How to beat the credit crunch
Apr 24, 2009
RECENTLY I was discussing with friends the extent to which the credit crunch has impacted on both our pockets and bank accounts. I realised that we were all rehearsing the same phrase: The cost of living has gone up.
By Agnes Kyotalengerire
RECENTLY I was discussing with friends the extent to which the credit crunch has impacted on both our pockets and bank accounts. I realised that we were all rehearsing the same phrase: The cost of living has gone up.
“My salary is no longer enough to take me through out the month,†complained Vivian Mugerwa a 25-year-old corporate employee. “I can barely foot bills at the same time remain remain with some money to save, yet I do not have dependants to take care of,†said Muhumuza, another corporate worker.
Just like Mugerwa and Muhumuza, hundreds of corporate people are finding it difficult to survive on their salary alone. As a result they can neither save nor foot their bills. But the question remains, how does one survive amidst the dilemma of the credit crunch?
According to Charles Ocici the Executive director Enterprise Uganda, the credit crunch is an awakening point to the corporate employees. “One should not depend on the salary as the only source of income. Let your salary savings be a starting point for setting up a side business to sustain you in case your cheque stopped coming,†Ocici advises.
Some corporate employees have already taken the point. Julian Ahabwe is one them. Besides working as a contributions officer for a firm in Kampala, Ahabwe has set up a venture to earn him an extra shilling.
Being a full time employee, Ahabwe chose to go with a business that he could comfortably juggle with his job. He went into the car rental business.
The 29 year-old is the managing director of H & A international, a car rental company dealing in transportation. He got the idea in May 2007 when, with his elder brother Dick Habomugisha, arranged and bought a Benz. The cost of buying and transporting plus taxes was about sh30m.
Ahabwe explains that to clear the taxes, they got a loan from a financial organisation in Kamwokya. Determined to pay off the loan, Ahabwe volunteered to drive the car and would also hire it out at dry lease (without fuel) to bridal teams over the weekend at a cost of sh300,000. Within five months, they were able to pay off the loan.
With consistent savings and acquisition of good business skills, Ahabwe was able to acquire a second vehicle.
In October 2008, H & A International was born and was registered as a company under the names of Mr. and Mrs. Habomugisha and Ahabwe as directors.
“Having realised good business in bridal cars, we decided to acquire another bigger loan to expand the business.†explains Ahabwe.
Today H& A has 11 cars. He explains that rates for a Benz range from sh200,000 to sh350,000, while rates for other cars range between sh12O,000 and sh15O,000 per day.
Ahabwe says that there is no profit at the moment. “I would say I am not earning profit at the moment but once we have finished paying off the loan we shall have a big smile.â€
He says middlemen who charge a lot of money and discourage clients are another challenge.
However, Ahabwe attributes the success of the business to financial discipline and determination. “Since we bought the cars, I have changed tyres once and I have to do regular car services,†explains Ahabwe.
Like any other business, Ahabwe explains that competition is very stiff. However, being a managing director, he is also very aggressive in getting clients. For example, they go to wedding meetings to get clients.
He reveals that business is at its peak from October to January. In February and March, they look for individual clients who want car rental services.
Ahabwe says they have also taken their services to places like Jinja, Mbarara, Kasese, Fort portal, Kabale and Mbale. He however says the rates for upcountry are higher due to fuel costs and the wear and tear.
He says running a business takes extra time. “I put in extra time, especially after 5:00pm and weekends to run my business,†said Ahabwe.
He reveals that he does not sleep for more than four hours a night. For example his day begins at 4:45am and by 5:30am, he is already in his office going through records for the business. At 7.00am, he goes to his place of work.
Ahabwe is a young corporate worker who is very ambitious and inspiring. Apart from the car rental business, he has also ventured in piggery.
He explains that the piggery which is located on Mityana road, started as a domestic animal keeping activity while he was in senior four.
He says he was inspired by his father who bought him two piglets that have since multiplied.
RECENTLY I was discussing with friends the extent to which the credit crunch has impacted on both our pockets and bank accounts. I realised that we were all rehearsing the same phrase: The cost of living has gone up.
“My salary is no longer enough to take me through out the month,†complained Vivian Mugerwa a 25-year-old corporate employee. “I can barely foot bills at the same time remain remain with some money to save, yet I do not have dependants to take care of,†said Muhumuza, another corporate worker.
Just like Mugerwa and Muhumuza, hundreds of corporate people are finding it difficult to survive on their salary alone. As a result they can neither save nor foot their bills. But the question remains, how does one survive amidst the dilemma of the credit crunch?
According to Charles Ocici the Executive director Enterprise Uganda, the credit crunch is an awakening point to the corporate employees. “One should not depend on the salary as the only source of income. Let your salary savings be a starting point for setting up a side business to sustain you in case your cheque stopped coming,†Ocici advises.
Some corporate employees have already taken the point. Julian Ahabwe is one them. Besides working as a contributions officer for a firm in Kampala, Ahabwe has set up a venture to earn him an extra shilling.
Being a full time employee, Ahabwe chose to go with a business that he could comfortably juggle with his job. He went into the car rental business.
The 29 year-old is the managing director of H & A international, a car rental company dealing in transportation. He got the idea in May 2007 when, with his elder brother Dick Habomugisha, arranged and bought a Benz. The cost of buying and transporting plus taxes was about sh30m.
Ahabwe explains that to clear the taxes, they got a loan from a financial organisation in Kamwokya. Determined to pay off the loan, Ahabwe volunteered to drive the car and would also hire it out at dry lease (without fuel) to bridal teams over the weekend at a cost of sh300,000. Within five months, they were able to pay off the loan.
With consistent savings and acquisition of good business skills, Ahabwe was able to acquire a second vehicle.
In October 2008, H & A International was born and was registered as a company under the names of Mr. and Mrs. Habomugisha and Ahabwe as directors.
“Having realised good business in bridal cars, we decided to acquire another bigger loan to expand the business.†explains Ahabwe.
Today H& A has 11 cars. He explains that rates for a Benz range from sh200,000 to sh350,000, while rates for other cars range between sh12O,000 and sh15O,000 per day.
Ahabwe says that there is no profit at the moment. “I would say I am not earning profit at the moment but once we have finished paying off the loan we shall have a big smile.â€
He says middlemen who charge a lot of money and discourage clients are another challenge.
However, Ahabwe attributes the success of the business to financial discipline and determination. “Since we bought the cars, I have changed tyres once and I have to do regular car services,†explains Ahabwe.
Like any other business, Ahabwe explains that competition is very stiff. However, being a managing director, he is also very aggressive in getting clients. For example, they go to wedding meetings to get clients.
He reveals that business is at its peak from October to January. In February and March, they look for individual clients who want car rental services.
Ahabwe says they have also taken their services to places like Jinja, Mbarara, Kasese, Fort portal, Kabale and Mbale. He however says the rates for upcountry are higher due to fuel costs and the wear and tear.
He says running a business takes extra time. “I put in extra time, especially after 5:00pm and weekends to run my business,†said Ahabwe.
He reveals that he does not sleep for more than four hours a night. For example his day begins at 4:45am and by 5:30am, he is already in his office going through records for the business. At 7.00am, he goes to his place of work.
Ahabwe is a young corporate worker who is very ambitious and inspiring. Apart from the car rental business, he has also ventured in piggery.
He explains that the piggery which is located on Mityana road, started as a domestic animal keeping activity while he was in senior four.
He says he was inspired by his father who bought him two piglets that have since multiplied.