5 things to Consider before Starting a Business in Kenya
5 things to consider before Starting a Business in Kenya.
Kenya is a Growing Hub for Entrepreneurs because of its vast Business Opportunities. For that reason, a lot of locals and Foreigners aspire to get a piece of the pie; from the Manufacturing Sector, to Tourism, and even Infrastructure. However, before dipping your feet into cool waters, it is important to consider what it takes to start a business in Kenya to best put you in a position to succeed, assuming you already have the capital. Otherwise, you might encounter pitfalls that will pull you back just as you start out your Business Venture.
Here are 5 things to consider before Starting a Business in Kenya.
Your Business Idea
You have your business idea. You need to sit down, review it and do market research as to how that business will thrive in Kenya. There are many profitable business ideas that may not necessarily do well in Kenya, while some seemingly unusual business that can do well, on the contrary. For example, the dog grooming business is booming in the United States but hardly has a market in Kenya. Extensive market research in line with your business should help you decide whether to proceed or not.
A Business Plan
They say ‘He who fails to plan, plans to fail’. While some entrepreneurs swear by succeeding in their businesses without a Business Plan, it is important to have one and not rely on luck. Not having a business is like going on a journey to an unknown destination without a map. You will get lost.
Target Market and Customers
Before you launch a product or service, you must know your target market and audience to help you understand how to maneuver around making sales. You must know where they are, for example, rural or urban centers (or both), ease of access to your product/service and how they receive your product/service. It would be disastrous to launch a product that your target audience find hard to or may not reach, leading to a decline in sales. It is also important to know the Kenyan lifestyle; are you selling a product that requires habitual shoppers? Are Kenyans habitual shoppers? Finding out the income class of your audience will also help you best position your selling point and know how to price your products/services before you start your business in Kenya.
Before a soccer team sets out for a match against their rival, they analyze the other team’s performance, possible injuries, weak points, whether midfield or defense and player line-up so that they can have an upper hand and know how and where to attack for chances of winning. Same to business. Before you start your business in Kenya you have to research on your competitors, possibly conduct a small SWOT analysis on them and most of all see whether they pose a potential threat to you so that you can develop a risk management plan, just in case. Do they have opportunities to jump on? The competitor can be your biggest boost to success if you leverage on the information you have well.
Rules and Regulations
After ticking the boxes for what you need to set up a business in Kenya, you finally need to review the Kenyan rules and regulations for starting a business, no matter how small. This includes: licenses and permits, Tax Compliance, Business Name Registration, Labor and Employment Laws and even Environmental Regulations. Understanding these rules and regulations can be tasking. What is imperative is knowing which ones directly affect your business, whereby non-compliance can lead to shutting down the business or more serious penalties. These regulations vary from country so it is advisable to contact a business consultant to shed more light into legal matters.
The Kenyan business environment is very competitive and new businesses emerge day by day. Contact Us to help you get prepared to break barriers in 2019 and for help in Starting a Business in Kenya