Rainoil GMD advises entrepreneurs on funding

proved most valuable.

He also admonished budding entrepreneurs to acquire relevant knowledge, highlighting the importance of venturing into businesses which one adequately understands.

He stressed that “Knowledge will function as a defence for your capital” but embarking from an uninformed position would result in “learning the hard way,” where capital is lost to gain knowledge.

Recounting his experience, he recalled “I ventured into oil and gas business because that was what I understood and have done for upwards of five years.

It was clear to me the profit I would make if I sold a truck of diesel and how much I needed to buy a truckload of diesel.”

Ogbechie advocated for financial discipline and the need for entrepreneurs to protect their liquidity by staying on the short end of borrowing.

He opined that it is impossible for a business to survive the pressure of borrowing with current compounding interest rates, especially where required to fund projects and not working capital.

“Turnover is vanity, profit is sanity, and cash is king” the Rainoil founder stated.

Ogbechie advised entrepreneurs to keep their earnings in their businesses, borrow minimally, and practice spending within the limits of their profit.