You Don’t do business for survival
You do business for growth
What I mean is that if your business has not experience transformation annually it means you’re just in business to cater for family needs and food yourself.
If you’re doing business for growth it means you are making more profit and your profit margin is increasing all the time. It means you have capacity to expand and diversify. You open more branches, you have many products to sell, if you’re a service provider it means you have increased in customer-base to not only solving the problem of local people but now you grow internationally gradually.
In fact, someone who’s doing business for survival will be surrounded by debt, the person will be in debt instead of you to be outside the debt. Let me explain this properly. When you’re inside a debt it means you’ve borrowed too much that you cannot pay, you have borrowed money you have never made before in your life. I don’t know who taught most of you guys that will be saying you should leverage on loan, you use loan to make more money. They play!
Fine! Part of the habit of billionaires is to leverage on loan. But not you, you’re not a billionaire yet, billionaires always put themselves outside debt by borrowing what they can afford to pay back from their fixed deposit if the business backfires. For example some has 40 Billion that he’s not using, not his capital ooo. The money is just there in his account for security and to solve unforeseen circumstances. If he borrows like 10 Billion form Bank to expand his business he/she had already put himself or herself outside the debt, he has overshadowed the loan, he will not put himself in any unnecessary distress, he will be calm in making decisions because he has security should in case the business backfires he will pay back the loan from his fixed asset or money. And if the business work out which is 80% possible because billionaires takes calculated risk, then that becomes a plus to him and he experiences more growth in business.
But you that the entire liquidity of your business is 10M , you now went to borrow 200M loan, why now, you must borrow within your limit, what this means is that you have never made 200M before in your business and you want to take risk with another persons money. If the business mistakenly backfires you’re gone forever and your business is done. At this time you will not think straight again, you will be in hurry to pay back the loan and you will be making lots of errors in your decisions, this is because you have put yourself in fear of paying back. By this you have put yourself in a situation whereby you are surrounded by debts. Just pray nothing happens with the money otherwise you will be in financial stagnation, throughout the year nothing will work again, you too think of that year that you are so much in debt, do you achieve anything that year? Not possible. When you’re in debt, you’re in trauma, you will struggle to pay school fees, you will struggle to pay salary, you will struggle to buy more goods, a lot will be happening that you will first be looking for a way out of the 🕸 web of debt. If not for God intervention or maybe you some people that help you out of it before you can be free.
I’m just saying this for you to personally have hatred for debt. Although it is a fine thing to collect but first of all hate it, ask yourselves many questions before you collect it, and collect within the reach of your business. I think I’m making sense to someone here. 🧐 have a nice day!
BY: DR. AFEEZ GANIYU
