Think before you leap
Using your only savings to start a business is never recommended!!:confused:

I embrace using borrowed money from sources you don’t have to pay urgently. Not bank loans and not savings. Not also disposing your fixed assets

Examples of those sources that don’t need to be repaid urgently???

Nimekumbuka wewe ni mumama you can just borrow from your “reach” husband or sponyo and repay on your terms. Only a woman can give such a response. Men are not that deluded.

Good luck with that


I disagree. Let me explain why this advice is crap using a simplified example.

Let’s assume that you are an uber driver and you have managed to save 1M. That’s all the money you have plus the vehicle.

You have been thinking about opening a business for a long time. You find a “prime” location for your business but you have to act urgently because finding another prime location could take years. What do you do??

I say you should use up the mil to set up the business and run it for a year. Why? In the worst case scenario you still have your car and uber account so you have a fall-back plan.

Hakuna siku all the stars will align in life. Sometimes you have to roll the dice.

In fact, I would say that the uber guy is safer than the guy who has 2M but chooses to invest half of his savings in the same business. Why? The second guy can burn through the remaining savings while the uber guy can’t because he’ll just return to his former hustle if things don’t work out. If the business fails, the guy who didn’t use all his savings but had no fall-back hustle/job will burn through his remaining savings.

In my view, having a fall-back hustle/job is more important than having left-over savings when starting a new business. I saw this happen to a nduthi guy when his business failed alitoa tuu bike kwa nyumba akarudi hustle. I also saw it with one of my mechanics alirudi tuu garage when the business failed.

If you read that article, you will see that the guy’s main problem was not having a fall-back hustle/job. He left formal employment (banking) to start a business with his savings. Having more savings would not have saved him. It would only have delayed the inevitable because he would have burned through that cash anyway. If you leave banking, you can’t just go back. Its not easy to return to corporate employment when you leave. You can’t resign pale KCB, uende shughuli zako, and then return after one year easily. Those corporate jobs are very competitive so its a very big risk to resign.

Calling advice crap then using the words “let’s assume” in the same breath :rolleyes: