Hi all Hon. Members
I drafted a Hekaya on this forum on how i lost miserably,a business i had started ,Briefly i bought a Matatu and employed my uncle as the driver.To cut long story short i sold the automobile and took a break to re-plan and re-strategize on what next.Those interested with the Hekaya and for educative purposes please check https://www.kenyatalk.com/index.php?posts/629476/
I met this neighbour of ours who happens to be in the matatu industry for over 30 years,being an interested party and a friend of transportion industry in Kenya,I consulted him on the same.
The project brief (Expenditures)
Buy a new Toyota 14 seater Matatu 2.5M (KCL,Zero to 1000km Mariage)
Comprehensive insurance cover 120K
Kiwanja fees(To be registered in the Sacco for operation) 200k
Contingency 10% 250k
Total Cost 3M (Roughly)
Revenue approx 80k-100K monthly
Within 3 years i should have recovered my money and have an Automobile with a resale value of more than than 1.5M
NB
The Mat will be operating in the long routes (Not town services)
The senior adviser has over 30 years of experience
He is the Sacco Drivers Chairman
He has his own Mat (KBX) where he has employed a driver
He is still employed as a driver by a tycoon who has more than 5 Mats in the same Sacco.
KTALK Experts/ Specialist and Quacks General Practitioners is the Project Feasible and Viable or should i go back to the drawing board and start from zero (Think of another business idea).
Both subjective and objective criticisms are highly welcomed!!!
Caution Peasants Keep off completely !!!
U learnt some lessons in the first biz…this time round u will learn some more hopefully if u go in you will make it. But the key thing especially in this “mang’auro” infested biz nikua patient. All the best
Assuming you liquidate after the three years. The mat will have earned you 3m and you sell it at 1.5m. That is a 50% gain in 3 yrs or 17% gain per year.
Am thinking that for the kind of risk in matatu business, 17% ni kidogo sana. I think less risky businesses should be able to give you this if not more. Am thinking of something like a wholesale/distributor which you can start with the 3m capital at hand.
If you are okay with investing millions to make cops, mechanics, and crew rich at your expense, go for it. I think matatu is a good business, only if you drive the van personally. Otherwise, the returns seem too small considering the amount of capital invested. If you want to smile all the way to the bank, import the matatu (diesel for roughly 2 mil), All expenses zikule 300-350k. Having invested 2.35mil, drive the van personally. Hutakosa 6k-8k+ for every working day ukiingia long distance where you dont need a conductor. Kama sio hivyo, just avoid the biz. Wanted kuingia too until my cousin, a driver, told me the naked truth about that industry. The matatu makes everyone rich, except the owner in MOST cases.
SUOTE=“karema-hitI, post: 940222, member: 219”]Why drive someone’s mat when he has his? That part doesn’t make sense to me and for that reason I’m out.
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in three years hio box utauza 900k ukibahatika. As long as vaite wanabuy box kama nguo be sure depreciation itakua juu sana…huko ndio shine eye wanakimbia kubuy 2nd hand. Alafu box moja tachoma wewe mbaya. fanya plan vile utabuy atleast tatu in 2.5years…huezi make money na moja. Mbona unaeka comprehensive insurance,kwani 3rd party haiko?
Hii KCL,0-1000km mileage ni ya TK? Secondly, who’s in charge of the crew and day-to-day operations of the mat? Thirdly, I think comprehensive is way more than what you’ve indicated in view of the increased premiums; it’ll break you.
Hehehe…just curious, hii long distance ya 6k-8k ni ipi? Halafu if you have to do it yourself, it becomes a job and you might as well pay yourself a salary.
@Luther12 uwanja Ni wako. Nimeketi pale. Mimi ma3 yangu niliuza last year after imeniingiza dole kwa mcuundo lakini there are some things I had not prepared myself properly. Planning a come back Kama Jimmy Gait.