Written by
Tahnwi Lesley
Filed under
Investment
Opening note
I used profits from my phone business to buy my first piece of land. To me, it represented progress and security. I was turning business income into an asset that could hold value over time.
But the purchase also tied up a substantial part of the cash available to the business. When customers began asking for newer phone models, the store no longer had enough money to stock what they wanted.
A valuable asset, but limited working capital
The land still had value, but I could not use it immediately to fund day-to-day trading. That was when the difference between a long-term asset and short-term liquidity became real to me.
Revenue and profit had given the business momentum, but it still depended on cash being available at the right time. Once that balance changed, the weakness in the operation became clear.
Delay turned pressure into crisis
I accepted advance payments for preordered phones and borrowed 5 million CFA francs from my mother to finance a new order. I expected the shipment in about 30 days. It arrived roughly eight months later.
By then, customer obligations, debt and unavailable capital had placed the business under severe pressure. My supervision was also not strong enough, which made the situation worse. The store eventually collapsed.
Buying my first land taught me the value of owning assets. Selling part of it to repay my debts taught me about liquidity, accountability and financial discipline.
Accountability came before ownership
The obligations did not disappear when the business failed. I sold possessions and business assets, then sold part of the land to clear the outstanding debts.
The experience left me with lessons I still carry. Profit is different from available cash. Borrowed money needs a realistic contingency plan. A long-term investment should not consume capital that an operating business still needs.
- I cannot treat a valuable asset as an answer to an immediate cash problem.
- When customers pay in advance, I am accountable for every payment.
- Growth needs proper controls, close supervision and active leadership.
Closing perspective
Buying that land was both an achievement and an education. It taught me that building wealth takes more than acquiring assets. I also need liquidity, discipline and a clear sense of responsibility to the people who trust me with their money.
About this essay
This essay is based on Tahnwi Lesley’s own biography.
