Hypothetically, what if it was a 2.5M loan .Is there a business you can start with 2.5m from scratch to cater for a 100k repayments ?
Sahi biashara ni ngumu
Tough question. Hopefully the Loan payments are not 100k a month. And you have a grace period. I have seen people here talk about importing agricultural goods from rural areas and looking for market in the city. Just search the threads.
If you’ve never handled a 10 - 50k business, 2.5m itakukanganya. Start small and build strong.
None. Business will go through the normal growth cycle.
i have some other 2 accounts where i put aside cash that earns me interest and i don’t touch it… sacco and money markets.
also was thinking about a house, then i realized i will sink too much money in a residential house , that will tie up capital in a non-cash generating venture.
Buying property leads to dead capital.
My advice would be to identify what you love doing and and invest in it, you don’t have to invest the whole 2.5 there are people that have managed to make something out of nothing just because they followed their heart…find ways your passion can address certain needs in the society and the money will follow. Business is sometimes complicated and it’s not as easy as having the best idea, you also need qualities like patience, persistence and creativity because…too many uncertainties out there and mostly what will keep you going is the love for what you do. Ata ukipata a brilliant idea hapa it won’t be sustainable because people who are hungrier or with more money/experience in financial matters will see it and soon will be your greatest competition. Ju unajua tu vile waKenya wako, wakiona umefungua kibanda ya mpesa na umeanza kula vizuri kesho yake yake vibanda kumi zinafinguliwa kando yako.
If you got the 2.5 through business then expand or diversify what you are doing. It is much easier to start from what you know.
Kama ni loan, and you have never done business, am sorry, this may turn out to be a long term debt you owe the bank. If you can return it and continue working and saving, you will have saved yourself a lot of headache.
Many people get access to loans, they assume any business has quick roi and start throwing money into ventures. As the cash dwindles they get even more desparate and throw it foolishly. Inaisha yote and you are left in debt. I was there and it is not easy.
Now, if it is your money (earned slowly over time) and you have never been in business, anza pole pole kabisa. There is no business that can’t be scaled up one way or another. Start with something you like that has about 20k investment that has shortest path to the market. If it works scale it up and with time, you can make it more complex.
An example would be, if you want to grow mangoes, first go buy mangoes and see if you can sell them. Get the market and channels and understand the business. With time you will get your farm and you will be very knowledgeable in that industry. Ukianza na kununua shamba utapoteza pesa.
Naona advice ya talkers siku hizi haileti shangwe, mtu anakaa paranoid in doing investment. It makes one bow to the fact that making it in business ni ngumu. Bro do what you had thought first. Some things were meant for you. Better learn the hard way than being fed all this fallacy here.
Also, you should be asking for advice for a particular idea that you have, don’t show how blank you are that you have no idea at all.
Context is a key factor in business. When times are tough, it is good to be paranoid. The context right now in Kenya is that we have high taxation, consumers have suffered job losses and reduced income so there is reduced spending power, government is spending most of its money on debt servicing so money is not moving around in the economy and trickling down…you can have a very good business idea but the environment does not allow ujuaji mingi. Only the paranoid will survive in the current context, kimbele mbele mingi and chest thumping will lead to tears.
This hard way you are talking about means gambling with a scarce resource. Hapo umejiweka 50 50. This is never a good investment strategy.
Venturing means just that, it can succeed or fail. There is no guarantee of the outcome. You should venture in the least painful way possible. Invest the least out of pocket for a venture. Be able to walk away without dents in your finances.
In my mango example, if you can get employed anywhere along the mango industry spectrum even for three months, it will be better than any investment you will do. You start earning while learning right away instead of using your own money.
Anybody who thinks business is a sprint and not a marathon either ameangukia ama ni mwizi.