I am planning to buy a second hand motorbike model tvs 100cc worth kshs 50000. the whole of my loan kshs 38000 is going...

Entrepreneur

About Me

My names are Gerald Mulu Mawia I am 22 years old and a Kenyan citizen. I am trader who
deals in buying and selling imported second hand clothes in Free Area Nakuru, Kenya. Am a first born, my family comprises of six other siblings and my mum who is a single mother; they live in Kibera Slums Nairobi. I was born in Machakos county at my grandmother’s home but my home is in Kibera Nairobi, where I went through my primary school education till year 2004 when I sat for my Kenya Certificate for Primary Education and qualified to join high school, due to poverty and lack of sponsorship I studied in Kibera Nairobi for only one year, my mother had me
transferred to live in her friend’s home in Kiamunyeki Nakuru and study in Upper Hill Day
Secondary School located in Free Area Nakuru which was then newly built and as pioneer students the school fees was lower. I competed my high school education in December 2009.
After completion of high school education there was no money for college bearing in mind my
family background and he fact that my mother had a duty to raise seven of us single handedly.
The hard life I had passed through in my childhood in Kibera Slums stopped me from going
back; I was not ready to go back there so for two years I took on several casual jobs like a
construction worker, Matatu conductor, in local cafes as a cook and many others. I came to
realization that since I started working in these jobs I had gained nothing this is because the small amounts earned I had to share between me and my family back at home. My mother’s friend was no longer ready to host me because I had grown up to an adult I had to take the responsibility of living on my own and providing for my own self. I took on a clothes hawking
job in the estate, I was employed by a guy who used to sell second clothes in his stall, I was every morning to pick merchandise from his shop and hawk it on foot around our and neighbouring estates. My pay depended on how much I sold since it was calculated commission wise, I would get 7.5% goods worth the first Kshs 2000 and 10 % on any sales above that amount. I worked very hard because my pay solely depended on my effort and after six months I could see the results, I was able to foot most of my bills and also partially support my folks back at home. In November 2012 I had saved Kshs 7000 (US dollars 85) and decided freelance I took on all my savings and bought my first batch of stock i.e. fifteen pairs of trousers and 25 shirts and since I had already created my contact and trust with my customers I didn’t have a hard time in establishing my market. By the end of December 2012 which is usually the prime time to sell
clothes I had sold all my stock and hard made a profit of Kshs 3500 (US Dollars 42). I was so
delighted with my accomplishments this clearly showed there was light at the end the tunnel. My first duty was to buy a bicycle since selling my merchandise on foot was really tiring and I couldn’t cover long distances. So at the end of February 2013 I bought a second hand bicycle worth Kshs 3000. I could now cover longer distances and consequently sell more; my business has now grown such that I have rented a shade at Free Area market where I now sell my clothes,
I have also hired my second born brother and his job is to hawk my merchandise using my bicycle around the estates and currently my stock is worth Kshs 23000 (US Dollars 265). I have had several setbacks due to my double responsibilities but my business stands strong and I
foresee great success in future. I have partly been crippled by the fact that getting credit from the
banks requires security which I don’t have. I was very delighted when my friend and fellow
trader Bernard Kipkemboy told me about the Zidisha service and I vowed to try it out since he
had also made his application and he also told me about his friend Henry Kanyora who has
benefited from this service and his business is rising. I would be very delighted if I get this loan
to be able to buy more stock, am planning to payback my loan as fast as possible to benefit from
bigger amounts to raise my business higher like wholesaling business and also buy a motorbike for my brother to replace the bicycle.

My Business

My names are Gerald Mulu Mawia a trader who deals in purchasing and reselling second hand clothes in Free Area; Nakuru. The objective behind starting this business was to shed off the employment slavery and be able to sustain me and my family fully both now and in the future.
Secondly I swore to never let my kids grow in the same environment and experiences I grew in Kibera Slums. I am hoping to achieve self reliance and also employ other young people to help them earn a living, give them a chance to learn from me and also help them put up their own businesses.
My business; I buy and sell imported second hand clothes, I purchase my stock in Free Area
estate from a wholesaler who owns a go down/ warehouse, I first sort the clothes that I am to
buy, I then take them to a tailor for ironing and repair for those that are in bad shape. This is
done to straighten them and to that ensure that they are in their best of shape. This ensures that
the clothes look as good as new. Smart clothes attract and entice the customers; this makes them
buy the clothes satisfied that the goods are worth their money.
Demand; firstly clothes are human basic necessity, secondly there is a very big demand of
clothes especially in the month of December which is a festive season, families buy their clothes
in large quantities in preparation for Christmas celebrations therefore this is a month I have
previously sold in large quantities and that am also expecting to sell bigger than last year.
Secondly hand clothes are in very high demand this estate since Free Area is an estate lived by low earning class or even the lowest earners. These are people who cannot afford to buy their
clothes in boutiques because of the cost involved, such that the only affordable choice is second
hand clothes therefore this translates to high demand and consequently bigger sales.
Preference: I have been in the industry for three years now and have gained enormous experience in this field; I now understand customer tastes and preferences. I buy my clothes from a renowned dealer and who offers good quality merchandise and also variety. As I indicated earlier after the purchase I take them to a tailor for ironing and repair to place them in their best shape, so that when the customer even from afar will be attracted to them. Secondly my display is eye catching; I do this to catch the attention of the passersby and who are the potential customers. I also offer a variety of clothes
Profitability: the business is profitable because I sell a lot and my market is readily available all
year round without it being seasonal, the demand is available all year round and the fact that the business has already started there is no possibility its failure. Secondly I have ventured in a business that is currently my field of work therefore I know the preferences of my customers how to fulfill them example I offer varieties of clothes for my customers to choose.
Risks; like any other business there risks involved, firstly the competition is quite stiff since there are other traders involved in the same business as I am. Since I also extend credit to some of my customers delayed payments and bad debts are also amongst the challenges I face.
Costs; For example last month’s total sales were US dollars 177 the profits were US Dollars 118,
am expecting December’s sales to go up to US Dollars 235 and the signs of the increased sales
have already manifested themselves since December the first and I can confidently report that we have made sales amounting to US Dollars 125, this is a positive realization to me and my business

Loan Proposal

I am planning to buy a second hand motorbike model TVS 100cc worth Kshs 50000. The whole of my loan Kshs 38000 is going to be added to my savings amounting Kshs 12000. I have done my research and decided to go for the TVS model since it consumes 1 litre of fuel per 65km i.e. fuel consumption is at the rate of 65km/litre. A liter of fuel goes Kshs 105. Since it will be traveling a distance of 120km per day to hawk and supply clothes, the total fuel consumption cost will be approximately Kshs150 per day compared to a daily profit of Kshs600 made per day. Using a bicycle has been tiring and covered only a distance of 35km on a daily basis and resulted to a profit of Kshs250 per day. My brother who now doubles up as my partner will now cover longer distances translating to more than twice the revenue I we were receiving.

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