Hi Wazuans. My friend has a problem deciding which business is his best way forward considering that he does not intend to quit his day job, therefore, the business is a side hustle. He has done his research and narrowed down his options to two business ideas;
1) Starting a computer college with a capacity of fifteen students. He expects a total of thirty students (two shifts) on average each month. He expects to hire a teacher and locate the college in a densely populated area such as Githurai or Roysambu. Training takes one month and each student pays Ksh 5,000 for basic packages. The total budget that he expects to use for the next four months i.e all expenses of launching and the 4 months initial period is Ksh 400,000.
Advantages
-The business can be managed passively because he only has to hire a teacher and ensure that he issues the certificates to the students personally. The certificates should also have a security feature to avoid illegal ones from being produced by the teacher.
-The students will pay to the school bank account therefore the teacher will have no contact with cash. He expects that each student avails the bank receipt to the teacher who in turn gives them to him.
- The business can be very profitable if the brand name becomes strong, thereby offering a good chance for growth.
Disadvantages
- The business may take time to pick
- The returns are not certain. The business may go for a week before the first student enrolls.

2) The second option is to buy a second hand toyota shark at 600k (KBA)use 200k in repairs and all necessary documentation including insurance hence total cost is Ksh 800,000. The 14 seater will then ply the Nairobi-Nakuru,Nairobi-Nyahururu or Nairobi-Thika routes. The employee will only be the driver because it will operate in a sacco.
Advantages
- Certainty of returns. He is sure of some income even on the first day of operations.
- He is assured of better management because the car will be in a sacco.
- He expects less theft and employee dishonesty because most sacco cars dont require a conductor. The driver does all the work.
- The business does not require time to pick and gives returns from the first day of operations.
Disadvantages
- Cops may eat into profits since the car is second hand.
- Slightly more mechanical problems compared to a brand new car.
- The asset (car) is a depreciating asset hence cannot be disposed at a profit. It will probably be disposed at Ksh 400k after two and a half years.

KINDLY ADVISE.

Thank you. I will advise him to pursue the college idea.

I am a very straightforward guy. If it was me, I would have said it is me...no shortcuts/connotations since I am not new here. Anyway bwana Mathenge...I appreciate your contribution and your insight into new ideas that may have been left out. By the look of things, it seems everyone here fears the matatu business...perhaps from experience or being an eye witness of bad business in that industry. Other views are welcome.

Someni vijana, muongese bidii... mwisho wa kusoma...

I like calling it an educational as well as a Kenyan middle class mentality thing.

The matatu industry, basic commercial farming and other such potentially lucrative business ventures are frowned upon in social avenues like middle-income forums such as The Virtual Republic of Wazua.

One measly tomato and one onion is each going for Kshs. 5 each in my local estate yet at my home in Mwea, right on the Meru-Mwea-Nairobi highway, it would take 50 cents to grow each tomato or onion and transport each to Nairoberry.

Yet I would rather come to Nairoberry and rent an expensive apartment and work on a computer writing "articles" than exploit free water from the irrigation canal passing 200 meters from our home to grow tomatoes or onions on my father's freely available land.

Your Friend's Kshs. 800,000 would have been enough to renovate the vehicle, to grow and transport the tomatoes or onions to those highly populated but educated estates such as Royal Suburb (Roysambu) and give a return on investments of double your initial investment every season.

This would be by adding a small generator powered cooler and selling the vegetables for Kshs. 4 each from the renovated vehicle every evening between 4 and 10 pm when most employees leave their offices and head home.

My standard seven "drop out" cousin has accomplished just that this "off season" and I am blue with envy. He does this every year in the hot dry season between November and March and the damned bugger owns the apartment block I rent.

Your friend has an interesting business dilemma in deed if you come to think of it. Question is, does he have the educated elite or middle income mentality?

Why feel pity?

Pity because the matatu enriches the crew, the mungiki stage cartel, the police, the govt through court fines and the owner comes last. try it, you will live to regret it.

Computer packages are a hard sell nowadays and just looking at the first college idea, with a capacity of 15 students per shift one needs at least 16 computers - on average a decent entry level computer, one that haina aibu ya ku hang kila saa will cost around 20 - 25 k - add cost of the softwares and initial set up and each unit will cost around 30k.

thats already nearing the half a million, add the cost of the teachers initial pay, rental cost (goodwill and deposit).

The major recurrent costs will include, salary to teachers, computer maintenance and electricity bills, all this without guaranteed clients.

a college for packages peke yake is not something I would advice one to venture into, ni hasara tupu.

for the mat idea, I am not very conversant na hiyo biashara lakini kuna thread that has all the details, but most guys discourage hii biashara especially ka uko na a single mat.

Good stuff Mathenge. The college idea wins this one. An old matatu is an euphemism for losing all your cash or your friends cash whichever it is.