The time it takes to start making profit from a business in Kenya depends on the type of business you pursue. But analysts state that it takes an average of 2 years for one to start generating constant profits.
When you start any kind of business, you need customers, you have to recover your capital, you also need reliable suppliers and honest workers.
For profits in the tune of millions and billions, it can take up to 10 years to realize that. Some of the businesses, like MPESA and shoe shinning will start earning profits after 3 months but for complex businesses like matatu, you need several years of hard work to realize profits.
Here are estimated number of years/months you need to start making profits from your business:
|TYPE OF BUSINESS||TIME REQUIRED TO START MAKING PROFITS|
|Shoe shinning||2 months|
|MPESA shop||2 months|
|Restaurant||6 months to 1 year|
|Pub||6 months to 1 year|
|Boutique||6 months to 2 years|
|Blogging||6 months to 1 year|
|Mitumba business||1 month to 3 months|
|Wines & Spirits shop||3 months to 1 year|
|Matatu Business||1 year to 2 years|
|Grocery shop||4 months to 1 year|
|Cereals business||1 months to 3 months|
|Farming||6 months to 2 years|
|Poultry farming||6 months to 1 year|
|Fast food restaurant||6 months to 1 year|
|Online shop||1 year to 3 years|
|Hardware||1 year to 2 years|
|Rental property||2 years to 10 years|
|Butchery||2 months to 6 months|
Butchery and grocery shop businesses are among the best because profits are realized almost immediately. But for rental property and matatu business, you need more than 1 year to start making profits. Take example of building a flat in Nairobi which costs Ksh50 million. Land plus the apartment will cost Ksh60 million. You earn Ksh 400,000 every month in rent.It will take more than 12 years to get back the capital.Ideally,it takes 12 years to start making profits from the business. But for someone who started a business like fast food restaurant, it takes even 3 months to start realizing profits.
The sad thing is,by the time you start making money from your rental business, you are already old and worn out, it’s only your children who will enjoy that money. Essentially,investing in rental property is an investment for your children, not yourself.