One of the greatest challenges I have faced in my time as an entrepreneur is what to do after a large paycheck. Surprised? I was too at first , and it's even worse if you have been waiting for that payment for some time. With money in the bank, you rationalise with yourself of the 1001 things that need to be purchased, and they all demand high priority allocation.
Of course, this is a psychological condition that can easily be averted by careful planning beforehand. When it happened to me I tried to avoid the extravagance that accompanies large income inflows by investing the money as quickly as I could.
When SoftLaw sold the laws of Kenya to the judiciary I discovered why having the government as a customer can be very rewarding. Relatively prompt payment, many zeroes in the payment, and a very appreciative customer.
With our newly expanded bank account, we knew that we had to quickly invest the funds or we would be sucked into a vicious and wasteful consumption given our still University of Nairobi residential address and crushing social expectation to bling. Genius Executive Centre (www.geniuscentre.com) helped to mop up these excess funds and assured that in future we would have a relatively stable and recurrent income.
My only regret is that in our rush to dispose ourselves of excess funds we also made several investing faux pas: like putting up several quarter page ads in the media when classifieds would have done the trick; importing sophisticated PABX machinery from Europe when locally available equipment was sufficient and leasing furniture instead of buying. Fortunately we were able to correct most of these as we went on.
One thing we have not yet done but have always wanted to do is expand to other locations. Setting up a business centre however is a costly affair, and to finance our expansion we have decided to sell the future rights of income for two-thirds of Genius Executive Centre.
Here is the ad as it appears in today's Daily Nation back page
By leveraging the future income of the offices at GEC we intend to expand to Nakuru by mid this year and Eldoret before the end of the year. Admittedly this is a new concept in Kenya but that is what SoftLaw is all about, pioneering.