frankuchegbu.com

❤️❤️❤️

After this coronavirus thing, the world will change forever. Littered all over history are businesses and opportunities that arose post-global cataclysm.

I have been shouting for people to make their businesses digital. That time has come where you MUST INNOVATE your organization or go extinct.

It will affect churches.

It will affect schools.

It will affect your hustsle.

7. LEARN HOW TO FARM! Learn how to farm with 0% dependence on rainwater or weather. Farm things with less than 20% risk of dying. Learn farming where whatever you farm will generate 0% noise. You don't want attention.s model builders use one point estimates. I do 1 billion).

You must have a business where you can work from home and anywhere. YOU MUST!

Here are my suggestions of what business ideas that will hit it big after Covid-19 (if you don't already have one). It is not an exhaustive list.

Here we go....

👇👇👇

1. Data entry business. (I highly recommend the courses offered by Chioma Ifeanyi-Eze for this. ALL OF HER COURSES).

2. Copywriting (I highly recommend the courses offered Jim Edwards and Russell Brunson).

3. Website development (learn the basics from YouTube and build the remaining skillset on your own. I can teach you how to host your demo website on your computer while you learn. That way, you spend zero dollars).

4. Building business models (Now, for this, you must be somewhat versatile in using Microsoft Excel or Google spreadsheet. You can go from 3 point estimates and triangulation to 5 million estimates. Most Nigerian business model builders use one point estimates. I do 1 billion).

5. Facebook marketing (for this, I recommend the courses offered by Depesh Mendalia or Franklin Hatchet).

6. E-commerce (for Nigerians I highly recommend the series of courses taught by Uche Moses. For non-Nigerians, I highly recommend Oberlo for beginners and Jordan Welch for advanced.

7. LEARN HOW TO FARM! Learn how to farm with 0% dependence on rain water or weather. Farm things with less than 20% risk of dying. Learn a farming where whatever you farm will generate 0% noise. You don't want attention.

8. Learn how to produce cartoon movies (I highly recommend you ask me in private for this. The software is expensive but it is worth it).

I am not posting this for showoff. I have deep expertise in all of the above. I am not promising you a get-rich-quick scheme. If that is what you want, try MMM or Longrich.

Trying to learn any of the above will cost you sweat and blood and water and time and money. I promise you this. But it will be worth it after 18 months max.

🔥 ☘️Dear Asonumaka George Wakama☘️🔥

So Do you have real-life scenarios where this model has been deployed in Africa?expertise and see the kinds of solid education you hand down to me in private. thing).estors that they don't want to give them equity holding in their business (option 1). Rather, they agree to pay back the investors a certain percentage of the amount they invested monthly plus a cap.

🙆I have some questions I would have asked you in private but decided otherwise. You will see my reason at the end of this long post.

🙏🏿My questions are grounded on your understanding and preferences for project financing. I am not expecting a response, but if I do, glory be to God.

👉I will lay a background before asking the question: from the moment you took me in as a protégé, you made it clear that there were several investment vehicles for project financing.

Three of these are common in Nigeria:

🌹1. Finance your project/business with loans from commercial banks.

🌹2. Breakup the business into chunks (after building a financial model), and express them as percentages of the total worth of the business. Then offer those percentages to investors as equities in exchange for funding.

🌹3. Thirdly, bootstrap the entire operation (meaning fund it yourself).

You did copiously taught me on the advantages and disadvantages of each approach.

☘️🔥You don't set your project financing decisions in stone. I had Always wondered how you blend all three (and some that I am yet to understand) to secure credit facilities for businesses seeking investors.

Well, I long gave up on your guerrilla approach (it appeared weird to me) and adopted option two. In this regard, I consolidated my learning of building discounted cash flow models since it would give the closest estimate of the investment vehicle.

But... I stumbled upon something that mirrors your thought, hence this post.

🔥1. Firstly, I know you like securing credit facilities from banks. For instance, if a bank loans me 100 million, they will ask for collateral and plus a percentage of that amount.

You like borrowing from banks because the credit facilities they give are structured as loans. Meaning, they will have zero equity stake in the business.

They don't own it and will not want to own a part of it. They just want you to repay their money plus interest within a predetermined time frame. Enters the second element of project financing...

🔥2. Equity or share value of a business: You strongly argue since new businesses, no matter the potential to make heavy returns, are usually priced lower than their true value.

You cited an example during banking recapitalizations. You said they Offered IPOs to the public but that the value of those IPOs were far lower than their true values. You said this happens to almost all equity based financing.

🔥3. Option three: you advice a business owner to start off the business with his funds first. This way, investors will be convinced that the business owners are somewhat serious.

You argue for this because when investors see that your business already has a history with a potential for the future, that the business is at a better position to revert to option 2 (exchanging a part of their business for their money i.e equities).

You also argue that banks will even approach these businesses when their is an uptick in their balance sheets to (option 1).

So, after months of brainstorming your weird approaches, I chanced upon a project financing model which you may like. They call it Revenue Based Financing.

Here is how it works (I know you know, but I will still say it). An existing bootstrapped business (option 3) will approach an investor for funding. This company tells the investors that they don't want to give them equity holding in their business (option 1). Rather, they agree to payback the investors a certain percentage of the amount they invested monthly plus a cap.

🌹The "loan" tenement (option 1) is spread over 3 to 5 years. The company will pay the investors out of their gross, not just profit.

🌹The incentive here is that the investors starts getting their money from day 1 and they have an inactive preference equity (in case of dissolution - God forbid black thing).

☘️A moratorium can be negotiated to avoid default. Again, default clauses can be injected into the agreement.

☘️Although this sounds very academic, it is actually 30 years plus old. It is currently deployed for most power project funding elsewhere.

So here are my questions to wit:

👉Can this project financing model be merged with crowdfunding?

👉 Do you you have real life scenarios where this model have been deployed in Africa?

👉 Do you advise we modify our negotiating strategies along this line or do we put all options on the table?

Sorry I am asking this in public. I thought others should glean from your wealth of expertise and see the kinds of solid education you hand down to me in private.