The Group Managing Director, Rainoil Limited, Dr. Gabriel Ogbechie has shared some Practical Insights from his Entrepreneurship Journey at 2023 edition of The Platform Nigeria, that is in an effort to help entrepreneurs overcome challenges in theirs businesses.
Speaking at the 2023 edition of The Platform Nigeria, Dr. Ogbechie enthralled the audience with his unique speaking style interwoven with practical anecdotes. He recounted memorable events and lessons from in his experience in establishing Rainoil Limited, a leading energy company in Nigeria.
The event took place at the Covenant Christian Centre, Iganmu, Lagos. In his energetic talk titled “Succeeding as an Entrepreneur in Nigeria”, he minced deep practical nuggets for budding entrepreneurs with wise counsel on how to run a successful business.
The Rainoil GMD, who is a trained Engineer, recalled with nostalgia how he incorporated the company following advice on the unique name from a family friend. He stressed that a first step for any entrepreneur should be to incorporate a company.
Addressing the timeless challenge of funding that most entrepreneurs face, he added that “People rarely give money to those who don’t have” as he recounted his unsuccessful attempts at raising capital to start Rainoil, and how his diligent investment in stocks proved most valuable. He counselled intending entrepreneurs to imbibe financial discipline. It would take a couple more years for Ogbechie, to eventually acquire enough money to purchase a tanker load of diesel for N300,000. This marked the beginning the remarkable success that is Rainoil today.
He also admonished budding entrepreneurs to acquire relevant knowledge, highlighting the importance of venturing into businesses in which one adequately understands. He stressed that “Knowledge will function as a defence for your capital” but embarking from an uninformed position would result in ”learning the hard way,” where capital is lost to gain knowledge. Recounting his experience, he recalled “I ventured into oil and gas business because that was what I understood and have done for upwards of 5 years. It was clear to me the profit I would make if I sold a truck of diesel and how much I needed to buy a truck load of diesel.”
Dr. Ogbechie advocated for financial discipline and the need for entrepreneurs to protect their liquidity by staying on the short end of borrowing. He opined that it is impossible for a business to survive the pressure of borrowing with current compounding interest rates, especially where required to fund projects and not working capital. “Turnover is vanity, profit is sanity, and cash is king” the Rainoil founder stated. Dr. Ogbechie advised entrepreneurs to keep their earnings in their businesses, borrow minimally, and practice spending within the limits of their profit.
Underlining the need for courage, he narrated his attempt to obtain his first diesel supply contract from an Aluminium company. With his hopes of turning a N30,000 profit endangered by the delayed Local Purchase Order approval from a General Manager, he recounted the persistence he had to deploy in accessing and persuading the General Manager to eventually sign the Purchase Order. He went on to make a N45,000 profit instead of the projected N30,000.
He also encouraged intrapreneurship, urging employees to be diligent and innovative in their jobs, working as if for themselves. He admonished the building of effective and robust social networks. He recounted how his membership of the Lagos Country Club enabled him to nurture a business relationship that made a problematic sale possible.
Dr. Ogbechie urged entrepreneurs to branch out and not rest on successes as competition will always catch up. He encouraged staying power for entrepreneurs, as there will be dry spells in business. “Staying power is what gets you going when nothing seems to be happening,” Ogbechie said.
The 2023 edition of The Platform themed, ‘Innovating our Way into the Future” was convened by Poju Oyemade, the lead pastor of The Covenant Nation. Other speakers at the event were Dr. Ola Brown, an investment and healthcare policy maker, Chuka Ofili, a tech expert, Yvonne Johnson, a banker, Iyinoluwa Aboyeji, a tech investor, Ndidi Ukaonu, a finance expert, Yewande Zacchaeus, a business founder, and chair, Gbolahan Joshua, a finance expert, Tara Fela-Durotoye
