Reverse Engineer your Business to Raise Capital

As we work towards July 1, 2017 I will be sharing a couple of anecdotes everyday starting today upto Friday.

In an economy that is struggling with maize flour issues, I was surpised to see a flood of people at the subsidized clothes expo, scrambling for qilaity wear from the Export Processing Zones in Nairobi and other parts of Kenya. From the initial one that was done, I learnt that shrewd business people were buying in bulk, storing and selling them a week later at ridiculous profits. That was ingenious!!

Any entrepreneur that is seeking to raise capital ought to pull off a stunt like that. Buy low, Sell high, raise your capital. However, many an entrepreneur don’t explore such a concept because of one simple reason. They figure that they are not sales people and they will leave that to the staff they employ. Nothing could be further from the truth.

Every entrepreneur or business owner must be a sales person. How else will one manage to convince people to join the company; to buy into the vision of the business?

Entrepreneurship and running a business is not about sitting in an office and reading reports and networking. Its about rolling up your sleeves and making sure your product/ service is delivered to the customer. By way of example, if you have the vision of running a chain of fast food restaurants, you need to spend sometime selling donuts and coffee/ tea in an urn. If you can’t make the donoughts, find someone who can avail them to you at a low price, wake up early and sell them at a marked up price.This is what I mean by suggesting that you reverse engineer your business.

When you do this reversal, you not only need extremely low capital, but you also gain invaluable knowledge and contacts in the business.

Shake off the feeling that it is a lowly job because it is not. It is your capital of effort and business class 101.

July 1 marks the beginning of the 2nd half of the year and if you are at a place where your business idea or existing business needs a fresh set of eyes and ears to keep you working at it, I welcome you to a One Day Idea Clinic at Nairobi’s, UBS building, Ndemi Road, off Ngong Road. Slots are limited and participation must be confirmed before hand.

Until tomorrow…

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