Bernard Odera works in the catering and hospitality industry. He also runs his own catering business called Benaz Catering Services which offers catering services for all occasions.
Biggest money mistake: I did not have adequate start-up capital when I ventured into the catering business. To make amends, I decided to apply for a bank loan. My plan was to use the loan to acquire additional catering equipment. But this plan changed once the money landed into my bank account. Instead of buying the catering equipment that would aid my young enterprise’s business and cash flow to stabilize, I spent it on non-business expenditures. In the end I was left with no money to inject into the business, and had to hire equipment whenever I got catering calls. On top of all this, I was stuck with a loan that I could not sufficiently account for. This taught me the value of good and bad loans. Loans taken to boost or create earnings are never to be tampered with.
Biggest losses: I cannot say that I have suffered from any major losses per se. But I have been a victim of underpayments. This has been a bitter pill to swallow, especially when the services given far outweigh the income generated. But as my business has grown, I have learned to offer more realistic prices for my services, as well as have the requisite contractual agreements signed to avoid losses or underpayments. Over and above, I have learned that losses are the weeds that surround a growing plant. And just like normal weeds, they need to be handled and weeded out properly for the plant to blossom.
Recipe for success: Go for what you believe you are good at. I ventured into different business areas and started businesses such as electric and electronic ware shops before I started my catering business. Perhaps I couldn’t have, had a friend who had observed my kitchen skills not recommended that I could make a great chef. Know what you are good at, turn it into a realistic income-generating venture, be passionate and patient, and it will break even. It is also always important to back up your passion with market research. Save first before you get started and avoid taking loans unless you have multiple ways of servicing them.
If I could go back in time: I would learn and focus more on the managerial segment of my business. I would also target, recruit, and skill my workforce in order to create a bigger edge for my business in the catering and hospitality field. Also, in retrospection of the strengths and challenges that I have encountered, I would make a general improvement on all the areas that recorded limited performance.
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Saving method: My saving method is largely influenced by my business. The catering and hospitality industry does not always pay monthly, especially when it is a start-up like mine. To ensure that I anchor my growth and financial independence, I operate numerous, separate savings accounts and channels. These include different bank accounts for my personal and business savings, merry-go-rounds, and micro-finance institutions such as saccos.
Entrepreneurship vs employment: I am a big advocate for entrepreneurship. The fact that it gives you the chance to be your own boss puts its head above employment. I have also learned that unlike employment, going into business sets the bar much higher. You have to push your limits more than you would ordinarily do under employment in order to stabilize your earnings.
This feature on Bernard Odera was first published in the Saturday Magazine. The Saturday Magazine is a publication of the Nation Media Group.
