13 Sept 2016

Business Idea

More than once, I have come across aspiring entrepreneurs who pose this question:

"Jeremy, help me with business ideas. What business idea can I invest in with say, 500k to a million shillings."


image from under30ceo.com










Well, my answer has been the same: 

"It doesn't start with the money. It starts with an idea. Money follows ideas. Not the other way round." 

I know this because when I started what is today our business consulting firm, I started with nothing. Absolutely no money. Hence today, I wouldn't quite find myself in a quagmire wondering what to do with any amount of money. I would expand or diversify as may be appropriate.

The other reason why I believe it's more accurate to start with an idea other than with money is this: you will almost certainly lose money! Every entrepreneur I have come across recounts a venture in which they lost money. I'm yet to come across an entrepreneur who didn't lose money along the way. This is just part of being entrepreneurial - it comes with bearing a certain amount of risk. In fact, entrepreneurship may be all about finding a good balance between risk and return. The interactions I've had with various businessmen would tend to prove what Robert Burns said to the Mouse - the best laid schemes of mice and men, go often askew.

If all I had was money, I would want to lay the best plan not to lose it. This would greatly reduce my risk appetite and consequently reduce my potential for realizing worthwhile returns.... and yet, with such limitation, the best laid plans could still go awry. If however, I start with an idea, it could succeed or not, but if it should fail, there are more where that one came from.

This then is my two cents on it: it doesn't start with the money. It starts with an idea. Money follows ideas.