Palm kernel crushing busines story

[Henlus]

About 5 years ago, a brother who stays abroad got interested in palm kernel crushing business.
He contacted his brother who was in Nigeria to go learn about crushing so that he can set up a place for him.

The brother got into learning and after sometime he declared he has learned all it takes to start crushing.

Not quite long, his bother came down, they got a space, put structure in place.
This brother went to China, brought in foreign experler, they fixed everything and business kicked off.

After some months he travelled back abroad leaving his brother with some workers to manage things.

Was the business lucrative? Yes, very.

Companies and big buyers were clustering around hoping to be getting oil in large supplies...

Yes the brother learned the business but he lack: management skill, had no good attitude towards business, zero money handling skill, no readiness to learn and grow the business even with all its potential.

Along the line they had no money to keep inventory of raw materials.

Some days they opened the factory, some other days, it is locked.

They kept managing the factory like that, one week in and one week out.

Meanwhile anyone who was into crushing that saw this factory was envious of the place.

You would imagine yourself been handed over such sweet babies.
You would imagine the exploits you would do with these machines dripping water showing how ready they were to be put to work.

Unfortunately, the dog said " those who had bum, do not know how to seat"

That factory only was operational for 1 year before it was shut down.

Many crushers went to meet with them to lease the place, they refused.

Some wants to buy the machines, they refused.

The brother abroad hoped to come home to start operations again...

2026 will make it 3 years since the factory is under lock and key.

Dilapidation, wear and tear, rust must have dealt with the machines.
That's how that millions was thrown into waste.

In the same business where others became wealther,
Some are made poorer.

To become rich, you must know:
How to make money
How to manage money
And how to invest money.

These 3 elements must be complete.

Facebool #chinenyeezeonyebuchi

[Farmqueen]

What stands out to me is inventory management. In a crushing business, raw materials are life. No kernels, no oil.
Running one week and closing the next is already a sign the business is dying. Buyers need consistency, not promises.
The sad part is that the brother abroad did everything right except choosing the right person to manage the business.
Trust without competence is very expensive.

[FarmLady]

The proverb fits perfectly. Some people are given golden opportunities but lack the mindset to sit on them properly.
The factory could have been generating income even if the owner was abroad, if systems were in place.
Daily production targets, raw material buffers, and financial controls could have saved everything.
This is why business is more about systems than individuals.

[EcoFarm]

This reminds me that learning a business is not the same as being ready to run one. Technical skill without management skill is incomplete.
Even a small shop needs planning, record keeping, and accountability. A factory needs these ten times more.
Refusing to lease or sell the machines was another emotional decision that worsened the loss.
Ego has destroyed many businesses more than lack of capital.

[Farm-sultan]

.
I have seen similar stories in rice mills, cassava processing plants, and poultry farms.
Once the owner is not around and there is no structure, workers begin to drain the business slowly.

Money leaks through poor supervision, poor records, and poor attitude.

Before you invest millions, invest time in learning management.

[Trimex]

This story is painful because it shows how opportunity alone is never enough. Many people believe learning the technical side of a business is the hardest part, but this example proves otherwise.

The machines were there. The buyers were there. The market was ready. Yet poor management destroyed everything.

[The Farmer]

The refusal to lease the factory is what shocked me most. At that point, pride was already talking louder than logic.
Leasing would have kept the machines active and prevented rust and damage.
Even if profits were small, at least the asset would still be alive.
Idle machines are silent killers of capital.

[ZeroWaste]

Another lesson here is cash flow planning. Profitability does not mean liquidity.
You can be making profit on paper and still lack money to buy raw materials.

Without proper cash flow forecasting, even a good business will collapse.

This factory did not die from lack of market. It died from lack of planning.

[Vera]

What could have saved this factory was simple reporting. Weekly production reports. Monthly financial summaries.
Once the owner abroad stopped receiving clear data, the danger signs were already there.

Transparency builds control even from a distance. Silence and assumptions are dangerous in business.

[Ekene]

Another mistake was lack of emergency funds. Every factory needs a buffer for raw materials and repairs.

Once operations become irregular, buyers move on permanently.

Trust lost in supply chains is very hard to regain.

Consistency is currency in manufacturing.

[AgMan]

The three elements you listed are complete and accurate.
Making money is only the entry point.
Managing money keeps you alive.
Investing money determines your future.
Missing any one of them collapses the structure.

[Farm-ninja]

This story also highlights poor maintenance culture.

Idle machines still need care. Lubrication, rotation, and protection.

Once rust sets in, repair costs can exceed replacement value.

Neglect is expensive in industrial setups.

[Hilux]

This story shows that diaspora investments fail mostly because of wrong local management choices.

People think blood relation equals trust and competence. That assumption has destroyed many investments.

Business requires accountability, not family sentiment. If you cannot audit your manager, you are not ready to invest from abroad.

[SheFarm]

This story should be mandatory reading for anyone planning to import machines.
Machines do not print money. People and systems do.

Without policies on spending, procurement, and maintenance, equipment becomes scrap.

Business success is designed, not hoped for.

[Hippo]

Many people chase business ideas without preparing themselves mentally.
Before opening a factory, you must upgrade your thinking.

Leadership, discipline, and humility are business tools. Without them, capital becomes a liability.