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Business ideas for a retrenched man, capital 700,000 Kshs.
Rank: Member Joined: 4/21/2011 Posts: 119
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Hey Wazuans,
My uncle will be out of his job by end of this August due to retrenchment. He needs ideas on businesses he can start with his retirement package which is a little more than a million but after he enjoys himself, he will probably be left with something like 700,000 Kshs.
He is about 51 years old, likes having fun and is a well known dude.
Any advice based on this information.
Regards.
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Rank: Veteran Joined: 4/4/2007 Posts: 1,162
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Rank: Member Joined: 4/21/2011 Posts: 119
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He is in the Human resource profession, however a very junior position, I think records clerk or something. He also does something on the side which I wont mention but it has to do with football which as you all know doesn't have good returns in Kenya.
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Rank: Member Joined: 12/2/2009 Posts: 286 Location: Nairobi
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What were your uncles retirement plans? Until recently retirement age was 55 years. He is 51 years today, 4 years shy. What were his plans all along assuming he was to retire at 55 years? I think he can borrow from there, since 4 years cant make such material difference. The laudable is more often than not rendered laughable by overclaim
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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Barrywhite wrote:
What were your uncles retirement plans? Until recently retirement age was 55 years. He is 51 years today, 4 years shy. What were his plans all along assuming he was to retire at 55 years? I think he can borrow from there, since 4 years cant make such material difference.
I don't know how retirement plans, pensions, and retirement-specific investment instruments work in Kenya, but in the US, if you don't wait until the DAY you are of retirement age (I think it's up to 67... SIXTY SEVEN years of 40, 60, 80 hour weeks and mountainous piles of bills and debt!) you are severely penalized by taxes, early-withdrawl penalties, etc etc. Cashing in even one day before retirement age, on many retirement plans, can cut your money in HALF. I'd say that he consult his local licensed financial advisor before making any cash-out moves. On the plantation, slave must work 'til dead. Best, Hill
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Rank: Member Joined: 4/2/2011 Posts: 629 Location: Nai
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Mapozi, You should advice him not to have any fun on his retirement package. There is no magic business idea. It all depends on his passion. There is food shortage in Kenya so he can try ......no....actually go into poultry farming for eggs and meat, farming ....greenhouse....tomatoes....etc. . .
Kenya is the land of opportunity...ask him to pursue the Kenyan dream
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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accelriskconsult wrote:Mapozi, You should advice him not to have any fun on his retirement package. There is no magic business idea. It all depends on his passion. There is food shortage in Kenya so he can try ......no....actually go into poultry farming for eggs and meat, farming ....greenhouse....tomatoes....etc. . .
Kenya is the land of opportunity...ask him to pursue the Kenyan dream So a Kenchic setup makes money? I'm surprised that more people don't talk about it here. I know my in-laws do the Kenchic thing, but they don't seem exactly excited about it. Best, Hill
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Rank: Member Joined: 12/2/2009 Posts: 286 Location: Nairobi
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@ JasonHill. If he is retrenched at 51, in Kenya, he gets his full retirement benefits - both his contribution, employers contribution and the returns. However, by retirement plans l meant what he intended to do with himself after retirement. He only has to do the same thing, but start it 4 years earlier. The laudable is more often than not rendered laughable by overclaim
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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According to my rough and conservative calculations 700k can get him a pension of about 6k per month from any insurance co. If he decides not to have fun with part of his benefits he can get 10k pm from about 1.17m... I think YOU should advise him to have fun with the life pension rather than the principal... or no fun at all! And then look for opportunities to supplement his income... What was his working income & lifestyle? Can he survive on 10k? Wife? Kids? Other dependants? Does he own a home? Farm land? Any assets? Shares, livestock, sacco, etc. "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Tell your uncle to go buy pension, there are no ideas in business for him, business is a career if he is 51 and has never done business just forget it, he will lose the entire capital in a year or two. There are many things that you need to learn along the way in business, like marketing, managing cash flow and the special touch with clients and some of these things you learn through experience. I have seen retirees buy dairy cows and chicken only for entire stock to die in year, set up a shop and end up with dead stock and no customers.
If you are in employment for that long and you have never been doing business along the side what makes you think it will work now. If you want to be an entrepreneur start when you are young with minimal capital and build on that. This idea where you work for wages to accumulate a lump-sum to invest in business is just a waste of capital, business is more of mental attitude, too bad he has already conditioned himself to be receiving regular wages-the curse of employment
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Rank: Member Joined: 4/21/2011 Posts: 119
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Thanks all, for your insightful comments,
@ Barrywhite, he didnt have anything in particular apart from just starting a business when he retired, there are some people who actually live like that.
@ Hill, He will get the whole of his package, that he is sure of.
@accelriskconsult, you have a good idea there, will definitely suggest it to him.
@ Genghis Khan, I'm not sure what you mean exactly, is it that he should take an insurance policy with his lumpsum? please clarify.
His working income was roughly 28K after taxes, he was/is a spendthrift, the kind of guy whose salary is over by the 2nd of the month.
No dependants, no assets.
@ Mkonomtupu, I like your frankness, but how about if someone else were to manage his business for him?
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Rank: Member Joined: 4/2/2011 Posts: 629 Location: Nai
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jasonhill wrote:accelriskconsult wrote:Mapozi, You should advice him not to have any fun on his retirement package. There is no magic business idea. It all depends on his passion. There is food shortage in Kenya so he can try ......no....actually go into poultry farming for eggs and meat, farming ....greenhouse....tomatoes....etc. . .
Kenya is the land of opportunity...ask him to pursue the Kenyan dream So a Kenchic setup makes money? I'm surprised that more people don't talk about it here. I know my in-laws do the Kenchic thing, but they don't seem exactly excited about it. Best, Hill My pal's dad is in the chicken business and I understand that he is doing well. I have also noted that some 2 other family friends are keeping traditional chicken as well as broilers. I have been assured that they are in it because the money is good. I wont hesitate to try this once I solve water problems in a place where I have some land. I suppose such business would complement greenhouse farming
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Rank: Member Joined: 12/2/2009 Posts: 286 Location: Nairobi
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I think any business can be successful; that is why there are businesses in all manner of things. What matters and will count at the end of the day will be your passion (and knowledge) for the business, your strategy and your management style. Thats why one person succeeds in one venture and another fails. That's why its hard to recommend a business for someone; it has to come from within not without; and if it comes from without, you have to internalise it, sort of own it and drive it as if it came originally from you. Otherwise all businesses will make money, but not for all people. You the businessperson is such an integral and critical input into the business' success. The laudable is more often than not rendered laughable by overclaim
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Rank: Member Joined: 4/18/2011 Posts: 459
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I seem to get a feeling of your uncles character, n just incase your advice to him gets nowhere be prepared psychologically.
@ Genghis Khan, idea seems like a good idea infact I recommend it.
At least he'll be assured of money regularly to support himself over many years. You will note that, being a guy of partying if he starts a business n he has all day to himself n yesterdays revenue he will party till the money is over. So it will be only a matter of time before the biashara is over.
Taking other factors constant, in his position I would look for a plot in a ples lyk Njiru etc for abt 300k, then I wud put up simple houses, the kind that I can let for abt 2k a room even if he starts with 5 rooms first that would be 10k monthly but if he wants to he can construct more. Lets hope for the best.
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Rank: New-farer Joined: 6/1/2011 Posts: 47 Location: Nairobi
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the kuku are a great business. if he was to do it, try the kienyji which are not too picky about food and living conditions since he's just learning. as he learns how to handle them better, he can move to the layers or broilers. i'm with the houses idea, the houses, he will finish the lump sum money before he parties all of it away and he won't require too much input to manage thereafter so the partying can continue!!!!this is retirement!! all the best I am an optimist. It does not seem too much use being anything else. ~Winston Churchill
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Rank: Member Joined: 4/21/2011 Posts: 119
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@ Kaka M, thanx.
I have seen this guy get loads and loads of money, he can blow away 60,000 in a week, with nothing substantial to show for it, so I think that the houses idea is good, its just that am not sure whether he will have enough money.
@peshcash, the chicken idea is good, i just don't know if he can do it, but I will take up that idea myself.
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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mapozi wrote:@ Genghis Khan, I'm not sure what you mean exactly, is it that he should take an insurance policy with his lumpsum? please clarify.
His working income was roughly 28K after taxes, he was/is a spendthrift, the kind of guy whose salary is over by the 2nd of the month.
No dependants, no assets. Yes, if you take a lump sum to any insurer they will give you an annuity also known as a pension. This means you get regular monthly payments for life. "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Barrywhite wrote:I think any business can be successful; that is why there are businesses in all manner of things. What matters and will count at the end of the day will be your passion (and knowledge) for the business, your strategy and your management style. Thats why one person succeeds in one venture and another fails. That's why its hard to recommend a business for someone; it has to come from within not without; and if it comes from without, you have to internalise it, sort of own it and drive it as if it came originally from you. Otherwise all businesses will make money, but not for all people. You the businessperson is such an integral and critical input into the business' success. This thoughts are well supported by this quote: A man can succeed at almost anything for which he has unlimited enthusiasm - Charles M. Schwab .
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Rank: Member Joined: 4/1/2008 Posts: 104 Location: Nairobi
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mapozi Given the fact that your Uncle loves to party and i assume he has a wide enough network of party/business associates and friends...maybe a business along the same lines would be just what he needs. I suggest setting up an events management co. Target specific and geared towards small and medium enterprises/organizations looking to put together retreats, office parties, launches...etc. All he would need to do is set up a functional website (Cost Ksh6500), send out proposals (from a cyber if need be) make follow-up calls and set up meetings with clients. His role would be simple...putting the event together and all he charges is his service percentage. I would HIGHLY recommend that he hire a professional on a part time basis to handle accounting though. (you'd be amazed at how many CPA/Degree holders out there who are well qualified for the job and glad to make that 1 or 2K an hour). Généralement, les gens qui savant peu parlent becoup, et les gens qui savant beaucoup parlent peu.
- Rousseau.
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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Genghis Khan wrote:According to my rough and conservative calculations 700k can get him a pension of about 6k per month from any insurance co.
If he decides not to have fun with part of his benefits he can get 10k pm from about 1.17m...
I think YOU should advise him to have fun with the life pension rather than the principal... or no fun at all!
And then look for opportunities to supplement his income...
What was his working income & lifestyle?
Can he survive on 10k?
Wife? Kids? Other dependants?
Does he own a home? Farm land?
Any assets? Shares, livestock, sacco, etc. Hello Genghis, If I understand you correctly, what you are saying is that I could take 21M KES and put it in a pension, and get a return of 180,000 KES every month until I die? Or in other words, I could take $250,000USD, retire in my 30s in Kenya, and live pretty much like I do in the US until I die while never having to work again? If so, I would like you to kindly recommend an insurance company to us, and thank you for that information. Best, Hill
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Business ideas for a retrenched man, capital 700,000 Kshs.
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