Critical self-appraisal will provide the springboard needed in life

I am an avid reader of your articles and I must say that they are full of wisdom. I left Form Four in 2011. During my time in secondary school, I saved Sh5,000 from my pocket money. However, after school, I lacked finances to join college and I am confused where to start because in my view, the savings I have are too little for college fees.

I have been thinking of entering into business, but I do not know where to start. Please advise me.

Young reader

We appreciate your positive feedback and the impact our articles have had on you. It is commendable that you started saving early as this will go a long way in instilling a saving culture in you.

The ability to budget your pocket money to cover your needs and also set aside savings will be crucial in the future, especially during lean times.

It is sad that you could not fulfil your dream of joining college, but we hope that one day you will be able to do so.

It is understandable that you are confused about where to begin after being unable to pursue higher education.

The critical first step is an analysis of oneself, especially in regard to talents and skills. You can use your talent or skills to start an income-generating activity.

It is not easy trying to commercialise your talent but it is a worthy endeavour and you should give it a try.

The second area to look into is what type of business you want to venture into. It is usually advisable that when you are considering venturing into any area, it should be something you are fairly knowledgeable about.

This ensures that you reduce time taken to learn how to manage day-to-day business operations while increasing your chances of success.

However, it is important to carry out research before committing your hard-earned money to any venture.

The research will inform you about demand, competition, capital requirements, profit margins, as well as the opportunities that exist in the business you want to venture into.

It might be prudent if you start with a small business before expanding in future if its prospects are good.

It is important to exercise the same level of financial discipline that enabled you to save in the past.

It is important to always budget whatever amount you get while settings aside savings.

Depending on the goal you have, whether it is going back to school or expanding your business, it is important to set aside savings — with time, they would build up.

You can even decide to first concentrate on establishing a successful business and then later go back to school.