Executive Lounge: Don’t start businesses with loans – Torgbor Mensah
The demand for funding start-ups remains high in Ghana as the cost of production and growing a business steadily is one most entrepreneur cannot handle.
This makes the lifespan of many start-ups less than 5 years, although there have been calls for government assistance in funding indigenous start-ups to grow the private sector.
But there is still a huge gap in funding.
Speaking on the Executive Lounge on the JOY NEWS channel on MultiTV, Chairman of Great Argon group Torgbor Mensah advised young entrepreneurs to rule out loans when starting a business.
“I did not start on impulse. I planned how I was going to start and saved money on my own,” he said explaining that he doesn’t understand why this advise this advice to young entrepreneurs is so rife.
“Don’t start a business with a loan. It is a big mistake,” he reiterated quizzing “what if things go wrong? You start to owe the bank from day one.”
However, he also advised young entrepreneurs to stay focused on their careers and put other relationships on hold while they build their businesses.
“Do not let fear of failing hold you back. Let it drive you,” he said.
Speaking of the saving culture of the youth, he said “save until you can pay yourself the same salary you were earning in your previous job.
Torgbor Mensah started his advertising empire DDP Outdoor over four decades ago and so far owns 65 percent of the Ghanaian market and has expanded across the sub region.