The truth about how to become a big business Owner

This article is a must for business owners who are willing to achieve greater height but hindered by insufficient capital. In this article you will learn how to escape from this financial trap.

1. Companies Real Estate Alliance

We have heard of Mergers and Consolidation in the financial sectors banks come together to form a bigger and stronger bank with a huge capital base and also this is done in the insurance sector. Therefore, it is ripe for companies, organizations and bodies to form an alliance in the real estate sector.

Like Donald Trump he buys up a rundown house renovates them and dives traffic to it, in this scenario companies rather than thinking individually to locate themselves in best commercial location of which they can afford the purchasing price the best option for them is to pull resources with 2-6 companies to buy a building and share. This is more beneficial than remaining a tenant in your choice commercial location

Inflation is climbing higher coupled with global economic downturn. It is becoming difficult for bodies to purchase land and properties at their choice areas, especially Commercial lots for sale in commercial centers where property are at the peak,

Because of these Inflationary trends, more companies are finding it difficult to position is choice location for the present and future market place. Therefore, the visible solution is the company’s estate alliance, where companies can pull resources to secure Real Estate to Sale, rather than waiting endlessly trying to do it alone.

Two, three or four entrepreneurs will pull their resources together and buy a plots of land for instance along Lagos Epe express road at the cost of 450 million. If 3 companies form an alliance they will pay a reasonable cost of 150 million each other resources will go for construction of the edifice that will accommodate them and save excess cost, or better still, financial house can take up their construction bill and then pay back their loan over a period of time. With this type of alliance there will be hope for younger and smaller companies to locate themselves among giant companies who have enough financial capital to throw around. This will also guarantee a fair market competition between the young, small and giant companies. The economic challenges of the future will soon consume any company that fails to read the emerging danger in the estate and property sector, this is indeed is a global real estate warning. 2. Traders Real Estate Alliance

Traders are not also left behind forming estate alliance. It could be for residential purpose or business purpose.

Shoprite of South Africa is one typical example of traders amalgamation it comprise of numerous trading units by individual and corporate bodies, They have achieved in driving market to their location because of market concentration.To achieve this a traders will organize themselves in such a manner and pull their resources together to buy a land in a present market location or a future market, put up a to accommodate all stake holders

An amalgamated traders such as what we have in trade fair complex (Aspamda) in Lagos Badagry express road, Trades can come up and buy 60 plots of land for instance in a choice area at the cost of 60 million, 10 plots will be used for parking space and other uses while the remaining 50 plots will be shared by one thousand traders at a small cost. In this type of trader’s alliances, banks and financial houses will scramble to help in developing the market because of the huge potential that will be earned in the future. Today Aspamda in Lagos – Badagry express road, is market to reckon with throughout the country, and it has positioned itself firmly to becoming a world class market in the future. The best is yet to come; opportunities are still lurching everywhere for amalgamated traders to reproduce the likes of Aspamda. More so, banks and financial houses are concentrating more on financing residential estates, not knowing full well that other profitable sectors remain untapped. Amalgamated traders forming alliance is a new form of financing that would give more than 100% profit, most especially if these financial houses step forward in the future maintenance of the market, this will guarantee continuous income for several years. 3. Specialized Traders Real Estate Alliance there are traders located in only one geographical location to sell the same products. They are concentrated in the same venue and place and are controlled by the same situation and circumstances. They are subject to price control, and easy access to manufacturers and distributors of such products. The inability of other traders of this particular product to locate themselves in such a market is always a hindrance to the sales, profit and cost of doing business. For instance, individuals Motor Spare part Dealer scattered in every general market would not be exposed to change in trends, price and fluctuation in the business, unlike those located in a specialized spare part market such as Ladipo spare part market in Mushin Alaba electronics and electrical market at the Owode-oniru and Aswani textile market in Apapa expressway Lagos.

However, these markets enjoy local and international patronage because of their convergent in one place. Nevertheless, other traders can still reproduce this trade monopoly for instance; 4 acre of land along Badagry express road shortly after Agbara will serve as a good market for plastic and polyester traders. This location will serve as a good international market from West Africa countries and beyond, who travel all the way to central Lagos for his purpose. Also, other traders could also take the advantage of the 4th mainland bridge in Ajah and locate themselves on plots of land in Ikorodu worth 21 million. The advantage to this real estate alliance is so numerous that a large population of at least 320 of these traders can share the 42 plots and each will be required to pay a token of 65,625 to become a land owner. Banks and financial houses will be willing to finance the construction because of the huge profit and the high number of traders involved, also, individuals could also decide to build on their own. 4. Service Provider Real Estate Alliance this is a very productive real estate alliance because of the interdependence of the services provider. What goes around comes around and the fact remains that no man is an island on his own. We all need to depend on other people and professionals to perfect our own profession. For instance, an architect need a surveyor to get his figures for drawings while a construction engineer needs an accurate drawing from an architect to build a reliable structure, however a builder need the services of a craftsman such as carpenter, bricklayer, iron bender etc to put up a structure.

This is Ikota Complex In Lekki Lagos, it is on about 10 hectares of land, established by an Israeli company, any group of people can do the same, it comprise of service providers such as lawyers, Agencies, Surveyors, consultants, retail outlets and several others. It is the heart of Lekki. When this project was conceptualizing it looks like a waste but toady an office space is sold foe half a million.

Therefore, if all these services converge in one place, they will have easier access to each other, there will be continuous business referrals, services will increase and as such profit will also be maximized. Such a scenario could be experience in VGC complex along Lagos Epe express way sponsored by HFP Engineering. In this office complex, activities are at peak level, with increasing numbers of banks, airlines, architectures, surveyors, estate agents, laundry, insurance brokers, stock brokers, construction engineers, dentist, opticians to mention but few. More so, it will be a very profitable venture if Estate Developers

could replicate this VGC complex in a geographical location where offices are scattered, you have to take a bus or drive far distance from surveyors office in Lagos mainland to see an architect in Lagos island, this is an example of a waste of time and resources that hinders productivity. For instance, an individual investor or developer can buy up one (1) acre of land along Lagos Ikorodu road at N20m and use it for office complex, a cue of construction design can be taken from the VGC complex and before you know it, all offices scattered along Lagos Ikorodu will identify the complex as the center of all service providers. Apart from this, individual service provider numbering like 50 can team up together and buy up the one (1) acre around N20 million individuals will only need to contribute only 400,000 to get spacious measurement enough for an office apartment. 5. Manufacturers Real Estate Alliance Manufacturers are the pioneers of this real estate alliance what makes the difference is that in most industrial layout, it is the pet project of the government and the state and in several cases location of these industrial layout are not suitable for production and distribution.

Industrial layout are the prerogative of Government, but lately the Government of our country have neglected the need for industrialization, however these have increased unemployment in most countries. the private manufacturer can manage their future perfectly if they take the bull by the horn by converging at the same place to practice their trade .Hakeem Agbaje However, we have instances such as the industrial layout along Lagos Apapa express road, though manufacturers are affected with the present economic downturn and the increasing reliance on imported product due to lack of adequate Government support, they will enjoy a far greater benefit if they chose to converge in one place, rather than the present state where distributors in a geographical location are scattered. It will help the distributors to create a bigger market where all retailers will find it more reliable to visit the center rather than buying their products from distance distributors. Also manufacturers will save cost of transportation and time unlike when they are in far distance, also distributors will be able to have a place of their own rather than the use of rented apartment or leased properties. For instance, an acre of land at N20 million located on Lagos Ikorodu express road can be purchased by five (5) distributors of soft drinks or alcoholic drinks.

Each of them will only need to contribute a token of 4 million to create a bigger and faster market in that geographical area other distributors of similar products also take up such advantage and they will be a force to reckon with by both their retailer and the manufactures. However, plots of land available for this purpose suitable for groups of distributors are along Ajah – Badore road Lagos-Badagry express way, Lagos Epe express way and Lagos Ikorodu express way etc. Also, manufacturers of some products such as Pepsi, coca cola, Mirinda, 7up, Fanta, Schweppes and other soft drinks can also pull their resources together and buy up acres of land at a strategic location and lease then up for various distributors of their product in that area. The advantage among others is that it will help to merge the distributors in one place, this will generate a bigger market, it will make it easier for retailers to locate them, it will reduce time and cost of transport distribution it will also general more market for both the distributors and manufacturers

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