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4 reasons why some entrepreneurs succeed when they build their startups at this age

4 reasons why some entrepreneurs succeed when they build their startups at this age
#Entrepreneurs #Business #StartUps




Sometimes, people (entrepreneurs) get lucky with their business plans and strategies before they get to the age of 30. They are able to pay their bills and live comfortably, but in the long run, will these businesses survive the test of time? Will the entrepreneurs make it to the list of successful business owners?

Bill Gates and Steve Jobs had several things in common. Both revolutionized the tech world in their respective ways and became self-made billionaires. Another similarity is that both were school drop-outs who made their fortunes well before their 35th birthdays.

These 2 icons, along with several other successful young entrepreneurs, give the aura that successful entrepreneurs are most likely going to start off their careers from their early or mid-20s. For many who have passed that age, it seems the window of opportunity has been shut. Is that truly the case?

READ: Lagos offers tech founders N250 million seed fund, cuts stringent access 

Fortunately for many who are above that age bracket, no is the answer. Recent studies have shown that the majority of startups are begun by entrepreneurs who are 35 years old or older. What is more, they are more likely to succeed at it than younger ones. Professor Carl Schramm who carried out the study discovered that so-called “mid-career” entrepreneurs were five times more likely to enjoy successful businesses five years later than entrepreneurs starting businesses right out of university.

Four major reasons for this were provided

The older you get, the better you can gauge your abilities and desires

At 20, everything seems possible. You want to build a new rocket, invent the new Facebook conqueror and be a philanthropist all at the same time. At 35, you have more experience. You can more realistically assess your strengths and weaknesses. Probably even more important is that you would have become mature enough to determine where your true passion lies.

With this, you can select a business that best suits you and thus is more likely to succeed than that of a 20-year old. In addition, experience in life would have helped you sharpen some business skills, curb some youthful excesses and garner credibility, all of which will help your business.

READ: To become a millionaire, set these benchmarks

You’re less likely to borrow to fund your business

At 23, and fresh out of university, all you have are ideas. Ideas without funds to propel them die off very quickly. Borrowing from banks or other lenders is the only option. With this comes the additional burden of interest rates, which are currently high in the country. So, as if making the business work is not hard enough work, you still have to pay off debts and interest. Fast forward about 10 to 15 years later and you should have some kind of financial footing to take off from.

Even if you still have to borrow, the debt is likely to be considerably less and easier to pay off. This also contributes to the increased likelihood of starting a successful business in later years.

READ: CAC registration: 100,000 business names registered for free so far

You have comparable (and maybe better) ideas

That people in their middle ages could have comparable, and possibly better, innovation potentials than younger entrepreneurs is an observation that has been found in several studies.

For example, according to a Founder Institute study “a 55-year-old and a 65-year-old have more innovation potential than a 25-year-old”. Similarly, a Global Entrepreneurship Monitor report said, “The world is beginning to understand how senior entrepreneurs with their wealth of work and life experience, deep networks, and eagerness to remain productive are a huge untapped resource.” Of course, the ability to create new ideas and innovate is at the very root of successful entrepreneurship. Thus, it means older entrepreneurs have good shots at being successful entrepreneurs.

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More emotional and intellectual stability

While the vibrancy associated with youth is a good thing, it also has its downsides. Too many vibrations mean less stability and that is ever so evident in the lives of younger entrepreneurs. Emotionally, this may manifest in family issues, divorce and/or parenting problems, etc. For older ones, there is a significantly less likelihood of this happening. Children have already grown independent, marriages have survived (or crashed) during the initial troublesome period, etc.


All these mean that the older entrepreneur can work with more stability and greater focus. Intellectually, according to the National Academies Press, studies have shown that older people have better-crystallized knowledge which can be used to enhance work performance and focus than younger ones.

So do not let your age discourage you. As long you have the ideas, it is never too late to start your business. While the world throws the Elon Musks at you, remind them of, Ray Kroc, the founder of McDonald’s who sold milkshake mixers until age 52, or Nigeria’s own Rotimi Williams, owner of Nigeria’s second largest rice farm, who had to wait until his 30’s before finding his true calling in agriculture, same as Dr. Emmanuel Ijewere who after a successful career in chartered accounting and public service, started another successful career in various aspects of agriculture, long after the age of 40.

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Older entrepreneurs can make it too.

Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience.Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

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Personal Finance

5C’s of creditworthiness: What lenders, Investors look for in a business plan

Business owners need to be aware of the criteria lenders and investors use when evaluating the creditworthiness of entrepreneurs seeking financing.



Five things to consider before securing a loan

Banks usually are not a new venture’s sole source of capital because a bank’s return is limited by the interest rate it negotiates, but its risk could be the entire amount of the loan if the new business fails. Once a business is operational and has an established financial track record, banks become a regular source of financing.

For this reason, the small business owner needs to be aware of the criteria lenders and investors use when evaluating the creditworthiness of entrepreneurs seeking financing.

Will the business that an entrepreneur actually creates look exactly like the company described in the business plan? Of course, not.

The real value in preparing a business plan is not so much in the finished document itself but in the process it goes through – a process in which the entrepreneur learns how to compete successfully in the marketplace. In addition, a solid plan is essential to raising the capital needed to start a business; lenders and investors demand it.

Lenders and investors refer to these criteria as the five C’s of credit.

READ: 5 ways to raise funding for your business

1. Capital: A small business must have a stable income base before any lender is willing to grant a loan. Otherwise, the lender would not be making, in effect, a capital investment in the business. Most banks refuse to make loans that are capital investment because the potential for return on the investment is limited strictly on the interest on the loan, and the potential loss would probably exceed the reward. In addition, the most common reasons that banks give for rejecting small business loan applications are undercapitalization or too much debt. Banks expect a small company to have an equity base investment by the owner(s) that will help support the venture during times of financial strain, which are common during the start-up and growth phases of a business. Lenders and investors see capital as a risk-sharing strategy with entrepreneurs.

2. Capacity: A synonym for capital is cash flow. Lenders and investors must be convinced of the firm’s ability to meet its regular financial obligation and to repay loans, and that takes cash. More small businesses fail from lack of cash than from lack of profit. It is possible for a company to be showing a profit and still have no cash – that is, to be bankrupt. Lenders expect small businesses to pass the test of liquidity, especially for short term loans. Potential lenders and investors examine closely a small company’s cash flow position to decide whether it has the capacity necessary to survive until it can sustain itself.

READ: How to scale as a small business on a budget

3. Collateral: Collateral includes any asset an entrepreneur pledges to a lender as security for repayment of a loan. If the company defaults on a loan, the lender has the right to sell the collateral and use the proceeds to satisfy the loan. Typically, banks make much unsecured loans (those not backed up by collateral) to business start-ups. Bankers view the entrepreneurs’ willingness to pledge collateral (personal or business assets) as an indication of their dedication to making the venture a success. A sound business plan can improve a banker’s attitude towards venture.

4. Character: Before extending a loan or making an investment in a small business, lenders and investors must be satisfied with an entrepreneur’s character. The evaluation of character frequently is based on intangible factors such as honesty, integrity, competence, polish, determination, intelligence, and ability. Although the qualities judged are abstract, this evaluation plays a critical role in the decision to put money into a business or not.

READ: 7 Ways to pay for your higher education

5. Conditions: The conditions surrounding a funding request also affects an entrepreneur’s chances of receiving financing. Lenders and investors consider factors relating to a business’ operation such as potential growth in the market, competition, location, strength, weakness, opportunities and threats. Another important condition influencing the banks is the shape of the overall economy, including interest rate levels, inflation rate, and demand for money. Although these factors are beyond an entrepreneur’s control, they still are an important component in a banker’s decision.

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The higher a smaller business scores on the five C’s, the greater its chances of receiving a loan.



Written by Chukwuma Aguwa

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Personal Finance

Don’t be fooled by COVID-related scams

Always consult the institution in charge of health-related matters to confirm any fishy information you come across.



The nature of and the manifestation of the Covid-19 disease is such that there’s only a little time available to remedy the situation before it gets chronic. Although the infection begins by exhibiting mild symptoms, if you do nothing in a short time, it could lead to death in a matter of days.

This whole picture has caused many to become desperate about Covid-related issues, launching into panic mode at the sight of any information. As a result, such people are not far away from falling for fraudsters.

With the different kinds of news flying around, you mustn’t be fooled by Covid-related scams.

The Coronavirus threatens the health of millions of people around the world daily, also killing thousands along the way. To curb the spread and remedy the situation, bodies like the CDC, WHO, and every country’s local health organisation like the NCDC, frequently circulate information around communities. However, it has also led to fraudsters taking advantage to provide fake news, and even asking for donations.

Each day, there seems to be a new account or NGO asking for donations into the health sector, and though some are legit, many are just fraudsters posing to take advantage of innocent citizens. So far, numerous complaints about scams have been recorded, especially with people who are looking to support the health cause in any way they can.

READ: Africa to spend $9 billion on Covid-19 vaccine, access to supply is big problem

Channels used for COVID-related scams 

There are three major ways scammers take advantage of the haziness of the situation to dupe people. To start with, they appeal to the emotions of humans, who see the high death toll and suffering. As a result of what is happening, people have been willing to donate funds for medical supplies, isolation centres, and financial compensation for medical workers.

Scammers take advantage of this by posing as charity organisations and solicit for funds. Most times, as soon as their target is met, they clear their footprint without leaving a trace behind.

Another way they scam people is by manufacturing and selling fake or low-quality health products. Everyone wants to get their hands on a cure, or something that can at least protect them from the virus, and scammers are meeting their needs by providing just that.

READ: China joins WHO vaccine programme as it fills huge gap left by United States

The World Health Organization currently approves only one vaccine, and any other thing outside it is outrightly fake or just a supplement that will help your body. Currently, only the Pfizer vaccine is clinically tested and approved to work. Be sure to not throw your money in the wind by purchasing some of these fake drugs around.

Lastly, scammers create systems to extract a patient’s personal information, thereby having access to the person’s true identity. It could be in the simple form of opening a registration portal where you supply all your details.

Therefore, only give information to approved bodies and not any random online site that appears legit. These fraudulent individuals can do a lot of damage to your identity. Stay vigilant, only communicate with approved bodies, and always ask questions if you are not sure or suspect foul play.

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The place of electronics in COVID-related scams

These fraudsters usually reach out to you through the digital sphere. Hence, watch out for cold calls, text messages, or emails requesting donations to certain bodies. The best way to confirm the legitimacy of such a message is to visit the organisation’s official website in a different browser. Never follow the link in the mail or text directly, as it can be easily embedded with spyware. Therefore, a single click could see them extract all your personal information, including bank details.


Also, please stay away from those who claim to have a cure, and accompany it with testimonies of people who have used it. They are low graders desperate for your money. Vet them by searching online and see what people are saying. In all, always look out for suspicious messages, and opt out if you are sceptical.

In a nutshell, you should not believe any cure, vaccine or supplement that the World Health Organization does not approve of.

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The government or legit health institutions do not cold call citizens to request donations or coerce them into making one. If you receive a call out of the blues, chances are it’s a scam, which is why they mostly try to hurry you to donate before you realise it. Always consult the institution in charge of health-related matters to confirm any fishy information you come across.

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