It is only in Uganda that one sells his land to revive his business. A business may be collapsing due to reasons the business owner may not have control.
A business starts with the founder in a small way. It grows steadily to an enterprise with several employees, bigger supply contracts and increased revenues and expenses. This goes on with the hard work of the business owner but without the slightest idea that he also has to grow in business management.
Because the business owner did not invest in the development of his business management skills the business started to stagnate and even decline in revenues while expenses rose. This is the point in the business lifecycle that the owner must realize that his capacities in terms of business management and technical skills, finances and connections to suppliers, markets etc. have been exhausted and therefore new inputs are needed.
In Uganda that is the time the business owner will start selling his tangible assets to capitalize on the business that is stagnating or declining. If this indicator is identified, my advice to the business owner is to look within himself and look for any of the above-mentioned capacities that need strengthening.
The capacity of lacking skills in business and technical management requires the business owner to let go of the professional positions by recruiting professionals on merit so that he can concentrate on supervision. But he must also invest in himself by studying some business management supervision skills to enable him to perform. For finances, the entrepreneur may have to bring onboard investors i.e. sell part of his company to other like-minded entrepreneurs willing to grow the business.
So, selling off your tangible assets to capitalize on the business is not a solution to the business stagnation or decline but instead, bringing on board more capacities of the above-mentioned issues.
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