Trust as the Cornerstone of Sustainable Business Growth
Tayo Oshiyemi, CEO of SKLD Integrated Services Limited, has made headlines recently by securing NOK 7 billion in funding within just a week. In an interview with Kenneth Atekame, he discusses the challenges of inflation, currency fluctuations, and the widening skill gap in Nigeria. Oshiyemi emphasizes that trust—rather than capital—is essential for sustainable growth. He shares insights on how SKLD has evolved into a diversified company and stresses the necessity for local production and talent development in maintaining competitiveness.
From Engineering to Business Strategy
Oshiyemi’s career trajectory is a fascinating blend of education and experience. After studying chemical engineering, he transitioned into business strategy and corporate growth by joining Nexon Business Services. His time at the consulting firm deepened his understanding of business strategy, corporate finance, governance, and organizational development. This foundation prepared him for a leadership role in the private sector and shaped his approach to value creation.
Navigating the Capital Landscape
Accessing capital remains a significant barrier for many entrepreneurs in Nigeria. According to Oshiyemi, a common pitfall is the misconception that fundraising primarily revolves around pitching ideas for funding. Instead, he suggests that it focuses on demonstrating value and effectively communicating with potential investors. Investors seek substantiated records, clear financials, and credible growth stories, underscoring the importance of due diligence in investment decisions.
The Importance of Initial Funding Sources
When seeking initial funding, entrepreneurs should consider their immediate circle, including family, friends, and close associates. These individuals often invest based on trust rather than a deep understanding of the business model. Oshiyemi notes that if entrepreneurs can cultivate trust among their families, it paves the way for attracting institutional investors down the line. In this context, trust emerges as a crucial first form of capital.
Trust as a Business Asset
In today’s competitive landscape, trust functions as a vital business asset. It is cultivated through consistency, integrity, and reliability. For instance, SKLD successfully raised NOK 7 billion in a week by launching a commercial paper program, demonstrating that trust in the company’s track record and commitment is invaluable. In large transactions, reputation may carry as much weight as collateral.
Maintaining a Startup Mindset at SKLD
Despite being a 25-year-old entity, SKLD is often characterized by its startup mentality. Oshiyemi attributes this culture to the company’s ongoing exploration of new opportunities across sectors such as education, ICT, humanitarian services, and distribution. He believes that adopting a startup mindset means staying innovative, agile, and customer-centric, regardless of the company’s age. Every customer interaction is a chance to build or undermine trust.
Addressing Nigeria’s Economic Challenges
In the face of Nigeria’s recurring economic challenges, including inflation and the depreciation of the naira, SKLD has adapted by reducing its reliance on imports and increasing local content through backward integration. The company has strategically focused on sectors such as education and humanitarian services, which remain essential even in tough economic climates. This approach speaks to the need for adaptability and resilience in managing business operations amidst economic uncertainties.
Long-Term Vision and Social Responsibility
Oshiyemi envisions SKLD growing into a $100 million company within five years, expanding operations not only in Nigeria but also across other African markets and the UAE. With a commitment to social impact, SKLD supports humanitarian efforts while creating value for shareholders. The company’s evolution from School Kids Limited to SKLD signifies a broader vision of innovation and data-driven operations, underscoring the importance of social responsibility in business strategy.
