Andy Akhigbe
I have made this observation before and I would repeat it again here. No business starts out to fail. Even an armed robber prays to succeed, how much more a Ponzi Schemer. The concept of business model isn’t what people understand fully.
First, a business model simply means how does a business make money. Isn’t that exciting? A concept that simple if not properly answered to the satisfaction of an investor means that investment is dead on arrival. Angel investors will ask about your business model and you dare not tell them you don’t understand your own business model and how you intend to make money. It’s a huge red flag when a business model isn’t clear to the investor, or the business owner. What was Ovaioza’s model? She needs as many people as possible to invest in a foodstuff business while she takes care of the rest on their behalf and turn in a profit of 70% while she retains 30%. The problem with Ovaioza was that there was no business model. She requires as many people as possible to keep funding her and from which she uses the funds coming in to settle those whose funds are due with her. This was a faulty business ab initio, or at best a non existent business model.
The second issue is to absolve all those who invested of blame. When you have enough money to invest, the rightful thing to do is to seek advice from experts. When you get so sick you go look for a doctor. There is a reason we are surrounded by experts. Losing your money in a failed project properly dimensioned isn’t the same as losing your money to a fraudster.
Finally, Ovaioza is no better, or different from Chinmark. They are both fraudsters and the end in both cases justifies the means. They both knew how this would end – their investors or partners would be burnt. They both had a faulty business model – other people’s money will keep the pipeline going until the funds dry up. They both courted influenzas – this is to lend credibility to the business which required the influenza bringing in at least 1% of their followers on social media into the pipeline. They both gave generously. There is a reason Dangote isn’t a generous giver on social media, or a cheerful giver in general. The Cost of Funds. Great businesses and businessmen and women know what the Cost of Funds means. If they have to part with N1M, it will cost them 30% per annum to do that. So, the ultrarich set up foundations and vet those they give their money to and also claim Tax benefits as returns for doing good.
Moreover, if you gave out money this time to Ponzi Schemes accept you have a poor relationship with money. You’re not stupid at all. You just don’t understand how money works. We all spend money and many have never been schooled in the art of managing money. You need to reach out to those who know how money is made and spent. You have failed in an area 99% are ignorant and with no hope of remedying themselves. Take time out and ask questions. Start working with those who know and stop taking your counsel about money from social media.
