Reverse Entrepreneurship: Why Nigerian Founders Should Secure Sales Before Raising Capital

A Nigerian business adviser has introduced “Reverse Entrepreneurship,” a method that tells founders to secure paying customers before borrowing money, renting offices, or investing heavily in production.

Kola Owolabi, writing in the opening part of a new series, said the framework was developed over about 20 years and is focused on starting with confirmed demand rather than starting with capital. He said many founders begin by chasing loans, investors, and large plans, then struggle when real buyers do not appear.

Owolabi linked the idea to his time as Chief Operating Officer of a consulting firm, when a client asked for a feasibility study on a proposed plastic closures factory that would produce caps for PET bottles. He said the client expected a green light after the study, but he advised against proceeding immediately.

According to him, the factory should only move forward if the entrepreneur could first secure confirmed off-takers for at least five years. He said that condition would provide a ready market from day one and reduce the risk attached to debt-financed expansion.

He said the lesson from that experience is direct: before committing to fixed assets and financing, founders should establish who will buy, how often they will buy, and what quantity they will buy. In his view, that order lowers stress and improves the odds of long-term survival.

Owolabi said Reverse Entrepreneurship “flips” the usual startup sequence. Instead of building a full company and hoping sales will come, the founder should first build a customer relationship and secure an initial transaction. He said willingness to pay is the strongest early signal that an idea solves a live market problem.

He argued that the first sale forces discipline because it answers one hard question quickly: who is ready to pay right now? He said this is more reliable than projections and slide decks because it is based on behaviour, not assumptions.

He added that a sale-led start pushes entrepreneurs to simplify execution. Rather than spending time on office branding, complex structures, and other overheads, they can begin with the smallest deliverable that still creates value for a paying customer.

To illustrate, he said a catering founder can begin by supplying food for a small event, church programme, or office meeting, instead of waiting to build a full commercial kitchen. In the same way, a fashion entrepreneur can validate demand with one custom order before opening a large boutique.

Owolabi listed four outcomes from getting an early sale.

First, he said it validates the offer because a customer has exchanged money for a solution.

Second, he said it improves founder confidence because revenue from a real buyer confirms that the idea can work in the market.

Third, he said it creates immediate cash flow that can support practical next steps such as materials, delivery, and basic promotion.

Fourth, he said customer feedback from actual delivery reveals what buyers like, what they reject, and how they judge price.

He warned that many founders spend significant sums before earning a single naira. He said early spending on rent, payroll, and promotional materials can become a burden when demand has not been proven. In his view, the Reverse Entrepreneurship approach prevents this by making sales confirmation the starting line.

He outlined a simple operating sequence: identify a specific problem; find one person or organisation facing that problem; offer a practical solution; close the sale, even if small; and deliver strongly. He said once the first sale is done, the process should repeat with the second and third customers.

Owolabi said businesses are built as a chain of satisfied customers, not as a one-time funding event. He added that investors, lenders, and partners are usually more willing to engage when they can see clear evidence of demand.

He described the first sale as the seed of the enterprise, saying financing tends to follow traction rather than the other way round. The essay was presented as Part One of a broader series that will continue to explain the method.

Owolabi is a Fellow of the Nigerian Institute of Management Consultants (FIMC.CMC). He also referenced David Solomon Consulting Limited, based in Igbesa near Lagos, as a firm focused on bankable business plans and market-entry support.