Gospel According to GaaS (8/25): Market Destined Investment

The wisdom of the market validates or curses our endeavours.

Beyond the corporate world, I have always been a keen observer of alternative business paths, particularly small businesses and sole proprietorships. I hold a deep personal connection to Igbo enterprise because of my heritage. However, my interest is driven by more than that.

Over the years, I have noticed a trend among young Igbo boys who enter the apprenticeship system under fellow townsmen. They begin their journey with a shared drive for prosperity. Within five to seven years, they gain their freedom and establish their own businesses. Many go on to become successful. Unfortunately, as they approach the later years of their careers, their businesses often begin to decline before their children can succeed them.

This outcome is not universal. However, it reflects a challenge most sole proprietors face: the difficulty of scaling businesses and ensuring adequate succession.

GaaS provides a clear solution to this challenge. Entrepreneurs should build businesses with the specific intention of listing them on a formal market such as a stock exchange. Taking this step would have preserved the wealth of countless entrepreneurs who worked hard to create value but saw their fortunes dwindle within a single lifetime.

Wealth, even when created through individual effort, holds a collective responsibility. It must endure beyond its founder and continue to benefit society. European family-owned businesses provide potent examples. Some of these companies have thrived for over four hundred years, sustained across five generations. Many remain anchored in rural towns that they have supported for centuries.

Imagine such a legacy in Uga, my ancestral hometown in Anambra. The absence of such enduring businesses reveals untapped societal and economic growth opportunities.

If we are serious about building businesses that will outlive us, we must apply the principles of GaaS early in the life of the enterprise. The following practical steps provide a clear roadmap for achieving this:

1. Separate the Founder from the Business
The first and most difficult step is to separate the founder’s identity from the business itself. Sole proprietorships do not allow for this distinction because the business and owner remain inseparable. Investors prefer to limit risk exposure, which is impossible when a company is tied to an individual.

Founders must gradually and formalize their separation once the business becomes profitable. For example, they can start by taking a salary instead of withdrawing funds from the company without oversight. This step creates financial discipline and a clear distinction between personal and business resources.

2. Share Ownership
The next critical step is to increase the number of shareholders. A founder who remains the sole shareholder cannot claim a real separation from the company. By bringing in at least one other shareholder, the founder introduces accountability and protection for shared interests.

3. Establish a Governance Framework
Once the ownership structure is in place, the business requires governance to ensure transparency and accountability. This step is especially important if new shareholders are not involved in daily operations.

To achieve this, founders should:

● Constitute a board of directors.

● Hold quarterly board meetings to review the company’s performance.

● Appoint a company secretary to document and formalize decisions.

These steps create structure and ensure that shareholders remain informed and engaged.

4. Reduce Dependence on the Founder as Manager
Once the founder separates ownership from the company, the next priority is to reduce the business’s reliance on the founder for day-to-day management. This transition does not need to happen overnight but must be intentional. Building a capable management team ensures that the business remains stable during periods of uncertainty.

Empowering others to step into leadership roles not only prepares the business for unexpected challenges but also increases its long-term value.

5. Set a Target Date for Listing
The final step is establishing a specific target date for the company to go public. This objective provides clarity and allows the organization to align its strategy, processes, and resources toward achieving that goal.

This process will demand a cultural shift and present significant challenges. However, its long-term benefits far outweigh the obstacles. Stock exchanges in Nigeria, such as NGX, NASD, and FMDQ, should provide advisory support to businesses to help mitigate cost and technical challenges. Pro-bono services for entry-level listings would encourage more businesses to take this step.

Why Every Business Should Be Market-Destined

Every business should aim to become market-destined. This ensures long-term success, preserves wealth for society, and allows others to participate in wealth creation. Governance is the foundation for attracting resources such as equity, debt, and human capital. Once governance structures are in place, listing on a formal market unlocks further opportunities for growth.

If Nigeria can integrate non-traditional businesses and the informal sector into this framework, and family businesses can prioritise longevity over individual legacies, the result will be a stronger economy. When we build businesses to endure, wealth becomes more than a personal achievement.

It transforms into a gift for future generations, a cornerstone for communities, and a legacy that endures.