New day, new articles. I’ll do my very best to write two articles daily for the blog. They are more like personal rumblings than they are articles, but you get the point.
Potential investors in Kenya always ask, ‘do you have a reference?’ has your product or service produced any revenue?’ and so on and so on.
Almost none of them have the guts to look beyond the numbers and focus on the vision that brought the new product to life. Was there need for the product in the market? Or will there be need in the future for the product or the service? These are the questions they should focus on.
To be fair though, Return On Investment (ROI) is regarded highly as a motivator to invest in a start up.
But it is not the only factor that matters. In Kenya though, they focus almost entirely on the ROI.
Our investors need to be revolutionary. Think outside the box. New products or services barely have any revenue. But are they viable in the current or near future market?
A good example of revolutionary investment was the creation of mobile money transfer by Safaricom. Mpesa was a first of its kind in the world. The Safaricom board took on the risk and look at their revenues now. Granted they have over the past year or 2 made their charges quite expensive, but it all started with an investor who looked beyond the current status of the idea (it had no revenue, no reference, no example of it in the market), and saw the vision and potential of it and decided to invest.
So these cowardly investors need to step up and look beyond the current status of an idea or a product. They should begin to accept more revolutionary and new and bold ideas that have abundant potential. They should not just accept real estate or car dealers or supermarket chains just because they have been proved to be worthwhile.
They should be brave and bold and be ready to invest in new ideas, new products, new services and thus create revolutionary businesses that will broaden our economy and increase our revenue streams as a country.
Let us not be afraid of the unknown, for it may be a beautiful thing.