Interrogating Oluwadele’s Business Strategy Manual
Book: Business Strategy Manual
Author: Bolutife Oluwadele
Publisher: Winepress Publishing, Nigeria
Reviewer: Ifeoma C. Ana B
USINESS Strategy Manual is a 141page book authored by a very accomplished accountant, an experienced business persona, a distinctive scholar, an avid writer and a public policy practitioner.
The book has 162 pages, including 18 preliminary pages with a forward written by Deacon Solomon O. Adeleke ( FCA) and three concluding pages of previous books by the author and his biography. The 22 chapters in the manual can be categorised into four fairly distinctive business strategies based on their vital content. These categorisations are: The Premise for Business, Technical Business Strategies, Relational Business Strategies and Social Business Strategies.
In chapter one, the author takes time to elucidate what to consider before starting a business. In his views, these include gap filling, passion for the business, experience, finance, and consideration for the type of business to be registered ( Sole proprietorship, partnership, limited liability company). Other considerations include business capitalisation, desired return on investment, market segmentation vis avis competition, SWOT analysis, and regulatory imperatives.
This chapter clearly denotes the advantages and disadvantages of different types of business set- ups and underscored that business is a marathon, not a sprint. Therefore, entrepreneurs who come to business must hold on to the view that it is an endless journey, not a quick fix or hit- and- run programme. Consequently, a desirable attribute for business is patience to go through the growth stages and knowing when to vary service or product offerings to keep filling societal gaps.
Chapter two takes a look at finance, particularly, the matter of raising capital for the business start- up. Here, Oluwadele demonstrates his financial aptitude and business experiences to steer the key objectives of the manual, thereby, leading readers into various ways they can raise the “seed money” for their business, including cooperative societies, contribution schemes, family and friends, and banks and other financial institutions.
He warns that banks and lending institutions will consider the bankability of clients before extending credit. Therefore, there is a need for entrepreneurs, from the planning stage, to posit a bankable stance by ensuring that their cash flows are passed through the banking system to establish good turnover, as well as document a good business plan that could be traced to the business activities. He advises that entrepreneurs should work with financial consultants to achieve good success in this direction.
In chapter three, the author takes the reader and entrepreneurs into the need for consistent checkups just like the health checkups done to the body. He explains that entrepreneurs cannot shy away from accounting, which is the language of business.
Chapters four and five are similar in many respects because Oluwadele dwells on the accounting principles of budgeting and cash flow, explaining their critical importance for business success strategy. The distinction between cash flow and profitability is clearly made, especially since it can be very deceptive to the undiscerning to believe they are in good business since huge margins are being recorded, only to discover that business continuity is hampered by poor cash flow.
In these two chapters, the author addresses innovation as a success critical factor, citing COVID- 19 success for some organisations and the need to budget with the business and owner’s needs differentiated consciously.
As the author explains, realistic budgeting and monitoring will ensure a balanced cash flow rather than holding excess or shortage of liquid funds in the business.
From chapter six to eight, Oluwadele takes entrepreneurs to what may be called the rudiments for a successful business, namely, budgeting, record keeping, and credit sales. The critical importance of these three short chapters for successful business operations cannot be over- emphasised. Budget is the almighty plan that gives the entrepreneur direction. But no matter how many directions you have, except you have a proper record- keeping technique, the business owner will simply be operating like a ship without a compass and may not be able to monitor cash flow, accounts receivables, and payables properly, with the consequent catastrophic end.
Oluwadele describes the key elements of budgeting, including planning, implementation, communication, motivation, authorisation, and evaluation.
He warns against overzealousness in budgeting or setting too lax or easily achievable budgets, noting that the budget must be challenging while not annihilating and dispiriting.
In these chapters, readers would learn the better ways to achieve setting and implementing good credit policies as guides to dealing with the needed credit clients. Additionally, for a good credit policy, there is a need to know the business customers ( KYC), although the virtual business in contemporary times poses additional challenges in KYCS. The author expounds that industry knowledge is always needed, but owners must predicate their business activities on the internal mechanism of gap- filling, passion, and resource allocation.
In chapter 14, the author shows the overarching benefits of retaining a consultant, especially regarding strategic planning and financial management. He expressed the opinion that although maintaining a good consultant may appear expensive at the time, the long- term benefit outweighs the costs.
In chapters 15 and 16, the book exhibits the risks inherent in every business, showing that it will be tantamount to business denseness not anticipating and planning forbusiness risks from the strategy formulation stage.
Risk management is an area that most SMES overlook, though very well embraced by large organisations as a critical aspect of their operations. These risks include financial ( liquidity and credit), legal, third- party, supply chain, security, operational, market, and compliance risks.