In the late 2000s, we saw a lot of emerging small companies, for example, Nash Paints which was founded by Tinashe Mutarisi, (our Zimbabwean Elon Musk, the only guy who owns a Tesla in Zimbabwe, the guy who saved Musicians during the first lockdown in 2020) in 2006 at Chikwanha in Chitungwiza with only three employees. The company was officially registered in March 2007.
The initial capital used to start the company was from Mutarisi’s personal savings but later on, he obtained financial support from financial institutions for expansion and growth in the later years.That is typical of how companies are started in Zimbabwe using personal funds.In 2010, Nash Paints acquired 75 percent shares in Eastlea Paints as well as a building previously owned by Rhafiq Khan.
The company now employs more than 500 employees producing 50 000 litres of paint a day with 20 branches throughout the country. The company is doing well and it also diversified into furniture and a TV which is promoting local artists during the lockdown. He is one of the best entrepreneur minds to come out of Zimbabwe.
There is something which Tinashe Mutarisi is doing well to expand and build a company during these difficult times. It is not easy to venture into the manufacturing industry in Zimbabwe since the production cost is high. Against all the odds Tinahse Mutarisi is surprising us every day as one of the best entrepreneurs in Zimbabwe.
And one thing I like about him is that besides his massive success, he remained humble and did not stop hustling. He went to create two other successful companies including Nash Furnitures and NashTV.Tinashe Mutarisi and Nash Paints is an example of an Entrepreneur and Zimbabwean Owned business who took advantage of the current economic crisis and started a thriving business.
There is something important about his story. They started using their own resources but they later got funding from banks. In order to achieve significant success in business funding from banks is a must. Money must not be borrowed to start business but to grow it to another level .Many entrepreneurs start shivering when they hear of the word debt but not every debt is bad usually the one used to invest in new business or expand the existing ones.
Worldwide businesses are supported by funding, but getting funding is difficult for small businesses in ZImbabwe. Not every company can easily access funding in Zimbabwe since banks require collateral.
I got my first loan in 2006 when I purchased a payphone through a two-month payment plan. I had to pay my first instalment from the proceeds which l had started getting from the payphone l was given for credit.
I used my proceeds from my sales from cigarettes sales and payphone to fund the debt. It was going to take me time to buy the payphone for cash or even impossible to buy but borrowing helped me get the asset with ease and in time. As an Entrepreneur, Bootstrap as much as possible, follow your dreams regardless of the economic situation but also, do not fear debt.