A booming business is not born overnight. It takes patience, hard work and good planning to lay the right groundwork.
So whether you plan to sell mitumbas, plant strawberries, get into consultancy business or build the next mobile app the challenge remains the same…laying the right foundation.
But how then do I go about that? You might want to ask. In the next few paragraphs we show you exactly what you need to think about before you launch a business.
1.Be realistic about your financial situation
Depending on the type of business you are starting, it can take anywhere between six weeks and six years to make a profit. So, think about where you are right now.
Can you afford to forego your day job’s salary and other perks as you focus on raising the business? Do you have a student loan to pay? Do you have family support?
Estimate how long it will take you to make substantial profit and figure out if you have enough savings to support you and your business through that time.
Be cautious even as you budget because normally things tend to cost more than we initially plan for them on paper.
2.Get an identity
Picking a business name will mark the beginning of your brand (no matter how small). But before you get too attached to any particular name, you will want to make sure that it is legally available for you to use.
First, perform a business name search using the recently launched eCitizen portal. If the name is available, proceed to register it.
You may also want to figure out if a domain is available for that name especially if you have plans to create a website later. Some tips to consider in name choosing include:
1)Let it be easy to pronounce and recall
2)Let it comply with the expectations of your industry
3)If possible pick a name that can improve your search engine presence so potential customers can easily find you through a simple Google search.
E.g. if you are starting a dentist’s clinic, then a name like Nairobi Dentist Clinic would go a long way in making you visible when a person googles a related search term.
3.Refine your business idea
As early in the process as possible, outline what exactly your business will do from the end customer’s point of view. Make sure you have good value proposition i.e. your product or service is of immense value to your customer even as you mint out profit from every sale.
Also, it is worthy of your time to reflect on what is happening on the market front. For instance, if you are venturing into real estate it is important to reflect upon changing laws and perceptions towards land ownership in certain parts of the country.
Take this moment also to seal holes in your initial thinking…and prepare (psychologically) for the task ahead.
4.You should know people
This is not the time to be shy. So put your best foot forward, wear your best suit, get a few business cards, get out of your comfort zone and start knowing people.
YES, in Kenya, the more you know people, the better (pun intended). So start requesting for conversations with potential customers, advisors or partners.
By this time, you are expected to have started something small already…may be selling your mtumbas to close friends, or creating a basic form of your mobile app or a mix tape (pretty much anything; just don’t move around empty handed with a big vague dream).
Aim to build wider networks to accommodate your future growth plans.
5.Keep your business records in order
Image Credit: Oma Accountants
Go and open a business bank account and start depositing and leaving some cash there for sometime. Maintain a separate record’s file where you will keeping all your important documents and paper-work.
Encourage your customers to pay you by cheque so that the money passes through your bank account first before it gets to you. Also, request your bank for a cheque book so that you can make payments through the account as well.
By doing this, you will create a good impression to your bank (or SACCO) that you are committed to handling your transactions transparently and they will be more likely to give you a loan should you need additional financing.
Related: Top 10 Kenyan Banks Offering Cheap SME Loans
Don’t forget
A great business idea alone will not take you anywhere. You need to start working to actualize it even as you constantly rally people who matter behind it.
Ensure you give good value to your customers always – your customer is the boss in this case. Most importantly, keep your documents in order and be ready to take on opportunities as they come.
Are you planning to start a business? Or have you started one already? What do you think is the biggest challenge that one needs to be prepared for prior to launching?
