Money and Startups: Don’t Leave Your Job to Build a Business!

Ian Murer, a former Kenya Sevens rugby player, shares how the discipline and resilience learned in sport prepared him for entrepreneurship. He emphasises the importance of knowing when to leave a career, much like knowing when to exit a game, to avoid the disadvantages of lingering too long. He relates the startup journey to a rollercoaster, filled with both excitement and uncertainty, highlighting the need for mental preparedness and strategic planning.

Ian explains how his background in engineering and a Master's in Sustainability led him to identify a critical financing gap for green businesses in Africa. He discusses the unconventional decision to build a neo-bank to address this, driven by the understanding that traditional financial institutions were not adequately serving sustainable ventures. The idea for Melanin Capital was born from the recognition that 'doing good' should not be without financial advantage and that impact should be considered in the cost of capital.

Ian provides a guideline for securing initial investment, stressing the importance of identifying a 'big problem' with potential for high volume and scalability. He highlights the need for founders to speak 'investor language,' articulating their vision, team strengths, and competitive advantages clearly and factually. He advises strategically choosing investors who understand the local market and are willing to support the journey, not just provide capital.

Ian addresses the biases faced by African businesses in attracting foreign investment, differentiating between 'real risk' and 'perceived risk.' He explains that external investors often base their decisions on media narratives rather than the on-the-ground realities. He advocates for highlighting the unique strengths and opportunities within the African market, and the importance of having a diverse team that can bridge cultural and linguistic gaps.

Ian underscores the critical role of strong governance, even for small businesses. He advises establishing clear policies and procedures for every aspect of the business, from procurement to HR, to build trust with investors and ensure continuity. Good record-keeping, separating personal and business finances, and seeking professional advice from accountants and lawyers form the bedrock of a scalable and resilient enterprise.

Ian cautions against giving away equity for services that can be hired, advising founders to understand the true value of their company before making such decisions. He also tackles the common founder dilemma of work-life balance, suggesting that 'burnout' is often a necessary investment in the early stages. He urges individuals to leverage their strengths—whether time, energy, or money—at different life stages and to involve their support networks in their entrepreneurial journey.

Ian concludes with advice for aspiring entrepreneurs: 'Don't leave your job to start a business; start a business to leave your job.' He encourages employed individuals to leverage their current positions to gain insights, build networks, and test their business ideas gradually. For younger individuals, he stresses the importance of acquiring skills and building connections before venturing out, advocating for a phased approach to entrepreneurship aligned with personal strengths and opportunities.