04/11/2020
Tip:
How to raise money for a business—if you have no money!
In Europe, and America young entrepreneurs would traditionally turn to relatives, and family friends to get [StartUp] capital. In Britain it was sometimes called “My Auntie Agatha is my principal investor”!
But as one African-American friend once told me:
“Our folks are too poor to provide Seed Capital for entrepreneurs in their families”.
That is true in Africa even more.
This leaves young people having to go to unscrupulous adults who try to flees them and take the business from them. I have seen this all too often.
Others turn to governments, many of whom have callous civil servants that have no clue what to do to help, but will never ask, and instead end up trying the same failed concepts over and over again.
Some people think big companies should do it; that will never happen because they see it as an interference in their efficient operations. To be honest, it is not going to happen, except in some rare cases.
Then of course there are the banks who are just not equipped to help entrepreneurs, and that will never change, because that is not what banks are for.
I have said it before, and I will say it again:
Africa needs an economic revolution driven by Entrepreneurship. And that needs to be done through a domestic Venture Capital industry.
So what do you do; , if you are an entrepreneur?!
Let me show you one simple method:
And it is actually the most common method in Africa!
&Selling Third party goods!
You must have the humility to go even to the informal markets to sell. It does not matter what it is [as long as it’s legal, not harmful, or fake].
Of course if you can be really creative about what you sell, and choose something you are passionate about; all the better.
For you young guys, try not to sell the same stuff as an earlier generation such as “Second hand clothes” and trinkets!
Now, once you have established yourself selling something, and have mastered the Skill of selling [its tougher than most most people think!]:
Here is what you must then do:
, and pivot up the ValueChain through one thing that you want to get into!
If you are making money &Selling, and are still doing it [ except bigger] after five years; it’s also not good! You are getting comfortable!
This is not about making money but about !
It is the example of Aliko Dangote Selling cement, and then becoming a manufacturer, or the famous Phil Knight story.
It’s the oldest pathway in the world, but most people never take it because when they become successful, they just keep on doing it, except on a bigger scale.
Say, you have been selling Mobile Phone Airtime, or Aggregating Content for Sasai Watch. And you have some money in your pocket, DON’T TRY AND BUILD A HOUSE OR BUY A TV! THAT IS EATING YOUR SEED CAPITAL, RIGHT THERE, AND ITS DUMB!
The guys who go on to be multi millionaires or even billionaires, used Buying&Selling Model as a transition for building capital!
Now you can try your hand at building that APP or doing a bit of assembly before getting into manufacturing.
This calls for:
Endurance;
Minded Focus;
!
NOW GO DO IT!
Strive Masiyiwa
