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The Nigerian-British Chamber of Commerce (NBCC) and a manufacturer, George Onafowokan have called on business owners to handover their businesses at the appropriate time, noting that failure to plan may lead to a total collapse.
They made their views recently, during the NBCC 2024 Next Generation Series with the theme: Transforming a manufacturing business.
Onafowokan, who is the Managing Director and Chief Executive Officer, Coleman Technical Industries Limited, also decried the state of the economy, noting that manufacturers were literally struggling to survive,while their working capital is eroding.
Onafowokan, owner of the largest cable manufacturing company in sub saharan Africa, pointed out that sustainability program for both the work force and the family basically is dependent on growing a team that is built from the ground.
He said his company has been able to build a team that is focused on being able to deliver on its own.
“You can’t build a business that is sustainable based on only you, you can only build a business that is sustainable, built on a team of employees and members that actually know what they are doing.”
Appointed MD in 2001, Onafowokan whose company will be 50 years next year noted that sustainability happens when “you are not micro managing but you are empowering people to actually deliver on individual role.”
He pointed out that one of the reasons for a successful succession of the business was because focus was his father’s drive, adding that breaking barriers, does not come easy.
He said he has been able to grow the business from -20 to 250billion.
“250 bn worth in plant, machinery and assets.”
He emphasised that the company’s legacy was not about him but the chairman’s decision to create a business and sustainable legacy.
“It’s not about today but tomorrow. We need to know what grows the business and what does not.
We started as micro small to this investment great company.”
He advised business owners and CEOs to do a lot better than the expectations in the market.
On getting people on board and addressing trust issues, the Onafowokan said the trust must be built on a legacy and respect, which is reciprocal.
The bigger your business grows, the less you are doing it yourself. Most business owners fail because they believe that “this is my own and you can’t tell me how to do it. But those stakeholders are what makes the business work, so why do you think they are not seeing what you are doing?
“You say things are difficult and you are going on a spending spree or we are going to be aligning to a certain vision and you are changing it, you are creating no respect for trust. The discipline of the entrepreneur or employer is key to building trust within its employees,” he said.
“To resurrect a dead business is literally really difficult , a surviving business can still be improved and that is one key area that we need to review- the micro and macro policies of the government.”
Earlier in his address, President and Chairman in council of the NBCC, Ray Atelly encouraged business owners to remain hopeful despite the harsh business environment, noting that “sometimes it looks like everything is crumbling but it is not, there are opportunities here and there, what you should do is to focus on opportunities and try to tap into them because they are many.
Atelly, who viewed that succession is good because no one will live forever, urged business owners to be ready to hand over when it is time.
“So, we need to plan it, don’t let it happen by accident. If you plan, it works, if you don’t, it perhaps may lead to total collapse eventually.”
