Hello, everyone.

Welcome to this week’s mentorship lesson.

Many times, you hear people say:

“I have a good business idea, but I don’t have capital.”

Of course, capital is important. Every business needs money at some stage.

But in many cases, capital is not the first problem.

The first problem is that you may not clearly understand the business, where to get the product, who your customers are, or how the business will actually make money.

Some people are looking for ₦5 million to start a business they have never tested with even ₦50,000.

Giving such a person ₦5 million may not solve the problem. It may only help them make a bigger and more expensive mistake.

Before searching for capital, ask yourself:

• Who exactly is my customer?
• What problem am I solving?
• Why should the customer buy from me?
• How will I reach them?
• And what is the smallest practical way I can test this business?

This applies to almost every venture, whether you want to become a trader, farmer, mechanic, welder, manufacturer or service provider.

You must understand the real environment of the business and learn from practical experience  not only from what people say online.

For example, you hear that there is money in honey production. You watch some videos and are told that you need ₦5 million to start.

But you have never visited a honey farm. You have never visited a wholesale honey market. You do not know where to find reliable bulk buyers, and you have not studied the practical challenges of the business.

Even if someone gives you ₦20 million, you could lose much or all of it because money cannot replace knowledge and experience.

The same principle applies elsewhere.

You may not have money to open a large shop, but can you start by taking orders online within your area? Social media has made this easy these days.

You may not have money to buy one hundred bags of maize or egusi, but can you visit the market, study the buying and selling seasons, understand the storage risks and test the business with one bag?

You may not have enough money to manufacture a product, but can you begin by distributing or marketing it for someone else?

Starting small does not mean thinking small.

It means testing your idea before committing serious money.

Remember this:

Capital does not correct a bad business model. It multiplies whatever is already there.

Your first capital may not be cash. It may be your knowledge, skills, contacts, location, phone, reputation or access to buyers and sellers.

This Week’s Assignment – https://forms.gle/2ys7SPSrQA4fhbax7

Write down three businesses you are currently considering.

For each one, answer:

• What will you produce, sell or supply?
• Where will you get it?
• Who are your customers?
• Why will they buy from you?
• What are the major risks?
• And what is the smallest practical way you can test the idea?

Post your answers in the community, or submit them privately if you are uncomfortable sharing publicly.

Don’t just watch this lesson and disappear.

Take action, because clarity must come before capital.

I look forward to reading your responses.