How to remain profitable in present day Nigeria: Borrow, Buy & Sell

Your business questions & dilemmas answered by Akin Monehin email: akin.monehin@chicagobooth.edu

would typically preserve value, providing a hedge against inflation. Companies that produce “essential” like salt, sugar, petrol, flour (& the derivatives like bread) usually can pass the increased cost of doing business to customers. Companies that produce addictive items like cigarettes usually also show strong performance through inflation. Real estate investments too. Monopolies also do well in an economy that is struggling with sustained price increases.

Sell Shovels: During the Gold Rush, it was those that provided shovels (and of course wheelbarrows, rugged clothing, logistics, accommodation, security and other essential services) that became the millionaires. The majority of the miners did not become wealthy.

Is your business part of the frenzy, desperately searching for gold? Or is your business model objectively taking advantage of the economic situation?

Businesses should improve, pivot or spin-off to ride it out.

A relatable example of ‘selling shovel’: By the time you are done reading this article, 2,500 new websites would have been created, with most of them ultimately not meeting the business objectives. That is a gold rush. A company like Google, on the other hand, provides shovels. Google made USD150 billion in 2020 on advertisement alone. It does not create content but provides a platform for websites to share their content. Cryptocurrency appears to be the new gold; has your business thought of investing in or spinning off a crypto wallet business? That is the shovel of today!

Your business should not struggle through the current unfavourable condition. Borrow! Buy!! Sell!!!

Akin Monehin is a thought leader, speaker, and business strategist. A 2015 recipient of Choiseul Institut France’s Award of Top 100 African Business Leaders under 40 Years old, he hosts the thought leadership conversation on Youtube, “Make or Mar Moments with Monehin.” He is privileged to have worked in over 10 countries, including French and Arabic-speaking ones and leading organisations like British Airways, Virgin Atlantic & Nigeria LNG Ltd. He currently works for an International Oil Company (IOC). Views expressed in this article are personal and do not represent the views of any institution he is affiliated to