Thread by @ronaldnzimora

Let me tell y'all a story about a guy who started a business, made money and then poured half the money into a new business venture.

This is for the folks who ask me questions like, "What business can I put 500k/=N=1 million/=N=3 million into that will yield consistent profit?"

So this guy started a marketing consulting business, from scratch and landed a number of clients. One was 1960BET, the other was Pastor Sam Adeyemi of DayStar Church's Success Power International, another was Leaders & Company, Publishers of THISDAY, and a few others.

Anyway...

This guy wanted to hedge his bets and decided to put his money into a "safe" business that would "give him consistent income every month". So he looked at a couple of them and decided he'd get into the haulage business.

What did he needed. He needed trucks. So he bought two...

two truck heads, and had the flat bodies fabricated locally. Then he had them leased.

Each month he was paid =N=450,000 a month, less insurance. Everything seemed good until one day.

The lessee company told him their company was buying it's own trucks and hiring more drivers...

...so he should come get his trucks. Contract was canceled. That was the first lesson.

he was worried. he didn't want top actively run this business but it had come down to that. Anyway, he'd find a solution he thought. So he got the trucks, but where would he park them? Where?

Festac of course! But the LGA had recently created a law. No heavy duty trucks could be parked inside Festac Town itself.

So he had to look for a place. Finally, he negotiated with a warehouse on Oshodi-Apapa Expressway to use their premises, for =N=2,000 a day per truck.

That's =N=4,000 for two trucks, =N=120,000 a month just on parking alone.

Then he started looking for drivers to handle the trucks.

The 1st month he couldnt get any. The next month, he finallyh found 1 who "recommended" another driver he knew so he engaged both (second mistake)

They were to seek for jobs that required moving containers around the country and they would get paid a salary. (third mistake)

And they started work. That's when the nightmares began.

Everyday, it was either there was no jobs or the client didn't pay complete or they were...

asking to pay lesser than the going rate and the drivers would recommend taking it like that "so we're not idle today".

With each month the trucks earned lesser than the previous month, once in a while a little higher. Then another chapter ensued - claims of Police, Customs...

the Army wanting bribes, before the truck moving a container somewhere could be released. Even if the guy wasn't convinced, he wasn't prepared to travel to the middle of the country, somewhere in Kabba for example to investigate.

Then oh, the trucks started to break down too.

Repairs were needed, servicing, parts etc. And those things are expensive man.

Anyway to cut the long story short, after 11 months, our guy admitted defeat.

He quit! Oh yes.

The business was hemorrhaging money but the actual truth he admitted to himself was this:

he had zero knowledge about how the haulage business worked anywhere in the world and especially in Nigeria.

He recalled the two trucks and put them on sale. 5 months later disgusted with the whole thing and wanting to close that chapter, he sold the assets for next to nothing.

In case you haven't figured it out already, that guy was me.

I had gotten in the haulage business thinking all i needed to do was put in money and all would be well.

I did not talk to other people in haulage. I didnt take a course or training at least. Maybe if I did, I wouldnt

have even ventured in the first place. I would have known to stay away. My friend Oloye @AkinAlabi spent thousands of dollars to go to the USA for a training about a new business venture he was considering and then concluded he shouldn't do it.

Yes, paying to learn what you...

shouldn't do is as important as paying to learn what you should do.

Business is not a magic box. You can't just put so-and-so amount in and sit back waiting for returns. Maybe you can do that with bonds, funds or some money instruments but those are investments not businesses.

Do not put any substantial money in any business you do not have an idea how it works.

At the very least, pay for a training or a course that explains the basics and maybe advanced workings of the business and it's profit model. With that info, you can then decide if it is...

something you want to invest in your life saving into or take a loan for.

If you determine it's not for you, all you will be out is a tiny bit of money and your life, heart and peace of mind intact.

please DO NOT put money into a business you do not understand.

Also...

avoid the colourful stories about what businesses to get into. Many folk who tell you this dont even do it themselves. Always ask: "what's in it for them?" Maybe its to massage their ego or maybe they'll benefit financially from recommending it.

Be careful. Be wise. Seek counsel

If you are interested in starting a business, I have a class coming up later in the month. It's focused on e-commerce: importing and selling physical products. You should check it out: iwillteachyoubusiness.com/ecom

Thanks for reading.

And oh, I actually do it, e-commerce I mean 🙂