Business Leaders Urged to Prioritize Salaries and Reinvest for Growth

Entrepreneurs across Uganda are being urged to adopt a disciplined approach to their finances, focusing on paying themselves a regular salary before distributing profits. Venkatesh Kumar, CEO of Mandela Group, emphasized this during the Linglong Business Conference, stating that conflating business revenue with personal wealth can be detrimental.

“Pay yourself a set salary first or business will eat your capital and personal peace,” Kumar advised. He cautioned against using inventory or profits for personal luxuries, warning that such actions would lead to the business “quietly starving.” The principle of “paying yourself first” ensures that essential business capital is protected while still allowing owners a consistent income.

Kumar further explained that profits should be viewed as a “harvest” from the initial “seed” investment. A portion should be taken as salary, with the remainder reinvested to boost working capital and facilitate growth. This practice is essential for scaling a business from one level to another.

The conference also highlighted the importance of addressing customer needs rather than solely pursuing passion projects. “Nobody cares about your passion. Customers look for businesses that solve their problems,” Kumar noted. Strategic market expansion was also discussed, with examples like Linglong’s global reach and Mandela Group’s diversification into fuel stations, hospitality, and regional outlets.

Twaha Mahad, a senior manager at Mandela Group, pointed out the high global business mortality rate, with only a third of businesses surviving their first decade. He stated that such conferences are vital for sharing strategies that contribute to client survival, which in turn supports the company’s own sustainability.

The event also included the handover of a Wuling Cloud Electric Vehicle to Rodgers Kizza, the grand prize winner of the Linglong Tires EV Promotion, underscoring the company’s customer engagement initiatives and foresight into the growing green energy market.