Lucrative businesses to try out after the lockdown

Now more than ever before, the reality of starting a side hustle makes more sense than it used to.

Those in the formal and informal sector have all been hit hard and many are making new strategies of saving and investing.

Fred Muhumuza, a senior economist says it is important for everyone to invest in a lucrative business to supplement incomes and cater for extra bills.

He, however warns that investment without making enough research is a risky venture.

“Find out if the kind of business you want to venture in is an essential category or it is something that will be closed the next day when another pandemic occurs,” he cautions.

Muhumuza says calculations must be made to ascertain the purpose of the business and returns on investment per month.

“Is the business aimed at meeting your day-to-day or monthly needs? If the purpose is to obtain school fees, invest in a business that will generate money within a period of three to four months. Investment must be driven by the business objective,” says Muhumuza.

Rentals
Other than constructing apartments, rentals is a good investment, according to Dr Muhumuza. “By the time you complete a three bedroomed house from which you expect to generate Shs500,000 every month, another person will have his or her five rentals where tenants will be charged Shs200, 000 for each rental unit,” he says.

He adds that it is easier and faster to secure occupants for rental units than bungalows or apartments, something that brings in quick returns.

Boda bodas
Despite the menace boda bodas cause, Muhumuza reveals that they are a good investment that comes with some commercial value.

“A brand new motorcycle costs Shs4million while a used one will go for about Shs3million or less depending on the condition. If your boda boda pays off Shs20, 000 everyday, the owner will collect Shs600, 000 every month. In a period of eight months, one will have covered the Shs4m,” he mentions.

Retail or whole sale shops
These are competitive, but you must be different from what others offer to ensure clients keep coming to your outlet. However, Muhumuzi discourages investing in mini supermarkets.

He says: “I would not advice someone to set up a mini supermarket because it is costly and people are usually buying products with less profits yet rent is high. In doing business, you must minimize capital in order to realise profits.”

As you long to start your side hustles, be mindful of the state of the market and set up the business for the clients not for yourself.

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