Category Archives: Learning

They say you cannot start by becoming great but you can become great by starting. This is a mindset that has indeed built great business intrapreneurs the world over.

Let us take, for instance, the business of supplying fast-moving goods such as cakes, mandazis, soft drinks, and bread among others from manufacturers which requires small capital to start.

In fact, a product’s route to the market is one of the crucial factors every manufacturer considers in their quest to make sales by moving their goods closer to consumers. 

Here is where you come in as a distributor by either becoming a subcontracted distributor by the appointed agents or doing it solo by buying as a wholesaler.

In both approaches, you do not need to own a company under which you operate but a capital of Sh50,000 which you can easily get if you have been doing some savings with a Savings and Credit Cooperative Organizations (SACCO) or otherwise.

The benefit of being a member of a SACCO is the ease of accessing loans as they give up to five times the amount saved allowing you a very good capital base for the business and low interest.

With this money, you need to, first of all, identify some of the small shops or resellers and which products they sell as they would be your main target markets before setting up or renting a store where they will easily locate you.

In Nairobi’s central business district (CBD), for example, you can actually get a rental store of 50m2  at as low as Sh1,500 a month or Sh200 per square feet of rental space.

You will then need some means of transport to move your goods around and because you want to start small, avoid a pick-up or a car, hire a tuk-tuk (three-wheeled vehicle) or motorcycle which can be charged Sh1,000 per day depending on the load weight given they are meant for short distances.

Load weight equivalent to that of three passengers is charged Sh50 depending on the distance.

When this is done, you can then approach the manufacturer producing the products that you want to trade in or their agents and buy the goods wholesale for distribution.

Baked mandazis like the famously known KDFs are always packed 60 per packet. This is the same as the small cakes which are always sold at Sh10-20 in small shops.

You can acquire these from bakers at Sh45 per packet then distribute to resellers at Sh50 earning Sh5 a packet.

Assuming you can carry not less than 200 such packets in crates on your motorcycle at a go, you will make Sh1,000 gross profit and Sh2,000 in a day if you have two trips in the morning and evening.

Alternatively, a piece of bread in wholesale will cost you Sh43. You can then distribute it to the small shops at Sh48 getting Sh5 per bread.

Now, a crate carries about 10 pieces of bread translating to Sh50 per create and assuming you can distribute up to 100 crates a day (on the lower side), you will be carrying home Sh5,000 gross income a day.

As you grow and you want to get more formal, it is good to note that of the various distribution channels, manufacturers often appoint a third-party distributor to undertake this function by entering into what is known as distribution agreements.

A distribution agreement sets out the contractual relationship between a manufacturer and a distributor detailing the terms under which the distributor may sell the manufacturer’s products in a given market.

Laws regarding products distribution

Do not trade blindly or else you will get yourself on the wrong side of the law. Like any other business, the distribution of products is also protected by law.

According to the Competition Act, No.12 of 2010 (the Act) restrictive or anti-competitive trade practices which may affect trade within Kenya is prohibited.

In this action under Kenyan law, distribution agreements are deemed to be vertical arrangements within the production or distribution chain.

Consequently, they are capable of involving negative trade practices that impact competition. Such practices in distributorship include the unreasonable increase in the cost of production or distribution of commodities resulting in higher market prices, price-fixing on the selling price, misleading or deceptive advertising or any other trading conditions and setting of minimum prices in form of retail price maintenance.

To be compliant with the competition law, parties must be keen to ensure that exclusivity provisions and terms restricting the minimum resale prices are adhered to.

This is because if you are found guilty, you will be liable to a fine of up to Sh10 million or imprisonment for a term of up to 5 years or to both. 

Though this normally applies to big players in the distribution chain, you should as well ensure you do not get involved in unfair trading as it can adversely affect the reputation and the entire business.

Small businesses, startups included, are not known for having endless marketing budgets. Usually, their resources are allocated to more practical aspects, like day-to-day operations and maintenance, sales operations, and employee benefits. Marketing becomes part of their priority only when they are expanding, in order to reach more audience or try new markets.

However, with the help of the Internet, there are now new ways to make a name for your business even when you’re just starting up. Through tapping into social media and other platforms to connect with large numbers of people online, small businesses can start their own marketing campaigns and one way to do so is through influencer marketing.

Influencer marketing, from the term itself, is the approach that focuses on individual influencers, rather than your usual marketers. Influencers range from well-known celebrities to experts in niche topics of your industry. You could include knowledgeable bloggers with a sizable following, or social media personalities that tackle topics related to the industry you are in.

Maybe now you’re wondering if influencer marketing would work for your business. Take a minute to think about how well your brand is engaged online: how many followers do you have on your Facebook or Instagram account? How often do you update your accounts, or post something new for your followers? If your answers are leaning towards dismal numbers, then perhaps you should consider going with the influencer marketing route. And no, this is different from social media management.

You’re not getting another person to handle your accounts or post updates about your brand. What you’re doing is targeting influencers with thousands of followers to talk about your products or services and promote them to their followers. Their influence is what you’re after, and just like any other marketing campaigns, your aim is to attract and engage the right audience, only this time, these are the influencer’s audience too.

To have a simplified understanding of what influencer marketing is, refer to this 4-step process:

Step 1 – Identify the experts in your industry, specifically in your chosen niche/field. Learn how well-connected they are, to see if they are influential enough to be an influencer for your business. Come up with as many as you like, so that you’ll have an extensive list of potential influencers before proceeding to the next step.

Step 2 – From the compiled list from the previous step, make a shortlist of those who are closely related to your business. These people should be complementary to your business, meaning, they are targeting the same audience bracket, as well as their reach, and their tone. It would help if you could find some that have the same target audience as yours so that they won’t have a hard time selling whatever product or service it is you are offering.

Step 3 – Start building a connection with your influencers. First step is to follow whatever platform they have so that they’ll know that you are connected through the same industry. Formally introduce your business, and express how well their blog/page resonates with your brand. State that you are looking forward to working with them in the future and are open to discussing a partnership. Share their content on your end, so that they’ll know you’re positively considering them as an influencer.

Step 4 – Once you’ve formalized a connection or partnership, you can now start to create content with them. These could include videos, posts, info graphics, and other items that they could share with their followers. This would be something related to your brand and will be promoted by them in whatever platform they have.

Why is Influencer marketing effective?

This type of marketing works simply because it helps you go directly to your target audience. Unlike typical marketing, which is like casting a net in a wide ocean, you’re cutting through all the unnecessary noise of your usual advertising efforts. From the get-go, you’ve identified influencers whose audience are quite similar to yours, so running campaigns through them would assure you that the ones on the receiving end are at least interested in what you’re offering. This method would be like casting a net on a commercial fishing pond, wherein you are highly likely to catch something.

But of course, it still takes a lot of work for this kind of campaign to work. Going back to Step 4, you’ll need to coordinate with your influencer in order to create a content that will capture your audience. You can’t just go and ask your influencer to say something about your brand and tell your audience to buy from you. Just to give you an idea of what they can do, here are some of the tactics that influencers usually employ:

– Your influencer gives you precious blog space so that you can write a content that’s related to their blog theme, and find a way to mention your product. In a way, you’re projecting yourself as an expert, and it builds trust from influencers’ audience, drawing their attention to whatever your brand is offering.

– You create a content for your own platform, but this time, you’re using your influencer as a subject matter expert. By interviewing your influencer for your own content, their audience (fans, followers, etc.) will likely go visit your site to see the content. You can also ask the influencer to promote it by sharing the URL on his or her accounts.

– The influencer will create a content that includes your product, either as a part of a tutorial (how-tos, FAQs, etc.) This can just be a subtle mention of your product as an ingredient, or as a material to whatever they’re creating. The influencer can also allot a post especially for you, to review your product or service. If they’re pleased with your brand, their followers would know about it and most likely try it out, too.

Final Word

Going back to the original question, should I get an influencer for my small business? The answer is obviously, Yes. It’s a great way to make your presence felt in a jam packed industry, and hopefully, help you make a name even when you’re just starting out. You can couple influencer marketing with other marketing strategies like mobile marketing in order to achieve best results.

Author’s Bio

Francis Mansueto has been writing for more than a decade now, focusing on Digital Marketing in the last couple of years. He is currently in charge of writing web-optimized content for RingCentral, an industry-leading cloud phone systems provider. Francis is also a voracious reader, spending most of his free time immersed on fictional worlds. You can reach him through Twitter.

Do you love speaking in front of a crowd, inspiring people and have a likeable personality? Then you should consider starting a business as a motivational speaker. Everyone likes a passionate speaker who motivates them to accomplish what seems impossible and fuels them with hope. Motivational speaking is also a business which once you get right, you’ll reap a lot of rewards while leaving an impact on people’s lives.

Big names like Robin Sharma and Zig Ziglar have all built a strong brand in this industry and so can you. Here are the basics of starting out a motivational speaker business;

Getting Started

One advantage of being a motivational speaker is you do not need hundreds of thousands to start. The major capital you need to invest in is yourself. Start by identifying your area of expertise depending on your back ground, interest and expertise. Some places that are most receptive to motivational speakers are;

• Schools (primary, high school and university)
• Corporates
• Churches, etc

You also need to fully invest in yourself and your skills by;

• Developing public speaking skills: strong public speaking skills are a must have for any motivational speaker. You can invest in some lessons and tutorials on public speaking and even though you won’t be perfect overnight, practice makes perfect.
• Gain experience: become an expert in your field by going to school, gaining work experience and trying out new opportunities. Successful speakers have gone through success and failures then talk about what they’ve learnt during their speaking engagements.
• Maximize on your life story: life stories draw people in and make you more relatable.

Build your Networks

Networks and recommendations are what will take you far in this business. Build your networks by joining professional speaking organizations, reaching out to various trade groups, schools and corporates and joining reputable clubs and societies like Rotary.

Market yourself to your networks by creating and sharing business cards, brochures and having a website which should include testimonials and short clips from your presentations.

Build your Brand

Every professional needs to intentionally build a reputable personal brand. However, motivational speakers should take their brand seriously since that is what will sell you. Before you start building your personal brand, take time to think about who you are, what you have achieved and how you want others to see you.

To get your brand out there, have professional headshot images of yourself taken, build your online presence through branded social media pages and a personal website.

With time you can also venture into other fields. Most successful speakers are also authors, T.V show hosts, etc.

Set a speaking fee rate

Determining what your speaking fee should be can be so stressful especially because when starting out, you may have to do some speaking engagements for free. Here are some important questions to ask yourself before choosing a speaking fee rate;

1. Will travel expenses be included? What will be the mode of transport?
2. What audience am I speaking to? Speaking to experienced professionals for example will definitely cost more than a speaking engagement with high school students.
3. Is accommodation covered? As a motivational speaker, you have to travel a lot. Set your accommodation standards from the beginning and don’t accept anything that is not decent.
4. What’s the audience size?

Whatever you do, make sure you do not work for free for too long and don’t underprice yourself. However, the more times you speak, the better you get, the more you should charge.

If you are an author or have DVD’s of your talks, you can sell them during the events.

Get Registered

After you have everything ready, register your company and get the relevant licenses. You also need to get certified by the National Industrial Training Authority (NITA) to have an edge in the industry.

Final Word

Would you venture into motivational speaking as a business?

Kenya is a growing nation and everyone seems to be moving towards making it a 24 hour economy. People are either busy at work or at their business. Many are the times that these people need to run errands but they don’t have the time! What could be better than having someone to run these errands for you?

George Kamau is the founder of HCS Errands, a company that runs a variety of errands for people who may be too busy to run them on their own. This is an idea that was conceived by coincidence. As George was busy looking for a job from office to office and getting little to no response he noticed one thing. In most of these offices he visited he would hear of the receptionist either struggling to get someone on phone to deliver company documents or they would be complaining about delays in the delivery of their documents. It occurred to him that this was it! It was time to try and venture into the world of entrepreneurship. Running errands such as delivering packages among other services would be his entry point.

Services he offers include making deliveries/courier services, data entry services, government online related services, banking services etcetera. This is one of those businesses you can start with very little money or literally zero capital. As George himself puts it, “The most important capital in this business is the idea, a positive attitude and commitment. In terms of money you need transport money which was a challenge for me when starting out since I was jobless and didn’t have money, so I would sometimes have to borrow from friends then refund upon being paid.”

Despite this hiccup in the beginning George has been able to persevere due to his resilient nature. He adds that entrepreneurship has shaped him up and he is happy that he has been able to create opportunities for young Kenyans with the skills. The young CEO is a proud employer to five other people, two stationed in the office and the rest work in the field “The company has really grown from the time when I would do everything by myself to now where I have people to assist me. To be more effective as a businessperson you need a team of people who understand your vision”

The business has not been without challenges. For one George says entrepreneurship is a lonely journey. “You will find that very few people believe in you. Some view this business as that of the illiterate! It’s up to you to believe in yourself. Work with those who support you strive to be the best and you will see that the doubting Thomas’s will get on board eventually”

George adds that in this business one must remember that the client is king. Provide to their level of demand and ensure your services offer them a solution. He attributes his success to God, hard work and being dynamic. Despite all the challenges he faces he is very confident in his business and sees a bright future ahead. He urges the young people who may want to go into entrepreneurship not to be afraid to start, “Don’t let challenges weigh you down you can start with the little that you have. Use the resources that are within you, visit places that mentor young people like Kuza Biashara and be open to learn.”

If there is one challenge that every entrepreneur faces across the board, it’s being able to stand out from competition. Do you ever feel like everyone in your industry is doing the same thing, sharing the same message, using the same tone and style?

Standing out from competition may be a difficult task but it’s not impossible. There are major brands that have built strong brand identities for themselves and acquired a large share of the target market in their industries.

As a small business, you can still use the same strategies as your competitors but add a unique spin that makes you unique.

Here are 5 ways to do this;

1. Providing Exceptional Customer Service

   75% of customers state that they consider customer care as a true test of a company’s competence. Whatever business you are in, create an environment where your customers don’t want to leave. Great customer service is about making sure your customers feel valued and this does not even have to be expensive.

   Simple things like calling to follow up if a customer’s issue was resolved, listening and acting on customer feedback, calling a customer beforehand to remind them of an appointment they made stand out and make a customer want to keep coming back.

   Another way you can stand out is to be honest with your customers especially if you know you cannot meet a specific need they have. This helps build trust instead of hiding some information or even lying just to make a sale.

2. Offer a Powerful Guarantee

   Having a guarantee is a great way to draw people to your product/service and boost sales. Guarantees communicate your company’s commitment to stand behind the product or service you provide and makes customers more confident in investing in your product/service.

   Examples of popular guarantees are;

   • If your competitor offers 6 months warranty on their product, offer a 1 year warranty.
   • You can guarantee that every call or email query will be handled within 24 hours.
   • You can have a 30 day money refund for customers who will not be satisfied with your product/service.

   Depending on your industry, figure out what guarantees you can provide that will make you stand out.

3. Constantly Innovate

   In this increasingly competitive business environment, innovation is vital to the success of your small business. Being innovative provides an edge and boosts your company’s growth and profitability. Innovation doesn’t have to be a complicated, world changing break through. Even the simple improvements in how you do things can be innovative and stand out.

   Here are a couple of innovative ideas that you can incorporate;

   • Embrace green energy, it’s much cheaper, reliable and cost effective.
   • Improve packaging of products.
   • Find creative ways to organize your workspace
4. Be Easy to Work With

   Having talent, education and experience is no longer enough to survive in today’s competitive economy. Neither is offering the best product/service in the market. Key soft skills such as having a good attitude, having good communication skills influence how likeable you are personally and professionally.

   Here are a few other qualities you need;

   • Be reliable – Being consistent and dependable will help you win contracts and maintain your work relationships.
   • Be honest – In every tough choice you have to make, choose honesty over deception.
   • Have a great 1st impression – Whether you like it or not, people are going to form judgments about you the first time they meet you. Make sure your first impression exhibits your professionalism both in real life and on your social media handles.
5. Narrow down your Target Market

   Narrowing down your target market can be quite tricky. It might not make sense at first since we all want a bigger market so that we can make more profit, right?

   Assuming that everyone is your target market when starting a business is a big mistake most new entrepreneurs make. You end up spending time and money attracting them while your actual target market who needs what you offer doesn’t even know you exist since you are not directly targeting them.

   If you want to stand out from your competitors, narrow down your market, figure out the little details including what challenges they face, what their needs are, where to find them and how to effectively deliver your message to them.

Final Word

Are you an entrepreneur? What do you do to stand out from competition? Let us know in the comment box below.

Getting into entrepreneurship is becoming a popular trend among youth in Kenya. Starting a small bakery business is a profitable business idea you can explore especially if you have a passion for cooking. That said, owning a bakery business needs a lot of commitment and capital but it’s a great way to earn extra income. A bakery is also a good business idea because baked goods are quite popular and move quite fast. Baking also requires little to no formal training but if you need to sharpen your skills, you could consider taking a few baking classes.

If a bakery is a business you would like to get into, here is what you need to know.

1. Getting Started

Register the bakery – If your plan is to run your bakery as a full fledged business, you will need to register your company name (cost – approx 1000Ksh.), register your limited company (cost – approx 30,000Ksh.), get a KEBS licence (cost – approx Ksh. 20,000) and a single business permit (cost varies from county to county)

Licences – To run a bakery business, you’ll also need these licences;

 Food handling Medical Certificate – This certificate makes sure people who handle your food are free from disease. It costs Ksh. 600 and is valid for 6 months.

Food Hygiene Certificate – Valid for a year and starts at Ksh. 300 depending on the size of the business.

Fire Safety Certificate – Valid for a year and costs Ksh. 3,000.

2. The Business

Get Your Recipes Ready – Create a list of all the baked goods you intend to sell. Start with a few items and diversify to more products with time. Prepare a Menu. Prepare a Price list that puts in consideration the cost of ingredients, labor and any other expenses.

Get Your Ingredients Ready – Purchase all the ingredients you need; flour, sugar etc. Also purchase packaging materials, labels, boxes and anything else you’ll need.

Marketing – Find out your target market. Baked products sell quite fast in offices, schools, canteens and local kiosks. Where exactly is your demand?

Figure out how to grab the attention of your target audience by using specific marketing strategies like using fliers, posters, social media, etc.

Network – Attend relevant events, workshops and meetups organized by bakers groups in order to grow your networks.

3. Investment

Starting a small bakery will set you back any amount between Ksh.100, 000 – Ksh. 150, 000 inclusive of licenses and required business permits. Here is a breakdown of the basic items that you’ll need to start out.

Basic Ingredients (prices are approximated)

Utensils

Others

TOTAL INVESTMENT: 11,000 + 36,250 + 12,550 = KSH. 59,800

Depending on the quantity and demand of your baked products, you can make up to Ksh. 5000 a day.

Expected challenges

• Price fluctuations of raw materials like sugar, flour.
• Baked goods are perishable thus they need ready market when they are still fresh.

Final Word

Just like any other business, starting a small bakery is not a smooth sailing venture. However, as long as you have figured out your target audience,  get the required equipment, get the required ingredients, have your recipes in place, figure out your workspace, get all the required licenses & permits and a marketing plan, you are ready to go.

In today’s world, working in line with a team of good employees is important if you want to attain success. Good employees will keep your business afloat in a variety of both predicted and unforeseen situations. Simply put, whether you are the CEO, manager, or undisputed company superstar, the future of your company does not depend on you. It’s all about your employees. For most companies, however, finding good employees has become hard and seems to be getting harder all the time. A recent study indicates that 68% of human resource departments report problems filling positions. This has gone up from 50% in 2015. If you can’t find good employees, here are ten tips to help you find a workplace dream team.

1. Use Social Media
Facebook, twitter, and other interactive platforms have not only changed how we do business but have also transformed how companies recruit employees now days. Hiring managers and recruiters are increasingly using social platforms to search for talent. You should also use these platforms to find employees as well. Use social media targeting features to reach people who match the talents, region, and even hobbies that you require.

2. Take Advantage of Recruitment Organizations
In-house recruiters are relying on recruitment agencies to fill vacancies. Recruitment organizations align their support with your goals and help you cut costs that you would otherwise spend on conventional methods of hiring and recruiting candidates. If you are looking for IT professional, for instance, you can partner with IT recruiting agencies to ensure you get exceptional IT experts.

3. Break Geographical Barriers
The world has evolved, and geographical limitations should not stop you from getting the employees you want. Technology lets you connect with people around the world. Use it to look for employees beyond your locality.

4. Use Your Current Team to Find New Talent
Your employees know everything about your company and can give potential candidates a real insight to your business. They understand your company’s values and expectations and will help you bring in people with the necessary experiences and expertise.

5. Figure out What Positions Job Seekers Are Looking For
When posting a job opening, you want to make sure what you post compliments job searchers needs and ambitions. A simple research online and offline will help you know what job searchers want and help you come up with titles and content that match what most job seekers are looking for.

6. Use Mutual Connections
Use your colleagues, former colleagues, and friends to get new talent. Those close to you know more about you and your company and will recommend the right type of candidate who would help you enhance productivity. Use mutual connections to learn more about a candidate. This will not only help you get competent employees but will also influence and motivate employees to live up to their reputation.

7. Use Emails to Hire Candidates
Email communication has become an integral part of the recruitment process, and more recruiters are embracing it. When it comes to emails, job seekers are incredibly responsive and are more likely to pay attention to what you are saying. Use emails to reach the candidates that you need.

8. Contact Previous Candidates
Don’t let the resumes and data of previous candidates collect dust in your desk drawer. Use them. Previous applicants can be turned into a talent gold mine. They know about your company and are interested in working for you. Contact them.

9. Target Your Rivals’ Employees
If you are in an industry where there is stiff competition, poaching for talent can help gain an edge. A recent study reveals that employees who are contracted to work for an organization that competes with a former employer come in with enhanced energy and motivation that translates to increased productivity.

10. Use Paid internships
Investing in paid internships will help you lure the brightest and most talented candidates available on the job market. Internships allow you test the waters and help you identify which of the interns suits your needs and wants.

Final Word – With these tips, you will certainly find a workplace dream team.