I am 51, married with a family. I left public service 15 years ago to go into business. My business peaked about four years ago when it was making about Sh60,000 per month net profit. These earnings have gone down since then. I had four employees at my peak. I started by cutting off their commission, then I started firing them one by one. I currently have only one employee. My wife and I work at the shop but we don't draw salaries because the business cannot afford it. We now get between Sh10,000 and Sh18,000 net on a good month, which is barely enough to sustain us. I have been thinking about selling it and I have received an offer from someone who wants to take it over at Sh450,000. If I sell it, what should I do with the money to guarantee that I won't regret my decision as I head into my retirement years? I don't want to be formally employed by anyone at this age. Vincent

Muthoni Njakwe is an accountant

I must commend you for your boldness and honesty in sharing your situation. Fifteen years in business is no small achievement. You started with a small business, grew it to employ four people, and at its peak, it was giving you about Sh60,000 after expenses every month. That tells me you have experience, resilience and the ability to create an income for yourself. But businesses, just like seasons, change. What once worked well may not always continue to work in the same way. There was a time when your business was making about Sh60,000 after expenses. Today, that income has fallen to between Sh10,000 and Sh18,000 in a good month. You have had to let go of three employees, and you and your wife are now working in the business without drawing salaries.

This is where I think you need to pause and look at the situation objectively.

Should you sell?

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Before deciding whether to sell, you need to understand why the business declined. Four years ago, you were making about Sh60,000 after expenses. Today, you are making Sh10,000-Sh18,000, even though you have reduced your workforce and both you and your wife work without salaries. So, what changed? Did the number of customers decline? Did competition increase? Did your costs go up? Did customers change what they wanted? Did your prices become less competitive? Did the location become less attractive? Did you stop marketing as much? Or has the business model simply become outdated? Not every struggling business is beyond repair. If the problem is temporary and fixable, the business may recover. But if the decline is structural, and customers have permanently moved elsewhere or the market itself has changed, holding on will only consume more of your time and money.

Selling is not failure

If you figure out that the challenges facing the business cannot be fixed, there is nothing wrong with deciding to exit a business that is no longer giving you an adequate return. You have already built it. You have learned from it. You have benefited from it.

Sometimes, the right business decision is to start. Sometimes it is to grow. And sometimes, it is to sell. But before accepting the Sh450,000, make sure you understand exactly what you are selling. Does the amount include stock, equipment, furniture, goodwill, the business name or other assets? Make sure the price is fair.

Now protect the Sh450,000

If you decide to sell, the Sh450,000 should not be viewed simply as money from the sale of a business. It represents a portion of the wealth you have built over fifteen years, and at this stage, you need to think carefully about how it will support you and your wife in the years ahead. At 51, your priority should not be to chase high returns or take big risks in an attempt to make the money grow quickly. You have less room than you did when you were younger to recover from a major financial mistake. The focus should therefore be on preserving the capital, creating some income from it and giving yourself financial security as you approach retirement.

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This does not mean you cannot continue working or start another small venture. You can. But there is an important difference between using part of your money to create an income and putting your entire retirement capital at risk.

The Sh450,000 should therefore have a clear purpose before you sell the business.

Know how much you need to live comfortably

You have told me that you and your wife own your home. That is a major advantage as you approach retirement because you do not have to worry about rent. Now, sit down with your wife and calculate your essential monthly expenses. How much do you need for food, electricity, water, transport, healthcare, communication and other basic needs?

Write it down. Don't calculate what you would like to spend. Calculate what you need to live a decent life. For example, if your household needs Sh25,000 a month, you have established an important number: your minimum retirement income requirement. Without knowing this number, you cannot properly determine how much you need to save, invest or earn to sustain your life in retirement.

Don't put all the money into another business

This is where I would exercise the greatest caution. You have said that you do not want to be formally employed again. That is understandable. But don't allow that decision to push you into putting the entire Sh450,000 into another business.

You have already seen how quickly business conditions can change. A business that once made Sh60,000 a month is now making only a fraction of that. Another business may succeed, but it may also consume the capital you have taken years to build. If you find an opportunity that you genuinely understand and believe in, you can consider putting a small, clearly defined portion of your money into it. But don't put your entire retirement fund at risk in another business. The goal is not to stop you from doing business. It is to make sure that one business does not determine the financial security of your retirement.

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Vincent, if the business is no longer giving you and your wife an adequate return, and Sh450,000 is a fair offer, selling may be a sensible decision. But the sale should not mark the end of your financial planning; it should mark the beginning of a new phase.

Treat the Sh450,000 as retirement capital, not spending money. Protect it, give it a clear purpose, and use it to build a more sustainable source of income for the years ahead. You have spent 15 years building the business. Now, whatever decision you make, let the next chapter be about protecting what you have built.

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