Starting a business in Kenya can be daunting, and prospective entrepreneurs are faced with challenges such as inadequate infrastructure, difficulty in accessing finance, political instability, high operational costs, skill gaps, and intense market competition.
To rise above the setbacks, it is important to consider certain factors that may shape or break your business to ensure that operations run smoothly without fear of being run down by emerging issues.
Here are some key things to consider while starting your business in the country this year:
1. Target market
Brainstorming business ideas can be guided by the niche you are venturing into , and by that, you should consider who you are selling or offering your services to. Understanding client dynamics helps in identifying gaps in the market that your business could cater to. Ask yourself who are you selling or offering your services to, what their age bracket is or even how high or low they are on the financial ladder.
It is vital to ask yourself some of these questions to better understand your target audience as well as analyze your competiton. Without market research ,there is a high chance of your business not achieving its desired goals.
2. Drafting a business plan
Once you have identified your business idea, take time to come up with a business plan. A well-crafted business plan serves as a roadmap for the business, guiding decision-making, attracting investors or lenders, and ensuring all aspects of the business are thoughtfully considered and planned for.
Develop a comprehensive plans outlining your business model, strategy goals and financial projections. others crucial components of the business include an executive summary of the business, company description , market analysis, organizational structure of the business, product/ service line, marketing strategy and financial breakdowns of all operations carried out in the venture.
3. Capital
After writing the business plan, calculate the amount of financial capital it would require to start , and how much it would take to sustain the venture. Also factor in emergency funds that the business can fall back on in times of crisis. Try to see whether your business can survive for more than a year without you receiving a salary.
To acquire capital, there are some avenues you can look into to fund your business: :
- Venture capitalists or angel investors who fund the business in exchange of a share in the investment.
- Borrowing from friends and family. You can do this through a Convertible loan.
- Seeking help through online loaning vendors sites such as Taka, Branch e.t.c
- Acquiring a loan from the bank.
- Bootstrapping by relying on personal savings or revenue from previous sales
In the event you encounter challenges in figuring out how to source the capital to start, involve your financial advisor or accountant for advice.
4. Marketing
Marketing is the driver of every successful business venture as it lets your clients know of your commodities and why they should they should spend their money on your products or services.
Marketing helps in branding your business and set you apart in the market. It helps to campaign for your business by coming up with strategies to attract new clients, retain old clients as well as create awareness on your venture. Take advantage of social media to help you market your enterprise through campaigns, slogans, offers as well as using influencers to push the product online.
5. Business Laws
Starting a business in Kenya requires compliance with various legal and regulatory requirements. The first step would be registering your business with the Registrar of Companies to aid in legitimizing your venture and protecting you from potential fines and legal issues.
You should also register for taxes as per the requirements of the Kenya Revenue Authority (KRA) which mandates that businesses pay taxes. Register for VAT, PAYE and other revelant taxes.
Obtain the necessary licenses and permits specific to your industry and location from the county government in your area of business.
If you are hiring employees, recruit and train them accordingly and comply with labor laws of the country. Consult a lawyer if need be who will further expound how they laws apply to your venture to avoid any detrimental legal consequences.
6. Business Location
Choosing a suitable business location is pegged on competition analysis by the entrepreneur. Conduct research on your competitors’ strengths, weaknesses, strategies in terms of location to help you determine where you will put up your venture.
For a physical location, choose an area that is suitable for your business model. If your venture is online, ensure that your platforms are constantly updated with the current operations of the business.
In conclusion, with the right approach launching a business may be advantageous to a potential entrepreneur promising robust rewards that could potentially be a ticket to financial freedom.
