A CRACK IN THE WALL
About three decades ago when I was building my first house, it looked to me like the most important project in the world. I fancied a mansion but had the financial capacity for a modest duplex. I consulted widely; I think everyone that knew me then knew that I was building. I couldn’t engage the most renowned architects and civil engineers that I knew – my house was just a small fry for most of them and I could hardly afford their fees then, but I could casually consult with them; ask questions and get expert advice free of charge. At least 20 top architects reviewed my building plan and they offered some advice here and there. It went on like that till I completed that building.
I was very hands on; I wanted to know that the blocks were laid just right and that the measurements were in accordance with the drawing. I had to approve every material and each level of the project. I was micromanaging the builders but, please, it was my first house and I wasn’t taking any chances. There were some things that I had learnt in the course of all those consultations with the industry’s best and that was that even a tiny crack in the wall was an indication that something was not quite right and that tiny crack in the wall could lead to a bigger problem at a later stage in the building or the lifespan of the structure. Because of this, I was relentless in checking and crosschecking measurements, alignment, source and quality of materials used, etc. I know that I must have been a constant source of distress to the builders but I wanted to be sure that the structure was error-free and if there was any problem, it would be spotted and dealt with while the building was still at a level where the correction would not cost an arm and a leg.
This routine of carefully taking time to crosscheck the basics before launching out is of utmost importance, not just for excitable new house owners like I was, but for entrepreneurs, investors and even within relationships. If I received a dollar for every time someone came crying to me about being scammed in business, I would be massively rich. Unfortunately, some people fall victim again and again and mostly follow the same pattern. They see a proposal with exciting ROI and they empty all their resources into it without verifying its authenticity and lifespan. Some people polish up their accents and come touting bogus stories of how they are US President’s behind-the-scene right hand men or UN’s ‘unseen’ ombudsmen and what massive connections and business opportunities they could make available for the right people. And potential victims dive right in, no real effort to verify these claims.
How difficult can it be to take measures to check out business proposals before consenting to invest or partner in any capacity? There is a popular saying “Fool me once, shame on you. Fool me twice, shame on me….
There are regulatory bodies, specifically set up not just to maintain decorum and standards in the corporate world but also to help people not to fall into the hands of scammers. They can help to confirm whether a business or business interest is genuine. This is what we call ‘doing due diligence’. Although, in Nigeria, for example, the phrase has been reduced to mere political jargon, its relevance cannot be over emphasized. It is necessary to run a background check on a business proposal before jumping into the venture just as it is important to run a background check on a man or woman before jumping into a relationship – business or social.
II was like the case of John, he used to be a banker, in fact, when I met him, he had worked in the banking industry for 23 years and planned to exit in two years. He seemed like a guy who had it all figured out. He told me that he had been saving a percentage of his salary consistently every month from his first year in the bank. At that point, he had saved up a tidy sum. He was looking to do business in the energy sector after leaving the bank and told me that he would come back in the near future for some free counsel about the area to focus on and how to take off. I admired his financial discipline and told him that I would be happy to offer any assistance as may be convenient.
I didn’t see John again till early this year and when we saw, he looked much older and the spark was missing. He told me his story of woe; just as he resigned from the bank, a ‘friend’ came to him with a huge business that seemed ‘totally legit and highly profitable.’ He said the business wasn’t supposed to be risky at all and was something he could build on. It required all his savings and an extra that he took as loan from the bank. The venture was going to make him a billionaire in one year. John jumped in. It turned out that the business was a hoax. He lost all his money and had to liquidate every other small investment that he had, just to keep the bank off his back. Although John had planned his life so carefully, perhaps denying himself perks that some of his colleagues would take for granted, one unverified and unchecked investment ruined everything.
More often than not, fraudulent businesses, formulated to rip people off, are mouth watering and seem quite authentic. That’s obviously why the wise men said ‘all that glitters is not gold.’ The culture every business owner and investor should inculcate is one of doing due diligence; It has saved many persons from financial ruin. I once heard a story of a bank director that approved a huge loan without due diligence. Sadly, when that loan went bad, he had to liquidate all his personal assets to pay back a loan that he did not profit from… just a careless mistake that could have been averted. You may have heard of ladies that signed over their assets to smooth-talking men at the flimsy promise of marriage. The deception keeps stretching.
In trying to explain why they gloss over doing a thorough background check, some people say that sometimes, the deal comes with a short timeline and in an attempt to meet the deadline, vital checks are glossed over. Well, better late than scammed, wouldn’t you say?
I am a business man and many times people come to me with very interesting proposals but because I have learned the hard way, I always want to apply due diligence. In fact, the more urgent the business appears, the more insistent I will be for time to run my own checks. Yes, I have lost out on some juicy businesses, several actually, but I have escaped a load of fraudulent ones.
Let us just run through some cracks in the wall which are often indicators of much bigger problems:
- When the originator (one selling the idea or inviting you to invest) is persistent to the point of offensiveness. It’s as if he wants you in by all means.
- When the ROI (Return on Investment) is excessively high. There’s a place for sharp business and a place for greed.
- When they say the investment is totally risk-free. Life itself is a risk.
- The company that you are investing into or partnering with is very new, has skeletal board/management and no track record.
- There is a high sense of urgency.
- There is too much secrecy; everything is hush hush. Many top level investments come with a level of discretion; however, unnecessary secrecy is a crack in the wall.
- The contact address of the organisation does not add up.
When you are faced with any of these factors, investigate the business and the promoter and if still in doubt, please do not get involved.
Let me quickly note here that even legitimate businesses may still fail and, sometimes, despite having done due diligence, one may still fall into the hands of fraudsters but it is better to err on the side of caution because, more often than not, investors have been saved from losing it all because they took time to go beyond the surface charm.
In conclusion, I would advise that you check and recheck before you sign the dotted lines or invest your funds. The devil does not ring a bell when he is coming. That crack in the wall is an indication that something is wrong somewhere. Be more alert and follow due diligence.
Till next week!
Fatherhood with Ibe
WEDDING AND STRESS
My first son, Emeka and his fiancée came in to see me a few days ago. The wedding is coming up soon and now it is a mad race to finish line as preparations for the ceremony are in top gear. He looked stressed. The usual smiles had waned. His dressing was even a bit rough and telltale beads of sweat trickled down his face. His wife-to-be smiled warmly as she greeted me but as she looked at me, it was as if she was looking past me; her mind was far away. I could see tears being held back with difficulty.
I knew my son enough to know all was not well but I also knew him well enough to know he would prefer to be left alone to deal with whatever was bothering them both. I dampened my anxiety, forced out a smile and went straight to deal with the matter for which I had summoned them.
‘How is the guest list and card distribution coming along?’ I asked.
‘Dad, we are doing our best but you are the one with contacts to most of the guests.’ Emeka replied.
‘True,’ I noted calmly, deciding not to remind him that it was his wedding and not mine and that I was only helping. I knew it was not a good time to put more pressure on the young lad.
‘I will take another look at the guest list and make sure the deliveries are efficient.” I added.
‘How are we doing on budget?’ I asked next and saw my son take a deep breath.
‘Badly,’ he replied. ‘This is no longer looking like the simple wedding ceremony I wanted.’
‘How?’ I asked, frowning.
‘Well, between your own need to have a befitting event that will come to par with the expectations of your guests and my fiancée’s dream of a glamorous outing, the budget has gone crazy.’
‘Really?’ I replied, chuckling inwardly. I did not want to remind him that he was as guilty as the rest of us in planning the nature of this wedding. Apportioning blames or drawing lines would only add to his stress so I quickly sidestepped the whole history of how we got to where we were and went straight to how to move forward positively.
After one hour of note comparisons, it was time for the couple to leave but as they walked away, a little calmer but still looking apprehensive, I called them back. I made them take a seat again.
‘Children,’ I said picking my words carefully, ‘I called you back because I can see the stress on your faces. It is understandable. Everyone going through this experience also goes through this stress phase. Those who focus on enjoying their special day make it through that day and go on to have a great marriage. Those who let the stress steal their joy would be burdened by that and may go on to crash their marriage. Whatever the pressures, you both should hold hands and focus on the joy of your relationship and plan to enjoy your day. Okay?
‘Okay Dad,’ they both replied and thanked me. I could see their hands reaching for each other’s. In fact, it was as if the weight was literally falling off their shoulders as they drew closer to each other on the seat, hands clasped. I felt some relief myself.
I decided to share my own experience with them.
…Next week.
On My Mind This Week
- Governor Chisom Wike of Rivers State, Nigeria for his brilliant effort at the PDP Presidential Primaries and his magnanimity in defeat.
Good lesson for all politicians!
- The killing of 19 kids in South Texas, USA while in school by a derailed young gun man.
It is time to put serious gun control laws into the USA system.
This sporadic and deadly violence in the world needs to be checked urgently. The uncertainties of life as one leaves home each day is traumatising.
We must all be in prayers!
- Ukraine and the menace of war.
When will the world learn to live in peace?
- On Entertainment, the movie, Blood Sisters on Netflix got my attention.
Congrats to Ebony Life boss, Mo Abudu and crew on this one.
