Business Support Systems: The Stake


This blog post is a semi-continuation of the Money tree series posted in late July.

Please make reference to that post if you are to get a full picture of what I am discussing today.

There are certain business systems that are efficient in production and output, but they in their very nature face some serious challenges in standing on their own.

When starting up business, it is usually expected that a certain level  of reinvestment or recapitalization of the business will be necessary. It is critical to realize that sudden changes, or the natural progression of the business will require you to invest time, physical and financial resources into the business.

This may be due to the fact that, the business may expand much faster than what was expected, requiring a growth in the capital requirements of the business than what was originally foretasted.

The advantage of such things is that once a business is operational, there is a bit more substance to it and obtaining financing through external investment becomes much easier than when a plan is just on paper.

I have personally felt this pinch with one or two excellent plans that have been well researched but requiring a certain level of start up financing. Especially when you are  a new venturer and everyone else is looking through your portfolio seeking your prior achievements before they can surrender their finances into your hands.

But once a business is operating, even at a small scale, it bears testimony to what it is capable of, and income cases, through due diligence and cash reinvestment, minding cash flow management there is a very high chance that the business may even be able to recapitalize itself.

It may do this even through the acquired goodwill, that increase its value over and above the actual physical and financial asset value it has in its portfolio.

An example of a business system that may require extensive levels of recapitalisation that may take even decades to recover but will definitely be worth it is mining. Substantial amounts of assets have to be bought before production can commence. In cases such as oil rigging, billions may be invested at regular intervals even as the business itself is generating a sizable cash inflow.

However, care has to be taken that recapitalization does not become a perpetual occurrence. A good system is one that ensures that there comes a point when the business reaches maturity, and becomes stable enough to stand on its own and even provide a support base for other expansion plans of businesses in the portfolio of the owners.

Investment in other people’s businesses is also useful because as my mentor always says, “I am not  the smartest person in the world.”

Dormant Seed Part 3: Vigilance


A shelved business is only alive as long as it remains in the heart of the business principal. It is simply not enough to have a business plan sitting in the desk drawer or at the top of the closet gathering dust, and being chewed away by the moth of life’s challenges.

A plan has to be regularly visited, reread, restructured if neccessary and revised for errors, constantly being updated so it remains up to speed with changes in the environment.

We live in a volatile and not static world. Everything is always rapidly changing. If you forget that you have a plan that is sitting in the closet, you may wake up one day to realise your plan has been eaten away and were there was a potential million dollar industry, lie ashes and dirt.

Some seeds can remain dormant for long periods of time to such an extent that those observing may think that they are dead. I know a powerful businessman who has had their business lying dormant for over eight years, but every other day, he always speaks of it, reminding himself and those around him, that even though there may be no activity on the ground actually signalling the birth of the business, Its birth is imminent in the womb of those that it was planted in.

Opportunity is only useful to those that are best prepared for it. However preperation does not end in a simple document, preperation is keeping the fire that brought the business plan alive burning.

A fire remains burning so long as it is poked, disturbed and added logs onto. Then it burns with ferocity and consumes all around it. If a business that will create a footprint is to be born, it has to have that same level of resistance to dormancy as the fire, the lower it burns, the closer it is to being put out.

Business Implementation: Dormant seeds (Part 2)


Some business plans are excellent, but due to various factors, it might not be practical to implement some of them at certain times. Factors affecting this may include, the financial or physical disposition in terms of the originator’s time and resources.

One person once said that “the worst thing that can happen to a person is for him to become successful before he is ready”. It is not the actual resources that determine whether a person will succeed in any given venture or not, because resources in nature are temporal in that whatever is in this earth will pass away.

If you take this into account, then it is easy to realize that conditions or micro climates as those in a greenhouse scenario can be created in order to suit the needs of your business.

The successful implementation of a business model depends on the drive that the initiator of the model has. In the bible there is a king that was asked to thrash the floor with an arrow, instead of thrashing the floor several times signifying  the assault on his enemies, he did it only thrice and as a result he realized a victory that was way below the capacity that God had intended upon his life.

The same thing applies to the successful implementation of business models in our lives. We are all equipped with knowledge in certain unique, and sometimes not so unique areas of business, but it is important to note that we each have our own unique way of doing sometimes even the same things.

That is why in life some people realize more successes than others. It is the degree to which you implement the plans that are sown into you that determines whether you will succeed or not.

Usually, timing is useful but it does not constitute the total success or failure of the venture.

However, some models are heavily dependent on certain laws and circumstances for example the money market in Zimbabwe in the late 2008 period was a total disaster with investment in it at that time virtually impossible.

Fund investors reliant haevily in this sector were badly impacted, but this was a temporal scenario, with the introduction of multicurrency trading in Zimbabwe leading to an improvement in the trading conditions.