🙌 Week 4 Biz' Class Assignment: Kupiga Hesabu Kwa Biz

This is the heart of your business model. When you understand the math, you’ll know whether your idea for a biz is viable and how to grow it.

JAMES

WAMBO

Money hu-matter sana business. And if we're being honest, it's the most important part!

Without a clear understanding of your costs, revenue and profits, ni hard sana ku-make informed decisions about pricing, scaling, or budgeting. Kujua numbers zako also helps you ku-identify areas zacut costs or increase your revenue.

Kwa hii step, we want you to create a simple business model. Here's how to go about it:

1. List down your costs. How much do you spend?

2. Calculate your revenue. How much you charge?

3. Calculate your Profit. How much do you make?

Andika kila kitu it takes to run your business—materials, transport, fees, utilities, and even your time.

Kuna two types of costs unafaa kujua about and include- fixed and variable costs.

For example, James has fixed costs like his cooking equipment— gas cooker, jiko, pressure cooker and sufurias. These stay the same no matter how many meals he sells. His variable costs, like ingredients, and packaging, change depending on how many orders he gets.

Wambui also has fixed costs, such as her laptop and internet, which she pays for whether or not she has clients. Her variable costs, like printing or running ads, change depending on how much work she has.

Ku-set the right price kwa biz yako ni crucial. It needs to cover your costs, be competitive in the market, and leave you with a profit.

Time unaset prices zako, consider 2 key things:

-Market Rates: Kama kila mtu anauza chapatis for 50 bob, huwezi charge 100 bob unless chapo zako ni special— labda kuna premium ingredients umetumia ama a unique recipe.

-Customer Willingness to Pay: Target customers wako wanafaa ku-feel the price is fair. Lunch imekuwa delivered to wasee pale kwa offisi may cost more than food ya kibandaski pale kando ya barabara.

Let’s say James is selling chapatis in his business. Here’s how he can calculate the price of his chapos:

-He spends 30 bob to make one chapati (flour, oil, gas).

-If he sells it at 50 bob, his profit per chapati is 20 bob.

-His goal is to make 1,000 bob in profit from chapos per day. This means that he needs to sell 50 chapatis per day (1,000 ÷ 20 = 50).

Once umeanza ku-sell, pay attention to

Customer feedback: Customers wako happy with the price, or do they hesitate? Hii itakushow whether your prices are too high, too low, or just right 👍

Cost changes: The prices of things we need to run our biz changes from time to time. For James, bei ya unga na mafuta ikipanda and if other ingredients get expensive, he will need to adjust his prices or find ways to cut costs.

Pricing ni kuwa na balance—too high and you lose customers, too low and you don’t make enough to survive. Keep testing and adjusting until you find the sweet spot! 🚀

Profit ni doh una-take home after covering all your costs. It’s what remains after subtracting your expenses from your sales

👉 Profit = Total Revenue – Total Costs

Sasa ni turn yako ku-create your own business model in three steps:

1. What are your costs? List down both your fixed and variable costs.

2. What do you charge? Set a Price for how much you charge, and the revenue you make.

3. How much do you make? Calculate Your Profit.

Join live online session yetu ku-discuss business models and ideas with fellow MESHERS and mentors!

🗓 Date: 13th February 2025

🕒 Time: 3:00PM - 4:00PM

🎤 Guests & Mentors: Guests & Mentors: Perpetua Omare - MESH Host, Content Creator & Business lady,

Mary - Animator, Julio Ogutu - Ice cream Biz.

🔗 Click hii Link to join:

This session is your chance to get feedback and learn from other biz owners- don't miss it!

Next week, we’ll put our biz to the test—finding out what works and what we need to improve.

Ungependa ku-join the MESH Biz'' class and receive notifications each week? Please sign up here

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