Don’t sleep on your idea, just jump on it

Startups are brutally hard; the reality is that 95 percent of them go nowhere. This is the global picture of doing new businesses or ventures. Considering Bangladesh's perspective, the reality is far better than the global standards. We can say beyond any doubt that Bangladeshi entrepreneurs are enjoying better opportunities than their overseas counterparts. Bangladesh is a bustling country.

A very small country with a population of nearly 200 million is the best place for doing business. Moreover, most people don’t bother about quality. Again, regulatory organisations like the National Board of Revenue, Consumers Rights office, or other government organisations are both friendly and professional. Finally, our entrepreneurs are talented, resilient and confident. Most of them do not know how to give up. This is the magic of their success. They create something out of nothing.

Jamal is a medium farmer in Faridpur. Five years ago, he did not have any land of his own. Now he is the owner of 5 Bighas (more than 1.5 acres) of land. He did not first purchase the land but he paid the landowners Tk 1 lakh per bigha and used to cultivate it until he got back the lent money.

The system is widely known as ‘Bandhak’ where a landowner rents out his land for a period of time. But, he must pay back the borrowed money to get back his land.

He also owns a small dairy farm with only two cows and two young oxen. His two sons work for their respective land while Jamal works for his own farm.

Last year, Jamal's wife Sabina started an animal feed-store at their outer porch. She invested Tk 2 lakh there. The business has been running pretty well. Her monthly sales are more than Tk 1,50,000. Jamal extends his hands for his wife whenever it is needed. He used to buy cow feed from a nearby Bazar, now he gets it from Sabina. For the last couple of months, Sabina has been asking for money Jamal owes her which is a total Tk 40,000. Sabina’s brother is a college-going young man who helps her to keep the book of her business. He calculated that in the last 10 months, Sabina had earned Tk 60,000 as profit. Now she needs to realise Tk 40,000 from Jamal so that she can purchase 2,000 kilograms of paddy from his brother. This is how the startups are growing in Bangladesh.

There is no verified data on Bangladeshi startups. Most people believe that the sustaining rate is more than 50 percent. This is really encouraging for Bangladeshi entrepreneurs. This figure includes very small initiatives in urban and rural areas. If you just visit the countryside, there are thousands of shops, tea stalls, restaurants and other small businesses. Some are attached to the residences of the entrepreneurs. No big investment, no rent, no labour cost as well as no big dream is here! They are doing pretty well.

In a big city, doing business is not a cup of tea. Rental advance is very high. In most cases, tenants have to deposit security money to the landlord which is 10 to 15 times more than the monthly rent. In Bangladesh monthly rent is higher than most of the cities in Europe and America. Again, I need to pay an additional 15% rent VAT which is ridiculous, as a beginner. So, startups confront various challenges from the very beginning.

In another case study, Shihab leased 4 Bighas of land at Gazipur and started a cow farm there in 2020. He appointed his relative as a manager over there. Initially, Shihab invested Tk 15 lakhs including building a shed and other infrastructure. His farm started with 10 cows. In the last two years, his total investment aggregated Tk 20 lakhs. However, he already lost 2 lakhs and 50 thousand taka. Shihab is not upset at all. He believes that next year he will reach the break-even point and then he will make Tk 2 lakh in profit, every year.

In Bangladesh, young people rather prefer jobs over doing a business. But some young people from business families really want to start their own business. They have knowledge, skill and expertise a business needs. Their success rate is very high, too.

There are some other kinds of young entrepreneurs who are just waiting for their ideas and dreams to get realised. But they are very confused about when they should jump in. Most of them follow “measure a thousand times but cut once.” Successful entrepreneurs think ideas are easy, but implementation is hard. It is not about the ideas; it is about making them happen.

Some startup entrepreneurs plan to start a business with bank loans, loans from NGOs, relatives and other sources. That is not a pretty good plan to start a business. For every loan, you need to pay a monthly installment which will hinder the growth of a business. Business loans do not help but damage most startups. So, it would be better to stay self-funded as long as possible.

When you really mean to start your venture, you will require some preparations. The entrepreneur must have complete knowledge about what he is going to do. It would be better to have some practical knowledge. If not, start at a very small scale and operate yourself. Keep in your mind, it is your money, your plan and your dream! You must operate it yourself. If you think your very close people will operate and control it, you may be a big loser.

Thomas Edison said, “Our greatest weakness lies in giving up.” The most certain way is always to try just one more time. If you have an idea, prepare for it. Don’t sleep on it. Start your venture and follow the great businessman Thomas Edison. Never give up. Be positive and try hard. You would be a big businessman, one day.

The writer is the editor of the daily Share Biz. The opinions expressed in this column are that of the writer. He can be reached at [email protected].