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Big Business (1 million plus per month net)
Rank: Member Joined: 1/20/2015 Posts: 489 Location: Nairobi
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MunyaoTrader wrote:I am also leaving employment to do business. I advice your friend to keep kshs.2,000,000 as liquid float for any eventualities and invest the remaining kshs.4,000,000 in four different businesses that require a capital of kshs.1,000,000 each.
I advice your friend to aim for a net profit of kshs.10,000 a day by the end of the first year of business. It is possible to make kshs.300,000 a month with an investment of kshs.4,000,000.
Personally i am venturing into large scale modernised dairy, poultry and rabbit farming. I will also invest in my wife's dream of importing fashion products from Turkey, Dubai and China.
Other than all this put together, you have to have faith. When you get knocked down you must get up again. This is the entrepreneurial spirit. You have to make up your mind and go for it. Be willing to fold your sleeves and "get your hands dirty". Let your employees know that any task you give them you can do it yourself....."Lead by example".
Understand the market, your customer and your employees.  Enjoy every moment of your life, you never know when your time will come.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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UpcomingPaperChaser wrote:MunyaoTrader wrote:I am also leaving employment to do business. I advice your friend to keep kshs.2,000,000 as liquid float for any eventualities and invest the remaining kshs.4,000,000 in four different businesses that require a capital of kshs.1,000,000 each.
I advice your friend to aim for a net profit of kshs.10,000 a day by the end of the first year of business. It is possible to make kshs.300,000 a month with an investment of kshs.4,000,000.
Personally i am venturing into large scale modernised dairy, poultry and rabbit farming. I will also invest in my wife's dream of importing fashion products from Turkey, Dubai and China.
Other than all this put together, you have to have faith. When you get knocked down you must get up again. This is the entrepreneurial spirit. You have to make up your mind and go for it. Be willing to fold your sleeves and "get your hands dirty". Let your employees know that any task you give them you can do it yourself....."Lead by example".
Understand the market, your customer and your employees.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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kaka2za wrote:S.Mutaga III wrote:sparkly wrote:S.Mutaga III wrote:You guys perhaps got me wrong. The guy disposed a piece of land at an insane amount. He has completed several flats with the proceeds to generate for him enough income to support his current lifestyle. His corporate job earns him peanuts and he feels that it is time to call it quits anyway. He figures that since 90% of his networth is already in real estate, and his papers are intact, he can safely venture into enterprenuership to pursue his dream. After all, earning 65k net with such a networth is slavery and stupid. He thinks there is better use of his time now. Please note that the rent from his projects is more than 10 times his net salary and he has no loans. Doesn't add up. He earns 65k net but has flats earning him 650k net? There is a 0% chance that he bought the piece of land and constructed the flats to earn 650k with his salary. I know because I was employed for a while and my net earnings were more than the 65k he is earning. Let him continue doing what he was doing to earn the money to construct flats. He used his inheritance and savings to buy the land.That is what he told me but anyway, I didnt really ask for the information on how he bought the land. Where I come from, questions like those could get you killed. He can get you killed for asking questions and he is your friend. How bad can your enemies be?! Lol a friend indeed. Let is recap. The friend sold a piece of land in a posh estate. He constructed flats earning KShs 650,000 per month. He has left over cash. He wants to spend 10% of the left over cash ie KShs 6m to enter big business. Let is determine how much the friend is worth. Friend gets 650k pm from rental ie 7.8m per Yr. Rents yields are approx 10%. Therefore he spent about 78m in developing the flats. 6m is 10% of leftover cash therefore left over cash is 60m. He is 40 earning 65k net. That means he has worked for around 15 yrs. If he religiously saved 20% of his current net salary for 15 yrs he would have approx 2.4m from savings (20%*65k*12*15). The friend is worth KShs 138m from inheritance and savings. Meaning he inherited approx KShs 135m. Now the questions: Why would someone worth 140m be working a 65k a month job? Why does he want to invest in a hustling business? Life is short. Live passionately.
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Rank: Member Joined: 1/20/2015 Posts: 489 Location: Nairobi
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sparkly wrote:kaka2za wrote:S.Mutaga III wrote:sparkly wrote:S.Mutaga III wrote:You guys perhaps got me wrong. The guy disposed a piece of land at an insane amount. He has completed several flats with the proceeds to generate for him enough income to support his current lifestyle. His corporate job earns him peanuts and he feels that it is time to call it quits anyway. He figures that since 90% of his networth is already in real estate, and his papers are intact, he can safely venture into enterprenuership to pursue his dream. After all, earning 65k net with such a networth is slavery and stupid. He thinks there is better use of his time now. Please note that the rent from his projects is more than 10 times his net salary and he has no loans. Doesn't add up. He earns 65k net but has flats earning him 650k net? There is a 0% chance that he bought the piece of land and constructed the flats to earn 650k with his salary. I know because I was employed for a while and my net earnings were more than the 65k he is earning. Let him continue doing what he was doing to earn the money to construct flats. He used his inheritance and savings to buy the land.That is what he told me but anyway, I didnt really ask for the information on how he bought the land. Where I come from, questions like those could get you killed. He can get you killed for asking questions and he is your friend. How bad can your enemies be?! Lol a friend indeed. Let is recap. The friend sold a piece of land in a posh estate. He constructed flats earning KShs 650,000 per month. He has left over cash. He wants to spend 10% of the left over cash ie KShs 6m to enter big business. Let is determine how much the friend is worth. Friend gets 650k pm from rental ie 7.8m per Yr. Rents yields are approx 10%. Therefore he spent about 78m in developing the flats. 6m is 10% of leftover cash therefore left over cash is 60m. He is 40 earning 65k net. That means he has worked for around 15 yrs. If he religiously saved 20% of his current net salary for 15 yrs he would have approx 2.4m from savings (20%*65k*12*15). The friend is worth KShs 138m from inheritance and savings. Meaning he inherited approx KShs 135m. Now the questions: Why would someone worth 140m be working a 65k a month job? Why does he want to invest in a hustling business? Smart analysis! huyu lazma ni traffic cop very corrupt Enjoy every moment of your life, you never know when your time will come.
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Rank: Member Joined: 12/17/2011 Posts: 887
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premio wrote:Good mentors here does anyone know of a place i can get a plot to buy and build 1-2bedroomed apartment block in an decent neighbourhood that can fetch 18-25000 rent pm budget4-5m. My opinion a business that can net 1m profit its possible if he can establish a hotel or fast food in town or get a franchise of one of the Major world brands like Macdonalds. java, artcaffee and pizza inn are raking in some serious cash as the Nairobi middle class expands but the investments required are 30-40m. 6m will hardly get near 400k pm.
In a restaurant 40% of sales is normally profit if he can average 100k a day in sales that comes to roughly 2.4m pm assuming 6days operation 900k-1m monthly There is no restaurant in town or anywhere for that matter that averages 40% of sales as profit. I own a few restaurants in town so i know better. First of all, a restaurant that averages 2.4 million per month in sales will put you back around 15 million just in goodwill. This guy says that he is working with 6 million. He can't get anything worthwhile in town for 6 million, maybe a hole in the wall fast food joint in a not so endearing location. Here is the naked truth. Let's say that you have a restaurant that's doing 2.4 in monthly sales. Food costs and daily maintenance will cost you about 45% to 48% depending on the month and availability of food. 48% of 2.4 million is 1.15 or so. So you are left with 1.25. Rent in town for a place that is making 2.4 will be around 350 - 400k. That leaves you with 800k. Staff salaries are about 200k. That's 600k. Add electricity and water, that's around 150k. So that brings you down to 450k. Ongeza catering levy, VAT, NSSF and NHIF payments for employees, comes to about 250k. So you are left with 200k. Throw in another 10k for kanju and the like for good measure. That's your net profit. I know a lot of restaurant and fast food owners in the CBD and we all talk so i know what am saying. Point is, it's not easy to make a mil a month if you are operating a legit business establishment in this Kenya. You have to own 5 restaurants in town to make that mil. The other option of owning a nightclub in Westlands is also not as luctrative as people think. Club business especially in Westlands is one of the most cutthroat business in Nairobi. My friend and business partner has two very classy joints in Westlands. I will tell you about his fiancial breakdowns for these places later. I don't know much about petrol stations but my friend is a regional manager for Total Kenya and he tells me how Total and service station owners are always in conflict due to owners inability to buy the daily stipulated required gallons of petrol because of cash flow issues. Bottom line is, business is not that easy but if done with a passion and zeal to succeed, it can be very rewarding.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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 hamburglar wrote:premio wrote:Good mentors here does anyone know of a place i can get a plot to buy and build 1-2bedroomed apartment block in an decent neighbourhood that can fetch 18-25000 rent pm budget4-5m. My opinion a business that can net 1m profit its possible if he can establish a hotel or fast food in town or get a franchise of one of the Major world brands like Macdonalds. java, artcaffee and pizza inn are raking in some serious cash as the Nairobi middle class expands but the investments required are 30-40m. 6m will hardly get near 400k pm.
In a restaurant 40% of sales is normally profit if he can average 100k a day in sales that comes to roughly 2.4m pm assuming 6days operation 900k-1m monthly There is no restaurant in town or anywhere for that matter that averages 40% of sales as profit. I own a few restaurants in town so i know better. First of all, a restaurant that averages 2.4 million per month in sales will put you back around 15 million just in goodwill. This guy says that he is working with 6 million. He can't get anything worthwhile in town for 6 million, maybe a hole in the wall fast food joint in a not so endearing location. Here is the naked truth. Let's say that you have a restaurant that's doing 2.4 in monthly sales. Food costs and daily maintenance will cost you about 45% to 48% depending on the month and availability of food. 48% of 2.4 million is 1.15 or so. So you are left with 1.25. Rent in town for a place that is making 2.4 will be around 350 - 400k. That leaves you with 800k. Staff salaries are about 200k. That's 600k. Add electricity and water, that's around 150k. So that brings you down to 450k. Ongeza catering levy, VAT, NSSF and NHIF payments for employees, comes to about 250k. So you are left with 200k. Throw in another 10k for kanju and the like for good measure. That's your net profit. I know a lot of restaurant and fast food owners in the CBD and we all talk so i know what am saying. Point is, it's not easy to make a mil a month if you are operating a legit business establishment in this Kenya. You have to own 5 restaurants in town to make that mil. The other option of owning a nightclub in Westlands is also not as luctrative as people think. Club business especially in Westlands is one of the most cutthroat business in Nairobi. My friend and business partner has two very classy joints in Westlands. I will tell you about his fiancial breakdowns for these places later. I don't know much about petrol stations but my friend is a regional manager for Total Kenya and he tells me how Total and service station owners are always in conflict due to owners inability to buy the daily stipulated required gallons of petrol because of cash flow issues. Bottom line is, business is not that easy but if done with a passion and zeal to succeed, it can be very rewarding.
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Rank: New-farer Joined: 11/9/2015 Posts: 56
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enyands wrote: hamburglar wrote:premio wrote:Good mentors here does anyone know of a place i can get a plot to buy and build 1-2bedroomed apartment block in an decent neighbourhood that can fetch 18-25000 rent pm budget4-5m. My opinion a business that can net 1m profit its possible if he can establish a hotel or fast food in town or get a franchise of one of the Major world brands like Macdonalds. java, artcaffee and pizza inn are raking in some serious cash as the Nairobi middle class expands but the investments required are 30-40m. 6m will hardly get near 400k pm.
In a restaurant 40% of sales is normally profit if he can average 100k a day in sales that comes to roughly 2.4m pm assuming 6days operation 900k-1m monthly There is no restaurant in town or anywhere for that matter that averages 40% of sales as profit. I own a few restaurants in town so i know better. First of all, a restaurant that averages 2.4 million per month in sales will put you back around 15 million just in goodwill. This guy says that he is working with 6 million. He can't get anything worthwhile in town for 6 million, maybe a hole in the wall fast food joint in a not so endearing location. Here is the naked truth. Let's say that you have a restaurant that's doing 2.4 in monthly sales. Food costs and daily maintenance will cost you about 45% to 48% depending on the month and availability of food. 48% of 2.4 million is 1.15 or so. So you are left with 1.25. Rent in town for a place that is making 2.4 will be around 350 - 400k. That leaves you with 800k. Staff salaries are about 200k. That's 600k. Add electricity and water, that's around 150k. So that brings you down to 450k. Ongeza catering levy, VAT, NSSF and NHIF payments for employees, comes to about 250k. So you are left with 200k. Throw in another 10k for kanju and the like for good measure. That's your net profit. I know a lot of restaurant and fast food owners in the CBD and we all talk so i know what am saying. Point is, it's not easy to make a mil a month if you are operating a legit business establishment in this Kenya. You have to own 5 restaurants in town to make that mil. The other option of owning a nightclub in Westlands is also not as luctrative as people think. Club business especially in Westlands is one of the most cutthroat business in Nairobi. My friend and business partner has two very classy joints in Westlands. I will tell you about his fiancial breakdowns for these places later. I don't know much about petrol stations but my friend is a regional manager for Total Kenya and he tells me how Total and service station owners are always in conflict due to owners inability to buy the daily stipulated required gallons of petrol because of cash flow issues. Bottom line is, business is not that easy but if done with a passion and zeal to succeed, it can be very rewarding. This is true. And if you do not keep tabs on the business then its always a fight. Having said that - a medium - busy size petrol station with a shop will net arount 500-700k - alot of passion is needed to run this.
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Rank: Member Joined: 3/18/2008 Posts: 377
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@Sparkly, good analysis. 6m to earn 1M per month. We would all be multimillionaires. "You've never lived until you've almost died; for those who have fought for it, life has a flavour the protected will never know."
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Hi Hamburglar, could you please post your contact information, I would really like to chat about doing business in Nairobi, thanks in advance!
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Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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hamburglar wrote:premio wrote:Good mentors here does anyone know of a place i can get a plot to buy and build 1-2bedroomed apartment block in an decent neighbourhood that can fetch 18-25000 rent pm budget4-5m. My opinion a business that can net 1m profit its possible if he can establish a hotel or fast food in town or get a franchise of one of the Major world brands like Macdonalds. java, artcaffee and pizza inn are raking in some serious cash as the Nairobi middle class expands but the investments required are 30-40m. 6m will hardly get near 400k pm.
In a restaurant 40% of sales is normally profit if he can average 100k a day in sales that comes to roughly 2.4m pm assuming 6days operation 900k-1m monthly There is no restaurant in town or anywhere for that matter that averages 40% of sales as profit. I own a few restaurants in town so i know better. First of all, a restaurant that averages 2.4 million per month in sales will put you back around 15 million just in goodwill. This guy says that he is working with 6 million. He can't get anything worthwhile in town for 6 million, maybe a hole in the wall fast food joint in a not so endearing location. Here is the naked truth. Let's say that you have a restaurant that's doing 2.4 in monthly sales. Food costs and daily maintenance will cost you about 45% to 48% depending on the month and availability of food. 48% of 2.4 million is 1.15 or so. So you are left with 1.25. Rent in town for a place that is making 2.4 will be around 350 - 400k. That leaves you with 800k. Staff salaries are about 200k. That's 600k. Add electricity and water, that's around 150k. So that brings you down to 450k. Ongeza catering levy, VAT, NSSF and NHIF payments for employees, comes to about 250k. So you are left with 200k. Throw in another 10k for kanju and the like for good measure. That's your net profit. I know a lot of restaurant and fast food owners in the CBD and we all talk so i know what am saying. Point is, it's not easy to make a mil a month if you are operating a legit business establishment in this Kenya. You have to own 5 restaurants in town to make that mil. The other option of owning a nightclub in Westlands is also not as luctrative as people think. Club business especially in Westlands is one of the most cutthroat business in Nairobi. My friend and business partner has two very classy joints in Westlands. I will tell you about his fiancial breakdowns for these places later. I don't know much about petrol stations but my friend is a regional manager for Total Kenya and he tells me how Total and service station owners are always in conflict due to owners inability to buy the daily stipulated required gallons of petrol because of cash flow issues. Bottom line is, business is not that easy but if done with a passion and zeal to succeed, it can be very rewarding. Wow this is a big eye opener. Please tell us about nightclubs asap
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