A businessman wanting to go into business into his own wanting advice and consultancy needs x millions for his venture and thinks this is easy going with me lending that money. Not knowing much the proponent and having not so proud record in his business dealing, the possibility would not be very positive.
I said we could device ways how to obtain financing like firming up deal with the land owner, having plans, having x deal with contractor. or even ML money. It seemed he took the advice because he has not
returned and taken my ideas without compensation
It reminded me of my experience and others too:
1. We borrowed P500k from a rural bank to start an SLA. In a year we were able to repay the loan and
make some profit too.
2. We started a real estate project with merely P15K between me and the chairman. We bought the lot
on terms from a fmr ambassador was able to sell 97 plots total inventory in 6 mos, paid for the
development and landowner. We sold lots from Php 18K to P35K only including those fronting
the highway. But the beauty in the story is that we started the project business without much
money.
Thus capital does not refer to money capital but your head. Capita Head. How you use it to build
something from nothing
3. In another business, we presented plans, borrowed against them with promise of 100% return (of
course they were private equity and we kept our word. We were able to finish the project
sell them and repay the lenders
On a similar note, I heard a story from a famous Makati businessman who got a big parcel of land
a former army camp. He had no money. But the mandate from the President was to make the land
generate cash. Thus he bidded out the land which later was developed into a CBC, and a huge
cemetery.
They were something great from nothing
True entrepreneurship.
Or we are into Lance Gokongwei paradigm that to produce millions, you have to invest billions.
What do we say to inherited wealth, to ML equity, spin offs, hedge fund investments?
