A simple suggestion I made to a business owner which he refused to take two years ago has cost him more than 9 million naira now and he is now telling how he wish he had listened to me.
A few years ago before I went into full time consulting, I would walk into a shop and start to offer business improvement suggestions. One day, I walked into a friend’s shop and started to offer him suggestions I felt was needed to check fruad in his business becuase I noticed some loop holes in his sysytem.
He waved me off, telling me that he knew what he was doing and that he did his stock taking by himself and there was nothing anyone not even a chartered accountant can teach him about business. I tried to point out the loopholes I saw in his business but he refused to listen to me.
Well, today he just called me and told me that he had lost close to 9 million naira to a staff he trusted so much. He said he wished he had listened to my advise and was now asking me what to do. I did not want to tell him that I tried to warn him. Anyway, I have told him the way to move forward. I have told him to get an accountant to show him the basic books he must keep, I have advised him to conduct at least 6 monthly audit based on the type of business he did.
I have also told him to immediately carry out a financial health check on his other business which he thinks is doing okay.
The irony of this matter is that two weeks ago, I had told one of his neighbours what I told him years ago and that one is giving me the same excuse and reasons I got two years ago from the man that had just lost 9 million. Most times, we believe that bad things can only happen to others and never to us. Becuase of that, we fail to take the necessary precaustion that we are supposed to take.
I am also guilty of this assumption. For more than a month now, my spare tire has been down. Every day I will say I will fix it but I do nothing about it. Almost every day, I see other drivers stranded on the road because they did not have a spare tire yet I still believe that my tire will not develop problem.
But I do not take that chance with my source of income. I make sure the loop holes are covered becuase I do not want any stories with my money.