The founder of Boomsky Smoothies, Mrs Olubunmi Otufowora, explains how she started business from her kitchen with one blender, but now has an asset worth over N5 million and about N7 million turnover. ADEOLA AKINBOBOLA reports.
Mrs Otufowora explained that pregnancy hormones pushed her into the smoothie business in Nigeria about 10 years ago.
The business woman who is also a Pharmacist has faced several challenges in the course of her business, which forced her to re-strategise to fit into market realities.
Nigeria’s business environment is described as hostile, especially to small enterprises, due to lack of basic amenities, double taxation and over-regulation.
Many have dared to swim amid the storm, but only a few have stayed afloat. One of them is Olubunmi Otufowora.
How she started
It is true that some of the best businesses started from conversations, but for Boomsky Smoothies, it began with Otufowora’s pregnancy hormones in 2008.
As a fruit addict, Otufowora feasts on varieties on a daily basis, but her pregnant state heightened and changed her cravings for fruits.
She didn’t understand what it meant until she made her findings on Google. She realised her cravings had been a source of income for many. Then her colleague advised her to turn her habit into a business.
She also had to deal with the COVID-19 pandemic which impacted her revenue sources due to the shutdown of retail outlets and ban on parties.
Switching into home delivery
Prior to the reopening of supermarkets across the country, in a bid to limit the impact the lockdown and restriction on movements will have on her company’s finances, Boomsky Smoothies switched into home delivery to stay afloat.
Boomsky Smoothies was able to mitigate these challenges by re-strategising to meet the demand of the markets. Due to unstable electricity in the country, Otufowora uses two generators in the factory, one inverter, and is now planning on acquiring solar to remain operational.
She was able to overcome these impediments and scale Boomsky Smoothies by also sourcing for capital outside her savings, seeking funds from the federal government and World Bank business support programmes.
How her brand reaches everywhere
Over ten years later, Otufowora has built her smoothies startup into a brand every supermarket wants to stock for a profit. Shoprite, Hubmart, Grandsquare, Prince Ebeano, The Place Restaurants, Bukkahut all shelf her products.
Her brands are also off-the-shelf at Blenco supermarket, South town restaurant lekki, Madiba Mart, Awoof berekete, Everbright supermarket, Fresh forte and Adiba supermarket.
Getting her products stocked didn’t come on a platter of gold. Although in some supermarkets, it took just days, some took about two years. Rejection didn’t stop her from conquering the very stores that turned her down.
The business that started in Otufowora’s kitchen with a single blender now has a workforce that consists of fifteen employees at her factory, with a total asset worth over N5 million, and annual revenue of about N20 million.
Expansion of Nigeria’s economy
According to the PwC MSME report, 23% of females operate formal SME businesses in Nigeria. This low number of female participation has affected the expansion of Nigeria’s economy and the number of jobs available.
Otufowora, who said her gender never affected her business growth, encouraged fellow ladies to take the bull by the horns, and not let challenges discourage them from chasing their dreams.
With a presence in major highway supermarkets, the Pharmacist short-term plan is to occupy neighbourhood stores, which will widen her distribution circle. She’s also eyeing African markets as a long-term plan, through the use of the AfCFTA programme.
On the Micro Small and Medium Enterprises Sector (MSMEs)
Amb. Katagum maintained that the Micro, Small and Medium Enterprises sector is the engine of economic growth by contributing to job creation and export as well as reducing levels of poverty and unemployment in the country.
The Minister stated “The MSME sector is the engine of growth of any economy, contributing to its development, job creation and export amongst others. The latest SMEDAN/NBS MSME Survey indicates Nigeria’s SMEs contribute nearly 50% of the country’s GDP and account for over 80% of employment in the country. No doubt, the sector is pivotal to Nigeria’s growth including reducing poverty and unemployment levels”.
She added that “With the above figures in mind, it is therefore very clear that supporting small businesses by creating opportunities for MSMEs to thrive is essential for increasing productivity, creating jobs, and boosting our economy. That means making every effort to support MSMEs so that they can grow.
This is why Government is working with stakeholders across all sectors to ensure that MSMEs have the support they need, to grow now and in the future.
“All this is geared towards enhancing the competitiveness and quality of services rendered by SMEs, as well as globally and regionally positioning them to compete with their counterparts both within the country and beyond”.
“There is therefore, a compelling need for every State and local government in Nigeria to identify areas of comparative advantage, particularly in agriculture and other resource endowments, and build competences for food sufficiency and export.
“This is particularly more pressing, considering that trading under the African Continental Free Trade Area (AfCFTA) commenced on 1st January 2021”, Amb. Katagum stated.
FG’s commitment in empowering Nigerians
She said the federal government was fully committed to empowering Nigerians, especially in the face of the Covid-19 Pandemic, adding that, the government, through the Economic Sustainability Committee had announced specific programmes aimed at cushioning the impact of Covid-19 on MSMEs businesses.
Amb. Katagum who is the Chairperson of the Scheme said the programmes included the Survival Fund and Guaranteed Offtake Schemes which are being managed by a Steering Committee.
Committee in the Federal Ministry of Industry, Trade and Investment
She said “These interventions, which have reached considerable implementation levels and received accolades and positive testimonies nationwide, have provisions for 45% female-owned businesses, as well as 5% for those with special needs. Some key tracks include: Payroll Support; General MSME Grant; Artisan/Transport Grant; and Free Business Registration”.
The Minister of State disclosed that the Federal Executive Council (FEC) had recently approved the revised National Policy on Micro, Small and Medium Enterprises (MSMEs), which provides the framework to resolve the challenges faced by the sector.
Policy reflects unfolding economic and social imperatives affecting MSMEs
She explained that the aim of the review process was to ensure that the revised Policy reflects unfolding economic and social imperatives affecting MSMEs in Nigeria and aligns with international best practices in MSMEs development and expressed optimism that the implementation of the policy will set the MSMEs on the path of sustainable growth and development.
She said the ministry had also commenced engagement with stakeholders with a view to enriching the draft National Policy on Startups, which was designed to keep pace with innovation and the new wave of digital revolution of Start-up ecosystems in the country and reposition the Nigerian Start-ups, to be major contributors to the nation’s Gross Domestic Product (GDP).
She therefore urged stakeholders to make meaningful inputs that would enrich the policy for the overall economic well-being of the country.
Amb. Katagum stated that the MSME Clinics provide a single point of access that can improve long-term potential for inclusive growth for businesses to achieve success with special focus on youth and women as economic actors of change and hoped that the participants at the clinic would maximize the opportunities provided by this platform.
She expressed appreciation to the Vice President, Prof. Yemi Osinbajo for his commitment and passion towards energizing and deepening the MSMEs in Nigeria on the path of inclusive growth and sustainable development as well as to the Governor, Alh Muhammad Inuwa Yahaya and the good people of Gombe State and other relevant stakeholders for their partnership in the edition of the MSMEs Clinics.
