SA Entrepreneur Tshepo Mashego Explains How Ownership Can Hinder Entrepreneurs From Growth
SA Entrepreneur Tshepo Mashego Explains How Ownership Can Hinder Entrepreneurs From Growth. South African entrepreneur and founder of Relevance For Men Tshepo Mashego took to Twitter to explain how ownership can hinder entrepreneurs from growth.
The post read, “Don’t be bothered by ownership, it sometimes hinders us from growth, how do you grow if you can’t raise the capital to expand on your own but you can raise it, share equity, own less & expand but with a bigger goodwill & value, look at Tasha’s & Steers group for example, Curro etc.” In another post Mashego also added that, “Sometimes to expand you have to relinquish equity, bring in more capital to expand. It’s better to own 10% of R100mill than to own 100% of R1mill.” Mashego shares valuable advice that a lot of entrepreneurs aren’t aware about.
Many entrepreneurs tend to believe the that owning a 100% of their business is smart and will make them more successful, this is far from the truth for an entrepreneur that wants to realistically build a business that will be able to attain high growth rates for the long term so that it can be able to increase its impact and reach. To do this entrepreneurs should know that the business will need a lot of capital in order to implement strategies that are used in order to scale the business, this capital will mostly likely come from investors who will want to buy equity with the money they are investing.
A savvy businessman would see selling equity for capital as a good investment for the business in the long term as it will now have money to expand its operations and therefore increase the business’ value. Mashego reiterates that when the equity is sold entrepreneurs should make sure that they use the funds that they received are used to expand and grow the business so that the value of the shares can increase too.
