There is a far fetched notion in Kenya that agribusiness is a ‘rural man’s’ venture. However, this rural man’s venture is a multi-million goldmine that very few Kenyans know of. Agribusiness is considered the backbone of Kenya’s economy, contributes to 24% of Kenya’s GDP and accounts to 65% of Kenya’s exports. The agricultural sector has proven to be the saving grace for the unemployed in Kenya; especially the youth. Take for example Eric Mumo, the Jomo Kenyatta University of Agriculture and Technology First Class Graduate who started his agribusiness with Ksh. 150,000 and grew it into a Ksh. 16 Million business. Or Fabian Kibet, the Eldoret University Media graduate who earned his first million at the farm. Agriculture is a lucrative business venture for those who are willing to seek to research, save money, time and seek farming knowledge.
Are you thinking of dipping your feet in the farming industry? Here is how you can start your agribusiness in Kenya.
Before you think of setting up your agribusiness, you need to know what type of produce you want. There are many agribusiness ideas out there; tomato farming, poultry rearing, egg supply, potato farming, vegetable production, dairy farming, fruit farming; the list is literally endless! What can help your decision, is doing a market research of demand and supply of various products in whichever area you are in Kenya. Will the idea you choose thrive there? How is the climate in your area, will your idea be favored by your environment? A good is example are small time potato farmers who sell their potatoes in Ongata Rongai, where potato production is almost non-existent while demand is high. This is a good move as opposed to selling potatoes in Meru where production is at an all-time and the demand is low. You can also find a niche sector that few farmers have tapped in to for example earthworm rearing for the purpose of use by other farmers.
It is crucial to think about product and place in the case of agribusiness, unless you want to be your own consumer.
Do you have any savings for your desired business? Many successful started their businesses from their personal savings and loans from close relatives; not necessarily banks or investors. The good thing about agribusiness is that not many ideas need a lot of money. For example, if you want to start poultry farming you will need good fencing, chicks, chicken feed, chicken shelter and water supply which may cost a minimum of Ksh. 30,000 for decent quality material. Mushroom farming on the other hand can be started with as low as Ksh. 10,000. Businesses like Dairy Farming need an upward of Ksh. 100,000. Depending on your idea, do thorough market research, talk to business owners already in that niche and find out the minimum amount you need, save or raise more than that.
You don’t need to have a very complicated business plan for your agribusiness in Kenya; you only need a blueprint to help you plan things such as funds allocation, farm location, possible bills, etc. If you find trouble writing your business, contact us and we will walk you through this process.
A lot of farmers skip this step because they take agribusiness as a ‘less formal’ type of business venture. However, your agribusiness will still need to be registered and set up as a company, a sole proprietorship or a Partnership, for the purposes of formalizing your business and making it easy to do business with corporate clients like supermarkets or even financiers like Banks and Saccos. We are happy to help you set up your business within ten working days.
Once you have all the necessary documentation, you can go ahead and set up your business; whether it’s selling milk, eggs; poultry, you are good to go. Make sure you market your business strategically reaching as many people as you can. Your friends and family should always be your first customers. Make use of social for online marketing and depending on the range of products, you can open have a website and online store for more professionalism.
All in all, like any other business, agribusiness is not easy, just like any other business out there, farmers face challenges. They range from pests and disease, irregular and harsh weather conditions, to financial difficulties. However, they are hardships that can be overcome with, again, thorough research on your niche and financial discipline. Contact us today for a Free Business Consultation on how to start an agribusiness in Kenya and enjoy the fruits of agribusiness!
How To Attract Investors For Your Business In Kenya – One of the biggest challenges of Starting and Sustaining a Business is in Kenya is getting the Capital Required. Getting an investor is the best way to maneuver around money problems. Having an investor in Kenya is very beneficial to Kenyan start-ups and struggling businesses. Why? Not only do investors provide funding, they also contribute ideas, technical support and act as a motivation for businesses. Investors act as the best bridge for value connections between your business and various industry leaders and they honestly improve the image of your brand. Strategically, investors give less biased insights into your product or service, as positive critics, whether you’re fresh in the scene or have been in business for some years.
The best example is the renowned Japanese camera maker, Nikon. Nikon has experienced enormous success in business because of the rise of the need for photography. However, the invention of smartphone cameras or rather camera phones, has seen sales decline for Nikon with the hardest hit being after 2012, when they launched the digital camera. Since then Nikon saw a drop in revenue comparable to their income a decade ago, that is, 2002. Nikon employed strategic tactics by approaching over 600 investors internationally, last year and co-creatively transformed the struggling business into the success it had always been, by giving insights, analysis and feedback on the rise and almost-fall of the company.
Do you wish to start or further develop your business but need funding, or rather an investor? These are the top fool-proof ways to Attract Investors for Your Business In Kenya
A soft sell is pitching your product/service in a less formal way. Investors usually attend business events or conferences as panelists or keynote speakers. This is the best place to approach them with your elevator pitch. An elevator pitch is a short but persuasive speech that seeks to ignite interest in your service or product to a potential client or in this case to an investor. Just as the name suggests the pitch should be short and sweets and only seconds long. If your pitch was good enough, you may just end up with a business card or a set date for a subsequent meeting to discuss further what you already started. Studies show that investors are likely to take interest in business owners who made the extra effort to reach them personally rather than through cold calling or cold emailing. Alternatively, you can have organic conversations, picking their brains about trends in different industries, then introduce your product/service. At this point, you have already demonstrated a certain knowledge that they will appreciate depending on how well you package what you’re saying.
If you cannot reach your desired investor at an event or conference, then the sure way of catching their eye is through a strategic approach. This is through social media engagement. I am assuming you follow investors, especially on LinkedIn. Connect with them. Many are very generous with connections. Engage with them in whatever they post by not only liking, but commenting on their posts. Engage with other commenters as well; you surely will catch their eye! Do your industry research and ensure you are not just commenting for the sake of commenting and getting noticed, but for the sake of showing your knowledge and intellect. While having organic conversations and soft exchanges with this investor, throw in your company and introduce it. Again, depending on how well you introduce your company, your investor will be interested or not so the ball is in your court with your way with words. Do not send cold direct messages without at least getting acknowledgement on engagement with your investor; that is, likes and comments on your comments on his/her post. Before then, you are still a stranger to him/her.
Acquire customers, even if they are few before looking for an investor. Why? Traction matters a lot to investors. They want to see if you know what you’re doing, if you have market for your service/product and if your overall idea will really work. You can also add credible testimonials to your investment proposal. This instills some faith in the investor that at least you have satisfied customers under your belt and you know what they say: a happy customer is your biggest business strategy. Showing proven results is the best way to show an investor that they are not making a big mistake taking you on board and it also gives them a small view of their return on investment. If investing is worth a try or if it’s not. Showing them your numbers really saves them from asking the ‘what is in it for me?’ question.
If you are a start-Up in Kenya, consider joining accelerators and incubators in. These are workshops that offer training and mentorship for up and coming entrepreneurs Their importance is that they offer seed money, expert mentorship, training and office space to entrepreneurs. They are normally run by investors or venture capitalists and offer these services in exchange of equity or company shares. This is the best way to meet and keep an investor especially if you are a start up with no traction. They may be able to see your drive and potential for your idea while in these incubators and choose to invest early. Alternatively, you can graduate, start your own business and seek their advice on your progress, since you are already familiar. If you are doing well, they may be more than willing to come on board.
Once you get the opportunity to meet and talk to your potential investor, the most embarrassing set-back would be lack of knowledge of their industry or current affairs they are involved in. Most investors are likely to pick your brain about one or two things they or their industries are involved in. Failure to know even one area of what they are discussing is an insult to their time and a big blow to your opportunity. No matter how many investors you have set your eyes on, it is imperative to know the major facts of their business dealings down to the nitty gritty like the school they went to; to a moderate extent lest it seem like you are a stalker. An investor will most likely be impressed if you know more about them than what’s in the newspapers or their social media pages. You stand an even higher chance if you can link down to their start up days and compare your vision to their own. Chances of being taken seriously in this case would be 80% as opposed to 1% if you knew nothing.
As difficult as it may seem, finding an investor in Kenya is possible and investors are ready to Fund Businesses and expand their possibilities just as much as you desire to expand yours!
Contact Us Today for more insight on How to Attract Investors for Your Business In Kenya
How To Start An Online Business In Kenya – Many Kenyans hold off their dreams to start an Online Business in Kenya because of lack of enough info on how to go about the whole process or because they lack info on the Numerous opportunities brought about by the Internet penetration In Kenya.
A study done by Internet World Stats shows that the number of Internet Users in Kenya has risen from 200,000 in the year 2000 to a whooping 43,329,434 as of the beginning of the year 2018. Kenya ranks third in internet usage behind Nigeria and Egypt with an 85% penetration population rate. This is good news for anyone wanting to venture into online business in Kenya; the market is ready.
In this technological day and age, Buying and Selling has been made easier simply through social media. With the increased use of mobile phones and the age of the Internet, Commerce has now become e-commerce and almost everything is digitized. Kenya has evidently not been left behind in the contemporary world. With the emergence of e-commerce platforms like Jumia Kenya and Kilimall, business owners in Kenya are encouraged to try out online business and not be constrained by geographical boundaries and physical restrictions.
With that said, here are simple steps on How to Start an Online Business in Kenya.
Just because you do not have a physical store does not mean that you do not need to Register your Business. You will still need to Register your Business for revenue purposes; that is, for the sake of registration with the various payment Gateways and Government Bodies. As a business you may also need to secure bank loans, so getting a business Registered may be a good idea to facilitate this as your business will be legal.
Business Registration will also help you protect your name from been used by anyone else to conduct business in Kenya. In less than Ten days, we shall help you secure and Register your unique Business name relevant to your business.
Now that you have a unique business name, you can use it as your domain name. You will also need a web host to host your website. When looking for a web host, do not settle for the cheapest one you find; cheap is expensive. Cheap web hosts are notorious for hosting several sites on one server hence your website will be slow, experience technical glitches and become painfully slow. We offer reliable web hosting services with prompt technical support.
As your web host and designer, we will choose the best set-up for your store, including the check-out page, coupon codes as well as set up Search Engine Optimized URLs and load your Stock Pictures and Prices for you.
We assume you know your target market for your products; local, international or both. Depending on your audience and their location, your payment method should facilitate everyone interested. The most reliable payment methods for international customers are PayPal and PesaPal, while local customers prefer M-Pesa. Credit Card payment is also an option although few people opt for it. As you consider payment options, it is also important to look at shipping options, from DHL to G4S, again, depending on where your market is.
In case you have a physical store, consider adding your location and physical address for customers who may want to visit you physically. If you are only operating an online store, consider adding a functioning customer care phone number and professional customer care or sales e-mail address. This will instill faith in customers who know that they have someone to contact in case an order goes wrong or for queries.
It also helps to add a subscription box to build your e-mail database where you can share new product information and upcoming offers and promotions directly to your customers’ mailbox.
Now that you have you have your online store ready, you need to create social media pages for your business. Most of your target market are on social media; after all, you are an online business. Use Facebook and Instagram to connect to potential clients, advertising your products organically and also through paid promotions. Also add links to your website on your social posts and pages so that you can drive traffic to your store in case of interest.
Our Digital Marketing team is happy to help you come up with a proper Digital Marketing Plan and also Offer Search Engine Optimization Services to increase search visibility for your products, from cosmetics to Real estate. It is possible to get your site to appear among top searches without having to constantly run Google Ads.
Finally, take it a day at a time and watch your Business Grow. Contact us Today for more help on How to Start an Online Business in Kenya
5 Financial Mistakes Entrepreneurs in Kenya Make And How to Avoid Them – Acquiring Finances and Getting money set for starting a Business is every Entrepreneur’s Dream. After surpassing the rocky trail of Investment Opportunities and disappointments and finally securing the bag, a business beginner may now set his sails in motion. However, as tough as it was to acquire funding for your business, as equally tough it will be to manage this money, ensuring your business bank account is ever loaded. While some entrepreneurs think it is easy, the bitter truth is that it is far from simple a, b, c. There are small ‘financial risks’ and downright mistakes that can sink your ship even before you start sailing. Many entrepreneurs have admitted to making land-sliding mistakes that cost their businesses millions; for example, Amazon’s brainchild, Jeff Bezos who invested in a phone, the Fire Phone, that lost the company $170 million. With that said, money mistakes are inevitable but at the same time avoidable. Here are some of the common Financial Mistakes Entrepreneurs in Kenya make and how to avoid them.
While spending is a necessary part of any business, there are things you can do without. Just as Jeff Bezos could have done without the Fire Phone and saved $170 million, as a small business, you can do without a big office space (or office at all), a big Shop (or shop at all) or a lot of technological equipment. This way, you will not burn out your money on things that you will realize along the way that you didn’t really need and most of all save your money for a worthwhile cause or a rainy day.
Hiring a workforce too early into launching in your Service and Product could be detrimental to your Account. Instead of hiring a sales and marketing team and spending too much on salaries and employee maintenance and equipment, focus on developing your product and be your own sales and marketer, pitching to potential client at every opportunity possible; if not, have at least one. Even if you are ‘expecting’ a certain amount of cashflow from an investor, don’t count your chicken before they hatch. Wait for the money to come in before starting the hiring process. Once your sales begin to project and the numbers come in to the bank, then you can start hiring a team.
Many Entrepreneurs in Kenya go about their everyday businesses without a budget and wonder why they end up penniless and asking for bank loans too early into the birth of their companies. As tedious as creating a Financial Plan may be, it is one of the most important Business planning practices every business person must religiously adapt. A Financial Plan enables you to prioritize expenditure and allocate money to items/projects that will help grow the business. It is a method of controlling finances and curb reckless spending on things that were not part of your initial plan. A budget also helps you fund for currents projects or better yet, know if you have enough money to fund for these projects and also preparing for upcoming ta obligations. Running a business without a budget is like running around in circles without really heading to a proper destination.
Some entrepreneurs in Kenya are known as ‘serial borrowers’ because they are always asking for loans from the bank. Asking for a loan is not bad; however, never ask for a loan just for the sake of having money in the bank. Some banks readily offer loans which are enticing and hard to resist. However, you have to remember that banks are in business too and set out to collect interest. That in mind, borrow only what you need to incase of emergencies or to sustain your business; an amount that you can comfortably pay back. Debt kills businesses- don’t go down that road.
Many Entrepreneurs in Kenya fall victim to this temptation. You have a lot of money in your business account and have that one personal thing you want to purchase so you pinch some shillings from your account. One thing becomes two things, two things become three things and eventually you might find yourself buying a car! There’s no tool that I might recommend to curb this behavior; you just need financial discipline. This kind of spending might lead to bankruptcy and an empty personal account too. Before you know it, your business might close down too.
There are some fundamental elements of finances that entrepreneurs need professional advice on. Business start ups need the help of Certified Public Accountants, Financial Advisers and Tax Consultants to deal with the legal financial obligations that are not too obvious for a start-up entrepreneur. Having at least one on board your ship is sure to save you from future revenue-related messes that are sure to arise for novice business owners.
Making a money mistake is not the end of the world; it is in fact a Fundamental lesson learnt. However, it is always good to avoid the unnecessary stress that comes about while trying to resolve a Financial mistake. Be sure to always have a Business Consultants to guide you through making the right Financial decisions. Contact us Today to for Financial & Business Planning, Tax, Accounting and Management Consultancy Services and Kill Two birds with one Stone; have a Booming Business while Saving Your Money.
The restaurant business is one of the most profitable ventures in the world. The restaurant business in Kenya has been growing exponentially over the past 5 years and is proving to be a very promising industry for business investment. Starting a restaurant business differs from country to country. There are also different types of restaurant companies, from food trucks, fast food restaurants, fast casual restaurants to cafes and delis. Whichever the style, there are certain mandatory requirements and considerations for starting such a company. Starting a restaurant business in Kenya is no walk in the park, bit is a very profitable venture. Take for example the Java Group franchise that started out in 1999 as one branch because of lack of good coffee in Kenya: it is now spreading across the continent all the way to Ghana with more than 50 operational branches. The quickly growing Café Deli franchise is also a success story; the owner was once sold cheap liquor and cigarettes to make a living. Now he’s a multi-millionaire thanks to his restaurant business in Kenya. There are certain requirements and hacks that will make your business venture a success. Here are five steps outlining what it takes to start a restaurant Business in Kenya, assuming you already have chefs and waiters.
You will need to come with a name you would like your restaurant to be called and reserve it. Why is this important? You want a unique name that no one will hijack and make their own. Your identity remains your own and becomes part of your personal brand. We can do this for you by conducting a business name search and reservation. Once approved, you proceed to the business registration process. Here, there are certain requirements such as passport photos and documents needed to be signed to be submitted to the registry. After we have completed the registration for you, you collect or we deliver the required documents such as a memorandum and certificate of incorporation.
Another important requirement is the company KRA Pin for purposes of opening a bank account, filing your returns and acquiring a business permit. You should also consider having an ETR machine to process sales and issue receipts as well as keep a record of VAT transactions for easier filing of VAT returns.
You may also want to get clearance from type from ministry of health
This is also in regards to operation. Different counties have different restaurant operation rules and regulations. Consider setting up your restaurant in high areas of foot traffic, with thriving businesses. Setting up your business in a highway might not yield profitable results as there is little likely-hood of one stopping and parking in the middle of the highway to eat; there is also little to no foot traffic on highways. University campuses, Central Business Districts, small but busy towns, and other areas with thriving businesses are most suitable to set up a business.
For restaurants that have a bar facility, operation hours and locations are restricted in some counties. Depending on the business permit you obtain, you will only be allowed operation until a certain time of the day or night, for example 12 midnight. Bars are also prohibited from operating near residential areas in some counties.
Some businesses, if not all, need a Business Plan. The restaurant business is one of those that need one. In order to start your restaurant business in Kenya, it is important to draw up a proper business plan. A business plan will help you estimate and manage your finances and also enable you to calculate your desired financial projection in a year, two or even three years. Business plans also help aspiring restaurant owners to come up with the design they desire for their restaurant, that will attract customers and fit the estimated number of customers at a go.
This will also help you organize and visualize your restaurant’s design, an estimate of how much kitchenware you will need, as well furniture.
Knowing your target market goes hand in hand with knowing your target location. If your target market are students, based on your current location, then what type of restaurant you set up will matter. In Kenya, students always frequent fast-food restaurants or cafeterias rather that fast-casual restaurants. This is because fast food restaurant foods and cafeterias fall under the typical breakfast, lunch or dinner budget of a university student. While fast casual restaurants are a bit pricier for the average student.
Knowing your target market will also help you come with prices for your meals and beverages.
Nairobi is a hub for fast growing restaurants, both casual and high-end. If you wish to start a restaurant business in Kenya you have to ensure that your marketing strategy is on point to get the restaurant out there and to ensure you reach your target market as desired. This can be done online on social media pages or on the business’s very own website complete with available dishes and a menu. In this era, most Kenyans, especially working class, like having their food delivered to their offices. This would be a good consideration as you develop your business. You can also choose to supply flyers, especially around CBDs to catch the attention of potential customers around your area. Whichever the method, marketing is an important aspect in developing your business in Kenya.
As you think of opening up a restaurant in Kenya, you should also think about your business management team. Will you need accountants, restaurant managers, waiters and chefs? If so, how will you recruit them? The success of a restaurant depends, to a great extent, on the management team. Finding trustworthy employees can be a tasking job so most restaurants go through q quick question and answer session before hiring. Consider taking your time and going through a full interview and shortlisting process, carefully analyzing your minimum requirements and doing background checks on all candidates whether janitor or manager. This will triple your chances of hiring competent employees compared to doing blind or fast paced hires.
To Start a Restaurant Business in Kenya you will not require a masters’ degree- or any degree for that matter. As long as you have your capital and the requirements stated above then you can get started. Contact us Today for guidance on How to Start a Restaurant Business in Kenya