We all want to be independent. No one wants to be tossed around by some egoistic Boss. However, there are certain principles we need to learn no matter the passion we have and how sure we are that it will make us soar.
A friend of mine called me today to request for requirements needed to get a loan from my formal place of work. I asked him what he needed the loan for, he said he needs it for an agricultural biz. I said, that is good, because agriculture is the way forward now.
I asked him some questions being my friend, also being part of the questions i often ask some of my clients then, in order to know how to guide them financially because loan is often easy to collect, but not always easy to channel well to better use, which often affects pay back.
I then asked him what the nature of the agricultural business is, what he has on ground, and how sure he is about this business. He confided he is acting on what he was told, which is that there is land available for sale which is good for agriculture . According to him the person advised him about the land, the business and assures him that if he plants anything, he will get double of his investment back. “This is a lekki dude who knows close to nothing about farming”
He has a million naira and needed a million naira more (of which i am sure this is all he has on him and its his hard earned money). coupled with that, he wants to get a loan of which he would be paying back as much as 6% monthly on regardless of whatever the outcome of his investment.
Yeah, we all know that even top management staff of most firms are now venturing into agriculture, the oil is going into extinction, people are making money on agriculture and government is spending on fertilizer plants and increasing the boost of agricultural programmes but most of them have their know how before venturing big into it.
So, its important you know that you don’t :
- Borrow to start a business : “no matter what” you don’t borrow from a financial institution to start a business except from financial institutions that their funds are backed up by Government’s subsidy or has a Government intervention initiative that attracts very little or no interest. If you need to raise funds for your business, you can raise from working a little, borrowing from family and friends, selling some items that does not yield interest or add in value.
- Eat your profits at the early stage : Secondly if you want to leave vicious cycle of borrowing additional capital for business, feeding hand to mouth and maintaining the status of stunted or no growth. Its best you have separate funds you always fall back on when in need of money at the early stage of your business start up.
- Wait for huge funds or perfect time : Waiting for huge funds or perfect timing to start any business is synonyms with procrastination, and procrastination is not only the thief of time but dreams and destiny. Ideas don’t just stop at a person’s mind, ideas visits lots of people at a time. You will be surprised that you may just conceive an idea and you are waiting for money, only to find the same idea up and running few months after you inaction. “Ideas are not like arsenal fans, they are not loyal” you need to act immediately you have a business idea. Just like Nike, “Just do it” You need to start doing something about it immediately.
- Start a farm if its not close to you : What you wont like to do is get a loan like my friend’s instance above and you employ someone to run your farm that is miles away from you with intention to visit it once a month. You wont like to do it if you know what dangers abound. No employee will know the pain you went through to source for money to start your farm. Your farm needs your attention from time to time. When its time for weeding, you need to supervise your employees, when its time for fertilizer to be applied you need to be there. Poultry is the most delicate, you cant entrust it in the hands of employees alone.
- Start Farming or any Business without Good Info :Starting a Business is like exam time, this is where the stuff you have fed yourself, and the stuff you are made of comes out. Consequently you need information on your business that you have been on for years, how much more the one that you are yet to start. You cant be over informed.
- Start a farm if you wont have a place you can stay in it :Lastly, you need to make your farm comfortable enough for you to sleep in. There will be times when you will need to always be on ground and coming to the farm from a far distance may be uneasy.
Hope this helps intending borrowers for business, potential farm owners and those waiting for heaven to send manners before they start their businesses. The world is waiting for your ideas, invent and do exploits!!!