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 ?
A business should be established with one main goal, that is to provide value while making money. However with her story, business doesn't evolve in that way. She more seems like wants to make a business because of boredom.
1. A business without commitment and taken only as a side hustle won't be able to survive in the long run.
2. Proper funds and finance is a must. If it is dependent to her job, she will be tied to it just to run her business.
3. Even without experience, proper research is a must but well of course experience will be an advantage.
There's a lot of idea. She probably already aware of it and have the solution for every problem she might encounter. Once it is settled, a business will be sound and ready to venture to provide value.