There is no doubt that every successful person has taken the wrong turn and committed costly financial mistakes on their way to their wealthy status. However, there are some money mistakes that are so dire that they will put you and your business down. We take a look at some of these money mistakes from the eyes of the world’s renowned female billionaires.
Fearing loans: You must stop fearing loans and instead learn how to use them for your growth. For instance, in 2015, Tabitha Karanja, the founder and CEO of Keroche Breweries broke Kenya’s individual loans’ history by taking a Sh. 5 billion loan. She used the loan to fund a new plant at her company. Speaking to the Daily Nation, she said the new plant had a production capacity of, 600,000 bottles daily, and 30 different brands. “This gives me a golden chance to stake a claim at the cutthroat market,” she said.
Voices of doubt: In 1973, Shark Tank’s billionaire investor Barbara Corcoran founded the Corcoran Group real-estate firm for Ksh. 100,000 together with her boyfriend. In the 1980s, Ms. Corcoran and her boyfriend broke up and split the company. According to Barbara, on his way out, he told her: “You’ll never succeed without me!” According to the entrepreneur, this was the best advice she has ever received. “I didn’t want to let him have the satisfaction of seeing me go down.” Years later, in 2001, she sold her part of the same company for Ksh. 6.6 billion and moved on to become a media personality. According to Ms. Corcoran, you must never let the nagging voices of doubt stop you from a potentially profitable venture.
Failing to partner up: When you get a good deal or money making idea, do not attempt to execute it if you have no resources or experience. Get a partner. Take Africa’s richest woman, Folorunsho Alakija. In 1993, she got a lucrative license to explore for oil in a 617,000 acre block. However, she didn’t have the know-how or the resources to explore. She got into a joint venture agreement with Star Deep Water Petroleum Limited and transferred a 40 per cent stake to them. This is the partnership that propelled her to riches.
Investing in bad business: Before you invest in a business, you must figure out if there is a need for your product or service and whether you will be able to deliver. Take Elizabeth Holmes, the 2015 Forbes richest self-made women billionaires with a net worth of Ksh. 450 billion. Within 12 months from 2015 to 2016, she was declared as being worth zero. Why? According to Forbes, her business manufactured hot air! Apparently, her blood-testing company which she had started in 2003 and claimed it would revolutionize the diagnostic market did not deliver any product that got approved to be in the market. In the same vein, its target market – blood testing – was too shallow to keep it afloat.