Tip 4:Avoid Doing A Business You Do Not Understand.
Many potential inventors make the mistake of investing in a business because somebody they know have done the business successfully. This could be a very costly mistake. You are not your friend and what you see on the surface may be quite different from what is inside. Your friend may have a passion for that business and you may not have a passion for it.The business may require some traits and ability you do not have but which your friend has in abundance..
The law is simple, do not do it because others are doing it. You must know and understand the business and you must have a passion for it.
An investor woke up one day and wanted to start a fast food outlet because according to him, if Mr Biggs are raking so much money, he could as well rake part of it. This sounds simple, and reasonable. doesn’t it? He pumped millions into it. He lost his money faster than he invested it. He soon found out that there is a lot going on behind the counter to bring the rice, chicken, pies etc to the public. Today, the building is lying fallow in Gate area in Ibadan.
You don’t go fly a plane because your friend is a pilot. You will crash the bird.
As you will find out, if you do a business you understand, your chance of failure is greatly reduced.