Robert Kamaru is the founder and chief executive officer at Escrow Kenya, a firm that provides e-commerce buyer-seller escrow services in Kenya.
Biggest milestone: This is getting a deal in the KCB Lions’ Den Season 4. I stepped into the den with hardly any numbers, as the business was still very young. I knew the ‘Lions’ would see potential in the idea but feared it would be a tough sell, given that the numbers were still very low. So, the offer by Kris Senanu came as a pleasant surprise. In a business that solves the problem of trust, it is ultimately important that the business itself is trustworthy.
My success recipe: Focusing on solving problems first before making money. Some businesses will start making you money immediately while others will take months to years before the money starts trickling in.
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But customers and clients always want to know, “What’s in it for me?” If your sole reason to be in business is to make money, you’ll have a hard time selling value to prospective customers. You may also lack the patience that’s needed to build a successful business, when the money takes too long to start trickling in.
Biggest money mistake: Investing through emotions without undertaking proper due diligence. I can count at least 4 times I invested blindly in projects that seemed lucrative, simply because a friend or relative gave a great emotional pitch. I remember partnering with a friend to import unique items from China through Alibaba. I was to finance the procurement and marketing, while he would put his digital marketing skills to use and take care of order fulfillment.
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Three months in, we had blown up the marketing budget with meager sales. It was then that we concluded that the product was never viable in the Kenyan market. I still have the dead stock to date, zero return on my investment, and hardly any loss on my friend’s end. Why? Because I invested blindly, without doing proper due diligence.
If I could start all over again: I’d do business formally and automate right from the onset. I had a very successful business spanning more than 5 years but a major competitor ventured into the industry and nearly kicked us out of business in a day. Why? Throughout the entire 5 years, I had been doing things informally—no business registration, no proper records, mixing personal finances with business money and having everything being run manually. This competitor came in with a system that runs things with hardly any human intervention and because they are a well-muscled corporate, they were able to capture the market in a flash.
My saving method: I break my saving strategies into three portions depending on the goal. For short-term goals expected to run within months to 2 years, I save in a fixed deposit account. For medium term goals expected to run for 2-5 years, I save in a SACCO. For long term goals expected to run for more than 5 years, I store value in assets such as land. I previously used to save in mobile money wallets and my regular bank account but found these methods to be highly ineffective. As long as the money was just a 4-digit pin away, I would always find myself taking care of “emergencies”.
Entrepreneurship versus employment: I would be tempted to say entrepreneurship because I have never been employed. However, I appreciate the fact that not everyone is cut for entrepreneurship, as equally, not everyone is cut for employment. Building a successful business is just as tough as building a successful career. It takes time, patience and determination. Whichever works for you, give it your all, and learn the ropes from peers and mentors.
Escrow Kenya: This feature on Robert Kamaru was first published in the Saturday Magazine.