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Employment versus Business: Time to take the leap?
sight
#1 Posted : Tuesday, August 11, 2009 6:21:00 AM
Rank: Member

Joined: 8/11/2009
Posts: 2
I am at that point where I face a dilemma that I know many here in SK may have been in at some point in their lives.

I hold a managerial position in a corporate. Over the last 1 year or so,I have been doing some groundwork on my side hustle. Now,matters have come to a head because the income and rate of return on the side hustle is not bad and is stable. I rake at least half of my monthly pre-tax salary by working weekends alone. I surpass my monthly gross if I work evenings or nights as well.

I can comfortably project continuous business for the next 3-5 years minimum. There is potential to increase this significantly if I focus on this full time.

As usual,I know this post might attract the persons simonkabz refers to as bonokos. But I know there are mature people here who may have taken this leap and seen the good side and bad side. Would be happy to benefit from your experience and wisdom.

Asante
lexus
#2 Posted : Tuesday, August 11, 2009 6:53:00 AM
Rank: Member

Joined: 3/18/2009
Posts: 38
this is tricky.i know some guy who left his job to work for his business full time after 3 years or so he had to close down his business.so for this i think you will have to consult a financial adviser to be in safe hands.and do a lot of research for good advisers some are not genuine.

work smart
Lyanne
#3 Posted : Tuesday, August 11, 2009 7:17:00 AM
Rank: Member

Joined: 5/5/2009
Posts: 181
@ Sight

I was at that point 4 years ago,and believe me it was scary for me. I was working for a Singh when i discovered that if i could lease a few machines similar to what he had i would do even better than him.

I bolted with half the clients and set up a similar business to what he was doing. Nowadays he calls me to give him business and similar contracts. My collegues who used to work there are now under my payroll !

What i know is that the formative years are tough,but you can weather the storm,i used to work 18 HOURS including weekends but it didnt break me.

Plan well,set aside an ammount of money to cover your overheads for atleast 6 months,then dive in,and like i always say swim with the sharks !


The Hedonist
wanyo
#4 Posted : Tuesday, August 11, 2009 9:35:00 AM
Rank: Member

Joined: 9/28/2006
Posts: 102
@ sight you are the envy of many

If you have been this for one year and returns are encouraging and putting more time will even increase significanlty,do the maths.

If you find out committing full time - returns are higher than your salo - what sense will it make by continuing with your employment.
If not why not think of getting and training a help-hand.
i too
Pablo
#5 Posted : Tuesday, August 11, 2009 1:02:00 PM
Rank: Member

Joined: 3/17/2008
Posts: 567
Location: Nairobi
Started a side husstle 3.5yrs ago which my wife went into. For 2 years i was paying the staff and rent from my pocket. As time went along in noted that 1st half the business would meet its own finances but the second half I had to be called in.

As time went on the business is now making much more than I make in most months.

Now,I smile as I can cleverly expense most of my personal costs (fuel,entertainment etc) to the business. My key issue now is managing cashflows and thats why I keep my job. Hopefully the cashflows will stop fluctuating wildly and I can take the jump off.


Want to be a millionaire.... plant a million cabbages and sell them at a bob...
The General
#6 Posted : Tuesday, August 11, 2009 1:54:00 PM
Rank: Member

Joined: 6/3/2006
Posts: 553
@ Lyanne,

Impressive..

The thicker the thigh the sweeter the pie.
The thicker the thigh the sweeter the pie.
Kwanini
#7 Posted : Tuesday, August 11, 2009 3:14:00 PM
Rank: Member

Joined: 1/28/2009
Posts: 353
Location: Cloud
Been there. Look at the worst case scenario if u lose your jobbo today,would you go looking for another job or would you dig in to yr bizna headstrong? There lies the truth. [no pun intended]

Its hard serving 2 masters... but if u can.... stick to having tha sidedish until she can truly qualify to be a mistress.... and then.... a second wife ?

If u got Passsion,persistence,and nerves of steel - Go business.. It pays in reaps and bounds. in any case ushaonja asali,mzinga utachonga rahisi.... best offf luck

For i am the master and the captain of my fate !
"For i am the master and the captain of my fate"
sight
#8 Posted : Wednesday, August 12, 2009 7:03:00 AM
Rank: Member

Joined: 8/11/2009
Posts: 2
@Lyanne,@Pablo,@Kwanini - Giving your own experiences is invaluable. Much appreciated. @Lexus,@wanyo - Your thoughts and sobering outlook is noted. @General - I agree. Very inspiring.
Wodu Wakiri
#9 Posted : Wednesday, August 12, 2009 1:59:00 PM
Rank: Member

Joined: 8/13/2009
Posts: 62
Taking the plunge is always a risky affair and the risk is magnified if you have a family to take care of. That said,business can be one of the most fulfilling experience and als very rewarding. If you get it right,you can do in one year what would have taken you 5 years to do.
So,sit down with your wife (she has to be in the picture coz when you start putting in 20 hour days,she's the one who will bear the brunt of an absentee husband!) and work the figures and also the inevitable change in lifestyle.
Strap in and Brace yourself coz biz is not for the faint hearted. I have seen guys starting biashara then at the earliest encounter with a challenge dust up their CVs and start applying for jobs!
One more thing,LUCK. You'll discover that even the best laid plans require an element of luck to succeed.
MaichBlack
#10 Posted : Thursday, August 13, 2009 6:58:00 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,910
@ Sight - Most ambitious individuals have dreams of setting up a business one day. The problem is that most of them either have no idea on what kind of business to start or don't have the entrepreneurial and management skills required. You have something that is already working and bringing in a steady income. I say plunge in my brother. But have a plan. Set aside enough cash to last the family atleast six months if something goes wrong,work out a business projection and see if addiitonal hours will automatically translate to additional business (and hence additional income),work out additional expenses (office,bills) etc. and then get into it.
Also ask yourself,given your qualifications and experience how easy/hard might it be for you to get a job in future if the situation dictates. The idea here is to never go back to being employed but the realities of life must be taken into consideration - especially if you have a family.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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