NAIROBI, Kenya, February 27 – Are you thinking of starting a business in Kenya? If so, then read on.
Capital Business recently interviewed Airduka CEO Abdul Varvany to discuss how to start a business in the country. Airduka, a Kenyan online marketplace that connects buyers and sellers, works with hundreds of business owners, including those operating small business.
Abdul told this publication that he has seen firsthand what it takes to grow a small business, through the company’s work with sellers who post on the e-commerce platform.
Capital Business: What is the first thing a person intending to start a small business should know?
Well, the first thing a person whose vision is to start a business is definitely knowing that it is possible to run a business and that with the right keys, any business can grow into enviable heights. It really starts from the mind.
Capital Business: Do you have tips that you could give people wanting to start a business?
Abdul: First and foremost, it is important to identify your niche market in order to serve them effectively.
Doing market research will help you determine the needs and wants of your target audience and develop a product or service that meets their demands.
Capital Business: What is the best way for a person starting a small business to do research?
Abdul: You can start by conducting surveys, focus groups, and in-depth interviews to gather data. Ask your potential buyers what it they want and where the gaps in the market are so that you can fill them effectively.
The information you gather will help you to determine the size of your target market, what they’re looking for, and how you can differentiate yourself from your competitors.
Capital Business: What other things are critical in starting a business?
Abdul: Another important step is creating a business plan. A business plan is a roadmap that outlines the goals, objectives, and strategies of your business.
While many people ignore the necessity of having a business plan, it is extremely crucial to have one as it can help you stay focused and on track as you start and grow your business.
Capital Business: What else should be contained in the business plan?
Abdul: A business plan should have several things including a business concept that answers what the business does, it should also have the company’s goals and vision and product description and differentiation, which basically answers what the company sells and how it is different from others.
Other components of a business plan include the business’ target market, marketing strategy, current financial state, projected financial state and team.
Capital Business: What else should a person intending to start a small business do?
Abdul: Registering a business is also highly important. At Airduka for instance, we encourage our sellers to ensure they have registered their enterprises before signing up to our service.
Registering a business is simply obtaining the necessary licenses and permits, choosing a legal structure for your business, and opening a business bank account.
In Kenya for instance, business owners can register their business online through the eCitizen portal or by visiting the Ministry of Industry, Trade, and Cooperatives in Nairobi to get the process started.
Registering your business not only gives you legal protection but also makes it easier to secure funding and open business accounts with suppliers and vendors.
Capital Business: Let’s talk about capital. What should a potential business owner do in case they do not have the funds?
Abdul: Yes. Without a doubt, one of the many fears that people have when starting a business is availability of capital. Instead of letting this fear pull you down, consider the several ways of raising.
In case you do not have ready capital, you could start by approaching family and friends for support, or you can look into getting a loan from a microfinance institution.
Another option is to apply for government grants and loans or participate in incubator and accelerator programs. It’s important to remember that securing funding is a process that takes time and requires a solid business plan and financial projections.
Also, ensure that you are faithful in repaying any loans that you may take.
Capital Business: Running a business will also require having a team. Whether it is an extra person or a fully-fledged team. What are your thoughts on this?
Abdul: As you have rightly said, you cannot run a business alone, especially when its growing. You will need to build a team of employees who can help you scale your operations and achieve your goals.
Hiring the right people is essential to the success of your business, so it’s important to take your time and find individuals who share your vision and values.
If you are not in a position to hire, consider outsourcing certain tasks and responsibilities, such as marketing, accounting, and web design, to save money.
Capital Business: Let’s talk about marketing a new business. How should a business operator go about it?
Abdul: Marketing is an essential aspect of growing a business, and there are several low-cost options available to help you get the word out about your products or services.
You can start by leveraging social media platforms, such as Facebook, Twitter, and Instagram, to reach your target audience. Newer platforms such as TikTok are also proving to be very effective.
Another option is to participate in local events and networking opportunities to build relationships with potential customers.
You can also consider collaborating with other businesses to cross-promote each other’s products and services.
Joining an e-commerce platform such as Airduka is also a great way of marketing your business. Most e-commerce platforms are able to reach a wider audience than the one you have. They also have the right mechanisms for marketing and would definitely add value to your business.
