Semanda finds wealth in stationery

Mr Simon Semanda has always been into business. Hustling and searching for knowledge have been rewarding experiences for him.
As a child who grew up in Nsambya, a central hill in Kampala, he did many things to keep money in the family’s pocket.
“We struggled here and there, working in the market, selling petty things with my stepmother and father. In primary five, we started a business of selling boiled and fried cassava. When I started senior one, I would leave home at noon after selling whatever was marketable at that time,” Mr Semanda recollects his childhood moments.

Background
He attended high school like other children and fortunately made it to National College of Business Studies in Nakawa in the late 1990s. After graduating with a diploma in accounting and doing a three-year job at Dott Services Limited as an account assistant, he got drawn into the craze of starting a business. He had realised that however good he was, he needed to do something bigger and there was no better way than incorporating a company.
Besides, the key motivation came through after he met his boss at Central Trading Company.
“He told me that if you want to earn money, be self-employed because then you can determine how much you need. Secondly, since I am an accountant, he said accountants cannot make businesses and that they can only make money for others,” Mr Semanda says.
These words stuck as he wondered whether there was any truth to them.

The start
Mr Semanda cofounded Redline Investments Limited, a firm that would later offer engineering services, having worked at Dott Services Limited. His colleague, Mr Fred Bwire, an engineer wanted to join him. He also wanted to provide stationery services, skills he picked during his three-year tenure at Central Trading Company.
In 2005, Redline was formalised in response to Mr Semanda’s thirst for a personal enterprise. The company hardly worked during months that followed because the two partners were cash-strapped. Ordinary share capital was Shs5m but Mr Semanda did not have that either.

“My source of capital was basically intellectual and social because via finances. I did not have a lot. The little money was to assist me to handle paper work,” he says.

With Shs300,000, he completed the required paper work and opened an account for the company. All that while, his hope lay in getting a business deal and identifying a supplier for their clients.

“We almost started like people who earn a commission at that time,” Mr Semanda recounts the hard days.
For the first three years, Mr Semanda concentrated on getting his paperwork right. Since he was running his stationery business undercover, the accountant barely had trouble bringing clients on board.
Luck was on his side as businesses were few. The terms and conditions of starting a business were less stringent then, he says.

He started by pitching his idea to existing clients of Central Trading Company. They asked him to acquire a trading licence, draw a company profile and a business proposal in return for deals.
He got the licence, put up a few shelves along Nkrumah Road and found himself an assistant. His clients were few due to his strategy to work with government. He took on the tactic after realising working with individual clients had a downside.
“They had opened up Juba and we thought we could join a client in supplying him with computers in Juba but we ended up losing our money. Since we had accumulated some capital, we used that little money to pay off our debts,” he says.
Five years into the business, Mr Semanda walked out of formal employment to fully run daily operations at Redline Investments Limited. Today, he has zeroed in on supplying writing materials, office furniture, computers, toners and printing services. Government institutions still hold majority position in his clientele.

Challenges
Redline Investments Limited has survived the tides that kill many Ugandan businesses after two years. These include a fire that broke out at Cham Towers and almost claimed the company’s documents.
Mr Semanda attributes his success to being a stickler for punctuality, customer satisfaction, separating himself from the business and supplying quality goods. Unfortunately, he is not where he wishes to be because his capital is still insufficient. He faces basic challenges associated with training workers and sustaining them. He also admits lacking collateral security to access loans in banks.

Achievements
However, that is not to say he has not achieved anything. Living to see the company to its 12th anniversary brings cheery feelings in Mr Semanda. Over the years, he has developed more than 50 clients. He has trained a good number of workers who have gone ahead to start their own businesses.
In terms of earnings, Mr Semanda will not say how much profit he makes in a good season. He says as an accountant, he does not look at business success in form of money, but how many people he can employ.
“If I can employ 100 Ugandans, I will then say I am successful,” he says, adding that he currently has five workers due to restructuring that came along with the hard economic times.

Why Top 100 SME competition?

Mr Semanda says while he was wondering where Redline Investments Limited is at in the market, the company was privileged to be nominated among the Top 100 Small and Medium sized companies in the country. He says participating exposes the company to the world and has helped it to benchmark itself. The company that emerged 12th last year is now rethinking its systems.
“I am now thinking about coming up with a board because I have to adhere to corporate governance. But before that, I need to develop policies to ensure that I can start to look at our problems critically,” he says.
Mr Semanda seeks to surrender his CEO power as he gears up for his next plan-specialising.

Success tips
If you are to start up a business, do not think about money otherwise you will lack clear objectives.
Business profits are people and not money, so have capacity to engage people.
You should consider customer needs ahead of yours because you are there to serve them.
Be good to your staff because they are internal customers. If they do not enjoy what they are doing, they will not be able to serve the business.

People uplifted by Redline investments Limited

Mr Simon Semanda owns a stationary business in Kampala. His employees share how this stationary business has impacted their lives.

“Business is good in terms of performance because we have managed to maintain and compete favourably with competitors. He is a good manager because I have been with him for some time. He has uplifted me because I have pursued further studies through this company’s sponsorship and learnt more about business,”
Daniel Bakunga, operations

“The business is doing well because we have many clients. We are optimistic about the future. As a businessperson, he can handle challenges that come along. The company has given me an opportunity to work and gain skills,”
Saul Nambale, sales representative

“Mr Semanda is a cooperative, dedicated and business-oriented person. This business has impacted my life because I am paid,”
Bernadette Nakisozi, accounts assistant