Article by – Basil Malaki
Your win today might not be a guarantee for success tomorrow.
“There is ice and there is fire. Hate and love. Bitter and sweet… Winter and summer. Evil and good.” Failure and Success complete the business cycle when we lose and win. In business everybody is a winner and everybody is a loser.
Tanzanian investors fear losing, nevermind, they all want to win. The fear of failure is the genesis of retarded thinking. When the fear to loose checks in even the brain stops thinking straight making us shy away from the elephant in the room, if you can not take on the elephant in the room which is fear in this case, then you are not fit enough to survive the rule of the business jungle.
When you lose it simply means you were brave enough to try out something risky whereas winning most often come at a price after undertaking a valuable risk.
My experience with foreign investors spark a feeling that makes me believe they bank on their fears by taking risky ventures and avoiding risks. So next time you see a foreign investor reaping off big shares in the market it simply means he dared to calculate the magnitude of risk involved before risking money.
What is a Risk? The plural/countable noun “risk” is a situation that is exposed to danger. In its verb form, to “risk” something is to expose something to danger or harm. From this explanation of risk, I literally speculating who on earth would consciously RISK money in an impractical investment…! I wouldnt do that neither would you.
“Investors in a company are exposed not only to business risk, but also to financial risk, liquidity risk, systematic risk, exchange-rate risk and country-specific risk. To calculate business risk, analysts use four simple ratios: contribution margin, operation leverage effect, financial leverage effect and total leverage effect.”
So what is Risky? Only used as an adjective, “risky” indicates the possibility of danger or failure. Generally entrepreneurship is risky, the other side to look at is the amount of fear we invest in a risky situation, fear to grow big, fear to try something new, fear to make mistakes among other fears result to failure. Nevermind failure is success in disguise, all successful persons have a history of a series of fails.
Start-up business are the most vulnerable ventures in the business ecosystem. After assessing and analyzing risks versus opportunities available when planning to start-up a business, the probability of winning as compared to losing becomes 49% over 51%.
This is one principle local investors never subscribe to as a result we output half baked business persons who are clueless what to do with their ‘creative’ cum ‘innovative’ ventures when faced with a practical challenge that requires real-time practical solutions; we output fortune teller start-ups who do not keep track of their records making it hard for them to sell off and/or partner with investors, documentation signals that you are a professional hence a potential business partner.
For our market to grow and scale out beyond our borders to our advantage we must encourage local investors to invest money in local start-ups. The Tanzanian market of the 21st century should atleast be comprised of a few elite and business focused individuals, organizations or companies ready to risk money to support, finance and mentor focused start-ups to scale out to greater heights.
Start-ups can overcome fear of losing by seeking Mentorship, we always need a mother-son relationship in business to succeed, you always need that one person to always perform a reality check on you whenever that fear checks in.
The fear of losing can be overcome when you know your product/service so well that you can sell it to an investor in under a minute.
When you know your goals and have a clear vision of your prospects, chances are you will never be a victim of the fear to lose.
Keeping your financial and operations records will always justify your track record, you dont have to explain yourself in a thousand words to tell an investor whether you are making profits or not.
If your are working in a team, it is prudent to ensure that your whole Team is in harmony with clear goals and vision of the company.
Finally, use your traction as your selling point. You can find courage in the number of people using your product or service, you can measure your traction through the amount of revenue you generate, profits, engagement, partnership, traffic among other.
Now lets stop talking and do business!