I am jobless. Should I close my Juakali business or not?

I am jobless. Should I close my Juakali business or not? Photo | Photosearch

What you need to know:

Should I withdraw my savings of Sh150,000 to restock the business or should I just close this business?

My name is David. I am single. I have a small Juakali business that is yet to break even. I am currently jobless, and most of the time, I end up using the business money meant for restocking when I am jobless. When I get jobs, I usually pay it back. The business is not making profits but it is able to pay its own rent of Sh14,000 and pay the person I have employed, Sh10,000.  I have now been jobless for three months. I have saved Sh150,000 in my account. I have been using revenues from the business when jobless. Now I have no stock. Should I withdraw my savings of Sh150,000 to restock the business or should I just close this business?


Paul Muhami, a financial coach at Empower Advisors Ltd.

Your Juakali business is able to generate a surplus of at least Sh24,000 every month over its operating capital. This translates to surplus revenue of Sh288,000 per year. However, your inability to sustain a job outside this business and the regular withdrawal of the operating capital means that the surplus income will gradually thin out. Without sufficient operating capital, your business shall run out of stock and the ability to pay its rent and employee. Mark you, it will not withstand heat from competition. An analysis of your figures shows that you have managed to save Sh150,000 outside the business. However, your consumptions have been drawing from the business. This implies that you have no emergency kitty.

1). Start by drawing a personal and business budget. These two must be independent of each other. In your personal budget, outline the essentials you need to pull you through your jobless season. That you have savings of Sh150,000 means you can generate income independently of the business. Live within your means and set a mandatory emergency fund so that you don’t need to dig into business funds in future.

2). Do an analysis of the business. What was your start-up capital? How much is invested in the business to generate Sh24,000? What is the room for expansion? The answers to these two questions will determine if the venture is worth it.

3). Repay the debts you have taken from the business by withdrawing part of the Sh150,000 savings to restock. This will safeguard business survival as you do the analysis on its viability. Unless the business requires a skill that you don’t have, and given your joblessness status, it would be wiser to run it yourself and live off the Sh10,000 wages you pay out. Remember, you have an employee but are jobless yourself. The whole idea of a business is to solve problems profitably by cutting unnecessary expenses while increasing revenues. Use the business to launch more products and tap in more customers, while holding your operating costs down. If you don’t have the skills and must employ someone, don’t stay idle. You can boost your revenues by offering to distribute your products or marketing your products with offers such as home-deliveries. Every additional customer you get is an added revenue value to you the venture.


If you have any money problems, send us an email via [email protected] and leave your number for contact. Money questions will be answered on this page.


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