Startup

The rise of Product-Led Growth: A new era for tech startups

By Oluseyi Sodiya

The tech startup landscape is evolving, and with it, a new paradigm known as product-led growth (PLG) is taking centre stage. Unlike traditional strategies that rely heavily on sales and marketing to drive growth, PLG focuses on the product itself as the primary driver of customer acquisition, expansion, and retention. This approach is not only reshaping how startups grow but also revolutionizing the tech industry as a whole.

Understanding Product-Led Growth

Product-led growth is a strategy where the product itself is the main vehicle for acquiring and retaining customers. In a PLG model, the product is designed to deliver immediate value, encouraging users to try, adopt, and champion it without the need for aggressive sales tactics. This approach leverages user experiences and organic growth channels such as word-of-mouth and network effects, making it a cost-effective and scalable growth strategy.

Empowering users

One of the core principles of PLG is empowering users. By offering a seamless and intuitive user experience, startups can enable users to derive value from the product independently. This empowerment not only enhances user satisfaction but also fosters loyalty and advocacy. When users are delighted by a product, they are more likely to share their positive experiences with others, driving organic growth.

Data-driven insights

A product-led approach relies heavily on data-driven insights to continually improve the product and user experience. Startups can leverage analytics to understand how users interact with their product, identify pain points, and make informed decisions about feature development and enhancements. This iterative process ensures that the product remains relevant and valuable to users, driving sustained growth.

Reducing customer acquisition costs

Traditional customer acquisition strategies often involves significant marketing and sales expenses. In contrast, PLG can reduce customer acquisition costs by leveraging the product itself to attract and convert users. Free trials, freemium models, and in-app onboarding are effective tactics that allow users to experience the product’s value firsthand before making a purchasing decision. This not only lowers the barrier to entry but also accelerates the adoption process.

Building viral loops

PLG leverages the power of viral loops to drive exponential growth. Viral loops occur when users encourage others to adopt the product, creating a self-reinforcing cycle of user acquisition. Features such as referral programs, social sharing options, and collaborative functionalities can amplify the reach of the product and increase its user base organically. This network effect is a powerful growth engine that can propel startups to new heights.

PLG success

Several tech startups have successfully implemented PLG strategies to achieve remarkable growth. Companies like Slack, Dropbox, and Zoom have harnessed the power of their products to build massive user bases with minimal reliance on traditional marketing. Slack’s user-friendly interface and seamless integrations made it a favourite among teams, leading to widespread adoption through word-of-mouth. Similarly, Dropbox’s freemium model allowed users to experience the benefits of cloud storage before upgrading to premium plans.

Challenges and considerations

While PLG offers numerous advantages, it also presents challenges. Startups must ensure that their product delivers real value and can stand on its own without heavy sales intervention. This requires a deep understanding of user needs and continuous investment in product development. Additionally, measuring the success of PLG initiatives can be complex, as it involves tracking user behavior and engagement metrics.

Finally, the rise of product-led growth marks a new era for tech startups, offering a scalable and cost-effective approach to growth. By focusing on delivering exceptional user experiences and leveraging data-driven insights, startups can build products that not only attract and retain users but also drive organic growth through advocacy and network effects. As the tech industry continues to evolve, PLG is set to become a cornerstone strategy for startups looking to make a lasting impact. Embracing this approach can help startups navigate the competitive landscape and achieve sustainable success in the digital age.

Chidoka family honors late matriarch with N100,000 grants for female entrepreneurs

By Uzair Adam

Hope has been reignited in the minds of women entrepreneurs as the Chidoka family, through the Nneka Chidoka Outreach Program, awarded N100,000 grants to ten female small business owners in honor of their late mother, Nneka Chidoka.

The Daily Reality reports that the grants were awarded on what would have been her 76th birthday, continuing her legacy of support for women and small businesses.

Osita Chidoka, former Minister of Aviation and Chancellor of the Athena Centre for Policy and Leadership, announced the initiative in a Facebook post on Friday, September 6.

He invited female entrepreneurs with small teams of 2 to 5 staff, operating home-based or small-shop businesses with a daily turnover of less than N100,000, to signify their interest.

“She would have been 76 years old today,” Osita wrote. “Are you a female entrepreneur? Do you have between 2 and 5 staff? Do you operate from your house or a small shop? Is your daily turnover less than 100k? Are you a Mekaria Mentorship Program Attaché? The first five women to respond and meet these criteria will receive a message from the Nneka Chidoka Outreach Program today.”

The response was overwhelming, with more than 50 women sharing their stories. Ten were selected based on the program’s criteria, receiving N100,000 each to support their businesses. One recipient, Nkechi Eze, a fashion designer, expressed her gratitude: “This support is a dream come true. It’s not just about the money; it’s about knowing someone believes in me and my business.”

The Nneka Chidoka Outreach Program, created in honor of Nneka Chidoka, who passed away in 2023 after a long battle with cancer, continues to promote her values of resilience, compassion, and community support. Led by her children, the foundation focuses on cancer awareness, screening, and treatment, as well as educational support for young people.

Since its inception, the program has screened over 2,000 women for cancer, provided free surgeries for more than 60 women, and supported over 1,000 individuals with various health interventions, including the distribution of corrective eyeglasses.

Additionally, during her memorial service, the program covered school fees for over 500 students in Obosi.

“Our mother’s life inspired us to be positive, considerate, and empathetic. The Outreach Program is a testament to her boundless strength and compassion,” said Osita Chidoka.

He also emphasized that the program is more than charity, reflecting his mother’s core values of community strength, education, and accessible healthcare.

In a similar act of generosity, the Chidoka family last year provided cash grants to over 100 petty traders in Obosi, Ozubulu, and Ohafia, fulfilling their mother’s wish to support female-owned businesses as a way to alleviate family poverty.

Pantami is a poor writer – IBK replies Pantami

By Halima Ibrahim

Sheikh Ali Isa Ibrahim, also known as Pantami, a former Nigerian minister, called for a debate over his books. In response, Ibrahim Bello-Kano, a Professor of English from Bayero University Kano, called Pantami a “poor writer”. The rejoinder, as obtained by The Daily Reality, reads:

Now, I have a few points to make about Mr Pantami wishing or asking to debate his critics. But before my first point, let me say this. If the forwarded message on this platform is really from, or written by, Pantami, then it’s clear that he’s a poor writer and a shoddy thinker to boot.

Look at the poorly written prose and the ample indicators of the writer’s low critical thinking acumen.

So, back to my first point: millions of books and papers by living authors are reviewed across the writing and publishing world daily, but I’ve never heard of any serious writer or author asking to debate his or her reviewers or commentators on his or her book. Pantami’s demand to debate his critics is pretty odd for any sound academic or scholar.

Second, Reviews have a world of their own and are not personal or personalised pieces or responses.

Third, Pantami can respond to his critics in writing. This is quite acceptable. His quip that his critics should rather write their own books is powerful evidence of his being an alien to academic culture.

Fourth, the debate on skills versus degree qualification is an old one, since the 1950s. It was an old credo of American Pragmatism from William James to John Dewey (see, on this, Richard Rorty’s “Consequences of Pragmatism”, 1989). So, Pantami isn’t saying anything new. He’s, again, not conversant with the topic in Education, Pedagogy, or Teacher Training.

Fifth, Pantami is the typical semi-educated person who’s pained by ASUU’s rejection of his illegal Professorship and is desperate to soothe his badly bruised ego.

Sixth, his or the claim that his book is being translated into many other languages is either a lie or just an attempt to pass off his questioned erudition. Let him or his defenders mention or give evidence as to the languages that his book has been translated into. Just how many? It’s rare to see an author literally begging to debate his critics or reviewers in the immediate moment.

Finally, Pantami can have his dubious “bragging rights”, but that’s where his case properly belongs — bragging rights for a man whose ego and scholarly claims have been badly and justifiably bruised.

Indeed, the whole debate on skills and not just degrees was misconceived. Richard Rory in his book, “Consequences of Pragmatism” shows how skills as such and theoretical understanding or epistemic capacity cannot ever be separated. Pantami’s book was a cowardly critique of University academics in general. As a person, Pantami has had deep inferiority complexes relative to his more intellectual colleagues. That became worse after his illegal Professorship debacle, which was heavily criticized by many groups. The Latinate word TECHNE says it all. You learn to root knowledge in the very act of doing.

Conceptual thinking is always present, even in the so-called skills. Take a mechanic who has had long years of learning by doing. Yet that mechanic cannot now know about changes in technology in which one has to follow diagrams, instructions, and manuals to install an electric circuit or new nozzle equipment in a new model car. The best doctors or mechanics are those who keep abreast of theoretical or conceptual developments in their field. Skills are not enough. Theoretical understanding prepares one to adapt to a situation. Pantami is just flogging a dead worse.

Again, he’s not well versed in the very philosophy of action that he wrongly thinks comes before the episteme. Finally, what would Pantami say about a cutting-edge science called THEORETICAL PHYSICS?

Nigerian entrepreneurs and the startup ecosystem investment

By Salisu Uba, PhD, FCIPS

In Nigeria, especially in the North, the time is ripe for successful entrepreneurs and business leaders to forge an alliance and spearhead investment in the burgeoning startup ecosystem. By forming angel syndicates to venture capitalists, we can create a robust foundation for attracting substantial investment not only from within Nigeria but also from across the globe. This aligns with locally supported startups through investment, addressing market fit and confidence in the business model, especially if the solution is locally targeted.

Why is this crucial?

Firstly, establishing angel syndicates allows us to tap into the wealth of knowledge and experience possessed by seasoned entrepreneurs. Imagine having a syndicate of angels across all states investing in and mentoring startups and small businesses; this could lead to more successful ventures, social impact, and job creation. Typically, when you have resources and skills in business, it becomes an avenue for addressing challenges and opportunities within the startup landscape, making it a source of invaluable mentorship for emerging businesses.

Secondly, starting with angel syndicates incentivizes the process of attracting more venture capitalists, signifying a maturation of the investment ecosystem. It’s important to understand that venture capitalists bring not only financial backing but also strategic guidance and access to extensive networks, propelling startups towards rapid growth and scalability.

I am glad that some folks are forming partnerships and have come up with venture labs funding. However, my question is how effective this is, especially when we don’t get updates about the deals they have closed? I want to be positive, as a typical round of investment can take anywhere from 3-7 months.

Furthermore, without adequate funding, promising startups risk stagnation or even relocation to more investment-friendly destinations. Incorporating in these alternative jurisdictions not only deprives Nigeria of potential economic growth from the ecosystem but also undermines the socio-economic development of the country offered by the startups.

Lastly, to catalyze this transformation, heightened awareness and targeted training programmes are essential for our successful entrepreneurs and business leaders. Educating successful entrepreneurs on the benefits and mechanisms of investing in the startup ecosystem will empower them to become active participants in driving innovation and economic prosperity.

Business schools in Nigeria should come up with tailored programmes on startup investment opportunities and the future of sustainable business practices. Our revenue houses should perhaps create incentives for high net-worth individuals when participating in investment in startups or small businesses.

I am absolutely certain that Nigerian entrepreneurs and business leaders should be engaged in creating a network of angel investors to invest in the startup ecosystem. We can foster a culture of innovation, drive economic growth, and position Nigeria as a leading player in the global startup landscape. Now is the time to act, to seize the opportunity, and to realize the full potential of Nigeria’s entrepreneurial spirit.

I am sure platforms like Startup Arewa, NITDA, Ministry of Finance, FIRS, and many other stakeholders can facilitate a dialogue and create a conversation around my proposition.

Salisu Uba, PhD, can be reached via salisuuba@ymail.com.