Most people complain of their inability to start up their businesses due to lack of capital. Some might be genuine while others will definitely be due to their in ability to show credibility to managing resources. This could be through their lifestyle and other things people might have noticed. Even when they go to the banks they find out their credit request is turned down. This is because the banks also have some criteria’s they use for credit scoring. which includes a customers character.
I was having a discussion yesterday with one of my CEO friends Mr Chidibere Ejimofor. The MD of Pally Enterprises a banker turned entrepreneur, who built his business empire from scratch in 2013, to a Multimillion Naira business today. With offices and warehouses in Lagos and other locations.
Mr Chidi started his business on the strength of his character and ability to be trusted with resources. He recounted how he will pick products from people, promised to pay within a particular period and ensures he pays no matter what the situation or outcome might be even if it was not profitable.
The high points of our discussion.
1. Character is very key in business: Mr Chidiebere recounted a story of one of his business partners who will always ask for products from him to resell but will never keep to his words when its time of repayment, he will finish selling and use the funds for other businesses, so he decided to stop advancing business credit to this partner and today this fellow can’t do business without having cash for payment, as everyone knows him not to be credit worthy due to his character.
2. People can entrust you with enormous resources when you can keep to your words: He recounted another partner who started business with nothing, just came to ask him for assistance, he didn’t ask for cash but products to resell, he remembers this particular man will always pay back on time even when he used to collect products less than a N100,000, but today he grants business credits worth millions to this partner without worrying as he knows he will always pay without even a reminder and on time.
3. A lot of people have skills or capacity, but your character will be the differentiator: You might have tremendous skills, but if you lack the right character to back it up, it will be a waste. Your skills will always take you to the top but it’s your character that will sustain you at the top.
4. People partner with those who they can trust especially when it comes with funds and other resources, nobody want to partner with someone they know has a character flaw.
5. The more consistent you are the higher your value in business; when someone can trust you with a 100k today they will in turn trust you with a 100million over time.
Build Your Character.