Stephanie Wanjiru shared business planning advice during Co-op Bank’s Youth Forum.
Nairobi entrepreneur Stephanie Wanjiru urges aspiring business owners to research opportunities, separate their money and assess borrowing needs.
Aspiring entrepreneurs should plan their business finances and research opportunities before leaving formal employment, Nairobi-based business owner Stephanie Wanjiru has advised.
Speaking during Co-op Bank’s Youth Forum on Friday, October 30, Wanjiru urged workers to identify their interests first. They should then study the opportunity, develop a business plan and carefully decide when and how to resign.
She also highlighted the importance of sound management systems, from accurate financial records to hiring suitable employees. Her advice covered both preparing for the transition and managing money once a business begins operating.
Keep business finances separate from personal spending
Wanjiru advised entrepreneurs to open a dedicated business account and track their income and expenses. Rather than repeatedly withdrawing cash for personal use, owners should pay themselves a fixed salary.
She also warned against committing too much money to products that customers may not buy. In her own business, she focuses on makeup brands that customers regularly purchase instead of stocking every available product.
To manage stock, owners should record what they receive and sell, while monitoring inventory levels. They should also check expiry dates to avoid losses from damaged or expired goods.
Alongside these financial controls, Wanjiru urged entrepreneurs to take time when recruiting employees. Clearly assigning responsibilities and choosing the right people would help support the business, she said.
Save for growth and assess loans carefully
When business performs well, Wanjiru encouraged owners to save and invest so they have funds available for expansion. However, she cautioned against borrowing simply because a lender has made financing available.
Instead, entrepreneurs should first establish whether their businesses genuinely need a loan. She also urged owners to remain willing to learn, improve their skills and work consistently.
Meanwhile, Wanjiru encouraged business owners to maintain a consistent online presence to attract customers. This would also help make their products and services more visible.
Her guidance comes against a backdrop of survival challenges for small businesses. Data from the Kenya National Bureau of Statistics shows that a large share of informal and micro-enterprises do not survive over the long term.
