A Graveyard Visit: Eldoret Express... What happened?

pipinono

Village Elder
#4
Soo sad.

However entrepreneurs need also to impact their kids or heirs on how to manage the businesses when the main actor exits.

Hapa ndio waafrika and especially Kenyans fail. Look at the Asians here in Kenya and see how business knowledge is passed down the family line for generations.
 

Kahuni Maisha

Village Sponsor
#6

Managing such a fleet is tricky. When those buses were new, they were killing it, bringing lots of revenue.
Then, they start getting old, and a good % of revenue generated starts being directed towards maintenance .
Hapo ndio mwenyewe huwa anasema to hell with this business, coz the business accounts are not healthy at all.
 

Azor Ahai

Village Sponsor
#7
Managing such a fleet is tricky. When those buses were new, they were killing it, bringing lots of revenue.
Then, they start getting old, and a good % of revenue generated starts being directed towards maintenance .
Hapo ndio mwenyewe huwa anasema to hell with this business, coz the business accounts are not healthy at all.
Why didn't he/she sell even at a significant discount? That's what I am wondering.
 

Kahuni Maisha

Village Sponsor
#9
Why didn't he/she sell even at a significant discount? That's what I am wondering.
Hard to tell, the trick though, is to save as much money, when assets are new and generating to the max, because down the line, all you will be doing is paying for repairs.
I guess the best approach is, selling your assets after X amount of time or milage. That way you end up with mostly new fleet.
 
#12
Hard to tell, the trick though, is to save as much money, when assets are new and generating to the max, because down the line, all you will be doing is paying for repairs.
I guess the best approach is, selling your assets after X amount of time or milage. That way you end up with mostly new fleet.
In sound business practice, the provision for regeneration of earning assets is no t a novel idea. It's called depreciation and a sensible person would reserve funds annually to maintain and replace the vehicle at the end of its e o omix life. Evidently, Eldoret Express never did that.
 
#14
In sound business practice, the provision for regeneration of earning assets is no t a novel idea. It's called depreciation and a sensible person would reserve funds annually to maintain and replace the vehicle at the end of its e o omix life. Evidently, Eldoret Express never did that.
In .ke. one starts a business, returns are awesome, since the assets are new, and giving back maximum returns. So, what does a Kenyans do in these phases ?
They change their lifestyle instantly, move to a new neighborhood, transfers kids to some posh schools and even acquires concubines.
When business hit that point, where revenue generated and the cost of maintenance are at par. A Kenyan ends up being confused and overwhelmed.
It all starts with discipline and ends up with discipline.
 

Mawaya

Village Elder
#15
All this all of you are saying in this thread and the other one is merely speculation.
No one knows for (maybe only his close friends and family) knows for sure what happened or why the man chose that particular business model.
Am made to understand he would never sell any of his buses as a matter of principle which is foolish if you ask me.
Businesses are never run on whims or sentimentality.
You must be able to separate such fantasies from sound business decisions unless you want to end up with tonnes of rotting scrap like these ones whose value keeps diminishing by the day.
 
#20
All this all of you are saying in this thread and the other one is merely speculation.
No one knows for (maybe only his close friends and family) knows for sure what happened or why the man chose that particular business model.
Am made to understand he would never sell any of his buses as a matter of principle which is foolish if you ask me.
Businesses are never run on whims or sentimentality.
You must be able to separate such fantasies from sound business decisions unless you want to end up with tonnes of rotting scrap like these ones whose value keeps diminishing by the day.
We are saying the same thing, managing depreciating assets. If he didn't wanna sell, it meant that maintenance cost was high.
 

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