Tuesday, April 16, 2024

AWRIGHT DEN: Wealth creation


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Where there are people there will be differences. However, I believe there is more that unites us than divides us. I think it is fair to say that we are all generally united in the concepts of love, respect, kindness, security, education and family. Although these things are of great value and importance to humanity, in this season of anxiety and uncertainty, our greatest unifying factor is our desire to create wealth and experience financial freedom.
The ability to work and provide for oneself and family is indeed a greater benefit and reward than to sit down and just receive one-off handouts because it develops character and a sense of accomplishment.
In order to finance our dreams, provide for our families and contribute to development of this nation, work is involved. Some of us will be employees but there is a growing generation of individuals who choose to be employers, pursuing a career in entrepreneurship.
Many business people would tell you upfront that owning your own business is hard work and that passion alone is not enough to run a successful business. A great product or idea, supporting capital, a market and a ‘go-getter’ attitude are all required in developing a successful business. One of the most important things missing from the list is an enabling and supportive environment, which has at its core the relevant policy and administrative systems that encourage entrepreneurship.
Many have shared with me their frustrations, anger and disappointments in trying to operate a business here in Barbados. I also share their sentiments as I have experienced the same frustrations over the years. There are some administrative procedures that are outdated and I might go as far as saying irrelevant when it comes to doing business here.
Some tariffs need to be amended to compliment the season and times we live in. Although duties and taxes are an important revenue earner for a government, I believe some governments kill their people with these taxes due to a lack of ambition, creativity and innovation to develop and maintain critical revenue earning initiatives and ideas.
We need to let go, reform, re-strategize and realize the donkey and cart that served us 70 years ago is no longer relevant to this fast-paced and ever-evolving society. I try my best to encourage persons to do what is right and to abide by the law and established procedures, but I can understand why some entrepreneurs in a dire need to survive and feed their family, do what they have to do even if it means at times not following the law.
Many entrepreneurs here in Barbados do it out of a love and passion first and for financial gain second. A friend of mine, under 30, shared with me how hard it has been for him running his business, but he continues to press on:
Corey, raising capital can be difficult and all the red tape you go through can be frustrating. Anyways, I want to share on my car rental business which I built over the last five years and rebuilding after some turmoil. Let’s take a look at the financial investment needed to start . . . .
New car $50 000, insurance $6 000, permit $3 100, road tax $600. Finance company asks for 20 per cent deposit which is $10 000 and insurance asks for half up front of $3 000, giving a total starting cost of $16 700 inclusive of the loan, insurance, permit and road tax. Additional expenses include yearly loan payments of $9 600 and operating costs $3 000, giving a total of $12 600. These figures have not taken into account the remaining $3 000 in three-to-five months for insurance.
Let’s say you need at least three cars to be effective in the market. Your average start-up cost is now $50 100, yearly additions $37 800 and remaining insurance $9 000. Giving a total at the end of year 1 of $96 900 or $32 300 per car.
One car rents at $850 per week, making $44 200, and this is assuming the car is always rented. I will make a profit of $35 700 for the three vehicles, leaving me with $2 975 a month to provide for my family.
It is a hard environment but I am determined not to give up.
• Corey Worrell is a former Commonwealth Youth Ambassador.


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