Comment 46 on Ned Uganda >> How to Start a Cooperative

I asked Munnu to do an exercise with the budget for the Soap Works. I haven't seen a response to that request. It shows a big...really very big problem with the budget. I could tell him and everyone but if he does the "checkbook" exercise, he will see for himself what is happening and it is going to make a much bigger impact.

The funds that are coming out here would come out in one way or another regardless. There are accounting responsibilities in a company and they can be paid to an accountant in the company or an accounting service. Here the accounting service is the <Ned> Uganda Office Services Unit.

There was also a problem in the Soap Works budget regarding transportation. It looks to me like Gulu Soap Works is running in the red by month 2 and headed down hill after that until the debt is paid back for the start-up.

I personally think it is starting a business off on the wrong foot to assume that you are going to be given the start-up money. It starts you off thinking that there is no need to think about the cost of capital expenses. What are you going to do at the time that you want to expand? Wait until someone gives you the money to do that?

Even if you are gifted the start-up capital, I think it might be a wise attitude to look at it as something that was paid forward and that you need to get ready to pass forward as well.

I am willing to work with someone here in looking at how these financials things are going to work but I need someone on that end. It's way better to find that you have made an error in your estimates on paper rather than after you have started and people are counting on you for income from the work they are doing.