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Leaving a bank job for the salon business seemed like a crazy idea
Margaret Nakato together with her sister Maria Babirye, pooled resources to start a salon business. PHOTOS | PHIONAH NASSANGA
What you need to know:
- After working as a banker for many years with nothing to show for her sweat, Margaret Nakato decided to pool resources with her sister Maria Babirye to start a salon, whose clientele has grown exponentially over the years. Natural hair is their niche and they making a fortune out of it.
After handing in her resignation letter, Nakato’s bosses, workmates and family thought she was crazy. Her workmates wondered then, who in the world quits their bank job to venture into a salon business.
Even with lots of unsolicited advice, Nakato was not about to change her mind. With her twin sister’s support, she was ready to cut her teeth in business.
“When I decided to quit, my family and friends were concerned. My mother asked me to seek advice from my uncles who had ventured into the salon business. But I decided to shut all voices and remain focused,” she reveals.
Prior to starting Afros and Mo, Nakato had worked in the banking institution for nine years. She says for the six years she served as a teller, all her workmates were being promoted, something that made her feel cheated and unappreciated.
She was later transferred to the inquires desk, and she wondered if she was growing in her career because from the time she joined the bank, hers was always a front desk.
After contemplating what to do next, she was poached by someone in DHL-a shipping company, to work as their customer retention manager. However, after passing the interview, she says a voice came to her questioning why she was leaving the banking sector.
“But God wanted me to stay where I was. And letting me serve the front, He was training me how to relate with the different people.”
Without giving it a second thought, Nakato rejected the offer and asked to be posted at the customer call centre.
Turning point
Nakato’s turning point came when she was posted at the customer call centre in 2012. Unlike her previous assignments, at the call centre, work was done in shifts. She had a lot of free time which prompted her to think of a side hustle.
At that moment, she thought of opening a boutique and during her absence, her mother would chip in. Meanwhile Nakato was brainstorming with her sister in the US on what business venture to invest in.
A salon for natural hair was an idea that they both thought would work. In 2011, Babirye decided to cut off her relaxed hair to go natural.
“Initially, my sister and I had long, nice relaxed hair and each time we walked the streets of Kampala, many turned to take a second look, but after two years of going natural Babirye was now the twin with attention,” she recalls
In the US, Babirye got a chance to learn about products that would help in managing natural hair. In 2013, Nakato also cut off her hair.
Transition
Nakato says she learnt how to manage natural hair on YouTube and at that point, she was ready to start a salon business.
“In 2014, I resigned. I borrowed Shs600,000 from a friend. Babirye raised Shs700, 000 and this was our starting capital. We rented a small room at Equatorial Mall, started with two mirrors, one old sink and a small water tank because the room did not have a water system,” Nakato says.
But like many startups, getting clients did not come easy for the duo.
“When someone starts a new business, they expect friends to be their first clients. But my first clients were those that were following my sister on the Fablane blog, watching her DIY inspired many, and each time they asked where they would go, she would give me them directions and my contact,” she says.
From two different continents, the two sisters have built a successful salon business from scratch. They say determination and commitment has brought them this far.
In December 2014, Babirye returned from the US and started attracted many of followers to the salon.
During workdays, she would earn between Shs400, 000 to Shs500, 000 and over the weekend, they would make even Shs1m. In a period of six months, their clientele had outgrown the space, something that prompted them to secure bigger space.
“In a period of two years, the number of clients was overwhelming. Clients were waiting from other tenants’ corridors. Our business had grown beyond our expectations and new adjustments had to be made,” she says.
And as luck would have it, one of the tenants at Equatorial Mall then, was selling her well-equipped salon, an opportunity Nakato could not miss because it had all the equipment they needed.
Branding
It is here that they came up with the salon name Afros and Mo. Nakato’s sister went back to the US, managing the social media pages and sending all the needed quality hair products.
“When I joined this business, my aim was to create a good environment where clients’ would be treated to quality hairstyles. I also needed a salon where employees would not gossip over the client’s head,” she explains.
When joining business, Nakato’s area of interest was natural hair. Knowing who her target clients were, Nakato made sure every client that walked in her salon would act as their billboard.
“I employ more than 10 people. With the big space and equipment, I thought it would take me 10 years before shifting to another place. But I was wrong. Six months down the road, clients had started complaining about the congestion.”
Financial management
In 2018, Nakato took another leap of faith. She decided to shift from downtown to uptown. Today, she occupies an entire floor at Mukwano Courts with 34 workstations.
Being the chief executive officer and her sister managing from a distance, Nakato had to come up with a structure to manage the inflow and outflow of income.
From a simple salon, she created departments and registered the business.
“Although Babirye is in the US, she heads the marketing department. She looks out for new hair, suppliers and shippers.”
Challenges and achievements
“The labour market is still a challenge. We invest a lot in training workers and when someone has mastered the skill, before you know it, they are leaving. Operational costs are also high,” says Nakato.
Today, they employ 100 staff. They both attend hair expos in different countries and have their own production line. Every product used by their clients is researched and made by them. Today she earns Shs2m per month and for the past two years, this has been coming with dividends.
