Several years ago, while still in paid employment, a friend who worked in a bank approached me for a loan facility tailored for salary earners. He told me they were offering loans up to a certain percentage of monthly salary payable in 2 years.
I remember doing some critical calculations as to what I could do with the money. I think part of it went into my first fridge but more importantly I was thinking of a business I could use it for. I thought of a brand new keke (tricycle) for transportation business.
You see, I had learned earlier that there were ways one could use other people’s money (OPM) to do business. This seemed like a clear case of OPM for me. I also understood the concept of good debt (borrowing for building asset) and bad debt (basically borrow pose). I was gunning for building my asset.
I put the keke up for higher purchase (where the buyer would use it and pay weekly or monthly. At the end of which the seller would make some profit) but made a few critical business mistakes that affected the overall outcome of the venture. –
After several months the business had gone sour and the keke was in bad shape. I ended up selling it and barely broke even. I learned valuable lessons like not taking would-be partners along from day one. I was, however, thankful I didn’t lose my hard earned money in the end.
Business can be rough and failure of a venture doesn’t necessarily mean you are not cut out for entrepreneurship. What hustles of yours in the past have failed and what lessons did you learn? Let me know in the comment.