Saturday 12 April 2014

THE MATATU MENTALITY



 
The Kenyan roads are always a buzz with hooting, strident music booming from the speakers and neck break speeds from the public haulage vehicles. Some people however may like the kind of milieu that they are subjected to; others completely detest this atrocious type of environment. Posters such as, “KAMA UNA HARAKA SHUKA UTEMBEE” , “KONDA NI MOTO DERE NI STIMA LETA FUJO UONE”, “ HATUSEMI UMENONA LAKINI UKIKALIA VITI MBILI LIPA”, “ KAMA HUPENDEZWI NA MUZIKI, NUNUA GARI YAKO” and so many other such posters insulting the same people who are responsible for giving you business. Being such an economy with the level of awareness on the consumer rights, one cannot enjoy the luxury of public transport and get the value for their money. No matter how much you try to complain about your predicament in the vehicle, its’ met by a rude and unwelcoming reply, no one in support of you and blank stares questioning your utterance.
Loud shouts from everywhere luring you to enter their vehicle, they are so generous that they will most certainly run after you to help with your luggage. Telling you of how best their car is and even showing you to “the best seat in the house”. Incase you are in a rush, they will tell you that they only need one more person to fill the vehicle and they will be ready to leave. The tainted windows of the car do not give out even a soul of the secret that is hidden within. The door is open and yes, you can see that there are people inside, all looking at you, their eyes implying that you enter the vehicle so that they set out on the journey. You decide to take a leap of faith and board it, only to your surprise, you are just but a fraction in the car. As more sufferers like you to this deception are lured in, its’ even more surprising that others are walking out. Functioning just like your wallet, as soon as the razor sharp notes from the bank are in, the old ones go out. Turns out that the people who were initially in the vehicle, were just a lot of paid distraction to make the car appear loaded and ready to leave. If you try to protest and seek an alternative way out of this predicament, a rude answer that leaves you dumbfounded straps you in back to your seat and tight-lipped for the entire journey to your destination. Another rude shocker is the fare prices just shoot up and you are forced to pay more than you ought to, just because of a simple shower of rain befalling the roads or slow moving traffic. Woe unto you if you fail to raise the amount asked for, the kind of treatment you get is worse than what a stray dog gets. Once you alight, you swear to yourself you’ll never board that car, but for some reason, you still fall victim of the same welcoming smile and the same devious plans as the day before and the day after. This is a RAT RACE with THE MATATU MENTALITY.
So what is “THE MATATU MENTALITY” and how is it related to the organization? This mindset implies that you are only vital before you board a public means of transport, once you are on board; your significance is quickly thrown out of the window. Many organizations will present a very attractive package for you as an aspiring employee. The benefits will be coated in all kinds of splendor and will paint a perfect picture of what every member of staff would like to hear. Attractive remuneration, tasks and qualifications you can easily meet, or probably have surpassed. But what you don’t know is the other side of your duties. The people you work with or work for. What level of psychological pressure is required? What else has the employee advertising for the vacancy not incorporated in the job description and requirements? This will ultimately lead you to leaving a perfect and well paying job for another, though better remuneration but tasks you can’t handle. As an organization or as an employee or employer, iron out all that is required to a specified position. This will not only give you the upper hand of getting the right people for the job but also save on costs incurred to train the employee on the tasks at hand. So, organizations should not swindle unsuspecting clients or employees only to discover later that what was is not what is. This paints a downbeat image of the organization and in the end, loss of valuable assets towards realization of organizations’ goals. Recoil from “THE MATATU MENTALITY”. Not only should you train your workers well, but also appreciate them even better, and they will stay and give their superlative. Delight a client well, and provide all the essential information, full disclosure, and more clients will follow for satisfaction.

Tuesday 1 April 2014

HOW DO YOU START A BUSINESS WITHOUT INVESTORS?




Everyone has a magical idea that they think is a money minting venture, viable in their own way because they know the right keys to hit or the right strings to heave. But what most people, (the youth in particular) lack is funds. Youth Empowerment and Development Funds, UWEZO Funds etc; we have seen the ascend of many such initiatives in a bid to give the wherewithal to the young minds to perk up economically and build an realm in their own jurisdiction, from setting up a vendor stall to creating market for agri-products to endowment of a novelty that will change societal discernment and operation. The youth are an ambitious and entrepreneurial lot. Inspired in their own ability and diverse in operation and beliefs of the business world, go getters if you may call them. Every young person will tell you that they want a certain lifestyle for themselves. Drive flamboyant cars, dress in the latest designer wear and hack money like rapper Lil Wayne when they hit their favorite joint. But do they have what it takes to acquire such a lifestyle? Do they know what it takes to reach to such levels? I candidly don’t think so. Majority of the young generation lack the restraint to contain themselves, keep calm and be serene. They want to stick out their middle finger to the world and show that they have made it. Truth of the matter is they have scarcely scratched the surface of what needs to be done to say that they are there. They need guidance, mentorship on how well to exploit funds meant for starting and maintaining a business venture. They need to create a clear merit between their own lives and that of the business. The aspect of separate entity needs to be outlined. Failure to this is one of the reasons why SME’s fail desolately a short time after start up. So how do you start and maintain a business to success without investors and low funds? These are just some of the ways;
1.      Prioritize
This is where many people fail and it’s also the death bed of the business. Just like making a budget for your household after the pay check has been received. Put more emphasis on the most important units of production that is bound to give you the objective of the business incorporation. They can be likened to the basic necessities whereby, if you deprive off your business, its health will deteriorate. So, drop your low priorities for the time being and focus on your mantra.
2.      Plan for your salary
The other major problem faced by startups is that the proprietors are quick to reward themselves for the work done before they have achieved maximum profits. Take the growth cycle for example, before you crawl, you need to learn how to sit, then before you walk, you learn how to crawl later, and you’ll be sprinting like Kemboi in the Landon marathon races. Point is, bootstrap yourself. Bootstrapping means no salary from the new business for some time. Plough back the profits to develop even further, and in the long run, once the business is self sufficient, remuneration will be mind blowing.



3.      DYI but know when to ask the expert
You have probably heard of the do it yourself strategy. This is vital and key to the success of any start-up since you will be saving on a lot of resources that would go in having others produce for you, units that would be cheaper done internally. In as much as this is being advocated, don’t lock out professionals. They will be of much help in resolving some tricky issues likely to be encountered.
4.      Co-operate with other entrepreneurs
Co-operation will help a venture in accessing information that would be out of sight as a solo trader. It will also help in keeping up-to-date with the latest market trends in terms of policies, designs, prices and specifications.
5.      Scrutinize expenses, negotiate contracts
The purpose of this is to ensure that there is minimal wastage of resources especially in activities that do not add value to the business. No particular stage of the business cycle has an escape card to use resources for other purpose other than the intended one. Also, negotiate on contracts with suppliers. Let them know that you are a start-up and you are bootstrapping to avoid purchasing at inflated prices.
6.      Build audience early
This is the best way to build your market before operations start. Take an example of movies, before the actual release, the give viewers a preview of what to expect. Once the movie is out, everyone rushes to purchase it, which is why movies sell. Create a blog or website for your business. A social media site displaying actual items of your products such that if a customer wants what is on display, they will get it, thus satisfying their want and creation of brand loyalty.
7.      Don’t skimp on PR
Public relations are vital to the success of your business. Well represented business and well treated clients will go a long way in ensuring that businesses capitalize on their target market saving a lot of costs incurred in marketing activities.
8.      Soft launch of first product
The saying the higher you climb the harder you fall applies in the launching of a new product; whether in an already existing market or a new one. Launch a soft campaign and analyze the market response. This will save in costs incurred to manufacture the products in large batches by doing it in smaller batches.