@Mulla, in more than 5 sentences... i will attempt a brief explanation...
Basically, we're told when starting in biz, start small then grow. I had done my hesabu and identified a location. My partner threw in the idea of moving to a more upmarket location so as to price the services better...I revised my hesabu and they looked good. So I went for a rental space 3 times my initial plan. The customers were very few...yet the days were moving very fast. Everytime i saw the caretaker with an envelop i would hyperventilate...another rent due...
Well, this was not the only mistake...but this one costed me the most. I kind of lost focus

There is nothing like failure in business.

Experience is earned and opportunities availed.

Businesses rarely turn out into what and how the entrepreneur set out. An entrepreneur may set out to sell product A through channel P in Country X . Along the way, he might realise that he can make a better profit by selling product B. Then he might realise that The market is even better for product B if he sells through channel Q in Country Y.

The entrepreneur should be flexible and adapt as he goes along.

A business with key movable assets that depreciate freaks me out.. Thank you for the share

The Aga Khan is running major businesses all over the world from wherever!!!

He owns major businesses in Kenya for example and he rarely ever shows up in the country.

Who said you cannot set structures that work for an SME. I know most owner managed SMEs thrive as compared to employee managed but if you are creative (and lucky to some extent - especially with the managers and employees you choose) it can work!!! Otherwise you progress will be limited - you can only personally manage a limited number of businesses. Even if that number is 10 (Very improbable) that is the furthest you will ever go!!!

@merkava, keep us posted on how the business progresses.

Mine cannot be said in five sentences. Way too much stuff has happened in my life it's almost fiction.

Ok. Let me try. Came back from the States Circa 2008 with over 9m and used it all to buy an upscale restaurant which had a rent of over 150k plus other overheads. Very expensive location. Tried to operate the restaurant semi- remotely as in do other things while I let my manager run the restaurant.

Well, after about 8 months, I fell behind so bad, had to take a loan of 1.5 m just to try and catch up on bills. It got so bad that I was maybe a week away from losing it all. Luckily I found a last minute buyer who sensed my desperation and low balled me with an offer of 5m. I didn't have a choice and had to take it otherwise I would have lost it all. I paid the loan plus interest which came to about 2m and was left with roughly 3 million. Bought three cars and rented them out for car hire business and was only paid for maybe one month before I started getting the run around. I decided to literally hijack my cars back and sold them for pennies on the dollar and was able to salvage something as the cars had already been tore up within just two months on the road. Unbelievable.

Was left with like 2m or so and didn't have a choice but to go back to the States limping and embarrassed at my failure. Luckily for me, I have a great network of college mates in the US and i was able to get another good paying job. Worked like a dog and saved saved saved while also doing some house flips on the side while doing my best to stay away from Las Vegas sevens, Heineken and the ladies. Did that for about 4 years, came back with enough saved money for round two in 2012.

This time, I am doing very well but the bruises and scars are still very fresh in my mind. I felt like I had fallen flat on my ass in business but in retrospect, now I feel like all those were very good lessons in business that have given me so much experience. Nowadays, nothing and I mean, nothing fazes me anymore. I have ice water flowing through my veins after what I've been through. I don't think there is failure in business, naivety, inexperience, bad luck, circumstances, maybe, but a real business person should not have the word fail in their vocabulary.

Wow Hamburglar, impressive!! You lost 9 mil and still came back for round two? I am in the same exact situation, though I havent lost a significant amount of money. I came with big dreams, started a business, lost fumes from all the conmen, opportunists, hustlers, straight out thieves, friends who "borrow" money etc. Add to that KRA and Kanjo who have been an absolute nightmare, I am packing my bags and headed back to Trump land. Only difference is I never plan on doing biashara in Kenya again, but I am amazed that you saved and came back for round two.

Wow! Thanks for sharing.
Every time i read this kind of a story, I find myself laughing...not in a sadistic way, but in the manner of nodding in understanding how it feels while you are in the heat of the moment.

Here goes another funny anecdote..I used to track my costs in an excel spreadsheet, so that if i wanted to know exactly how much i had spent in total, all i needed to do was do autosum...I could not bring myself to do autosum, until many months after i had closed biz. i still cannot bring myself to say that figure, so clearly, I am yet to recover

I am yet to share my part two of the venture...after changing location... but first let me hear from some other entrepreneurs..

I know one should never say never but I just dont see myself dealing with this madness. As much as we like to pretend, most Kenyans in Kenya are inherently dishonest people!! People want to buy on credit but when its time for paying... Then the institutions are deeply flawed, if you are honest, you end up looking like a fool, here everything is done ninja style, corruption galore and if you dont play in that mafia style game, you end up frustrated. Wacha nikuwe nakuja kutembea, heri nikae na shida za Trump.