This archive report was first published on 8 August 2020.
A way to make Sh. 100,000 monthly from Sh. 1 million capital ¶
David 'Kyrgitt' Kiprono, a seasoned entrepreneur, has shared a plan to turn Sh. 1 million into a Sh. 100,000 monthly income by investing in a guest house. This plan was originally posted on his Flipside forum.
According to Kiprono, the key to making this plan work is to be smart and shrewd in business. He explains that with Sh. 1 million, one can rent out a plot of land with 10 bedsitters and pay the owner Sh. 180,000 as rent and deposit.
After paying the owner, Kiprono suggests that one can use the remaining Sh. 640,000 to convert one of the bedsitters into an office, register a company, and purchase necessary equipment and furniture.
He estimates that the total expenditure for this setup would be Sh. 762,000, leaving one with Sh. 238,000. With this amount, Kiprono suggests hiring staff to manage the guest house, including a security firm, front desk personnel, and ladies to wash linen and clean the rooms.
By selling each room for Sh. 2,000 per night, Kiprono estimates that one can make Sh. 300,000 per month, with the potential to make Sh. 540,000 per month if all 9 rooms are occupied.
He also suggests that one can add breakfast and charge an extra Sh. 200 per person, which would cost nothing to provide.
According to Kiprono, this plan can be replicated outside big cities and can be a win-win for the landlord, the business owner, and the bank.
He concludes by saying that the possibilities are endless and that one can charge more for the rooms, such as Sh. 800 or Sh. 1,200 per night, depending on the target market.
