Lessons these entrepreneurs learnt on keeping businesses afloat despite suffering losses

Succeeding in business is the dream of every individual with an entrepreneurial mindset.

Starting a business typically begins with an idea, though some argue that having capital first can inspire ideas. Regardless of the starting point, proper management is essential for turning that idea into a thriving enterprise.

As the year ends and a new one begins, it is the perfect time for entrepreneurs to evaluate their progress and goals. Did you achieve what you set out to do?

While profit-making is the ultimate goal, every business faces inevitable challenges, including losses.

We look at some entrepreneurs we encountered in 2024 and their insights on navigating losses.

Garden Mushrooms

Dennis Macharia, the proprietor of Garden Mushrooms in Kiambu, specialises in cultivating white button mushrooms.

Over the past five years, his business has grown into a major supplier of high-end hotels and select supermarkets in Kiambu and Nairobi.

However, his journey has been far from smooth. Before venturing into mushroom farming, Mr Macharia faced numerous challenges cultivating crops like coriander and cabbages.

He struggled with market accessibility, often relying on middlemen, significantly reducing his profits.

Similarly, his venture into poultry farming was nearly crippled by the high cost of chicken feed. Even after transitioning to mushroom farming, Mr Macharia encountered significant losses due to his lack of expertise.

Early on, he lost mushrooms worth Sh150,000 because of improper growing practices. A pest infestation caused by flies added another Sh44,000 in losses in a single day.

Despite these setbacks, Macharia’s persistence paid off. He emphasises the importance of viewing losses as opportunities to learn and grow.

“Losses teach you what not to do and guide you toward what works,” he says.

These experiences taught him that thorough knowledge and preparation are essential before diving into any venture.

Mr Macharia compares mushroom farming to technology, noting that constant research and upgrading of knowledge are necessary to remain competitive.

“It’s like our phones; you have to keep upgrading to stay relevant,” he explains.

To enhance his skills, he began attending annual agricultural summits, gaining invaluable insights from experts and experienced farmers doing mushrooms.

Another critical lesson was the importance of market positioning.

Mr Macharia invested in professional packaging and clear labelling to make his products more appealing and traceable. This strategy, combined with respecting and motivating employees, has been instrumental in his success.

Today, Garden Mushrooms is a testament to resilience, innovation, and the power of learning from failure.

Read: Farmer finally reaps success in mushroom

Mr Macharia’s journey inspires aspiring entrepreneurs, proving that perseverance and adaptability can lead to extraordinary success.

Ubuntu Kreative Village

Elijah Oenga, the founder of Ubuntu Kreative Village in Kajiado, exemplifies adaptability and visionary leadership.

Established in 2017, his eco-lodge features diverse facilities, including cottages, wellness stations, a swimming pool, event gardens, a farm, and a music and art gallery.

Transforming arid land into a thriving hub, Mr Oenga’s journey has been fraught with challenges.

Before Ubuntu Kreative Village, he suffered losses exceeding Sh6 million from ventures like strawberry and tomato farming, capsicum cultivation, and kuroiler-breed chicken rearing.

Mr Oenga attributes his resilience to maintaining a positive mindset. “A positive mindset allows you to navigate both profits and losses without losing sight of your identity. You are more than a balance sheet,” he says.

This perspective helped him focus on long-term goals despite short-term setbacks. For Mr Oenga, inaction is riskier than failure.

“Think, analyse, strategise, but above all, start,” he advises.

He believes that progress, even amidst uncertainty, is essential for success. His willingness to embrace movement and risk eventually led to the success of Ubuntu Kreative Village.

Flexibility and risk tolerance are other critical lessons Oenga shares.

“Everything you undertake is a risk,” he notes, comparing rigid individuals to brittle glass, strong in appearance but easily shattered under pressure.

Through innovative and sustainable practices, Mr Oenga turned the barren land that his father left him into a profit-making business.

Joyful Birds Self-Help Group

Founded in 2012, the Joyful Birds group in Soweto, Kayole, Nairobi, demonstrates perseverance in adversity.

The 21-member poultry farming group aims to meet the growing demand for poultry products.

However, its journey has been riddled with challenges.

Disease outbreaks and floods resulted in the loss of over 250 birds.

Their situation worsened in April 2024 when government demolitions near Nairobi rivers forced them to relocate, leading to the loss of over 500 hatching eggs and critical equipment. For the entrepreneurs, they choose the wrong location.

The group’s chairman, Timothy Malasi underscores the importance of preparing for uncertainty.

“Poultry farming can take you from grace to grass in an instant,” he says.

This lesson motivated the group to improve biosecurity measures and establish contingency plans.

Another crucial takeaway was avoiding shortcuts. Initially, the group chose a cheaper location near the Soweto River, which ultimately proved costly.

“Always go for the right option, even if it is expensive,” Mr Malasi advises.

This principle guided their relocation to a new two-storey facility in Kayole. Despite at one point running the farm for an entire year without income, the group’s collective determination helped them rebuild.

Today, their flock exceeds 650 birds. Mr Malasi encourages others to invest in quality, prepare for uncertainties, and value hard work and sacrifice.

Each of the entrepreneurs embodies the spirit of perseverance, showing that with the right mindset, one can navigate the inevitable challenges of entrepreneurship and achieve long-term success.

Amagoh Farm

For many, dorper sheep farming is seen as a definite money-spinner.

Bernard Njaramba who has been in this business for 13 years pegs his success on many things but the often-ignored one is having workers who know the business or the type of animal you are keeping.

Located in Kantafu, a few kilometers from Malaa Shopping Centre on Kangundo Road in Machakos, his farm Amagoh Dorper Stud focuses on breeding Dorper sheep, a hybrid breed known for its resilience to harsh weather conditions.

Driven by his love for livestock, Mr Njaramba had initially tried raising other animals like gala goats and cattle but found that his passion for Dorper sheep outweighed all else.

From just five Dorper sheep, and over the past 12 years, he has grown his herd to over 500 sheep.

Mr Njaramba, who quit a lucrative job in the telecommunication sector to pursue his farming passion, recommends starting small and growing gradually.

“I started small, and that is what I recommend to others,” he advised.

Mr Njaramba emphasizes that having knowledgeable workers is crucial to business growth.

He also highlights the importance of leveraging technology in business.

As an avid user of social media tools, he markets his farm’s products and services online, which has helped expand his reach.

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