What do I mean by a cushion in this case, a strong financial muscle? Without that, you will need all the patience in the world to ensure your business gets to its first birthday.
Many say businesses can operate with little to no cash, but the rate of growth when one has nothing to his or her name cannot be compared with someone who comes in big; they scale up so fast.
Having no cushion will make you stressed, causing one to turn their friend circle into therapists.
Getting big clients that pay the big money with no proof of funds is as hard as training for a marathon.
Entrepreneurs are frequently at the mercy of financial circumstances that impede their ability to maintain consistency.
I won’t deny that the start small and keep expanding model works for some people, but the patience and mental strength one must possess is not something many have, especially when they have bills to pay and mouths to feed.
According to the findings made by the Makerere Business School (MUBS), one in every two businesses started in Uganda fails within the first three years.
In 2015, it was estimated that about 10 percent of Ugandans started a business, whereas 20 percent of adults between the ages of the ages of 18 and 64 had a discontinued business.
The Global Entrepreneurship Monitor placed Uganda as the most entrepreneurial country in the world, where many businesses take off in any single year, but at the same time, it is a country where many fail.
Banks, money lenders, and investors are not willing to work with a startup. Government funds and grants do exist, but officials are stealing from the public purse, making it impossible for most of the money to reach the target group.
Cooperatives would have been a good option, but we have all heard the December stories where some people have run off with the Kibiina money.
Companies that offer things on credit are also losing morale; a good example are those giving out Boda Bodas on loan.
Riders make the first deposit for the bikes, remove trackers, replace new parts of the bikes with old parts, and later dump the bikes.
This example alone shows you that you can not only blame the economy or the Zakayos in government; we too are to blame.
Hard work is vital, but it’s only one piece of the puzzle; opportunity, resilience, and other factors are also required to achieve success and wealth.
Donkeys work tirelessly, but have you ever seen a rich donkey?
