How do you start a successful business in Kenya?
Kenya’s economy is growing, and there are many opportunities for entrepreneurs who are willing to work hard.
But, it can be difficult to get started if you don’t know what to do or where to start.
In this article, I’ll discuss some steps that will help you get started.
let’s dive in;
To start a successful business in Kenya you need to have a great idea
The first thing you must do is come up with an idea for your business. You can’t start anything without an idea and that’s what this section will focus on, how to come up with great ideas.
A lot of people think that they don’t have any good ideas but they actually do.
The most common way of coming up with a great idea is by looking around and observing what people around you are doing. You can do good research and come up with solutions to common problems around your area.
If people don’t like buying vegetables from shops because they’re expensive, and it takes too long for them to get home then selling vegetables online could be the solution.
1. Have a great idea
You need a great idea, Something you are very passionate about, unique, and can make you money.
Starting a business with only good intentions doesn’t mean it will be successful in the long run.
To be successful in business in Kenya one must start with a great plan.
2. Research and identify a market need
You must first research your target market to create a product or service that will be of use to them. Research can include:
- Surveys and questionnaires
- Focus groups
- Interviews with potential customers
3. Set up your business structure
Whether you are a new business owner or an established one. Setting up your business structure is a crucial step. It determines how much tax you will pay and at what level of risk you will be operating.
Here are some of the most common business structures:
- Sole proprietorship
- Limited liability company (LLC)
- Corporation (traded or held)
- Non-profit organization
4. Register for a KRA pin
To register for a KRA PIN, you will be asked to provide your ID card.
This is how you register for your KRA PIN.
- Visit itax.kra.go.ke
- Select “New PIN Registration”
- Select “Non-Individual” and “Online Form” as your mode of registration.
- Fill in your basic information.
- Select suitable tax obligations by checking the relevant boxes.
- Enter details of company directors or partners.
- Fill in agent details if you have one.
- Enter the result of the arithmetic sum provided and submit.
5. Get local licenses
- Get the required licenses from your local government (this is usually done at city hall).
- Visit the Nairobi county website and check the requirements.
6. Seek funding for your business
Now that you have a business plan, the next step is to find funding for your new business.
There are many options for getting money to start your own business, but here are some of the most common:
- Business loan
- Business partner/investor
You can also apply for grants from the government e.g Uwezo fund or Hustla fund if you are starting a small business and don’t require huge capital;
7. Get an office or workspace
Finding office space can be a time-consuming process.
Spend time searching for and negotiating for a suitable and affordable premise.
The following steps will help you find an appropriate office space:
- Research local real estate agents in your area.
Contact agents using their contact details. Some may want to meet face-to-face while others prefer email communication. Choose what works best for you based on these preferences.
8. Get equipment and supplies
If you are starting a business in Kenya, it is important that you buy the right equipment and supplies.
There are many ways to get equipment and supplies for your business:
- Local Suppliers – You can buy equipment and supplies from local suppliers in Kenya. They may have everything that you need at affordable prices.
9. Hire employees or contract with professionals to help you get started
Hiring employees to do the work for you is a huge responsibility.
You are taking on someone’s livelihood, and if they don’t work out then your business could be in trouble.
You should only hire smart people who have the skills needed to do their job well. They should be able to work as part of a team, be reliable, honest, trustworthy, and committed
Starting a business in Kenya is not that easy. You need to take into consideration a lot of things before you start one. Yet, with the right knowledge and research, anyone can do it.
If you are starting an online business we are glad to help you grow a successful business.