With Sh.300,000 You Can Start A Mineral Water Distribution Business And Make Over Ksh.20,000 Weekly
With an estimated 50,000 graduates that Kenyan universities produce every year not to mention other graduates from vocational training institutions, unemployment is becoming a real disaster.
It follows therefore that there is need for business ideas that can help, especially the youth to get engaged in and make a living and the bottled water distribution business is one.
In Kenya, bottled water market continues to thrive with sales estimated at Sh.12 billion per year and over 100 brands available can provide a niche market for distributors.
Being one of the essential commodities in every society, water actually falls under fast-moving consumer goods (FMCG) that sales quickly and at a relatively low cost.
With Sh.300,000 you can venture in the distribution of bottled mineral water and be sure of making cool cash on a weekly basis.
First, you can start by buying some two second hand motorcycles which are relatively cheaper as compared to tuktuks or band new ones.
There are several online sites in Kenya where you can find people selling secondhand motorcycles at between Sh.35,000 and Sh.55,000.
For instance, a Tornado of 125cc and still in high performance can be found at Sh.35,000 on pigiame.co.ke while a Boxer Bajaj of 150cc goes at Sh.40,000 on the same site.
Let us assume you settle on two that costs Sh.40,000 each of which you can operate one as you employ another person to help you with the other, you will still remain with Sh.220,000 that can enable you to go for some bottles of water.
At Sh.15 each (wholesale price), you can actually buy 14,666 bottles of 300ml which you can distribute at Sh.17 per bottle and make an extra Sh.2 per bottle.
This will arrive you at Sh.249,322 translating to Sh.29,322 gross profit a week.
If you minus about Sh.5,000, your operation costs which include fuel, labour and other expenses weekly, you will remain with Sh.24,322 in a single week, Sh.97,288 net income in a month and further Sh.1,167,456 net in a year .
That is how simple you can become a millionaire in a year. However, this will depend on the effort put to realise daily goals as with business you need to be timely and consistent to match or even outdo your competitors.
Even if the wholesale price of the 300ml mineral water bottles can be increased to Sh.25 from Sh.15 given the fluctuation nature of the Kenyan market, you can still make some profit just at a distribution rate of Sh.2 up per bottle.
In business, it is that small margin that will make your service be sought-after by your clients and hence have an edge over your competitors.
By
Timothy Angwenyi
Business Consultant
Justine Nyachieo
Business Man & Mentor
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