up to 1 million naira in sales in a month. See, I argued with him and said it wasn’t possible. At that time, 1 million naira looked very big and impossible to me. But guess what, it happened the next month after we had that conversation. 

Oh amazing. What changed? What did you do?

So, after that conversation, he gave me some tips and told me to start posting more consistently on social media. Then the following month, which was May, I did an offer titled “MAYHEM”, which means chaos. 

So, every week, I would create different offers; week 1 was buy one get one free, week 2: free delivery, week 3: discounts for first-time buyers, and week 4 was a bundle offer. And that made me my first 1 million. It felt so good. And I think many business owners can also do it, but are limited by their perception of that amount. 

Hmmmm. What do you mean by that?

So, for me, I don’t see money as a big thing; I see 5 million as 1 million in 5 places, 50k in 100 places, #12,500 in 400 places. Something that changed my perspective was a Gala report I read on how much they make, and seeing that they sell Gala for #50 a piece at that time, and making that amount of money made me see the possibility. So, it is a numbers game. 

So, when you know it’s a numbers game like that, all you have to do is calculate the number of products you need to sell in a day to reach your target for the month. When you have a goal like that, it becomes easy to then start going all out to market your products and convince people to buy, so you can meet your target. It will require more energy, but it will work out. As at 2022, I had started making up to 5 million in a year, and we make 5 times that today. 

Oh great. What sales and marketing strategies did you implement to achieve that?

So, I do many things to generate sales. First, I attend pop-up sales and trade fairs where I can meet my target audience and sell. There is also the need to go beyond selling to people at these events and ask them to give you their details, like phone number, email, and follow you on social media. Most importantly, ensure you have great products because that is what will help you retain them. 

Aside from these trade shows, I also take my products to church to sell, and since people already know me there, it is easy to build trust and sell. Also, showing my face online is another thing that has helped me sell. Building a structure that ensures that my staff attend to customers the same way I do has also helped with consistency in customer service quality. 

This is very cool. 

Yea. Also, I have a theory that many business owners make money, but because they don’t keep track of how much they sell, it feels like it is not a lot. For me,I keep records of my sales, how much I sell, etc. 

Another thing is that business owners, especially student entrepreneurs, need to stop chasing that big break and start focusing on the people around them who can buy from them steadily. Because it is about how many people can buy from you. 

Now, what are some common mistakes that people make in business?

One common mistake is a lack of documentation of the business process. So, for every business, there should be a process of how you attend to customers from when they send a message till when you deliver the product: like a flow chart. This ensures that nothing goes wrong in the sales process and ensures consistency. 

Another mistake is holding discount sales that eat into your profits because you don’t even know your profit margins. Also, not keeping track of how much you make and mixing business and personal money. 

That’s interesting. So, how do you set prices for your products and know your profit margins when doing a discount sale?

So, I always sit with what I bought, and note down how much I bought it, and the normal price I would sell it at. It is after this that I determine the discount price to avoid any errors or losses. 

Cool. So, what is the biggest risk you’ve taken with the business, and did it pay off? 

That will be taking a loan to import products and expand my inventory. So, i got something from someone, but it came in a bad condition, so I had to return it. So, in the course of speaking, I asked him about how he usually sourced his inventory, and he mentioned that he imports. That was when I knew about it and decided to do it.

Before then, I was selling a limited range of products, mostly earrings and other simple jewelry. So, I decided to expand my inventory to a diverse range of products, including different types of jewelry for different age groups and occasions. 

And about that question, if risk, another thing I want to say is, most time, experts always say you should focus on a niche. But for me, I am offering a wide range of products and jewelry, and it is working out. So, we can say that’s another risk that is paying off in the business.

Another risk i would mention is how I went to Abeokuta for a trade fair from Yaba for my business. And thankfully, it paid off; however, it was still arisk because what if it didn’t work out. 

Tell us about the funding you got for your business: grants and loans. What were the factors that contributed to getting them? 

I attended a conference organized by The Business Hub by Sterling Bank, and towards the end, the organizers announced a pitch competition. So, when they called for people to pitch, I stood up and spoke. People before me were speaking of ideas on how they wanted to transform teh field of education, agriculture, etc. So, I was already feeling like my business idea may not move them, as I was simply selling jewelry. 

However, when the time came for me to speak, I told my story of how I started my business as a student entrepreneur and how I wanted to create employment and help young people become employable. At this time, I already had a staff working with me, so, I referenced that. To my surprise, I came first in the pitch and won the grant. It was so beautiful, a dream come true! 

Wow. Amazing. Big Congratulations!

Thank you so much. However, one funny thing about me is that I don’t really like grants, because it doesn’t push me to put energy into the business.

That’s interesting.

Yeah. So, to answer the other part of your question about getting loans. I usually take loans from my family and friends, with a promise to return at a certain time with interest, and it has always worked out. One thing that makes it work is that I always fulfil my promise of returning the money when due without any issues, so trust is already built, which makes it easy. 

Remember that cousin who gave me the first 5k to start the business, she has given me 6 6-figure loans when she saw how seriously I took my business. Another source of income for me is doing a thrift contribution (Ajo).  Ajo helps me to get the money I need for my business fast and then be able to pay back later after I have made it back from teh business. 

Cool. So, if someone wants to pitch their business for funds or get a business loan, what key factors should they pay attention to?

Tell a story! That was what worked for me at that pitch competition. My story sold a dream that the judges believed in, and that made them give me the money. Also, believe in what you are doing, have a plan for the future with what you want to do, and then speak from your heart.

For loans, start by being a good person and ask people who believe in what you are doing. Also, keep your books to show that your business can pay back the money, then always pay back the money, and be transparent. 

What’s one thing you wish you knew before starting your business in school?

I wish I had taken the business seriously earlier. I didn’t take product photography seriously, I was waiting for the next big thing of going back to baking. Everything online now is about aesthetics and being visually appealing. It is the least you can do to grow faster. 

Biggest mistake 

I saved #100,000 and gave it to someone, and their business didn’t work out. Mixing business and personal affairs. 

Also, there was a time when I imported a batch of copper bracelets that turned black after a while, which led to several complaints and refunds. I can never forget the experience.

Oh wow. What happened? 

So, I saw the product at a cheap price and bought it, thinking it was normal jewelry, not knowing it was copper. So, when people bought it, it started changing colours and turning black after a while, which led to the complaints. It was then that I read the fine print on the product and saw that it was copper. So, I had to start apologizing to customers through emails, making refunds when necessary, and just trying to resolve the issue. 

Now, anytime I am getting any product, I ensure I check the product specification and read the fine print for quality assurance's sake. And this is especially important when ordering in large quantities, and to ensure that you retain your customers’ trust by always giving them high-quality products. 

So, let’s wrap up with this. Tell me any funny experiences you’ve had with customers and dispatch riders

A customer ordered from Awoyaya, Island, and I had a delivery company who were having a promo that season and said they were delivering for #2,500 anywhere within 2-3 working days. So, I decided to use them to reduce costs for my customers. 

Now, a customer got a product from that location, and I sent the product. However, on the third day, the rider called and said the customer was rude to him. Not long after, the customer also called and said the rider was rude to her. It then became a back-and-forth where I had to play mediator till the two of them agreed to compromise and the parcel was delivered. 

Oh, that must have been a lot.

Oh, it was. Lol

Thank you so much for taking out time to speak to me and sharing your experience too. It means a lot. 

You are welcome. Thank you, too!

So, what lesson did you learn from this episode, or what statement stood out for you? We would like to hear your thoughts in the comments section. And if you would like to be featured in the next episode, kindly comment below, and we will be in touch.

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