It was a mistake I made,Keeping too much cash on hand is dangerous, says Jeremiah Gichuki Maina

Jeremiah Gichuki Maina a certified public accountant is the sole proprietor and principal of Maina Gichuki & Associates.

Jeremiah Gichuki Maina scaled 2

I started my career as a Financial Controller. Midrift General Merchants Limited was my first job. This was a pivotal moment in my personal growth. I was able to gain skills that included taxation and financial accounting, as well as business management and development. In retrospect, I see that being employed was a crucial step that every entrepreneur must pass. Working for someone else is the best way to learn certain skills and earn a living.

It’s easy to come up with a business concept. It is hard work to get an idea off the paper and to build a business. It is possible for the business to fail. My favorite moment is when I started, developed, and managed a self-sustaining small business that focuses on an area of my passion.

Cash is a great way to boost your ego when you’re young in entrepreneurship. But it is dangerous. My earnings were easily available when I made money with my business. I kept too much liquid money. People around me and my friends noticed this and began to take out soft loans. It was hard for me to say no when the money was right in front of my eyes. I started lending. Many of the people who borrowed were never able to repay. Friendships were damaged and I sometimes lost both friends and money. I realized that lending to friends was not only risky, but it’s also dangerous to have too much cash in your hand.

Credit cards can be a trap. This is the thing that has caused me the most career-ending losses. When I first started, I would offer my services to clients who promised me a remuneration after the job was finished. The majority of these clients never honor our gentleman’s agreement. This experience taught me that it is safer to receive a downpayment before engaging. Once you are done with the job, it is necessary to ask for payment at delivery. When this becomes your standard, clients will start to take you and what you do seriously. You can make everyone want a piece of your cake if you credit them.

I did not have a bank account before I started. I would keep my money in cash. This resulted in me spending impulsively a lot. I had no savings to show my money after many months. I began to save through banks and the Sacco. I save now through fixed deposit at my bank, a savings and a shares account at Sacco.

The last few months have been tough for everyone. It is now easier than ever for people to give up on their career, business, or money goals. You need to be determined to keep your dreams, career, and financial goals alive. In order to sustain my career and business, prayer and support from my family has been crucial. These are the things that can really give you an extra boost and keep you going. My business has grown because of two things: open-mindedness as well as networking. It is great to be open-minded but you need to have a trusted network in business. This type of network will help you get referrals and provide opportunities to grow your business. Your net worth is your network.

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