Wednesday, 16 May 2012

Starting a business in Kenya ....Step 1!

I have been researching and documenting the steps of starting a business. In the next couple of weeks I will be blogging about all the 5 steps. These are my findings but then again there is no one agreed formular on how to start a business.

For most of us, the ideal dream is to be own boss if we aren’t already there. However, having the passion to start a business and actually getting the business going are two very differing aspects. Below I list the steps into starting a business. 

Step 1


Idea and product formulation phase; in this stage, you should come up with an Idea which you perceive as unique and one capable of making a business. Don’t fall into the trap of following the band wagon like most of us Kenyan do. Don’t buy a plot just because your friends have. Do substantial research around the idea, the proposed market and target customer to determine the viability of the idea. A good starting point is in a line of experience. For instance for someone who works for a bakery, knows of the business models and the costs and revenues involved could be better suited to start own bakery delivery bread or cakes at a cheaper price rather than investing in Jewel cutting for instant. Don’t hesitate to start a competing business as your employer; chances are they too started their business in the same way. Don’t be afraid to ask other traders, you might find a solution to their problems. Also remember, whilst we envision our business to be successful making a lot of money you must watch all your cost whilst not compromising on quality. Don’t invest in a saturated business area, for instance don’t open a mobile phone or clothing boutique in Moi Avenue not unless yours is very different. However, you could become a wholesale in the same area targeting small start-up or businesses which might not be able to raise enough cash to bring in a big load from the suppliers (for the case of imported supplies). Don’t be afraid to trail other blogs to see what other aspiring entrepreneurs are in search of.

Next week -----------------Step 2

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