Have you seen folks who just say ‘iri business iri rine mari’ and then plunge in and invest? There are no sufficient studies to find out the profitability of the investment, the impact of the economy on the business, the regulatory environment, the impact of smuggling on the business, the impact of elections on the business-i cango on and on listing variables that affect a business. The point here is that when planning to invest a substantial amount of money in any business venture, you are going to do thorough studies or risk sinking money into loss making ventures.
The ‘business iri rine mari’ (this business is profitable) concept has led to the high rate of business failures and also the flooding of any emerging business opportunities. Take for instance the purchasing of a kombi-most just transfer funds to Beforward, receive your vehicle, get all the necessary permits, hire a driver and conductor and within a few weeks the kombi is on the road! There is no study to determine the current trends in the industry, current or future plans by the government, how many kombis already exist and future outlook. For most investors in the sector-its get sufficient funds to import a kombi and hire employees-end of story and this usually results in investors making losses because they may not have full knowledge of the business.
We often give the example of the quail bird projects which once took Zimbabwe by storm in 2016. Some took bank loans and invested heavily in the projects. A few months after investment then came the shock news of the project ban! Those who had invested in the project had obviously not done enough studies because they should have checked the position of regulatory authorities on the project.
Inorder to assist our members to invest wisely, we are giving you a free business template for download. Carefully study the contents especially on marketing, distribution, competition, future products, technology, products, finanial information etc. This should give you general guidance on what a business plan is. Subscribed members of the forum can downoad a business plan checklist from our Facebook page.
