PERSONAL FINANCE: From employee to entrepreneur

There has been a lot of discussion around entrepreneurship in Kenya this year. There was the GES summit, and lots of talks, seminars and events coming up to train people how to bring out and enhance their entrepreneurial side.

There has been a lot of discussion around entrepreneurship in Kenya this year. PHOTO| FILE| NATION MEDIA GROUP 

In Summary

• We’ve had many entrepreneurs stand up and publicly share their stories – the challenges as well as the victories. I believe there is nothing that inspires others more than hearing the journey of someone who you can relate with.
• As we come to the end of this year, many people will evaluate whether they should take the leap in the New Year. It’s the resolution period – whether this is to do with our money, health, etc.

By WACEKE NDUATI OMANGA
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There has been a lot of discussion around entrepreneurship in Kenya this year. There was the GES summit, and lots of talks, seminars and events coming up to train people how to bring out and enhance their entrepreneurial side.

We launched an entrepreneurship course this year and we have seen the interest that people have in learning how to start a business, or grow and sustain one.

I have shared my experiences at some of these forums. It is clear people want to solve challenges, create an impact, find something that fulfills them and of course, create wealth. One of the best avenues to do this is entrepreneurship.

CRUNCH TIME

We’ve had many entrepreneurs stand up and publicly share their stories – the challenges as well as the victories. I believe there is nothing that inspires others more than hearing the journey of someone who you can relate with.

As we come to the end of this year, many people will evaluate whether they should take the leap in the New Year. It’s the resolution period – whether this is to do with our money, health, etc.

Many people are also wondering whether to make the transition from being employed to running a business. I’ve been there. So if you are trying to make this decision, these tips are for you.

Many people freeze up because they think it’s all or nothing at the start. In fact, people have confessed that the phrase “taking the plunge”, which is used a lot when talking about entrepreneurship, scares them more than motivates them.

This is not necessary because you can start small. Get just one client. Make sample products and distribute them.

Talk to your target market. Visit someone who has the experience. Implement something you have learnt from them. I got my first clients before I left my last job. The aim of this exercise is not to replace your income with that from your entrepreneurship endeavours; that almost never happens. It really is to make the idea sink into you so that you cannot ignore it anymore.

It is extremely easy to procrastinate when you are not emotionally vested. Not so easy when it has become all you think about. It’s the same way that you eat one chocolate square expecting to stop there but find yourself finishing the entire bar, or telling yourself you’ll watch one episode of a great series and then spending the whole day watching the entire season.

You want that to happen with your business idea. You want it to take root. The rest will follow.

RELATIONSHIPS ARE VITAL

In line with this, you will have to foster and look at relationships differently. Before, you may have had the luxury of not exploring mutual benefit when you meet people. Your income is the same irrespective, right?

Now every conversation can be the beginning of something. They may know something you don’t, or know someone. Your relationships are vital in a business. Look at people differently. Take time to actually have a conversation with them.

You never know.

It’s easy to be told that there will be financial challenges and that you shouldn’t be scared. That’s not realistic. Be scared. Your financial life will change and I think it would be abnormal not to be anxious or scared.

But the good thing is that you can be scared and still do it, the same way you were scared the first time you drove a car but you did it anyway. So don’t let the emotion itself become a choice.

The good news is also you can live on surprisingly less than you think. One of our entrepreneurship students told me she is now living on a third of what she used to live on a couple of months ago.

Strip down your spending to the bare minimum. Remove the fluff. What do you need to survive? It is a lot less than you are spending.

Many of us don’t look at the bigger picture. No one will really remember you because of the type of house you lived in, or the car you drove, which bar you went to on Friday, how many times you showed up at the club, where you did your food shopping, and how many coffee varieties you have. You will be remembered for the impact you had. Let’s not sacrifice that for shallow items.

Not everybody wants to be an entrepreneur in the sense of starting a business. However, it breaks my heart when I meet people who really want to and whom the business bug has bitten constantly, but they are addicted to a lifestyle that cannot be supported without a guaranteed hefty income. Now when you are able to strip down to the basics, your relationship with money changes.

It no longer defines you, and this is important. In business you will go through phases where you have the money, and times when you don’t.

You can have years of profitability then another year of losses. You learn to adapt quickly with the internal security of knowing who you are, what you can do, and what your vision is regardless of your bank account.

If this article speaks to you, don’t let another year pass you by without making a move. This season I am sharing my experiences and addressing all things entrepreneurship on social media so please ask away on the links given below.