The Group Managing Director of RainOil, Gabriel Ogbechie, has advises entrepreneurs on getting funding for their businesses as well as having knowledge of the business that they want to do.
Ogbechie shared these insights at the 2023 edition of The Platform Nigeria, which was held at the Covenant Christian Centre, Iganmu, Lagos.
In his talk titled ‘Succeeding as an Entrepreneur in Nigeria’, he said “People rarely give money to those who don’t have” as he recounted his unsuccessful attempts at raising capital to start Rainoil, and how his diligent investment in stocks proved most valuable.
He also admonished budding entrepreneurs to acquire relevant knowledge, highlighting the importance of venturing into businesses which one adequately understands.
He stressed that “Knowledge will function as a defence for your capital” but embarking from an uninformed position would result in “learning the hard way,” where capital is lost to gain knowledge.
Recounting his experience, he recalled “I ventured into oil and gas business because that was what I understood and have done for upwards of five years. It was clear to me the profit I would make if I sold a truck of diesel and how much I needed to buy a truckload of diesel.”
Ogbechie advocated for financial discipline and the need for entrepreneurs to protect their liquidity by staying on the short end of borrowing.
He opined that it is impossible for a business to survive the pressure of borrowing with current compounding interest rates, especially where required to fund projects and not working capital.
“Turnover is vanity, profit is sanity, and cash is king” the Rainoil founder stated.
Ogbechie advised entrepreneurs to keep their earnings in their businesses, borrow minimally, and practice spending within the limits of their profit.