This feature was first published by the Nation Media Group.
It is uncommon that someone in their right frame of mind would be willing to lose all their worth in a single throw, for whatever reason. But that is exactly what Lawrence Kagema, 25, did while he was still a student at the University of Eldoret in 2014.
Most college students are disposed to explore any thinkable avenue to enliven their life in the university, and make it a bit of a thrill too. Without doubt, sporting elegant electronics, snazzy outfits and leading a “cool” life is the dream of most students, and even a priority to others.
But during his time in college, Kagema was cut from a different cloth.
While his colleagues were busy relishing the delights of university life, he was determined to raise capital for his business, albeit through the most unorthodox route.
“I was in Third Year when I sold my beddings, dishes, gas cylinder and even my smartphone. I disposed everything I had and I spared only what I needed for survival,” recollects Kagema.
But even as he cashed in on his belongings and moved in with a friend, the Sh40,000 that his belongings had fetched was only enough to register his business — Spectacular Living International Limited — and to produce a handful of fliers to market his new business. But the thought of giving up never crossed his mind.
“Most people have a misguided notion that you should start a business when you have the perfect conditions, which is unrealistic. I started with whatever I had. Moses used what he had; a stick to part the waters of the Red Sea. You can never use what is not within your reach; otherwise you will never get started,” says Kagema.
Kagema, who was studying for a Bachelors degree in Finance, would use any free time to market his new business in Eldoret town.
He would traverse the town meeting people and asking them to invest their property with his property management firm, which he was running singlehandedly without an office or a mobile phone to coordinate activities.
It is intriguing, however, why an investment greenhorn would bet his bottom dollar on an industry that is sometimes hostile even to seasoned entrepreneurs with huge financial muscle, people with a deep understanding of the dynamics of the property market.
“I had a childhood fascination with building structures. I may not have been lucky to study architecture, but I wanted to be involved with construction at some point in my life,” he says, adding that some people often go into business for the wrong reasons.
“You must have a sentimental attachment to a particular type of business to invest your money in it. Otherwise disappointment may be inevitable.”
One year later, the business began to gain a strong foothold in the property market of the South Rift town. However, Kagema completed his studies, and had to move back to his home in Mombasa. Therefore, the business had to either relocate, or fold up. “It was a bitter pill having to leave behind clients I had fought hard to get. We were moving into a new market, to start with baby steps all over again,” he says.
Having begun only as a property management firm, today, Spectacular Living International has diversified into numerous other services, and according to Kagema, dividends are now trickling in. “Project development, purchase and resale of property is our core business. Some people have the money, but they do not know how to invest it. Others have land but do not have the slightest clue on how to utilise it,” he says.
The firm also offers consultancy services to investors who want to develop property but lack the understanding of the workings of the real estate industry. “We hold our clients’ hands from conceptualisation of an idea to the time we hand them keys to their complete homes,” he notes. With absolutely no training in the real estate industry, Kagema and his team rely heavily on research to understand and tailor their services to demands of the market.
“We get monthly earnings of between Sh200,000 to Sh500,000, and sometimes up to Sh1 million. Besides myself, Spectacular Living International Limited has five employees and a host of agents who work on a task basis. We now have the Costal market within our grip, something we only thought was a dream three years ago.”
In his determined incursion into the multi-billion shilling industry, Kagema and his team have set up a base in Nairobi, which they hope to fully operationalise soon.
“Nairobi is the boiling pot of the property industry. The market in the city is robust and we hope to break into it in the next few years,” he says.
In property business, Kagema emphasises that reputation is critical. He says that previous clients who put in a good word about their firm have helped them earn more customers.
Lest you imagine that entrepreneurship is the surest path to instantaneous riches, you may be in for a rude shock, as Kagema warns. “Business may not earn you ridiculous amounts of money as we get to hear every day, but certainly there is contentment in doing what one loves.”
To those who wish to try their hand in business, Kagema has some advice: “Starting small is a blessing in disguise. You learn the importance of restraint in your expenditure. Someone whose enterprise was founded on budgetary constraints cannot afford to be wasteful when they finally start making money.”