AzimaWellness Talks 28/2017
Entrepreneurship For Wealth Creation Part ll
In part one of this article last week, we saw wealth multiplication and consolidation is very crucial in the wealth journey. The experience we gain at this stage will come in handy in wealth consolidation stage. These are stages we cannot circumvent . Nor can we delegate. Come with me explore a number of low lying fruits we can easily pick.
One of the easiest entry point is to set up agency business like being the sole agent/distributor for reputable companies dealing with FMCG’s(fast moving consumer goods) like Bidco oil , Unilever , Kenya Breweries or Coca Cola. It can also be in Cement distribution or roofing materials. Any majors in construction are good business with our construction boom.
There is a well established supply chain procedure that big manufacturers use to get their products to the market. They appoint one distributor in a region. Be that distributor. Learn what they require and start a company that fit their terms. Then set up a system that will manage the flow with minimum effort. This is an easy to monitor business if you do not repack or sell retail. In business we have maxims that if you do not have full control, don’t do it!
The experience you have accumulated over the years during your multiplication and accumulation stage comes in handy.
The distribution supply chain works the same in all sectors. It can be easily scaled up. It applies in all sectors. It could be in services like cleaning or security services. These are easy to do jobs within a system. Money is not in the profession. Money is in a business system.
The easiest entry point is in services like HR to offer outsourced staffing. Most foreign missions and embassies outsource most of their services including processing application for passports. The non-refundable fee we pay goes to the company that book and prepares people for interviews. What goes to the country is what you pay after your application is approved. The US embassy charges a non-refundable fee of 16,800 and only 4000 when the application is approved.
Government and parastatals have many opportunities. Bid for government tenders and be the franchise/tender holder to Supply military uniforms to police or the army. The president said on 12th June that all the military shoes will be bought locally. We should ensure it does not go to a Muhindi.
You can also supply motor vehicle spare parts to the military. These come as exclusive tenders which you work with clear instructions from the users. You cannot go wrong if you are an honest player. There are thousands items in this category. It will depend on your appetite.
Companies/Parastatals like Kenya Power buy all the critical components in power line construction to guarantee standards and issue them to contractors from their stores. Aim to be a supplier to Kenya Power or Kenya Ports Authority.
We have a new frontier in the energy sector. Solar energy to KenGen is becoming a cash cow. Strathmore University was the first to install enough solar capacity to meet their power needs and sell excess to KenGen. Kenyatta University have followed suite. Renewable energy is the new frontier. Be the early bird in this sector.
Become the local franchise holder for popular foreign brands. This is how popular brands like motor vehicles, electronics like phones, TV’s, computer and household and office machines that require after sales service and accessories like money counters in banks, lifts and cranes.
Pharmaceuticals manufacturers appoint one distributor as a regional agent to be responsible for their products in that region. You can enter into an exclusive arrangement or an open one. Terms and conditions apply. We take our mentees through the details in our AWQ program. Learn how the companies have organized their distribution supply chain and be the agent.
Target manufacturers of fast moving products like cement and supply utility items like cement packaging bags. Approach Webuye paper mills to make bags for cement and seek tenders from Bamburi, Portland, Rhino and the others. We now have almost 10 cement manufacturers in and around Kitengela.
New entrants in our market like Oil and Wind energy companies, the vehicle assemblers outsource most of their non technical services. Form a company that supplies the services they require. There is also a lot of money in schools and training institutions. Identify what you can supply to these institutions. It could be uniform or equipment that requires service and maintenance. Be the one holding the franchise.
Hospitals also have many installations that require expert knowledge. Enter into contracts with the manufacturers and point of use and be the go to person.
There is a new line of business that is opening up. China has offered to give local companies contracts to make parts for their factories. This is the kind of contracts that made countries like Korea, Singapore, and Taiwan to leapfrog their economies. They manufacture spare parts for big companies in Japan like Toyota, Sony and Nissan. These are businesses one can do and make very good money. New frontiers with new opportunities.
There are many more businesses one can venture into at the wealth accumulation stage. Ensure they are not high risk businesses. The experience you gained during wealth multiplication and accumulation is very useful in this stage. In wealth consolidation you do not do the work in person. You have people working for you. Employ people who have the right skills set. Get a manager of CEO to manage your business system.
This will usher you to estate planning stage and preparation for retirement. At this stage you keep your lawyer near you and a good accountant/auditor. You cannot afford to make mistakes in this stage. We will discuss to details what to do at this stage.
With profound regards,
Founder and CEO
Azima Wellness Consultants LTD
Conference Speaker & Corporate Trainer in Total Wellness.