Kindly advise a bro here, those who are veterans in the matatu business. I have been toying with the idea of owning a matatu because i hear that the returns are good. However, I am short on cash and I dont want a bank loan to purchase one. I also want to invest cheaply in order to get the basics and then perhaps after learning all the basics, I can purchase a new one. Here is my strategy, and please note I have zero experience in the industry so please correct where I am wrong. I am thinking of buying a used shark, (KB..something) at Ksh 400,000. Then buy a new engine and repairs that will cost me a total of Ksh 300,000. My total expenses should be around Ksh 800,000 including insurance, sacco fees etc. Is my idea reasonable? Isnt it wiser to buy a matatu very cheaply and have a brand new engine installed than buying one at Ksh 1,000,000 and still gamble that it has engine problems? Lastly and most importantly, I plan on using it for long distance transport Nairobi-Nakuru or Nairobi-Nyeri. For those who have 14 seaters on those routes, what should I expect in my bank account at the end of every month after deducting all expenses? With such a strategy, coupled with strict controls, can I hit Ksh 100,000 per month after deducting all expenses? If not, what amount am I most likely to earn on a normal month e.g May. Thanks in advance
A successful man is not he who gets the best, it is he who makes the best from what he gets.