Saturday, November 12, 2016

My side-job has really worked out!

A tough economy, rising cost-of-living, job losses and low salaries: these are some of the fears driving many Kenyans to start side hustles in a bid to supplement their salaries or have a fallback plan. However, starting and running successful businesses on the side will often prove to be a futile expenditure, especially if the side hustle is time-intensive. Amidst the gloom, though, are a few shining examples of career people who are also thriving as entrepreneurs on the side. This week, three such women spoke to the Saturday Magazine about their side-hustle experiences.
Wairimu Githuka, 36
“My side business was my saving grace when I lost my job as a journalist at a local publishing house two years ago. However, I have always been an entrepreneur. I got into business after realising that I would have to wait for at least a year to negotiate for a pay rise with my employer. Whenever I got a raise, it would often be very minimal. When I contrasted my salary against my goals, I feared that I would always fall short of the kind of lifestyle I desired. I wanted to acquire assets, especially in real estate. I also wanted to live more comfortably.
 
“In 2005, I left my job as a print media journalist and took up a job in Dadaab refugee camp, working as a verification clerk. One year later, I had managed to save Sh500,000, part of which I used to start a clothes boutique business in Westlands, Nairobi. I used part of these funds to pay rent for my stall, travel to China to buy the stock I needed, and employ an attendant. Within a short time, though, my business experienced cash-flow problems. The stock did not move as fast as I had projected and I wasn’t good at managing the finances. I was a green-horn in the clothes business. I couldn’t seem to figure out a way to make it sustainable. I tried to approach those who were already doing well in the business, but none of them was willing to share their success tricks.  
“Nonetheless, I stuck to my guns and a year later, having moved the shop to CBD, the business began to bring in some profits. However, in 2014, I decided to close it and focus on businesses that required less overheads to run. I offered the shop to another tenant for a ‘goodwill’ of Sh200,000 and did a clearance sale on the remaining stock. I also took a loan to top up the funds collected and used the capital to build mabati houses in Kinoo.
“I have never regretted this decision to go into business. Although I had operated the clothes business for eight years and eventually looked like I had broken even, I don’t think it did so well. Overheads took a large chunk of my profit and based on stock movement, I wasn’t always sure if I was operating at a profit or loss. Today, apart from collecting rent every month, I have been working multiple jobs selling children’s safety car seats, and working as a network marketer for a travel club, and a social media manager. Although I have since left formal employment, my side businesses have proved to be profitable and sustainable.
“My network marketing job, in which I sell travel memberships as an independent sales representative, has been the most fruitful job so far. I joined this business six months ago and broke even in less than two months. The business comes with very minimal risks and no overheads. Interestingly, my social media management job has also panned out very well due to its low operational costs and flexible internet accessibility. This business didn’t require capital to start. In fact, I just pitched the idea to a friend who owned a gym and she took me up on my offer. From that moment on, it has expanded through referrals.
“Looking back, I have learned that the best time to start a business is when you are still employed. You will have the cushion of a salary until your business stabilises. However, having a job to buffer you can easily prevent a side business from taking off. Oftentimes, you may fail to install adequate effort in the side business knowing that you still have a salary from your employer to fall back on.”

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