MoneySkills with Nelson Letshwene

Money & the psychology of money

Creative Increase | Joint ventures for growth

The main purpose of investing is to build growth. Speculative investing is about taking chances. When you are taking a chance, you are essentially gambling. In gambling, the odds are always stacked in favour of the house. The house always wins, and the patrons are given just enough to keep them coming back. 

A man saw what he believed to be a business opportunity. He did not have money to exploit the opportunity. All financiers he went to rejected his application because it was clear to them that he was speculating. He went to his mother and asked her to remortgage her fully paid house to finance the deal. She did not know any better, so she agreed. Needless to say, the business went belly up. The man had endangered her mother’s retirement.

In a similar fashion, a woman convinced her husband to remortgage their home for this brilliant business opportunity that she saw. In six months’ time, the business went bust. They were now falling behind in their mortgage repayments and were in danger of losing their home. 

Yes, business is about risk. But all risk is calculable and mitigable. If the professional systems do not want to take on your risk, perhaps you should think twice. Maybe the idea itself does not have high risk, but you are the greatest risk factor. Your own lack of experience and business skills maybe what is making financiers to reject your application. The same idea, in the hands of a skilled business person could be very profitable. 

This is why it is important to partner with experienced people. When you have a brilliant idea, perhaps the best thing to do to make sure that it succeeds, is to find partners that can help you to make it succeed. Business leverage is more than loans. 

You can leverage your partner’s business experience. You can leverage on your partner’s contacts and network. You can leverage on your partner’s resources. The reason that this partner would be willing to go with you, is because they are also seeing something in you that they can leverage on. Perhaps it’s the passion and the drive that you have. Perhaps its experiences in areas that you parter is weak in.  

Joint venturing 101 is very important in the growth of the business sector. As long as our business people want to go at it alone, we delay group mentoring and skills transfer. The mastermind group is not some isolated concept that should happen only under pristine conditions while sipping cappuccino or pina colada. It should be a business function that is applied daily in the workplace. Going to work with your own mentor may be more valuable than going at it alone, and not knowing who to turn to when tough decisions need to be made.

Many courses of entrepreneurship are offered by many institutions of learning. While these are important, it is vitally important to emphasise that all businesses that have grown, have always been under the care of more than one partner. 

You can look into your business portfolio and decide which parts of your business model need partners that can help you grow them faster. In the choice of partners, don’t go to the first person that comes to mind. Find out who are the successful people with that part of the business and partner with them. Creative increase comes with creative thoughts, creative planning, and creative implementation. 

To your success. Follow me on twitter @101silverline or email me on 


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This entry was posted on September 5, 2015 by in Uncategorized.

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