Financial discipline key to successful ventures

16Oct 2018
The Guardian Reporter
The Guardian
Financial discipline key to successful ventures

DRAWING a clear line between personal income and money meant for business is the time tested secret for running any profitable venture by small business people, a seasoned businesswoman has said.

K-Finance board chairperson, Devotha Minzi (L) talks to Jackson Mushi, (R) owner of Soccer City Club at Sinza in Dar es Salaam who is one of their very good customers, at a cocktail party over the weekend.  Looking on is K-Finance member of staff.   Photo: By  A correspondent 

Speaking to a group of K-Finance company clients during a cocktail party in the city over the weekend, board member, Dorothy Stephen said one reason

many businesses, especially those owned by indigenous Tanzanians never flourish is failure to draw a clear line between personal income and capital.

“To run a successful business requires strict discipline on expenditure. Often, a fatal mistake is to use liberally money meant for family livelihood to finance a business venture or alternatively, to spend freely cash meant for business on domestic needs,” said Dorothy, who is herself a businesswoman.

K-Finance is a microfinance company that was started ten years ago by former mainstream bankers who saw opportunity in servicing a segment of society that could not be easily funded by banks due to the informal nature of their businesses or needs.

Board chairperson, Devotha Minzi said it takes passion and resilience to run a business and the ability to weather obstacles in the way. She added they had learnt a lot in the ten years they have been in the microfinance loans business.

Their biggest drive, she said, was the passion to grow along with their clients.

“It is not just the money that motivates us but that inner feeling and satisfaction that we are truly contributing to making a change and difference in the lives of ordinary people usually sidelined by mainstream banks,” she said.

One of her compelling testimonies, she said, was the story of a pupil whose education they started to fund while still in secondary school. Today, the youngster is a medical student in the UK with her mother a mere primary school teacher back home in Tanzania who used to borrow not more than 3 million/- to pay for fees.

Earlier, the acting chief executive officer (CEO) Judith Minzi told the clients and other potential ones that their company basically had four loan portfolios to meet the needs and financial demands of their customers.


They were loans for carrying out innovations and improvements on homes, beefing up the operating capital for businesses, consumer loans for workers and executive loans for people in the higher income bracket. K-Finance funded any amount up to a ceiling of 50 million/-.

A customer, Jackson Mushi, owner of Soccer City Club in the city, said he was introduced to K-Finance by a friend and has remained a satisfied customer ever since. He now has a loan standing slightly above the 50m/- capping to which Devotha Minzi said: “in business, one cannot afford not to be flexible.” Technically, she underscored an earlier statement by Ag CEO Minzi who said that all their loans were tailor-made to meet the specific needs of a client as no two scenarios are the same.

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