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 ?
Don't forget about passion. If she has a passion for fisheries then there is a higher chance of success because she will be handling this matter with dedication.
Experience wise I can say she barely pass the assessment even though it is known that no one born as an expert but this is a serious matter and she needed funding in a business in where she has little experience. So I would advise here to try it small as an starter. She can try building small fisheries that does not require huge amount of capital. She can continue her job while taking fishiries as part time or she can hire helpers. Whether the small fisheries succeed or not, at least she kept the risk of losing fund at a minimum while gaining experience from that venture. If she is successful then there is no need for her to borrow money because the income from that small establishment can be used to expand his business. It may take some time but it worth it. There is no good result in rushing things out.