Funding Is Not the Problem: Why Poor Plans Are the Real Threats to Your Business

You may not need more capital. All you need might be a clear, actionable strategy to ensure your business survives and thrives.

When I talk to entrepreneurs about why their businesses are struggling, I often hear the same thing: “We need funding.” But I am here to tell you, the problem is rarely the lack of funding. Funding is rarely the root cause of business failure. If you were given N10 million right now, would it make a difference? Sure, for a while, but I can almost guarantee that without a solid plan, you would spend that money on the wrong things—a fancy office here, an expensive logo there—and still find yourself in the same situation. You would still have suppliers chasing you for payments, and your business would be just as unstable as before.

This is the hard truth I have learnt after working with over 10,000 SMEs in my career: Funding is not the problem. Poor planning is.

Funding is Not the Problem; Poor Planning Is

Let us talk about this first. If you receive a large sum of money, whether as a loan, investment, or any other source, what happens next? How does it help your business? Without a strategy, that cash will vanish quickly. I have seen it time and time again—entrepreneurs put their money into things like office furniture, marketing gimmicks, and other superficial upgrades, all while their core business needs—like inventory management, cash flow, and supplier relationships—remain neglected. The reality is this: Money is not a cure-all. A business without proper planning will fail, regardless of how much money you throw at it.

You cannot just pour capital into a hole and expect it to grow. Think of it like trying to fill a bucket with holes. The water might get in, but it will not stay for long. A solid plan keeps your money in the right places, ensuring that every naira spent drives value and creates sustainable growth.

You Cannot Run a Business on Vibes.

There is a common myth that passion is all you need to succeed in business. I am here to tell you that passion alone will not get you anywhere. Passion is important—it fuels you to keep going, even when things get tough—but passion without systems, processes, and a clear strategy is just energy wasted.

It is like a car with a powerful engine but no steering wheel. You might have all the energy, but without direction, you will not get anywhere. The key to sustainable growth is creating systems that work, processes that streamline operations, and strategies that set clear goals for where you want to go.

The truth is, without these fundamentals, you are just running on vibes. And while vibes might feel good in the short term, they will not take you the distance.

Thinking a Loan Will Solve Everything? Think Again

Many business owners believe that if they just take out a loan, they can solve their problems. But let me ask you: Do you have a clear plan for how you will manage that money? Do you know exactly where it will go and how it will drive growth?

A loan without a plan is like giving a toddler a jetpack. Sure, you might take off, but where will you land? Probably in disaster. A loan can give you a temporary boost, but if you have no plan to use that money effectively, it will not solve your problems. Before you even think about borrowing, ask yourself these questions: What do I need this money for? How does it align with my long-term vision? How will it contribute to a sustainable, profitable business?

Taking on debt without a strategy is risky and can put your business in a worse position than before.

How Will You Make Money Today, Tomorrow, and Five Years From Now?

One of the biggest questions I ask business owners is, "How will you make money today, tomorrow, and five years from now?" It is a simple question, but most businesses cannot answer it. If you are in business to just “make money,” that is not enough of a plan.

What happens when the market changes, when a competitor steps up, or when economic conditions shift? If you have no plan for how you will adapt, your business will not survive the long haul. You need a strategy that goes beyond quick wins and addresses sustainable growth.

Sustainable growth is about building a solid foundation that can withstand shifts in the market and keep your business moving forward. It requires foresight, preparation, and ongoing adjustment to ensure your business continues to evolve.

Stop Relying on Miracles

Hope is not a strategy. Faith is important, but you cannot rely on miracles to run a business. Yes, believe in what you do, but also make sure you have a plan to execute it. If you are waiting for luck to save you, then your business might just end up on the wrong side of the statistics.

Success comes from consistent, deliberate actions. You need a roadmap, a plan of action, and the discipline to follow it. Hope is not enough. You need the skills, systems, and strategy to navigate the challenges that will inevitably come your way.

Bottom Line:

If you do not know how your business will make money beyond the next few months, you do not need more cash—you need a better plan. Sustainable success requires more than just capital; it requires clarity, strategy, and focus.

So, the next time you are tempted to chase after funding, ask yourself: Do I have a plan? Is it clear? Is it actionable? If you cannot answer those questions with confidence, focus on getting your plan right first. Only then can you confidently chase the funding that will truly make a difference.

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Warms regards,

Ayo Bankole

Convener SME Community