By Bebe Cool
Forgive me for being blunt, am here wondering if there is a club of stupidity that some people keep joining and am not surprised when they stammer when asked about GDP/Fiscal policy.
I have over the years demonstrated that time and proper planning are fundamental keys to success.
While several people, out of ignorance, have over the years used a house as a measure of success, I have over and over again educated them that creating income generating activities or investing in one’s job/work was more important than showing off splashy homes.
It is from your work/investment that you derive enough money to be splashy.
I am not sure if these are new proud members of the stupid club or the old ones, that have been pointing fingers at the new pickup point for Zuena’s cakes located at Kiwatule, along the road leading to Naalya, right opposite Shell Fuel station (former Mogas).
These people seem to suggest that Zuena is too high profile to run a shop that appears the way it does and in such a location but that she should instead have opted for a fancy shop on upmarket plazas to display her cakes.
First of all, it is critical to understand your business, who your customers are and how easily they can access your service or product. In the confectionary and decor business, It is advantageous to have a broader customer base comprising of both low income and high income customers if you are to increase profitability.
To be able to achieve this, one important ingredient is accessibility. You need a location and ambiance that embraces both your low income and high income customers with non of them feeling out of place.
One other aspect of location is the side of the road you choose for your outlet. Given that most confectionary customers prefer evenings for their purchases, it is important that your outlet is located on the left hand side of the road to ease access for people returning home.
For any business to thrive, you need to be able to manage your costs. It would be unwise for someone to opt for a splashy location that costs hundreds or even thousands of dollars in rent as opposed to finding an affordable but suitable location and giving it an ambiance that suits all.
The later would certainly make more profits while the former would struggle to even break even. No wonder Zuena is able to park a 200 million shillings Mercedes Benz in front of a shop that costs only 300,000/= in rent to discuss business worth over 40 million shillings for decor per event, cakes ranging from a cost of 50,000/= to 20,000,000/= per cake.
It is from here that she is able to take care of her family, pay school fees for her children in expensive schools and be able to afford holidays in America. Yet, the splashy alternative may be in rent arrears, unable to pay suppliers on time all because they want to keep up appearances.
All in all, it is critical that one carries out a feasibility study ahead of starting any business bearing in mind that knowledge about the fiscal policy and GDP is equally important in making economic sense.