Congratulations on embarking on your entrepreneurial journey! As you step into this exciting world, it’s essential to understand that slow business growth should not be mistaken for failure. In a society where we’re often bombarded with stories of overnight sensations and rapid success, it’s easy to feel like slow and steady growth is somehow inadequate. However, for entrepreneurs in Nigeria, and indeed, anywhere in the world, there’s a lot to be said about the slow growth advantage.
In this blog post, we will explore the concept of slow growth in business, and its benefits, and provide real-life examples of Nigerian businesses that have embraced this approach to build lasting success, all of which will serve as a powerful source of inspiration. The last example, in particular, will leave you amazed!
The Benefits of Slow Growth
1. Building a Strong Foundation
Imagine constructing a skyscraper on a shaky foundation. That’s the risk of rapid growth. Slow growth allows you to lay down solid roots for your business. You can refine your business processes, develop a better infrastructure, and establish an excellent working culture. Slow growth not only makes your business survive; it also makes your business last longer from proper planning.
2. Learning from Mistakes
Mistakes are inevitable in business, but they can be costly if you’re growing too quickly. With slow growth, there’s ample time to learn from missteps, adapt, and evolve. If you’re keen on understanding this better and want to know common mistakes that you can avoid when starting your business, have a look at our previous blog post on 6 Mistakes to avoid when starting up business.
3. Avoiding Debt
Fast growth in business often requires a lot of money, which can lead to huge debts. On the flip side, when you grow slowly, you can use the money you earn (profits) to grow your business. But remember, if your money coming in isn’t more than what’s going out (bad cash flow), your business can run into trouble. If the cash flow is not good, the business is doomed to fail
4. Building Trust
Trust is like a strong foundation for any successful business. When your business grows slowly, it gives you the necessary time to build a reputation that people can trust, leading to loyal customers.
The Challenges of Slow Growth
While slow growth offers numerous benefits, it does come with its fair share of challenges:
- Frustration: It’s natural to feel disheartened when you witness other businesses experiencing rapid growth while your journey seems to move at a snail’s pace. The key here is to stay focused on your path and trust the process.
- Attracting Investors: Investors often seek quick returns on their investments, which can make it challenging to secure funding for a business that’s growing slowly. But don’t lose heart; patient investors who recognize the value of long-term success do exist.
- Competition with Larger Businesses: Slow growth may pose difficulties when you’re trying to compete with established, larger competitors. The strategy here is to find your niche and excel within it.
Let’s imagine you have a small catering business in Lagos, and there’s a well-established catering company with a much larger presence in the city. This big catering company has been around for years and caters to a wide range of events. As a small business with slow growth, it might seem challenging to compete directly with them.
However, instead of trying to offer the same variety and scale of catering services, you decide to specialise in serving the best Nigerian jollof rice in town. You focus on perfecting the art of making this beloved dish, using premium ingredients and traditional recipes. This specialisation creates a unique niche for your catering business. People who crave authentic Nigerian jollof rice will seek you out, and over time, you can build a loyal customer base that appreciates your signature dish.
In this way, slow growth allows you to find your place in the market, even when competing with larger, more established catering companies. Your commitment to a distinct niche, like serving the best Nigerian jollof rice, helps you stand out and attract customers who value your unique offering.
Keep in mind, that even though these challenges might seem tough, they are not impossible to overcome. Think of them as obstacles you need to deal with while working towards creating a successful and long-lasting business.
How to Make the most out of Slow Growth
Achieving slow growth requires a strategic approach:
- Focus on a Niche Market: Identify a specific, underserved niche where you can shine and build a dedicated customer base. Think of it as becoming the expert in your chosen field within a smaller, supportive community.
- Provide Excellent Customer Service: Exceptional service is your secret weapon. It builds trust and ensures customers keep coming back. Treat your customers like royalty, and they’ll reward you with their loyalty.
- Reinvest Profits: Instead of rushing expansion, reinvest profits into your business for sustainable growth. This means putting your earnings back into your business to fuel sustainable growth.
- Support and treat your employees well: Your staff is the backbone of your business. Use tools like the roPay app to manage and track your employees, ensuring timely payments and a harmonious work environment. Happy employees translate to happy customers. The roPay app simplifies employee management, making it a valuable asset for your business.
- Be Patient and Persistent: Slow growth is a deliberate, gradual process. Understand that Rome wasn’t built in a day, and neither is a successful business. Stay persistent and patient, and you’ll be rewarded with a resilient and thriving business.
Remember, success is not only about reaching your destination but also about enjoying the journey. Embrace the process of slow growth, and your business will not only endure but also flourish over time
Real-Life Examples of Successful Slow Growth
- Dangote Group: Dangote Group is a prime example of slow and steady growth right here in Nigeria. Starting with small investments, it gradually expanded into various industries such as cement, sugar, and flour production. Today, it stands tall as one of Nigeria’s largest and most successful conglomerates, providing jobs and contributing significantly to the nation’s economy.
- Chi Limited: Chi Limited, a household name in Nigeria, embarked on its journey by specialising in producing high-quality fruit juices. Over time, it gained the trust and loyalty of consumers by consistently delivering top-notch products. This slow but deliberate growth approach allowed Chi Limited to establish itself as a prominent player in the Nigerian beverage industry.
- Innoson Motors: Innoson Motors is a shining example of patient growth within the Nigerian manufacturing sector. It didn’t rush to compete with international automotive giants. Instead, it started by producing cars locally, focusing on quality and affordability. Through dedication and slow expansion, Innoson Motors gained the trust of Nigerian consumers, ultimately becoming a well-respected brand in the country.
- Konga: Konga, a leading e-commerce platform in Nigeria, took its time to prioritise exceptional customer service. By consistently delivering a great online shopping experience and building trust among its users, Konga has steadily grown to become a trusted name in Nigeria’s competitive e-commerce landscape.
- Hilda Baci: Last but certainly not least, let’s delve into the inspiring journey of Hilda Baci, a Nigerian chef who achieved something truly remarkable. In 2023, Hilda accomplished the extraordinary feat of breaking the Guinness World Record for the longest cooking marathon by cooking continuously for an astounding 93 hours. During this marathon, she cooked over 100 delectable dishes.
But here’s the captivating part: Do you know that it took Hilda Baci about 6 years of dedicated preparation to reach this pinnacle of culinary excellence? Her journey started small, just like many budding entrepreneurs, but her relentless commitment to her craft and her steady growth approach have transformed her into a household name in Nigeria’s culinary scene!
The fact that your business growth is slow does not mean you’re on the wrong path. In fact, it might be the very thing that makes you successful. Just like Hilda Baci, who dedicated six years to prepare for her remarkable achievement, do not give up; always be willing to go the extra mile for your business. The slow growth advantage not only helps you survive in a competitive market but will also ensure you thrive and contribute positively to your society’s vibrant entrepreneurial landscape. So, the next time you embark on a business journey, remember that slow and steady often wins the race.