Good c̶r̶i̶m̶i̶n̶a̶l̶ student

Quite nice and I believe having a passion for what one does is a good thing.Keep the posts flowing.

@Marty how you remind me of my class 9 math tutor, ms Naranyan. She would really simplify those seemingly impossible out of this world math problems in exactly the same way you manage to breakdown those abstract text book concepts with everyday life situations. Keep it

Know what you know, what you don't know and who knows what you don't

Njoki has a very sweet tongue and someone once said this: “By a sweet tongue and kindness, you can drag an elephant with a hair” She is the one who convinced my partner and I to buy our very first plots actually adjacent to each other. Those plots were in the bush somewhere coz I remember when we went to view them, we even saw some zebras and antelopes; trust Njoki to sell you anything. Roll over the year and her sweet story about how the place was to be in 5 years ringed true. Nowadays the place is quite prime.

What caught my eye about Njoki is her grasp for issues plots and the larger vision she seemed to clearly understand about their company. Talk about an ideal employee. When we bought those plots, we never had any idea that we will ever get involved in a real estate business. You see that time I was a member of a certain Sacco that was brought to its knees by some unscrupulous officials and I terminated my membership. My biggest problem that time was what I was to do with the cash in my budget which was earmarked for the Sacco’s monthly contribution. I convinced my partner we view the plots, by the way that time we were living together somewhere in Eastlands as young employees. I was very happy now that Njoki accepted our proposal to pay a deposit of 40k for the plots and the balance in 22 installments of 5k per month, a similar amount to the Sacco contribution. That time our core business was farming…which we did for 3 seasons to some disastrous results. It is at the end of the 3rd Season while licking our wounds that we decided to check out our plots in the woods only to be shocked by developments around there and the appreciation from 140k to around 600k, all in about 3 years. That very day, a business idea which is destined to culminate into a massive empire was born. After all, why bother thinking so much when an opportunity was right there before our very eyes.

That very day, I remembered Njoki and thanked God for having met her; I actually convinced myself she held my good omens. I called her and she confirmed that she quit the company she used to work for and set up a selling agency for properties. We set up a meeting with her coz I knew she held some keys to our new thoughts and line of business. She never disappoints. By the end of that meeting, we were very knowledgeable and wise fellows regarding matters real estate; information for free. I knew that she had to be part of our team; after all she knew what we did not know. If there is anyone who taught us the ropes of real estate, it is her…..wait…if there is anyone who has sold about half of all our properties, it is her….wait again…if there is anyone who has seen us grow from business toddlers to a teenager, it is her. Of course we are hoping to grow old in business.

For first timers, please note the following in relation to the above real life story:
1. No one knows everything, so never come off as a know-it-all. Surround yourself with advisors and mentors who will nurture you to become a better businessman.
2. Find successful, knowledgeable individuals with whom you share common interests and mutual business goals that see value in working with you for the long-term.
3. Search for knowledge; be it from professionals within your line of business or those who have been there and done it.
4. Get some serious mentor….we all need this irrespective of the stage you are in..

More for start-ups in the next post.

Capital, the biggest handicap?

Allow me to remind you of Alex, my bosom buddy back in our village. He is the dude I once wrote about who never finished his primary school, got involved in petty crimes and abuse of hard drugs, survived attempted suicides, got jailed only to later reform and become a pastor.

Alex always had brilliant ideas. He is a man you could sit down with and he’d tell you so many stories non-stop about how guys who have come across money and wasted it as opposed to seriously investing the cash. In fact I had started entertaining thoughts of getting into some joint venture where I could finance him. But my sixth sense always tells me to be wary of fellow who talk a lot…..most of the time they are clanging cymbals. In fact when I hear someone claim that his biggest challenge is capital, I trend carefully.

The last time I met Alex was early this year. I have been trying all along to reach him to no avail until he called me the other day and we talked for like 30 minutes. What he told me during the 30 minutes is what shocked me. I however like his honesty coz he never hides anything from me. Early in the year he received some 1M from his sister in Canada to finally start his dream business. He did not tell me why he was so lost but of course the cash he received in a way explained why he was not reachable.

I was very keen to understand what he did with the cash. He explained how he bought an old taxi and got into that business but somehow it did not work out well. When I enquired what happened, he claimed that he decided to employ a driver as he concentrated on church activities. The driver misused the vehicle and he was fleecing him of the proceeds of business till he finally dismissed him but the then the car was on its knees. In fact as we talked he claimed it was now an immobile junk parked outside his house. So the reason he was calling me was to request for my assistance so that he can revive it.

I realized that despite his talk and brilliant ideas, his biggest problem was never capital. In jest, I told him that his life story was like of that man who waded his way past a pack of dogs only to bitten by a goat. Or he was bewitched and the ‘bewitcher’ died. Seriously speaking, I expected him to do better with the 1M coz he always cried about capital and when he landed some he seemed not to have utilized it well.
Many times I meet guys who are convinced that capital is their biggest impediment towards starting a good business. Sometimes it could be, but in most cases it is never the biggest issue.

Most successful businesses were built on smallest of capital and in any case if you have a brilliant idea which may need substantial capital, my take is that the idea can be bought by a partner and you do a joint venture. You can even approach financiers though this is never the easiest route to take.

It is therefore extremely important to have a solid idea which you need to have a grip on before you invest your money. Worst case is where you get the money and you are wondering what to do with it. It is always better when good investment ideas precede the capital. Before you convince yourself that you need capital….think again…the capital might arrive and you start running around like a headless chicken.

More on start-ups in the next post.