Expansion does not guarantee that customers will immediately come in and increase sales.
I am 34, a single mum of two. I own a small kibanda at a matatu stage in partnership with a childhood friend who is also a single mum. On a good day, we make a profit of between Sh1,500 and Sh2,000 which we divide between us.
We would like to scale up, get a bigger space, introduce more dishes and set up a smart TV for news and entertainment. All this costs money and will require us to hire at least two workers.
Our initial estimates place the expansion capital at a minimum of Sh300,000. I have savings of Sh40,000, which I have saved over two years . My partner has Sh25,000. We have put our savings in a microfinance account for women but we don't think we are getting any value as we don't earn dividends.
We have thought of Sacco but we are afraid of choosing the wrong Sacco. We also don't have guarantors who can guarantee our loan. Please advise us on how to raise the capital we need to expand our business and how to manage and grow our savings more productively. We would like to expand before June this year. Is this achievable?
Muthoni Njakwe is an accountant and the author of personal finance book Her Shilling, Her Power: A Woman’s Guide to Financial Freedom.
Josphine, building and sustaining a profitable business while raising children, especially as single mums, is no small feat. It speaks to your resilience, discipline, and determination. As you look toward expansion, remember this: you don’t have to wait for one big breakthrough to grow. True progress comes from small, intentional steps taken consistently. Focus not just on expanding, but on building a stable and sustainable business that will continue to uplift you and your families for many years to come.
Mindset and goal
Is expanding by June realistic? The answer is yes, but not if you rely solely on your savings. Your current savings stand at Sh65,000, and your daily profit ranges between Sh1,500 and Sh2,000. Even if you saved the full Sh2,000 every day, it still wouldn’t be enough to reach Sh300,000 by June.
Taking a loan at this point is also risky.
Expansion does not guarantee that customers will immediately come in and increase sales. This means the profit you currently earn could end up going toward repaying the loan instead of growing your business.
That’s why the first step is for you and your partner to agree not to chase the full Sh300,000 expansion immediately. Instead, focus on growing your business in stages. Start by making small, well-planned improvements that can increase your daily profit.
Once your income rises, you can gradually expand using your business growth, not just borrowed money. By approaching it this way, you will reduce pressure, make smarter decisions, and create a stable, sustainable business that can grow over time.
Start by tracking your business
Before making any changes, begin by tracking your business for at least 7–14 days. Record your daily sales, costs, and actual profit, not estimates. Take note of your busiest hours, slow periods, and best-selling items. This will give you a clear picture of where your money is coming from, where it is going, and which areas have the most potential for growth.
By tracking your business carefully, you will know which menu items generate the most profit, identify peak and slow periods, and see exactly where money may be leaking due to waste or unnecessary expenses. This information will help you plan staffing, menu additions, and upgrades with confidence, based on real data instead of guesswork.
It shows you exactly what works, what doesn’t, and where you can grow without taking unnecessary risks. Once you have this picture, set up a simple system for handling money. Use a dedicated M-Pesa line or a strict notebook system, and ensure every shilling that comes in or goes out is recorded.
Phase 1: Low-cost upgrade
The first step is to focus on small, practical improvements that can make a big difference without draining your savings. Start by improving your sitting area with simple benches and tables. It doesn’t have to be fancy, but a clean, organised space makes customers feel comfortable and encourages them to stay longer. Next, introduce one high-demand dish like pilau or fish, but not both at once. Pilau is easier to prepare in bulk, sells quickly, and can increase your daily sales without overwhelming your kitchen.
Invest in clear signage and a menu board so customers know exactly what you offer. Finally, consider adding a basic TV, even a small second-hand one, to keep customers entertained while they wait or eat. These upgrades can cost between Sh26,000 and Sh40,000, depending on what you already have, and they can boost your daily profit by 30–60 per cent. These are small, manageable changes that can immediately improve sales, attract more customers, and set a solid foundation for bigger expansion later.
Phase 2: Gradual expansion and hiring
Once your initial upgrades are running smoothly and your daily profit has started to increase, you can begin expanding carefully and gradually. Start by hiring one worker to help with cooking or serving, especially during your busiest hours. Hiring too many people too soon can strain your finances, so begin small and train them well to maintain the quality of your food and service. At the same time, slowly expand your menu by adding a second high-demand dish, such as fish. Introduce new items one at a time so you can manage preparation efficiently and maintain quality.
As your team and menu grow, continue to monitor daily profit, expenses, and cash flow closely. Use the extra income generated from your small upgrades to fund these changes rather than taking a large loan. This phased approach will allow your business to grow sustainably, attract more customers, and gradually prepare for bigger investments, like moving to a larger space.
Phase 3: Scaling up and full expansion
Once your business is generating stable, higher daily profits, it’s time to plan for full-scale expansion. You can consider moving to a slightly larger space or improving your current area with better seating, organised serving stations, and improved storage or kitchen equipment. Taking a loan is not necessary at this stage and can be risky. Focus on using profits from your business to fund growth; loans should only be considered once your business is very stable and can comfortably cover repayments.
If demand is high, hire a second worker, but only after the first hire is fully trained and managing responsibilities. Gradually introduce additional menu items one at a time to meet customer demand while maintaining quality and controlling costs. You could also consider outside catering as an additional revenue stream. Start with small orders for events or weekend gatherings using dishes you already prepare well. Track costs and profits carefully, and scale only when you’re confident you can manage both in-house and catering orders without compromising quality.
Track your progress
Regularly review your finances and track your daily profit, costs, and sales trends. This will show you what is working and where you can improve. Use the extra profits to buy better equipment, improve storage, or make small renovations that make your space more welcoming and hygienic. You can also try simple promotions or specials during slower periods to attract more customers and increase sales. Keeping a close eye on your numbers and reinvesting carefully ensures your business grows steadily, without unnecessary risks.
Josphine, by thoughtfully improving your space, enhancing your offerings, and scaling carefully, you will build a resilient and sustainable business that not only supports your family today but continues to grow and thrive for many years to come. Keep taking each step carefully, celebrate the small wins, and trust the process.
If you have any money problems, send us an email at [email protected] and leave your number for contact. Money questions will be answered on this column.
