DebtSmart.com Sunday, January 24, 2021

Dr Thomson Mpinganjira: Tips for Successful Business

by Scott Bilker
Scott Bilker Scott Bilker is the founder of DebtSmart.com and author of the best-selling books, Talk Your Way Out of Credit Card DebtCredit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive the 5-Year Loan Spreadsheet when you subscribe to his email newsletter.

This paid message from Dr Thomson Mpinganjira.

As the first Malawian businessman to establish his own commercial bank, Dr Thomson Mpinganjira gave an address at the Amaryllis Hotel in Blantyre, Malawi, at a conference organised by Malawian micro finance organisation Sycamore Consult.

In his Investment Lessons from an Entrepreneur presentation, Dr Mpinganjira highlighted the importance of entrepreneurs diversifying their business undertakings to mitigate investment risk and promote success in their business endeavours. Dr Thomson Mpinganjira built FDH Financial Holdings from the ground up. In doing so, he established a significant financial empire, transforming Malawi’s financial services infrastructure in the process.

Thomson Mpinganjira explained that aspiring businesspersons must surround themselves in a circle of competence. He underlined the importance of developing a clearly defined industry, asset class, business model, investment style, or other realm in which the prospective entrepreneur considers themselves an authority and investing only within that particular circle.

Thomson Mpinganjira emphasised the importance of developing a culture of reduced spending and increased saving, with aspiring businesspeople setting aside part of their monthly income as soon as they are paid, just as PAYE is deducted by the tax authority. He encouraged entrepreneurs to desist from borrowing in order to establish their business, pointing out that a loan could be much more effective later on to expand operations once they fully understand the business.

The conference, staged in September 2019, was attended by several prominent business figures, including Simon Itaye of Nampak Industries, Stain Singo of Smile Life, Mike Mlombwa of Countrywide Care Hire, and Jimmy Koreia Mpatsa of Mpatsa Investments, among a host of other prominent professionals.

Dr Thomson Mpinganjira tipped the audience to diversify their business undertakings to mitigate investment risks. He explained that it is vital to build strong personal credit worthiness, acknowledging that business success and personal success go hand in hand.

Thomson Mpinganjira told the audience that there is no one single formula for investment and saving success, explaining that it is achieved through calculated risk-taking and incremental steps. He advised those wishing to establish their own business enterprise to forget about big goals at the outset, concentrating instead on baby steps for a series of small, daily wins.

Dr Mpinganjira advised the delegates that, once they began earning, they should immediately start investing, explaining that when an individual starts saving to a large extent dictates how much wealth they can accumulate.

As the founder of FDH Financial Holdings, First Discount House, FDH Money Bureau and FDH Bank, Dr Thomson Mpinganjira is a highly respected business figure, touted as one of the most successful Malawian entrepreneurs of his era.