Please enable JavaScript to view advertisements.
×
App Icon
The Standard e-Paper
Smart Minds Choose Us
★★★★ - on Play Store
Download App
×
The Standard Group PLC The Standard Group Plc is a multi-media organization with investments in media platforms spanning newspaper print operations, television, radio broadcasting, digital and online services. The Standard Group is recognized as a leading multi-media house in Kenya with a key influence in matters of national and international interest.
  • Standard Group Plc HQ Office,
  • The Standard Group Center,Mombasa Road.
  • P.O Box 30080-00100,Nairobi, Kenya.
  • Telephone number: 0203222111, 0719012111
  • Email: corporate@standardmedia.co.ke

Hustler, consider these things before setting out to start a business

Kenyans love business. Employed or unemployed, we pride ourselves in doing side hustles. [Collins Kweyu, Standard]
Kenyans love business. Employed or unemployed, we pride ourselves in doing side hustles.
 
We even have a presidential candidate who calls himself a hustler. I admire this entrepreneurial spirit in Kenyans.
 
All people tend to look only at successful businesses and think that they can emulate them. That is good, but there are also important lessons in failure.
 
Unfortunately, business failures are buried and forgotten. Success transfer should include a serious study on how some businesses fail and avoid making the same mistakes.
 
There is an Arabic adage that says “do not ask a specialist, ask the one who had actually tried it”.
 
I have six benchmarks that I consider critical before I get into a new business.
 
These are tried and tested benchmarks that you should use before you venture into any new business. Ignore these at your own peril.
 
The answer
 
First, can you afford the loss? Never ever start calculating your potential profit. First, calculate the risk of losing it all if the business fails. Would the loss destroy you? Your risk should never be more than 10 per cent of your net worth.
 

Water vendors in the estates of Nairobi. [Jonah Onyango, Standard]

Second, who would manage the business? An unemployed brother, sister or wife is not the answer. Do they have the skills and experience to run the business?

Premium Article

Get Full Access for Ksh299/Week.

Bold Reporting Takes Time, Courage and Investment. Stand With Us.
Continue Reading  →
What you get
  • Unlimited access to all premium content
  • Ad-free browsing experience
  • Mobile-optimised reading
  • Weekly newsletters & digests
Pay via
M - PESA
VISA
Airtel Money
Secure Payments Kenya's most trusted newsroom since 1902