What I know: Most overlooked truths on money, business

We rounded up nuggets of wisdom collected from industry leaders and experts on what they have learnt about making the most out of the opportunities around you, and the traps many fall in.

JORDAN RITTENBERRY, EDELMAN AFRICA CEO

1.      Don’t just pick any job

The biggest mistake people make is making short-term decisions that have long term effects. There is no such thing as a short cut. You see people hopping to other jobs because they see a better title or a few more shillings a month and they think they are getting ahead but in reality, they are struggling to stay at the same level. If you are in a place that you love, invest in it and it will invest in you. Spend time and focus on being really good at that. I would not be here if I had not spent time in the company I am in for 14 years. If you are just starting out, ask yourself if you love what you do. If you do, that is where you should be focused on. I quit midway my aeronautical engineering degree because I realised I would hate the job. It would have been the worst possible job for me. I then chose public relations. And I love it. I work hard for it and the passion is unrestrained.

2.      Comfort will stunt you

Everyone hires differently, but I do not hire based on education; I hire based on ambition. Are you eager, ambitious, hungry? Do you want something more and will you be aggressive pursuing goals? Are you going to push until you get something? When we hire people, we hire based first on our culture – are you going to fit in? And then your level of ambition. At Edelman, we call it an entrepreneurial spirit. I can teach you PR and I can teach you how to write. Because at the end of the day what we do is not brain surgery or rocket science. It is not that hard. But do you have a drive? If you do, I can give you all the tools you need to feed it so that you can go far.

  REUBEN KIMANI, USERNAME INVESTMENT LTD CEO

3. You need a map, get a map

There is a map that is easily available and that you can also get online.  It shows you all the roads in Nairobi, the ones that are to be built and upcoming bypasses. Get government plans and those of other agencies that are involved in Vision 2030. Don’t buy land or a house without checking the plans. That is how people get conned. Plus, the map will inform future investments. Those plans will tell you exactly where the railways are coming, where the highways will be done, where roads will be expanded, where bypasses will be built and where universities will come up. So you can always tell what the government is planning in terms of road development.

Real estate investment companies do all that research for their properties in addition to finding which roads will be taking priority. This is also an option you can use.

STELLA CHEPNG’ENO, PERSONAL FINANCIAL CONSULTANT AND CORPORATE TRAINER

4. Compound interest is a sure bet

Avoid delays. When you start immediately, you take advantage of time and compounding interest. When you start early you can start with small amounts, which you can start increasing as time goes by. You have to first create the saving habit. Once you learn to live without Sh1,000, you can learn to live without Sh2,000, then Sh3,000. Start where you are as there is no amount of money that is small. When you get money, save first then spend. Most people do the opposite by spending then saving what is left over. If you can deduct it from the source, the better. If you are a salaried person, you can, deduct it before you receive your salary, through a check off system. If you are in business you can do a standing order. It gets to the account and is picked, so what remains is your money.

Compound interest is basically the eighth wonder of the world. When you put in money and it earns interest of say, 10 per cent, the interest that you earn is re-invested. The more you re-invest, the more you get. For instance, if you decide today to save Sh2,000 consistently for the next 20 years, if the interest is at 10 per cent, you will have saved Sh480,000. If you compound it, you will get another Sh706,000 as interest. So if you are in a Sacco, don’t eat your dividends. Reinvest it and you will see your money grow fast.

  FRIDA OWINGA, FOUNDER OF PASSIONPROFIT, 54

5.  Your greatest path is simply what you decide it to be

All my education after O-levels has been curated to help me excel in business. Not degrees. I have just picked and chosen what I wanted to learn. When we talk about people coming out of universities and lacking jobs, I wonder, what is it that they are being taught that they cannot convert into some value and get paid? You can learn what you want and what you need to grow. Define what you want and pursue it relentlessly. There is no non-professional career. What is important is that you are solving someone’s problem with whatever skill you have, and they are willing to pay you. Get the knowledge, education, experience and exposure to be a problem-solver for problems that exist for people who are willing and able to pay you. The way of work is changing. Decide what you want to be. Define what you like to do and get on the path for it.

6.  The five wallet rule will save you a lot of financial strife

Wallet one: Pay yourself. What are the things you love to do? You can plan for some treats once in a while. I have learned that you can plan to have the lifestyle that you want. Choose your life, own it, learn it, work it.

Wallet two: Pay for essentials. Your essentials are the things that you need to pay for.

Wallet three: Pay into your empowerment account. Empowerment is for the achievements that you want, such as a certain programme you want to enroll in.

Wallet four: Pay into your emergency fund

Wallet five: Pay into elevation account. Your elevation account is based on the universal law that what you give will come back to you. It is having an account for giving back, so you allocate a certain percentage for the needy, for a relative, for when you have a funeral. It is an account to help someone else breathe easier because you exist.

 JAMES KARUNDU, PASSIONBIZ ACADEMY FOUNDER AND CEO

7. You have to learn how to sell

Marketing is about getting out there, which you can do through many forms, including social media. However, you also have to know how to sell. You can be a good marketer that does not know how to sell. Selling is being able to convince people to part with their hard-earned money. Money will not flow until you become a good sales person. You can learn this by practising, so that you learn how to do it. Other ways include having a call to action, by having the courage to be upfront. That may be by asking for the order. For example: Are you taking one or two? Can we get you one today? That takes practice. You can make selling easier by creating offers, like a September or October offer. Most people are not motivated to take action and tend to procrastinate, which is why even big companies like Safaricom are always having offers. It gets people to take action on what you are offering.

8. Never fly solo

When you are starting out, you need help and mentorship. You need someone to guide you and help you learn the ropes of the business. When starting out, most people have internal challenges that they need to overcome, both within themselves and within the business. Without a mentor or a coach, these challenges can spell doom for the business.

9. Your business idea should never target everyone

People tend to think that the wider they net their clients, the better. Wrong.  This becomes a pitfall for their business. Identify a target group. Target a motivated market, which means people who are already actively on the lookout for the solution you are offering. In addition, target people who have the money and are willing to pay for what you are offering. People who are specifically in transition tend to make the best clients. These are people, for example, who are doing something for the first time. Examples are first time mothers, people leaving employment to get into entrepreneurship, people at a crossroads – like for those students wondering what universities they can join abroad... there are people who offer that information at a fee.