A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-
a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.
b) Funding - She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.
Furthermore, according to her, this is going to be a side-hustle for the main time as he already has a job that brings in income every one. When I quizzed her on how she intends to pay the debts she said from her main job.
I want you to act as a financial analyst and provide advice to her. Should she go ahead with the business, since she said it is serving as a side hustle or should she not even venture into it considering that she has no experience and even though she may be able to pay off the debt from her main job, her lack of experience may cause the business to fail ?
Fisheries and other forms of husbandry like setting up a small to medium-scale poultry farm is never going to be counted as a side hustle. The daily maintenance alone would already cover someone's day, and judging by the way this person looks at it, is something that she will not be capable of committing. Furthermore, there is no substantial information nor experience on her part. Hearsays could only get you so far, and echo chambers like Facebook and Twitter wouldn't do her any good as most of them rely on quack medicine and unscientific practices which would not only harm her business but her community too, environmentally and health-wise.
Issue with funding could be overlooked as loans can be taken in the bank to supplant the lack of capital, but the other points of interest must be examined with great focus, and thus, if I was her financial advisor, I would severely disagree with her plan. It's messy, dangerous, and a massive commitment that I don't think she could take.