My side-job has really worked out!

A tough economy, rising cost-of-living, job losses and low salaries: these are some of the fears driving many Kenyans to start side hustles in a bid to supplement their salaries or have a fallback plan. However, starting and running successful businesses on the side will often prove to be a futile expenditure, especially if the side hustle is time-intensive. Amidst the gloom, though, are a few shining examples of career people who are also thriving as entrepreneurs on the side. This week, three such women spoke to the Saturday Magazine about their side-hustle experiences.

Wairimu Githuka, 36

“My side business was my saving grace when I lost my job as a journalist at a local publishing house two years ago. However, I have always been an entrepreneur. I got into business after realising that I would have to wait for at least a year to negotiate for a pay rise with my employer. Whenever I got a raise, it would often be very minimal. When I contrasted my salary against my goals, I feared that I would always fall short of the kind of lifestyle I desired. I wanted to acquire assets, especially in real estate. I also wanted to live more comfortably.

“In 2005, I left my job as a print media journalist and took up a job in Dadaab refugee camp, working as a verification clerk. One year later, I had managed to save Sh500,000, part of which I used to start a clothes boutique business in Westlands, Nairobi. I used part of these funds to pay rent for my stall, travel to China to buy the stock I needed, and employ an attendant. Within a short time, though, my business experienced cash-flow problems. The stock did not move as fast as I had projected and I wasn’t good at managing the finances. I was a green-horn in the clothes business. I couldn’t seem to figure out a way to make it sustainable. I tried to approach those who were already doing well in the business, but none of them was willing to share their success tricks.  

“Nonetheless, I stuck to my guns and a year later, having moved the shop to CBD, the business began to bring in some profits. However, in 2014, I decided to close it and focus on businesses that required less overheads to run. I offered the shop to another tenant for a ‘goodwill’ of Sh200,000 and did a clearance sale on the remaining stock. I also took a loan to top up the funds collected and used the capital to build mabati houses in Kinoo.

“I have never regretted this decision to go into business. Although I had operated the clothes business for eight years and eventually looked like I had broken even, I don’t think it did so well. Overheads took a large chunk of my profit and based on stock movement, I wasn’t always sure if I was operating at a profit or loss. Today, apart from collecting rent every month, I have been working multiple jobs selling children’s safety car seats, and working as a network marketer for a travel club, and a social media manager. Although I have since left formal employment, my side businesses have proved to be profitable and sustainable.

“My network marketing job, in which I sell travel memberships as an independent sales representative, has been the most fruitful job so far. I joined this business six months ago and broke even in less than two months. The business comes with very minimal risks and no overheads. Interestingly, my social media management job has also panned out very well due to its low operational costs and flexible internet accessibility. This business didn’t require capital to start. In fact, I just pitched the idea to a friend who owned a gym and she took me up on my offer. From that moment on, it has expanded through referrals.

“Looking back, I have learned that the best time to start a business is when you are still employed. You will have the cushion of a salary until your business stabilises. However, having a job to buffer you can easily prevent a side business from taking off. Oftentimes, you may fail to install adequate effort in the side business knowing that you still have a salary from your employer to fall back on.” 

Peris Masinde, early 30s                          

“I am a partner account manager with one of the major internet providers in Kenya. I also run two businesses on the side. I am the founder of Dreams Wedding Planner which organises events, and the co-founder of Studio Pretty Faces, which is a distributor for House of Tara make-up products and provider of make-up artistry. It has not been an easy journey to get these two businesses where they are today. I launched them eight years ago with a combined capital of Sh600,000 from my savings. The wedding planning business took Sh100,000 while the make-up business took Sh500,000.

“Both businesses germinated from my hobbies. On one hand, I loved to see a good wedding and would often help my friends and families plan theirs. Word spread that I was good at it and people started seeking my assistance. This was my ‘eureka’ moment. At the same time, a friend who was looking to venture into cosmetics asked if I could partner with them. Luckily I had pooled my savings and had ready cash to launch the two businesses almost simultaneously.

“Juggling between the two businesses and my career has not been a headache. I usually meet my events clients over the weekend while my partner in cosmetics is on the business full-time. “However, the business has not been without challenges. My main challenge has been getting ample time for my family, especially since I work throughout the week. I have not struggled with finances, perhaps because of my background in accounting. Nonetheless, the two businesses have financially complemented each other when there is increased uptake of products or services and additional capital is required. In the same vein, proceeds from the two businesses recently enabled me to venture out into agribusiness.

“Over the past eight years that I have been in business, I have learned that there is no excuse why women shouldn’t venture out of their employment or home comfort to acquire independent income. 24 hours in a day is enough if you set your mind to making that extra coin. Set eight hours for sleep, eight hours for your employer, and eight hours for you to become what you want.”

Aisha Abubakar, 27

“I am an office administrator, placement and marketing trainer employed in Nairobi. For nearly two years now, I have been selling sandals, handbags, and deras on the side. I started this business after losing my job at a recruitment firm early last year. The job loss was sudden and came at a time when I didn’t have any savings. I was literally living from hand to mouth, with a load of debts from friends that consumed nearly all my salary. Losing my job was the wake-up call.

“I got my business idea during a relative’s wedding ceremony in Mombasa. I had been asked to find a couple of deras to be worn during the wedding. Many women in attendance were impressed and started enquiring if I had a shop selling the fabric. I told them that I had a stock in Nairobi, and could send a series of photos via WhatsApp for them to place orders.

“Back in Nairobi, I approached a wholesaler who allowed me to take photos of some of the top quality deras. Orders started trickling in. I took a soft loan of Sh20,000 from a relative, bought and sold off all the deras whose photos I’d taken. The business started getting serious.

“I started pitching to women attending weddings, burials and cultural events within the Coast region. However, this was not a stroll in the park. With deras retailing at around Sh1,200 each the capital wasn’t sufficient to buy me a variety of stock in bales. To keep going, I maintained my routine of taking photos rather than having a ready stock. I would then target wedding and cultural ceremonies in Coast where deras are in high demand. Early this year, the business began to peak and I introduced sandals and handbags to my variety.

“Although the operational costs of running this business have been low, it has not been smooth sailing all through. For instance, the month of October this year was rough with few orders coming in. However, I am expecting December to be busy. Since I got started, I have been able to rake in a net profit of close to Sh200,000. Although I mainly run the business on WhatsApp and my Facebook page, I have brought on a lady to deal with marketing the products online at a commission. Over the past one year, I have discovered that there is no money too little to use to start a business.”

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Tips for starting a side-hustle 

Business plan: This is a must-have. According to Murori Kiunga, a business trainer and author of The Art of Entrepreneurship: Strategies to Succeed in a Competitive Market, you must study your most likely competitors, the economy in your area, the demographic breakdown and availability of potential customers to support your business. 

Conflict of interest: According to Forbes, when starting a business on the side, you should avoid getting into a field that is in direct conflict with your formal day job. Additionally, if you get along well with your employer, you will do well to let them know you have a side-business and what it is all about and show that it does not in any way conflict with your day job. 

Boundaries: According to Arnold Sanow, the co-author of You Can Start Your Own Business, you must learn to distinguish between your job and your side-business. For instance, when at work, your whole dedication should be towards your employer. In the same vein, he says, you must not use your employer’s resources to run your business, be they telephones or cars. 

Time: You may need to allocate part or all of your free time to running the business. According to Forbes, do not stop working on your start-up whenever you have your own free time. “Use lunch hours or early morning breaks to make phone calls, or use your free time on traffic to catch up on some of your paper work,” adds Sanow.