Erastus ‘Chicco’ Shapumba's advice for running a business

When you are doing business, you need to be very respectful towards people. You need to humble yourself. One also needs great discipline with money. When you make profits from a business, ensure that you reinvest them back into the business so that it can grow.

If you don’t reinvest, then you will miss the opportunity to grow your business to become successful. Reinvest at least 90% of that profit back in the business. Keep doing that consistently and consecutively for over five years and you will start to see and experience growth in your business. Keep that discipline intact and you will start to feel positive and motivated to keep building your company. Eventually this will become part of your habits, and it will help you reach greater heights in your personal and business success.

Avoid eating up business money and putting your money into the wrong places or using it for wrong or bad investments. Staying disciplined with your money is the key to attaining your ultimate success in business.

Many people turn to loans. Loans can be very dangerous to small start-ups that have not acquired business experience and discipline to successfully use that loan and execute the business goals to make a profit. Start off smart, start off small and work hard.

Instead of getting big loans that can trap your business, you can consider establishing great relationships with a trusted supplier. A supplier who gives you bricks, as an example, to build and then pay later is better than taking a big loan. Therefore, decisions are important in business. And the better decisions you make, the better your chances of attaining success.

A greedy heart is bad for business. Stay humble and do not be afraid to start off small. Humble beginnings give birth to strong and solid business foundations.

I started off small myself. From a very young age, I was harvesting firewood and selling it to my teachers and to my community members, particularly the gentlemen that worked in the town of Orangemund. It was not a fancy start; however, every business lesson from every experience is priceless knowledge that will help you in a lifetime to make the right business decisions. Humble beginnings teach us a lot in life.

At the time, I was just thirteen years old. I would also go out in the forest and harvest caterpillars. I would prepare them for consumer consumption and sell them. I would make some good money, which I would sometimes use to travel to Walvis Bay and visit my father. This used to surprise my father very much because, mind you, it was prior to Namibia’s independence – a very unsafe world at the time.

Big and small

I loved my father because he would not yell at me for making money and taking risks to visit him by surprise. Instead, he was proud of me. This was around the year 1984. However, I would take risks and use the opportunities to my advantage. Sometimes I would use that money to buy my school books while also focusing on investing in building my business. Building from small beginnings was a blessing because my community loved me from my youthful years; even up to now, they still love and admire me. For me, that’s a blessing to be loved from where you come from, which in my case is my village.

Small (not easy) beginnings moulded us to be humble people in life. And I would definitely advise starting off by selling even kapana to people. You build from there. Even if you have a big dream, starting small will teach you a lot of valuable lessons.

Overcoming setbacks

Business is not a walk in the park, not easy at all. Therefore, you need to be very smart and strong. Don’t be weak!

When you are in business, you must value knowledge. Always seek knowledge and advice. Those who have knowledge have the key to unlocking potential and solving problems.

Ask for advice from trusted people when you are faced with difficulties. One man cannot have all the solutions to all the problems and challenges. Seeking guidance is critical when you do not know how to solve a particular problem. Don’t stay stuck when you can ask for help. Reach out to your trusted advisors for support and quality guidance. Have a lawyer, have different experts to advise you on different business matters, and pay them well to do a good job for you.

When you have attained success, you need to take slow steps. Because when you are somehow on top, you are at risk of failing.

People will be gunning for your downfall. Therefore, take wise steps and make diligent decisions, both in your personal and business life. Make smart investment decisions. Take calculated risks. Know who you walk with and trust the places you go to. Your reputation and your character are very important. Protect them.

Money is never enough. And when you start thinking that it’s enough, then it will start to scare you, because you start wondering what is coming after your money or business. Don’t fall into traps of wanting to make fast investments or quick money. Investments like that are, in my opinion, very risky, and I will not advise anyone to do those types of “fast money, quick money” investments.

If an investment sounds too good to be true, send the person to go speak to your lawyer for careful observation and have concrete papers and agreements put up in place. Also, never ignore your instincts. Listen to your inner voice when it speaks to you. Instincts are important in business. Sometimes they tell you to make some of the best decisions in life and/or in your business.

*The column was edited for length.