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Starting a business vs Buying a Matatu "Box"
Rank: Member Joined: 9/11/2015 Posts: 245 Location: Thika
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I am torn between starting a business and buying a matatu (14 seater). I work from home. I have recently seen the need to diversify my income and I have these two options. OPTION 1: BUSINESS I will need capital of 300k-400k to launch the business. I expect a net income of Ksh 90,000 from the business. I have already spotted a good location (kwa stage, grond floor, facing the highway)...in an area that is rapidly developing. The risks associated with the business are that if a business fails, I lose 400k cash i.e all capital invested.If the business picks, I expect a profit of at least 10k per day (net) because of that location. If I go for the business, I will have Ksh 1,800,000 remaining, which I can buy land with for real estate purposes. The business premise is 100 meters from my home which makes it easy to monitor at a moments notice. OPTION 2: MATATU After my calculations, I will need 2.2 million to launch this business successfully. I expect an income of Ksh 80,000 per month from the business (net)as per my research. Since the matatu is insured, I will have little worry of losing the 2.2 million investment. Transport is somewhat a basic need, therefore I will also be assured of something at the end of the day. DILEMMA: Which one should I take? Since men have learned to shoot without missing, I have learned to fly without perching
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Rank: Member Joined: 1/20/2015 Posts: 489 Location: Nairobi
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1. The first option looks a bit more ambitious than it should be. Which business is that makes you 10k profit per day? A gas station? hotel or massage parlour? Prepare a business plan and carry out a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, which should guide you in making the decision. 2. Which route for your nissan? Why dont you top it up upto about 4 million and unleash a brand new well souped Nganya that plies more than 15 trips per day Kasarani - Mwiki Enjoy every moment of your life, you never know when your time will come.
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Rank: Member Joined: 9/11/2015 Posts: 245 Location: Thika
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UpcomingPaperChaser wrote:1. The first option looks a bit more ambitious than it should be. Which business is that makes you 10k profit per day? A gas station? hotel or massage parlour? Prepare a business plan and carry out a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, which should guide you in making the decision.
2. Which route for your nissan? Why dont you top it up upto about 4 million and unleash a brand new well souped Nganya that plies more than 15 trips per day Kasarani - Mwiki For the first option, if the business picks, I can re-invest the earnings and make it 10k profit per day. My estimates are 80k per month for the first 6 months at least. For the second option, my budget is strictly 2.2 million cash...no loans. I dont want loans when starting a business...I can only use loans to expand a business. Since men have learned to shoot without missing, I have learned to fly without perching
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Jon Jones wrote:I am torn between starting a business and buying a matatu (14 seater). I work from home. I have recently seen the need to diversify my income and I have these two options.
OPTION 1: BUSINESS
I will need capital of 300k-400k to launch the business. I expect a net income of Ksh 90,000 from the business. I have already spotted a good location (kwa stage, grond floor, facing the highway)...in an area that is rapidly developing. The risks associated with the business are that if a business fails, I lose 400k cash i.e all capital invested.If the business picks, I expect a profit of at least 10k per day (net) because of that location. If I go for the business, I will have Ksh 1,800,000 remaining, which I can buy land with for real estate purposes. The business premise is 100 meters from my home which makes it easy to monitor at a moments notice.
OPTION 2: MATATU
After my calculations, I will need 2.2 million to launch this business successfully. I expect an income of Ksh 80,000 per month from the business (net)as per my research. Since the matatu is insured, I will have little worry of losing the 2.2 million investment. Transport is somewhat a basic need, therefore I will also be assured of something at the end of the day.
DILEMMA: Which one should I take? You mean a matatu is not a business? In red, What kind of a risk is that? The "real"risk should be what will cause the failure? In blue,what kind of assumptions are those? You are doomedto fail if you go either way with that kind of risk analysis and business assumptions. Keep your money under the mattres you wont loose since you will be sleeping on itIf Obiero did it, Who Am I?
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Rank: New-farer Joined: 2/7/2016 Posts: 79 Location: Home
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I need an unbiased opinion. Assuming a guy has cash 2.2 million...he has two choices:
1) Buy a matatu 14 seater at 1.8 million and add all expenses to 2.2 million.
2) Buy two plots near Juja town at 1.1 million each inclusive of all conveyancing costs.
Assumption: I have enough time to check on the matatu whenever needed because I am my own boss a.k.a businessman hence always available.
What would you choose...wazuans?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Mkondoa Macho wrote:I need an unbiased opinion. Assuming a guy has cash 2.2 million...he has two choices:
1) Buy a matatu 14 seater at 1.8 million and add all expenses to 2.2 million.
2) Buy two plots near Juja town at 1.1 million each inclusive of all conveyancing costs.
Assumption: I have enough time to check on the matatu whenever needed because I am my own boss a.k.a businessman hence always available.
What would you choose...wazuans?
For development ama speculation? If Obiero did it, Who Am I?
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Swenani wrote:Mkondoa Macho wrote:I need an unbiased opinion. Assuming a guy has cash 2.2 million...he has two choices:
1) Buy a matatu 14 seater at 1.8 million and add all expenses to 2.2 million.
2) Buy two plots near Juja town at 1.1 million each inclusive of all conveyancing costs.
Assumption: I have enough time to check on the matatu whenever needed because I am my own boss a.k.a businessman hence always available.
What would you choose...wazuans?
For development ama speculation? Which is this matatu costing 1.8M? The opposite of courage is not cowardice, it's conformity.
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Rank: New-farer Joined: 2/7/2016 Posts: 79 Location: Home
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jerry wrote:Swenani wrote:Mkondoa Macho wrote:I need an unbiased opinion. Assuming a guy has cash 2.2 million...he has two choices:
1) Buy a matatu 14 seater at 1.8 million and add all expenses to 2.2 million.
2) Buy two plots near Juja town at 1.1 million each inclusive of all conveyancing costs.
Assumption: I have enough time to check on the matatu whenever needed because I am my own boss a.k.a businessman hence always available.
What would you choose...wazuans?
For development ama speculation? Which is this matatu costing 1.8M? Petrol auto (mtumba) as I was told. Now, kindly answer the question. As I said, total cost of 2.2 mil for the mat...rough estimate
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Rank: Member Joined: 12/5/2013 Posts: 224
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Mkondoa Macho wrote:jerry wrote:Swenani wrote:Mkondoa Macho wrote:I need an unbiased opinion. Assuming a guy has cash 2.2 million...he has two choices:
1) Buy a matatu 14 seater at 1.8 million and add all expenses to 2.2 million.
2) Buy two plots near Juja town at 1.1 million each inclusive of all conveyancing costs.
Assumption: I have enough time to check on the matatu whenever needed because I am my own boss a.k.a businessman hence always available.
What would you choose...wazuans?
For development ama speculation? Which is this matatu costing 1.8M? Petrol auto (mtumba) as I was told. Now, kindly answer the question. As I said, total cost of 2.2 mil for the mat...rough estimate Wacha nikusaidie, buy that land wachana na matatu utaumia bure. Let me help you further, if you intend to spend 2.2M on a petrol box, what is your expected break even period all factors held constant? If you feel i do not want you to dip your fingers in the honeypot then remember 2.2M can get you a diesel vehicle.
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Rank: Member Joined: 11/18/2010 Posts: 503 Location: Kenya
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matatuman wrote:Mkondoa Macho wrote:jerry wrote:Swenani wrote:Mkondoa Macho wrote:I need an unbiased opinion. Assuming a guy has cash 2.2 million...he has two choices:
1) Buy a matatu 14 seater at 1.8 million and add all expenses to 2.2 million.
2) Buy two plots near Juja town at 1.1 million each inclusive of all conveyancing costs.
Assumption: I have enough time to check on the matatu whenever needed because I am my own boss a.k.a businessman hence always available.
What would you choose...wazuans?
For development ama speculation? Which is this matatu costing 1.8M? Petrol auto (mtumba) as I was told. Now, kindly answer the question. As I said, total cost of 2.2 mil for the mat...rough estimate Wacha nikusaidie, buy that land wachana na matatu utaumia bure. Let me help you further, if you intend to spend 2.2M on a petrol box, what is your expected break even period all factors held constant? If you feel i do not want you to dip your fingers in the honeypot then remember 2.2M can get you a diesel vehicle. @matatuman-are you talking from experience? Then who are these who make money from matatus? Do all these thousands of matatus I see on the road run at a loss? Why are you discouraging him? Is that an honest advice?
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