I lost Kshs 10 million in business

Esther Etende, 38, is married with 3 kids. She shares her lessons from losing a Sh10m investment and the steps she took to bounce back, writes Gardy Chacha.

MY BACKGROUND

Before I got married in 2006 my husband and I talked about what I would love to do in future. I told him I would love to go into business.

In April 2013 I resigned: I had been working as a banker. I was earning more than Sh200,000 a month. But I had to leave it behind. As I said, my heart was always in starting my own venture. I had been comfortable with a salary and I wanted to pursue that which would make me happy. I had two children at the time (pregnant with my third child) and as a result I think I had grown fond of working with kids. Whatever I would go into would therefore be children oriented.

I landed on a business idea: playground for children. My husband and I did research on children playgrounds. We lived in Rongai at the time. There weren’t many playgrounds; a place where children can spend weekends playing and having fun.

We imported bumper cars, 3D video games, carousels and many other things from China to set up the place. The playground opened in November 2013. Depending on the amount of time a child needed to use a gadget we charged as little as Sh200 per session. But by end of July 2015 we were closing shop.

Why, you may ask. We ran into unforeseen turbulence. This was in spite of a steady stream of clients. On average we made about Sh70,000 a month. But the rent was Sh400,000.

In total – rent, buying equipment, furnishing the premises, supporting staff, registration, licencing and tax – cost us a whopping Sh10 million. In fact by the time we were closing the business we had started borrowing from friends to sustain it and we had realised things were not working out.

THE IDEA

Of course I was deeply disappointed. It is too much money to lose. But I was not going to dwell on the loss. I choose to move on with a different idea.

My passion is in serving children. And so, when the playground idea failed I had to go back to the drawing board. I am a believer and so I prayed through this period. I sought wisdom from God.

I did research aggressively. I went online and read about successful entrepreneurs: I studied the mistakes they had made and the solutions they resorted to. I learnt lots from this research.

Just after closing the business I was faced with temptations of new job offers. But I declined all of them. I still believed I was destined to have my own venture.

In between doing the research, meditating, praying and scouting around, the school idea came. I shared it with my husband and he was for it.

WHAT HAPPENED NEXT

This time I started off with finding myself a mentor – a lady running a school herself. I surrounded myself with honest people who would advise me as well.

I was cost conscious. I would spend as little as possible.

I started looking for a place. I would get rent offers of Sh120,000, Sh150, 000, Sh180, 000 and so on. My advisers kept telling me, ‘No, don’t take that.’ I stopped searching. I contracted an agent to do the search for me.

One day the agent calls and he has good news. He tells me he has found a place and I should rush over there. For Sh52,000 a month, the deal was good: I told the agent to not even allow anyone else see it.

Since I was managing costs I did the initial cleaning of the place with help from an auntie. I visited actual manufacturers of equipment needed for the school, saving so much. I took advantage of sales. I managed cost such that I spent as minimal as possible while not compromising quality.

RUNNING A START-UP

Zuena International School started in September 2015. Our first intake was in January 2016. The school is set up on Christian values and affords nursery school children a combined Montessori and 8-4-4 based curriculum.

Initially I was the sole employee. But as more students enrolled I had to get staff. Today we are a team of 13 – teachers, drivers, cooks, administration and cleaners. We have 70 pupils in total across levels from nursery to class 3.

WHERE I AM NOW

The school has a bright future – I can feel it. Unlike the failed playground idea, the school is already sustaining itself. We don’t have to borrow from friends or go into our pockets to keep it afloat.

YOUR TIP

When starting a business always make sure that your fixed expenses are at minimum. Read and research a lot. Don’t make spontaneous decisions. Consult with people you can trust. Take time to think through.