Expert Suggests How Startups Can Succeed Without Seeking Investor Funds

An e-commerce expert, Elijah Balogun, has revealed that early-stage startups have the potential to thrive without relying on investors’ funding.

This insight was shared about his experience bootstrapping Odeya, a fabric-focused startup, and the valuable lessons he learned along the way.

The expert noted that bootstrapping involves key steps such as selecting a niche, conducting thorough market research, identifying reliable product sources, establishing an online store, implementing effective sales and marketing strategies, and prioritising excellent customer service.

He advised that for any startup without the privilege of external funding or significant financial investment, it is just smart to pick a product or product category and stick to it.

Balogun explained, “For Odeya, the niche was ceremonial fabrics popularly known as aso-ebi in Nigeria. Our specific product category is ankara and lace fabrics. Market research indicates that there is a huge market for this, with Nigerians spending between $10 and $50 for low-end aso-ebi fabrics, and up to $2,000 for 4–6 yards of high-end ceremonial fabrics.”

The e-commerce expert argued that extensive market research would serve as an eye-opener for founders.

Balogun revealed that he would have refused the offer to lead the team at Odeya if market research had not been thoroughly conducted.

He explained that research carried out revealed a lot of scepticism about purchasing fabrics online due to the proliferation of low-quality fabrics saturating major fabric markets in Lagos, Ibadan, and Kano.

“The initial survey almost dampened hopes. All respondents interviewed affirmed that they would not buy fabrics online, and this is understandable,” he noted.

The marketer added that subsequent research and surveys extended Odeya’s target audience’s needs, preferences, and pain points, which it worked hard to improve.

Further, the expert suggested that early-stage startups must identify where to source products at competitive prices to ensure profitability.

He mentioned that finding reliable product sources was a significant concern at the time until a former Konga staff member, Lade Olukogbon, who later joined Odeya, successfully tackled the task.

Balogun highlighted that her street smartness and experience at Konga were invaluable, stating, “We were soon combing all the nooks and crannies of Lagos Island and Abeokuta, as well as reaching out to fabric makers and suppliers as far as Austria, China, and the United Kingdom. Soon after, we were able to secure our inventory for the product launch.”

The next step for startups would be setting up an online store. According to the e-commerce expert, establishing an online store was crucial for successfully bootstrapping.

He emphasised, “You certainly aren’t going to start an eCommerce business without having your online store. Setting up a functional website was perhaps our biggest challenge at the start of the business.”

Balogun expressed that Odeya could have scaled faster and more affordably if the startup had utilized e-commerce platforms like Shopify, WooCommerce, or other user-friendly options for setting up the online store.

He added that all that would have been required were adjustments to the color and logo to align with the brand’s identity and values.

Regarding having a sales and marketing strategy, Balogun declared, “No matter how lean your startup is, always factor in how to sell your products and services.”

“All options were laid on the table at the start, but considering the lean resources we had at Odeya, we were left to decide on the most affordable and effective channels to market the products.”

He mentioned that, aside from allocating a budget for social media and email marketing, it was possible to start selling on the first day. “I recollect the pride and excitement the team felt when we made over $1,000 in product sales before the close of business on the very first day we launched.”

Furthermore, he emphasised that having good customer service was sacrosanct. The e-commerce expert highlighted that inquiries, concerns, and issues were promptly addressed.

“We went the extra mile to ensure exceptional customer service, including making deliveries on weekends and public holidays. This helped build trust and loyalty among our customers,” he revealed.