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Big Business (1 million plus per month net)
Rank: Member Joined: 1/21/2013 Posts: 427
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UpcomingPaperChaser 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. Boss wewe ni mzito namna gani!! from another thread ...." Truth be told, Fidel was a loser. I knew him from his days in the States (D.C). He was thrown in jail there for smoking weed and some other petty crimes. Dude was deported back to Kenya where he took his partying ways to an even higher level drinking and getting high on coke every day in Kilimani and Kileleshwa. After smoking, he and his buddies (Gichuru's son) would drive around dangerously in their big SUV's actually killing a cyclist on one occassion..."
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Nabwire wrote:Hi Hamburglar, could you please post your contact information, I would really like to chat about doing business in Nairobi, thanks in advance! Yani Hamburglar umenilenga?! Lemme try again. I mentor and train disadvantaged youth to give them a shot at life and get them entry level positions. I am currently scouting for business owners who would be willing to give them a fighting chance. These youth are from the slums but they are hard workers and I personally ensure that they are productive employees! We like to teach them how to fish rather than giving them fish. Please let me know if we can discuss further how empowering Kenya's disadvantaged youth would be mutually beneficial to all parties.
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Rank: Member Joined: 12/8/2015 Posts: 166
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timuka wrote:UpcomingPaperChaser 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. Boss wewe ni mzito namna gani!! from another thread ...." Truth be told, Fidel was a loser. I knew him from his days in the States (D.C). He was thrown in jail there for smoking weed and some other petty crimes. Dude was deported back to Kenya where he took his partying ways to an even higher level drinking and getting high on coke every day in Kilimani and Kileleshwa. After smoking, he and his buddies (Gichuru's son) would drive around dangerously in their big SUV's actually killing a cyclist on one occassion..." The thread mainly was to provide information on businesses which @hamburglar has provided, which is quite informative...digging his/her information isn't of any help.
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Rank: Member Joined: 12/17/2011 Posts: 887
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Nabwire wrote:[quote=Nabwire]Hi Hamburglar, could you please post your contact information, I would really like to chat about doing business in Nairobi, thanks in advance! Yani Hamburglar umenilenga?! Lemme try again. I mentor and train disadvantaged youth to give them a shot at life and get them entry level positions. I am currently scouting for business owners who would be willing to give them a fighting chance. These youth are from the slums but they are hard workers and I personally ensure that they are productive employees! We like to teach them how to fish rather than giving them fish. Please let me know if we can discuss further how empowering Kenya's disadvantaged youth would be mutually beneficial to all parties. [/quote Gosh. I didn't lenga you, i was going to reply alafu my flimsy memory completely spaced it out. That's a noble thing you are doing for the disadvantaged youth. Nabwire, why don't you post your details and i will contact you asap. I don't want to post mine here because i still want to operate incognito on wazua. Am wary that someone will uncover me if i put my real details on wazua. Apologies for looking like i lengad.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Got it! Looks like we both have the same issues, there are certain characters on Wazua that I would rather not be associated with, hence my reluctance to post my contact information! Gimme a minute, I set up a fake Yahoo account!
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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If there are other entrepreneurs or business owners who may be interested in getting Kenyan youth to work for them as interns or in entry level positions, please contact me at Nabwirenabwire@outlook.com. We train and mentor the youth to ensure that they are productive employees!
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Rank: Member Joined: 3/26/2012 Posts: 830
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Just in. I decided to use my magic on a girl from a well off family. In the process, I interviewed her on the type of business her mother does and I was shocked. I know their stall in town. They sell imported clothes from Turkey. Her mother gets the clothes. She told me that on December (best month of the year), the sales from their stall were 1.7 million for that month. She disclosed that margins on clothes are usually very high (especially those meant for babies, children and ladies). Most sell at more than double the buying price. She said in December, the stall nets over a million bob. The search continues. I had to share in the wazua spirit. I cant verify though...but their lifestyle, considering she is the child of a single mother, backs it up. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Member Joined: 1/15/2015 Posts: 681 Location: Kenya
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S.Mutaga III wrote:Just in. I decided to use my magic on a girl from a well off family. In the process, I interviewed her on the type of business her mother does and I was shocked. I know their stall in town. They sell imported clothes from Turkey. Her mother gets the clothes. She told me that on December (best month of the year), the sales from their stall were 1.7 million for that month. She disclosed that margins on clothes are usually very high (especially those meant for babies, children and ladies). Most sell at more than double the buying price. She said in December, the stall nets over a million bob. The search continues. I had to share in the wazua spirit. I cant verify though...but their lifestyle, considering she is the child of a single mother, backs it up.
60% Learning, 30% synthesizing, 10% Debating
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Rank: Member Joined: 6/15/2013 Posts: 301
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Thitifini wrote:S.Mutaga III wrote:Just in. I decided to use my magic on a girl from a well off family. In the process, I interviewed her on the type of business her mother does and I was shocked. I know their stall in town. They sell imported clothes from Turkey. Her mother gets the clothes. She told me that on December (best month of the year), the sales from their stall were 1.7 million for that month. She disclosed that margins on clothes are usually very high (especially those meant for babies, children and ladies). Most sell at more than double the buying price. She said in December, the stall nets over a million bob. The search continues. I had to share in the wazua spirit. I cant verify though...but their lifestyle, considering she is the child of a single mother, backs it up.  which street is the business located at...you know sisi wa biashara are always intrigued by location.....
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