The Logic of Supporting Small and Local Businesses

Hey everyone! Happy new month and welcome back. I can't believe it's already March. I decided to take a break last month because I decided that it was needed and boy, am I refreshed. It's always good to take a little break especially if you're working hard. Just a lift to my Naija youth, you are doing well. Appreciate yourselves and take a little break when necessary. Remember, only the living achieve goals.

Now to the topic of the day, small and local businesses or as may be more convenient for us, SLBs. There are so many. Everywhere. Some of you may have even started yours during the pandemic. But how exactly do SLBs work and do we need to treat them like other businesses or pay special attention? What do they need and how do we benefit from them? If you have a business, know one, or have ever asked any of those questions, then this is for you. Let's dive in!

images from marketingland.com and andoverconnecticut.com

SLBs have always existed but recently, they have been in the spotlight and for various reasons too. From the US, where many owners had to close due to COVID, to Nigeria where almost everyone now seems to have a sort of business or the other, their popularity is growing especially among our generation. It is very common to see graduates decide to start a business especially when the employment opportunities in our country continue to wither, or just to survive the seemingly unending strikes of school associations. And now that we know the why, let's look at the when.

SLBs have always existed in some form of the other and are the oldest form of trade. From trade by barter communities to the farmers and fishermen in Ancient civilizations, people have always provided products or services. And the trade has only existed for so long because it is easy, efficient, and moldable. Decisions are usually made by one person, the owner. From goals to what kind of product to sell, the options were and are still limitless. For most, it was enough, providing enough income for their families and then some. SLBs were the perfect tool then. But as the world evolved and people's needs changed, advancement in science, tech, and communication opened the doors to more complex businesses which are now the order of the day. SLBs still exist and some of them are quite successful so we will try to learn from them.

It is a common fear that whenever a big business or retail store/supermarket opens, the SLBs in the area are automatically at risk of closing down. This is sometimes true but in other cases, it is not. Some businesses still thrive even when a big store comes around. And why is this? Because they have managed to adapt to their changing surroundings, formed and maintained good customer relationships, and stuck to their brand. This is just a shortlist of the many things that successful businesses do in order to stay in the game. Let's take an example, the woman you buy plantain from.

We all have that woman or mama that we buy plantain from no matter how many stores we go to. Most Lagosians I know get their plantain from an SLB trader. Now I want us to take a few seconds to think about why we do that? It's not like there are no plantains in supermarkets. If you ask me, I would say because it is a subtle culture. Most plantain traders have cordial relationships with their customers. They would ask about your children, your husband, your wife, your grandma, they would ask about your entire village, if possible😅 And believe it or not, this is one of their greatest advantages, not just plantain traders but SLBs in general. Because humans are naturally wired for social interaction, we like it when someone asks about how we are, what we are doing, and thanks us even when we know that plantain was 500 naira own. They are not expert psychologists but they understand the essence of client-customer interaction.

That is why all the big stores have cards for memberships, rewards, and all, to form client-customer bonds. And even though sometimes it's cool to get money back, we all know that money can't replace natural joy. Plus some cashiers🙄 And all the people that always ask for Sunday something. I mean we still go to the stores but some of us just cringe at the thought of Nigerian tipping culture. What's the limit, how many times a week do we need to tip, should we encourage them, and on and on. SLB traders don't need to be tipped because you are investing in their business directly. Retail staff, not so much. No matter how much or little you buy, it doesn't change their salary. If I were to buy 10000 naira worth of plantain, the mama will pray o but if I were to spend 10000 on plantains at the store, they will just scan it and ask me "card or cash?" I think you get my drift.

Plus most things we get from SLBs are cheaper and that is because of the chain of supply. The longer it is, the more expensive the end product tends to be. That is why pepper from Mile 12 is usually cheaper than the one in your local market. Because you are closer to the source. For every trader that's added to the supply chain, the price increases because they need to make a profit. For SLBs, the customers are usually between the 3rd and 4th in the chain but for the big stores, especially the multinational ones, we usually don't even know where we stand. They have to take into account customs, packaging services and don't forget their retail staff plus profit before they can come up with a price, even if it's 50% off.

I know some of us are all like, "Ok, why is Kamikun mentioning all these things that we already know?" Because successful people maximize their strengths and work on their weaknesses and from what I've seen, we could use a little help getting where we want to be. Due to the state of the economy and maybe a few too many Insta stories, it is not uncommon for newer SLBs to have unrealistic goals or jump in the deep end of the pool without preparing. But I just mentioned the advantages of SLBs so some of us might be wondering, why then are people's businesses struggling? One thing is networking and supply.

Let's take for example the average Nigerian household market list: Toiletroll, plantain, rice, pepper (you also have to grind it, of course ;) and other essentials. If you decide to go to the store, you would probably find everything you need. You might hold off on the plantain till later or may just buy it cause you don't want to drive around. Have you experienced that before? Where you buy something not because you need it but because it was available? That's a store advantage, you usually buy more because they have it and it's convenient. They have a diverse supply. Now if you are trying to practice being sustainable and buying directly from local sources, you would have to find a pepper woman, a toilet-roll woman, a plantain mama, and beans mama all within reasonable driving or walking distance. Sound familiar? That's what markets are for. But young people today at least the ones I know may not have the time and money to get a space at a local market square. So what then? This is where new-generation SLBs discover a scarcity. Space. The physical one.

Even though the number of SLBs is growing, the land isn't, which means that newer SLBs have to spend a lot on advertising either online or in-person in order to get the same amount of exposure as traditional SLB owners. And if you don't have the money for that, you are probably going to get left behind. The solution? Networking. In the market, a network of supply has already been created for the customer so that they just move from one shop to another but if your shop is online, home-based, or mobile, the best way to get the word out is to get other people to do it for you. And in the world of social media, this is just the pick-me-up that most new generation SLBs need. Let's imagine, I have a cream and moisturizer business, and I sold something to you, I could refer you to an equally good SLB that I know who sells all things nails. Maybe for a discount.

So even if the nail shop doesn't have as many followers or customers as I do, I can help their business grow by referring them to you. This is also another way to make a side income from your business aside from direct sales. Put in a good word for others and if a fellow SLB benefits, you lose nothing, you might even be given a percent of the profits from new customers. We know people are hustling in Nigeria but no one trades cream for nails, if I need both, I'll usually get both, maybe not at the same time but I still end up getting both. The myth of "there's only space for a few" is so wrong. There are only a few at the top because only a few know the path. This analogy can work for any combination of businesses. Grocery and accessories? Delivery and food? Our culture no matter how flashy or right it might seem often promotes the wrong things. Competition. Survival of the fittest. And this can be scarring especially for new business owners which is why we have to change that narrative.

We have to believe in our businesses because of their unique potential to grow and impact others and not how many businesses they are better than.

If you are too occupied with keeping your eye on the competition, you'll never see the partner. I'll leave us with a word of wisdom from Proverbs 11:24

"The world of the generous gets larger and larger;

the world of the stingy gets smaller and smaller."

Hey there, thanks for reading.

Did you enjoy today's post? Leave a review in the comment section below and please share it on your social media.

Or maybe you know a friend or relative with an SLB. Send this to them so that they can join us as we continue to explore more SLB treasures and how they can find them.

Until then, peace and love💝

Kamikun✌🏽