Imagine earning Ksh. 100,000 daily without ever going to work.
Is that even legally possible?
Surprisingly, it is.
You can earn Ksh. 100,000 daily in Kenya without shedding a rivulet of sweat.
Even more surprising, is the kind of business that can earn you this much money daily.
The Boda Boda business.
If you are reading this post from any country but Kenya, Boda Bodas are bicycles or motorcycle taxis commonly found in East Africa.
And while a majority of East African towns still find bicycles acceptable for the business, this post will only dwell on motorcycles.
Because it is motorcycle Boda Boda business that will earn you Ksh. 100,000 daily. Nothing else in the industry.
How to go about earning Ksh. 100,000 with a Boda Boda business without working at all.
As in any other start-up, you must check this list to project profitability and to gauge the viability of the business idea.
- Do some research.
- Make a plan about how you want to do business.
- Plan your finances
- Choose a business structure and have your business registered.
- Get permits and insurances needed.
- Have an accounting system in place.
- Get your team ready
- Start earning Ksh. 100,000 daily without a hustle.
1. Do some research.
While the title of this post says you can earn Ksh. 100,000 without working, getting there won’t be all rosy.
And if I’m being honest with you, you can only achieve this level of financial freedom if you have enough startup capital and you are willing to let your money work for you.
Like any other business, the Boda Boda business may be affected by: –
- Political factors – for example, new legislation (in the Boda Boda business it may be a regulation to curb the well-known unenviably poor record for road safety). Ensure you know all these.
- Economic factors – is there any way inflation and employment among other factors affect the Boda Boda business in your country? The answer to this question may be the green or red light you need to start or halt this business.
- Social factors – Consider preference of bikes, the terrain in a region. How would it affect your Boda Boda business? This will help determine where to set up and which type of bikes to go for.
- Technological factors – For example, being able to register as a ridder with taxi apps. How are the numbers of people requesting bikes on taxi apps? Find out and try to relate your business to the numbers.
But that’s not all, there is more to research than meets the eye.
It is at this level that we also try to balance our Boda Boda business idea with some reality.
Remember, in order to earn Ksh. 100,000 daily with this business idea it must solve a problem fulfill a need or offer something else that the market wants.
If the gut feeling isn’t enough for you to make this huge decision, try doing research on the Boda Boda business in your town, request to attend, and ask questions in Boda Boda self-help groups. Or, just trust your gut, invest and learn about the business.
Summarily, check this list before moving to the next step.
- Ensure there is more need for Boda Boda taxis in your town.
- Find out who needs it most. Is it businesses or individuals?
- Are there other companies/individuals operating Boda Boda agencies in your town?
- What is the competition like?
- How will your business fit into the market?
2. Next, Make a plan about how you want to do business.
Of course, there is something out of the ordinary that you must do if your Boda Boda business is ever going to earn you that much money daily.
But what is it?
What must you do to make your business a reality?
Come up with a plan. A business plan.
If you are new to the process of business start-up and don’t know what a business plan is, a business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth.
Luckily, it is a must-have for all new businesses.
If you have no idea how a business plan looks or other, how to write one, find some extra time to visit this business plan site.
It has some insightful articles and plans you can copy from.
This goes, especially if you are going to seek funding for your Boda Boda business agency.
Otherwise, just write a simple one-page document detailing what you hope to achieve and how you plan to do it.
If it ain’t coming out as you expected, don’t sweat it. You can always improve your business plan over time.
3. Plan your finances.
If our business didn’t have a target of making Ksh. 100,000 daily, I’d have started this part with the cliche advice, starting a small business doesn’t have to require a lot of money; but for a business that’s anticipated to make Ksh. 100,000 daily, is there a chance that you can start it with Ksh. 1,000?
I’d be lying to you if I said yes.
For this business to make sense, you will need at least Ksh. 7,000,000.
Ideally, this money should be your initial investment but for the business to operate smoothly, you may also need extra cash to cover ongoing expenses for one year before you turn profitable.
That sentence only applies to individuals who choose to start this kind of venture with financing.
This money should well take care of licenses and permits, inventory, equipment, legal fees, market research, insurance, branding, rent, utilities among other recurring costs.
With that rough Ksh. 8,000,000 figure in mind, you can seek to find financing for your business.
- You can go for asset financing from your bank.
- Seek small business loans.
- Apply for a business grant for your new venture.
- Get seed capital from angel investors.
- Or, decide to crowdfund for your business.
Whichever method you choose to finance your business make sure it works because we really need this initial investment to be able to make this business a reality.
4. Choose a business structure and have your business registered.
While jumping right into your Boda Boda business after financing seems an easy way out, it’s obviously not the right play if we are to make the anticipated hay out of this business.
The next best play would be to decide if this Boda Boda business is going to be a sole proprietorship, a limited liability company, or a corporation.
How you choose to register your business in Kenya will determine your business name, your liabilities, and which tax category you will fall in.
You can pick and register your business name online via eCitizen.
It’s as simple as 1, 2, 3.
5. Get permits and insurances needed.
To run this kind of business, you will need two major things.
An office and bikes.
And for your office to run without interruptions from the county government, you will need a single business permit which costs an average of Ksh. 10,000 and KES. 15,000 only.
This may also vary depending on the county you decide to set up your business in.
For the bikes, you will need either third-party or comprehensive insurances.
If you ask me, I’ll say, go with comprehensive insurance. You can purchase online on the First African Insurance Website.
6. Have an accounting system in place.
Having picked a business name, picked a location, and paid for all the licenses and insurances required, it’s now time to have an accounting system in place.
Remember, small businesses run better when there are systems in place. Your’s won’t be an exception, especially if you want to hire staff and not work in it.
Having an accounting system is important because it helps create and manage your budget, set your rates and prices, conduct business with others, and file your taxes.
If you don’t want to spend any more money than you’ve already planned for, you can set up your accounting system yourself.
Otherwise, hire an accountant to help you with the process.
7. Get your team ready.
If you read this post to this point, congratulations, you are just a step away from starting to earn Ksh. 100,000 daily doing nothing.
It is at this point that you test that boss move. Making hiring decisions.
Which kind of people do you wish to work for you in your Boda Boda business?
Send word out for prospects to come for an interview.
Remember, one Boda Boda motorbike pays an average of KES. 300 and KES 500 if rented to riders and depending on the county you set operations in.
This basic information should help determine how many employees you need, for how many bikes, to earn KES. 100,000 with a Boda Boda Business.
8. Start earning Ksh. 100,000 daily without a hustle.
Assuming you worked with Ksh. 300 per bike per day, you’ll need 334 riders to earn Ksh. 100,000.
That explains why an accounting system is essential for this kind of business, why your business needs a name, why you may need financing, and even more important, why you need an office.
Because these are assets we are talking about, track them to know where each bike is at any given time.
Should you want quality second-hand motorbikes for your Boda Boda agency business, check out a motorbike financing company near you.
If you want to deal with banks, go to KCB bank, they finance Boda Boda businesses.
Otherwise, Mogo, Watu Credit, Pioneer credit, and Mwananchi credit are better alternatives.
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