PERSONAL FINANCE: Which business is best?

“I have Sh500,000. What business should I start?” This is a question I hear often from many people. I find it impossible to answer this question. Most entrepreneurs did not start a business because someone else told them what to do. They simply committed to a process of discovery. Human nature is such that we want a quick fix via someone to point out what we should do. We then do it, hoping for a fairytale ending. Unfortunately, that’s not how it works. Starting a business requires deeper commitment to process, experiences, challenges and so forth. No one can point it out to you or give you a clear direction on what you should invest in.

So to the many people who write to me asking me about this, I cannot give you an answer. To you and those who continue to wonder where to start, all I can offer is what this process entails. Perhaps sharing experiences on the direction many have taken will help you get there.

START A BUSINESS YOU ENJOY DOING

First, it may help to identify what you actually enjoy doing. I don’t really have to like a plot of land to buy it, but business will require a staying power that can only be sustained by actually enjoying what you do. This does not mean you will wake up every day jumping for joy about going to work. There are some days you will not want to get out of bed. However, behind all that, you should fundamentally enjoy what you are doing.

How do you know you enjoy something? Time flies when you are engaged in that particular activity. You find yourself operating out of enjoyment of what you do, not rational outcome. This is also what may be referred to as passion, although many people have started businesses without knowing exactly what they were passionate about. They knew how to do something, they started it, and along the way they discovered what it is they really liked or what aspect they were passionate about.

While knowing how to do something may be a starting point for some, it does not mean that you should limit yourself to your formal experience. Just because you’ve been a lawyer all your life does not mean the only business option for you is to start a law firm. You can be the lawyer who bakes cakes. The communication skills that you used while practising law will come in handy in a different way.

LET GO OF TRADITIONAL TITLES

To identify opportunity we have to let go of traditional titles. Even if you were a CEO of a top firm in your past life, that does not mean that you cannot start a garage if that’s where the opportunity is. I have a friend who used to be a banker and is now running a successful chain of salons. Growth is not by virtue of a title.

Next, look at the opportunities around you. What problem are you going to play a part in resolving, or what solution are you going to provide? Perhaps you enjoy baking cakes; now match this to an opportunity. Have you seen room to sell cakes at your office? Is there demand where you live? Have you noticed a supermarket/restaurant that is always running out of cakes and clearly needs more supply? Where is your market gap? Remember, herd mentality often does not work. Many people started selling quail eggs because it was the in thing. Many failed at it. ‘Herd’ businesses are the lazy option. If you decided to do quail eggs it should still be based on the fact that you have identified a gap. Perhaps now is the time to consider it, when all the fuss has died down.

I know many entrepreneurs who have discovered their passion by being irritated by something. One of the case studies we use in our entrepreneur programme is a lady who was so irked by the bad customer service that she received in restaurants which led her to start a business that addresses this service need.

Remember, starting is half the battle. You can have loads of information and still do nothing with it. Start. Get that first client or go talk to someone who has done what you think you want to do. That will teach you more than any textbook can.