SMALL BUSINESSES THAT CAN MAKE YOU RICH

 It was back in 2007 when a young man whose career was blossoming got wind of a potentially life-changing business idea – investing in shares. Like most people, he had grown up watching TV and reading newspaper articles about the profitability of this kind of business.

So when Safaricom (the largest telco in Kenya) floated its IPO, he figured out this was his chance to stand to be counted. He took a Ksh.1 Million loan from a local bank at an interest rate of 15% per annum. By that time Safaricom shares were trading at Ksh.5 and so he managed to purchase 190,000 shares.

Looking into the future, he was almost assured of being a multimillionaire in a span of 5 years because of…
SMALL BUSINESSES THAT CAN MAKE YOU RICH

In Kenya, if you own a business that gives you a monthly profit of more than Ksh.100,000, then you are blessed. The competition in any kind of business is so stiff that no one enjoys monopoly, except Safaricom limited.

I normally interact with some business owners concerning their challenges, performance and future outlook. Though a large number complain that business is not good nowadays, there are a number of individuals who are making good cash.

Statistics show that out of the 8,000 millionaires in Nairobi, 7,000 are business people.

Moreover, the business owners are spread across different business segments.

I took time to analyze the businesses which generate monthly profits of at least Ksh.1 million.

Below they are;

1. Fast Food Restaurant in Nairobi CBD or Westlands Nairobi

A fast food restaurant with a sitting capacity of 50 people in Nairobi CBD makes an average of Ksh 1.5 million per month, without tax.

This profit sometimes goes high depending on the season and the amount of competition.

Some of the streets which were found to be ideal for this business include Moi Avenue, Koinange Street, Tom Mboya Street, River Road and Mama Ngina Street.

I also realized that in Westlands, several fast food restaurants make over Sh.1 million per month.

This is contributed by the huge financial muscle of people who live in the area.

2. Hotel

I can say with full confidence that several hotels in Nairobi and Mombasa make over Sh.1 million per month; some hotels in Kisumu and Nakuru also make similar amounts.

If you find a hotel with a sitting capacity of at least 30 people and manages to even do nyama choma, then know that those people make a cool one million per month.

But there are few big hotels without high flow of customers but make less.

3. Chemist (Nairobi)

A chemist in the middle of major towns generates good cash. It is almost impossible to get a chemist in Nairobi CBD posting a profit of less than Sh.100,000 in a month.

There is money in this industry and the fact that not everyone is allowed to own a chemist in Kenya makes it easier for some chemist owners to thrive in any environment.

4. Selling timber

Have you ever thought of doing this business? I used to think that whoever engages in such business is crazy until I got a schoolmate who revealed to me what they pocket each month.

Timber business in Nairobi and Mombasa is capable of giving you the million you have been yearning for.

5. Matatu Business

As much as there are controversies surrounding matatu industries in Kenya, there are a million success stories emanating from industry players.

You only need three 24 seater matatu vehicles to make a million each month in Nairobi.

A single matatu will give you between Ksh.15,000 - Ksh.20,000 per day. If you have three matatus, then you will be assured of not less than Sh.40,000 per day.

Also to make such kind of money, it will depend on the route your matatu operates.

Some routes are highly profitable than others.

6. Hardware business

Keroche Industries CEO Tabitha Karanja used to operate a hardware in Naivasha. Did you know that the Ksh.1 billion profit she made from the hardware business was the source of her capital for Keroche industries?

I respect anyone owning a hardware because of the profits they make out of the business.

7. Mobile phone repair

Mobile phone repair shops are making millions from Kenyans.

In Nairobi, there are guys making over Ksh.1 million per month by just repairing smartphones, laptops and tablet.

Enroll for a short course, set up your shop in CBD and see how you’ll easily become a millionaire.

8. Start bodaboda Loan Company

Start a company that gives bodaboda on loan. You will make profit of more than Ksh.100,000 per bodaboda.

Final Word

As we always tell you, there’s no marathon race that has ever been won by those who did not start the race.

If you like any of the ideas discussed above and you have what it takes to actualize it…then don’t wait to start…just do it.

Also, don't forget to join our training on Beauty Business.

Did you know that cosmetics, beauty and personal care products are a huge business opportunity?

If my guess is right, you very likely used soap in the shower this morning and applied some hair and body lotion afterwards?

Maybe you didn’t stop there. You probably put some deodorant under your arms and sprayed some perfume on your ready clothes?

If you are a woman, it gets more interesting because you may have used some makeup – lipstick, face powder, mascara, eye liners and a host of other stuff!

Why do we all do these same things every day?

The answer is simple:

‘Looking and feeling good’ is a basic need in our lives and a huge deal in today’s modern society.

The volume of cosmetics (personal care and beauty products) you personally use every year should give you an idea of the scale of the personal care products business in Africa.