Self-employment: Making it work out

I am currently in my second stab at self-employment, which is going much better than my first stint did. This time round, I’ve put into practice some of the principles I learned from my first time.

The overriding lesson I took away from my first attempt to give up the security of a job is that self-discipline will make or break you. Here are four ways to make sure you don’t waste your chance to build your own business.

1. Have a work desk and a reporting time

This may sound too easy, but I fully believe the lack of a work desk and clocking-in time were the main reasons I didn’t succeed in 2010, forcing me to go back to employment.

Make sure you wake up early, dress up and go to your work desk. Note, I’m not talking about setting up an office, but you at the very least need a desk. It doesn’t matter where it’s set up. I have a friend who is currently working from a corridor at a local university where there’s free wifi.

Another friend, Kyalo, works from home but still wakes up early, gets ready for work alongside his wife, sees her off and then settles down in a corner of the house that he’s set up as his office.

The discipline of waking up to go to work is important if you’re hoping to register any kind of success.

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Most people quit employment because they want to set up a business where they can dictate what time they get in or leave – after all, they imagine, work is all about output not time put in.

While there is some truth to this statement, you’ll still need to wake up early and retain a working-(wo)man mentality by sitting diligently behind a desk or counter.

2. Set a timetable and be selfish with your time

Time is a limited resource, so use it wisely – don’t dish it out as if it’s campaign money.

When you’re on your own without someone pushing you to meet set performance targets, or looking over your shoulder and monitoring how often you’re on Facebook, it is easy to let your mind wander. You’ll still feel tired at the end of the day, but you’d have no achievable tasks you can point to as being the cause of your fatigue.

To shake off this kind of lethargy, list the tasks you need to complete each day, and set the amount of time you’ll spend on each.

If you’re not strict with your time, you’ll find yourself treating self-employment like an extended leave.

You’ll find yourself spending Monday in Kericho observing your former colleague’s merino sheep being sheared as he tells you how he plans to import a new breed of cows.

Because you’re a good friend, you’ll advice him on how to go about it, and offer to spend your Tuesday refining his options.

Wednesday, you’ll be visiting dairy farmers with your friend, Thursday you’ll be running errands for your chama because you volunteered, and Friday you’ll have a date that consumes your mind all day as you try to figure out what to say, where you’ll go and what to wear.

This isn’t how you want self-employment to go, so please be selfish with your time. If something doesn’t bring you closer to your goals, cut it out.

3. Be flexible

Things don’t have to work according to your plan; be ready to change with circumstances. Don’t let your vision blind you from other opportunities.

Last year when I met a friend called Sam, he was selling land in Naivasha, I called him early last month and his ringtone introduced me to a printing company – you know those ringtones.

He had noticed that real estate was tying up his money for too long and he needed better cash flow, so he decided to revamp the printing business he had run as a side hustle with his sister while he was employed. With campaigns in high gear, it goes without saying that he made the right decision.

There is this lawyer who has his own firm but has taken a consultancy position in a larger firm to get the cash he needs to keep his firm alive. He reports at 6am in his firm for two hours and then returns at 5pm to ensure it remains in business.

Change whatever you have to change, do whatever you have to do, as long as it gets you closer to your destination.

4. Manage your cash

This is the most important self-discipline principle of them all. You need to hammer this point home and make sure it stays there. Cash is king, and without it, your business won’t survive. You can be making losses and survive, but without cash, you’re going to have to shut down.

Draw up your expected expenses for the next six months and how you plan to cover them.

For caution’s sake – yes, I know your business will hit its stride in the second month because you have done your analysis right and your customers will pay you on time – but let’s just assume they won’t. You’ll need to identify where you will access credit, and if you get a loan, how you’ll repay it.

If you don’t have your finances worked out, you’ll find yourself being chased around by suppliers, landlords, your children’s school and the kiosk owner.