One thing is for sure, Kenya has the most cut-throat competition when it comes to business. It is therefore hard to determine what to consider in order to start a successful business in Kenya. Starting a business requires an individual to make a lot of hard decisions.
As a result of this, it might be really hard to remember all the things that are supposed to be ticked. Some of the boxes may be left unticked. Below we delve into details of what a business owner is required to consider.
What to consider before starting a successful business in Kenya
The major considerations are as explained below:
Find people who have done the business before you
The first consideration is to find a mentor. Someone who is open and willing to share the lessons learned while establishing and running their business.
A business owner could choose to have more than one mentors. Mentors help a new business owner to avoid the mistakes they made when starting and therefore increase their chances of succeeding.
What to look for in a mentor
- A mentor is one willing to share knowledge and information freely
- Should be able to exhibit a positive vibe
- Someone who pushes you to make hard decisions for your business
One has to carry out detailed market research
One should be able to access their business idea to see if their potential customers will purchase their products. The market research has to be comprehensive enough to include all the major factor that would influence the decision to buy your product or service.
The factors include:
- Societal factors
- Cultural factors
- personal factors
Make sure to use both primary and secondary research as this will ensure that the decision reached at the end is comprehensive enough.
Develop a detailed budget plan
Cash flow is always limited during the early stages of implementing a business. A detailed budget ensures that capital is spent on what is really needed. Thus preventing cash deficit during the implementation phase.
The budget should clearly allocate funds for the following: Location, Product development as well as marketing and sales.
Registering the Business
At this time, one knows what type of business they want to start up. It may be a public or private company, Partnership or a sole proprietorship.
The second step is registration of the type of business as per the Kenyan guidelines. This article clearly outlines the procedure of registering a company.
Please follow the steps outlined to register your company. In case its a sole proprietorship or partnership, the cost is a little lower than that of a company.
Draw a business plan
A business plan helps one determine whether their business idea is going to be successful.It is very easy to draw up a detailed business plan by using the Minimum viable product method.
A business plan also gives the company a mission and a vision which will steer the business at all times.
The business plan will ensure resources are locally available. Therefore cutting down production cost.
Operate within the set regulations
A business person needs to operate within certain government regulations. An example of the regulations is the consumer laws. Through operating within the regulations, one is able to develop trust among its consumers.
Business has also to get other certifications from government authorities apart from the registration certificate. For instance a certificate from the environment department.