Starting a Small Business in Kenya
Kenya is a beautiful country with enormous business potential, but this does not guarantee you 100 percent success in any business that you venture into. Most people start businesses in Kenya but end up failing because they did not consider some essential factors before setting up their businesses.
So, what are some of the factors that you need to consider before starting a successful business in Kenya? This article looks at very critical factors that may make you success when Starting a Small Business in Kenya.
Factors to Consider Before Starting a Successful Business in Kenya
Knowledge of the Business
It is quite hard for you to succeed in a business that you have very little knowledge of. For you to succeed when Starting a Small Business in Kenya, you should know the ins and outs of the business. You should be able to describe your business in detail to anybody. A good example of a business that you cannot start with sufficient knowledge is a chemist. How would you sell drugs to someone if you don’t know the correct product or dosage? You will lose a lot of customers because of wrong prescriptions. Make sure you learn everything that you need to know about your business before setting it up.
Capital Required
Capital is essential for all businesses whether small Business in Kenya or big. You need to calculate beforehand, all the necessary capital that you will require to fully set up your business. After getting to know the required capital, then look for the capital source. It could be your own savings, a loan from friends, or a bank loan.
Get to know your market
Understanding your market is very important when it comes to setting up a business in Kenya because without a potential market, then your products won’t sell. Are people willing to purchase your product or service? Is the market big enough to sustain your business? These are some of the questions that you should ask yourself before setting up a business, and the best way to answer them would be to conduct a market survey. Conduct a market survey and evaluate the potential of the market.
Starting a Small Business in Kenya
Analyze your Competition
Would you set up a barbershop with very few shaving equipment and accessories amidst many other barbershops with state of the art shaving components and expect to get enough customers? Not an easy feat to achieve. To avoid being beaten by your competition it is always advisable to check out your competition first, and then think of a service or product that will beat your competition. There are some instances when you can ignore competition especially when the demand for that product is high but under other circumstances always evaluate your competition.
Location
When it comes to starting a business, location really matters. Choose a location that is accessible to people, a location that has a high population, a location that will give your business an advantage.
Rules and regulations
Get to know about any rules or regulations that stipulate ways of conducting businesses in an area so that you are not caught on the wrong side of the law. Different areas have different rules; therefore get to learn those rules. For example, if you are selling alcoholic drinks, you should not go against the ‘mututho law” that warns against selling alcoholic drinks at certain times of the day.
Back-up plan
Not all Starting a Small Business in Kenya pick up immediately they are launched; some take a shorter period while others take a longer period. Many business people have given up on their businesses because they have taken a long time before realizing any profit, yet these businesses had huge potential of becoming successful if they were just given more time. It is advisable to have another source of income apart from your business to act as a contingency plan, just in case your business does not pick up fast enough so as to avoid premature closures.
List of Small Business in Kenya
Real Estate
Category: List of Small Business in Kenya
In cities, towns and rural communities, there is an overwhelming interest in land and small plots. In almost every community in Kenya, owning a piece of land has been a coveted investment and with increasing population, this has become even more urgent. Accessing to a larger capital base, you will make much more by buying and developing the land then selling it off. This can work very well in the outskirts of Nairobi such as Kamulu, Joska, Isinya, Ngong, Kiserian and other towns where land is still inexpensive.
Child Care Centers
Category: List of Small Business in Kenya
With increasing cases of insecurity from the house helps who abuse or sell babies, many parents are opting to take their non-school going children to childcare centers. Many middle-class parents in Kenya have working mothers and fathers who leave home as early as 5:30 am and get back home as late as 7:00 pm, thanks to perennial traffic holdups in our roads, especially in Nairobi and Mombasa.
Taxi Cabbie
Category: List of Small Business in Kenya
Taxi cabs are probably one of the oldest forms of transportation within African cities and towns. They are preferred by higher-income earners for short and long trips within the city although cab fares can be much higher than motorcycle and tricycle taxis. While taxi cabs are known to pick customers off the road, private hire taxi cars serve customers who make a prior booking (especially via telephone). Although many taxi cabs in the cities are operated by their owners, there is a growing trend of private taxi cab companies on the continent.
E-Commerce stores
Category: List of Small Business in Kenya
By providing a platform for all these people to sell their items, you will make good money. Come up with an online store such as jumia, pigiame, rupu etc. Ask people to place their items for sale at a small fee and market this platform vigorously. Your platform should have categories for example cars, real estate, households, electronics, furniture, clothes, gift items, jewelry, books, foods, services etc. complete with beautiful pictures for easy navigation.
Vending Machine
Category: List of Small Business in Kenya
Kenyans are busy people and many of them would like to buy things quickly and move on. You can meet this need by installing a vending machine for stuff such as water, milk, juice, soft drinks, snacks, sweets, cigarettes, newspapers, etc. This business idea in Kenya will best work with items sold in small compact forms. Shop around for the appropriate vending machine and locate it in a strategic position such as a busy residential area, near busy bus terminus, near a college or school, etc.
Event and Party Planning
Category: List of Small Business in Kenya
Every day, week, month and year, Kenyans are partying. Company and religious entertainment events, weddings, birthdays and many other events are taking place everywhere all the time. Planning and holding parties can be a very stressful undertaking. Many people who are throwing these parties and events could be busy and may desperately need others to plant and execute for them. Generally, this work goes for a flat fee, depending upon the size of the party. By targeting at least 2 or 3 parties or events in a week, imagine what you will make in a year.
Consulting
Category: List of Small Business in Kenya
If you are good at solving issues or if people always come to you for help in certain areas. Well, maybe it could be time to offer your services to people out there at a fee. Businesses need consultants who can help them realize their mission and visions. Individuals want help with the problems in their lives. People are willing to pay you if you can help them stay focused and work their way towards achieving their goals.
Coaching
Category: List of Small Business in Kenya
If you are good at a particular subject or area, you can also teach others at a fee. Thus could be students, business people or employees. You stand a good chance of making money with this business idea in Kenya. You could choose to do it face to face or online.
Government Contractor
Category: List of Small Business in Kenya
Many youth and women have won tenders worth millions of shillings to supply stationery, grade roads, offer services such as cleaning or repairs and many others. With the creation of county governments in the new constitution, servicing tenders will be a major business idea in Kenya. All you need to do is to register a company and look out for these tenders in the daily newspapers.
Janitorial Services
Category: List of Small Business in Kenya
Residential and commercial buildings must be regularly cleaned. With many companies and county governments now outsourcing their cleaning needs. For buildings and business premises, the opportunity is in offering cleaning services. With a few cleaning tools and shampoos, you can negotiate with owners of these buildings and businesses to clean their premises at a monthly fee. You can charge as much as Sh100,000 or even Sh500,000 depending on the size of the building.
Garbage Collection
Category: List of Small Business in Kenya
Garbage collection services by local authorities collapsed in Kenya decades ago. This service is now provided by private individuals and private entities. For residential areas, the major opportunity is in the collection and disposal of garbage generated in the houses. Walk around and sign homes to collect garbage from at a fee, say Sh500 per house per month. With thousands of Kenyans have built their own homes in Nairobi and its outskirts and also in other major towns, this business opportunity in Kenya is limitless.
School and College
Category: List of Small Business in Kenya
Every year, thousands of children sit for national exams in Kenya but only a few get admitted to secondary schools or universities. The demand for schools and other colleges in Kenya outstrips supply. Year after year, thousands of school leavers are unable to get places to advance their education. Qualified and experienced teachers in all subjects and competent school administrators are readily available in Kenya. Hire a few of them and provide quality equipment and facilities and you will attract thousands of candidates.
Agric Value Addition
Category: List of Small Business in Kenya
Kenya’s economy is essentially still agri-based and looking around almost every single home in rural Kenya and many urban homes, there is some sort of agriculture going on. Food is and will always be in demand all over the world. Agribusiness is, therefore, one of the biggest business ideas in Kenya. You can never go wrong if you add value to agricultural produce and sell. For example, instead of just selling milk, turn it into mala (sour milk), yogurt or cheese. You will fetch much better prices in the market.
Bakery and Fast Food
Category: List of Small Business in Kenya
From the wheat flower to cornflower, and to other forms of flour, Kenyans just love to eat baked meals. This is one of the reasons why you may want to consider starting a bakery business. Before you start out it is vital to garner all the necessary information that you will need along the line.
Poultry Business
Category: List of Small Business in Kenya
Starting a poultry farm might appear easy but starting it as a business tool is something entirely different. This means that you are not only just a chicken farmer but an entrepreneur as well. Starting this business you would need to define your target market. And the part of the chicken industry you intend to go into. The chicken industry has two main parts; Layers, where the chickens bred also lay or produce eggs, or Broilers, where chicken are bred mainly for meat.
Aquaculture
Category: List of Small Business in Kenya
Delving into the fish farming business means that you must have knowledge about the business. Why is this important you just might ask? This is especially important because you do not want to come across as a dullard who is in business. You can start out by carrying out thorough research on the internet.
Freelance Writing
Category: List of Small Business in Kenya
It’s very possible to become either a full-time freelance writer earning a living or to be a part-time freelancer supplementing a regular paid income. Another role is to simply do it for fun or to build up a broader portfolio of skills. In this article, you’ll get the basics on what it takes to ease your way into freelance writing as a career or to be put properly, turn your writing hobby into a career that doesn’t affect your day job.
Pest Control Business
Category: List of Small Business in Kenya
If you are thinking of starting a business that can guarantee you a steady income, then one of your options is to consider starting a pest control business. Pest control businesses is a business that is involved in removing or eradicating potentially harmful insects, rodent and reptiles from, farms, commercial and residential properties. These days more than ever before in the world, more and more people are conscious of eradicating things that might bring ill health to them. So you will find that it is a very good business to start.
Disc Jockey
Category: List of Small Business in Kenya
Employ your compilations of music from a variety of eras to please every generation in music. The wedding DJ can make or break the event. If you have a lot of energy, knack for detail, love for music and personality, this could be the perfect role for you. Some DJs also serve as the wedding planner. By learning both trades, you can make yourself more valuable to your clients.
Vehicle Towing
Category: List of Small Business in Kenya
Obtaining a license to start or operate an automotive towing business can be a frustrating task since auto-towing licenses are heavily regulated. Some operators of towing companies forego the license entirely and don’t provide towing services to the general public; instead, they only subcontract their services on an exclusive basis to car dealers and property managers.
Cooling Van Business
Category: List of Small Business in Kenya
Kenya is a relatively hot and nobody wants to drink warm drinks; you can tap into this idea by starting a cooling van business. You will ice drinks with your cooling van, this business is mobile and with the right marketing strategy, you will have a wedding to attend every week.
Tricycle Transportation
Category: List of Small Business in Kenya
The opportunities for the tricycle transport business are enormous. This stems particularly from its unique features and advantages. Its portable nature, route flexibility, convenience for charter service, maintenance efficiency, durability/life span among others adds up to its tremendous business opportunity. The establishment and creation of a new route for tricycles across the state is a contributing factor.
Car Hiring
Category: List of Small Business in Kenya
The car rental career is a very lucrative career, especially when you are located in a strategic place especially a city with a huge population, commercial centers, and entertainment outfits. However, I must point out the fact that a car rental career can be capital and management intensive. The vehicles you hire to customers must meet higher safety standards before you can provide them for hire.
Travel Agency
Category: List of Small Business in Kenya
The travel industry is a big industry within the tourism industry but it is still within the transportation business. The major players in this industries are the transportation companies (Airline, Cruise and Shipping companies, and other transporters) and a special category of people that work behind the scenes to ensure that travelers are comfortable on their trips and get value for their money. With the booming tourism industry in Kenya, this will be a lucrative business especially if you extend your nest to the internet so that individuals can make reservations online.
Car Washing
Category: List of Small Business in Kenya
Cars get dirty and need a regular wash but most people have no time to spare. Driving to the car wash to get your car professionally cleaned is much easier and faster than spending time washing it yourself. Starting a car wash requires having an open space and some money for the necessary equipment.
Auto Mechanic
Category: List of Small Business in Kenya
All over the globe, the auto repair business is such that is important. This is because of the need to have cars fixed. One of the things that must be done before even commencing this type of business is learning all that is required to be known in the auto repairs business. This means that you will be required to go and garner some good skills in this light. This business is even more profiting in Kenya due to the conditions of cars imported into the country.
Solar Panel Sales and Repair
Category: List of Small Business in Kenya
With the abundance of sunlight in Kenya, you can start a business in this field. The solar panel repair business isn’t for everyone. This is because it has a very technical aspect that requires a lot of patience and handwork. If you do not have a penchant for technology, then you may want to look elsewhere. However, if you do have a passion then you will excel in this trade.
Mobile Device Repair Business
Category: List of Small Business in Kenya
People would always encounter issues with their mobile phones and that is why you can pick the trade of a phone repairer up. The first rule of thumb before starting out is to acquire phone repair skills. This is so because you will need to be at the top of your game to attract the best clients that can pay a premium for the service you render.
New and Second-hand cloth business
Category: List of Small Business in Kenya
The clothing store (boutique) industry comprises of small retail stores that sell a limited range of clothing and accessories. The industry is defined as single-establishment stores only. Clothing stores (boutiques) can be strictly designer based (i.e. only one designer’s collection is sold there), or they may sell a mix of designers’ labels (brands) that are specifically catered to the local market.
Chemical Merchant
Category: List of Small Business in Kenya
Demand for certain chemical product far outweighs the supply in Kenya; you can make turn this into a profitable opportunity by importing the chemical to meet the needs of your local market. Simply find out about the products, connect with manufacturers in foreign countries, and seal the import deal with them. Similarly, you can make money by exporting chemical products manufactured in your country to foreign countries where there is huge demand for those products.
Cement Manufacturing
Category: List of Small Business in Kenya
The cement manufacturing business is yet another business that an entrepreneur should consider starting in Kenya. Starting a cement production plant might be capital intensive, but one thing is certain, you aren’t going to struggle to sell your cement especially if you are selling at a competitive price. If you have a solid capital base, then you should consider opening your own cement manufacturing plant.
Soap Making
Category: List of Small Business in Kenya
Soaps are part of the products that are manufactured from chemical products and they are used for washing and for bathing. No doubt there is a large market for soaps and the industry is still pretty much open for as many people that are ready to start their own soap making company.
Start an entertainment Lounge
Category: List of Small Business in Kenya
There are a lot of expatriates in Kenya, especially in Nairobi; and these expats (Kenyans included) definitely need a place to wind down in the evenings and on weekends. You can cater to these needs by setting up an entertainment hotspot such as a hotel, bar, restaurant, cinema, casino, fast food joint, night club, etc. In fact, the list is endless. Just choose an entertainment business you are passionate about and give it a go.
Private Security Outfit
Category: List of Small Business in Kenya
You can set up your own security guard company, train able-bodied men and women, deploy them to companies that need to protect sensitive infrastructure and make your money. It is as easy as ABC but you must bear in mind that your business needs to be licensed with the assigned regulatory authority.
Laundry Services
Category: List of Small Business in Kenya
This business thrives well in any economy – recession or not. There’s a large market to cater to, as many Kenyans are busy with their day jobs and have little or no time for laundry. To start a laundry business, all you need are a washing machine, pressing irons, and a few other items. So, it’s very easy to start, but very lucrative.
Brick Moulding Business
Category: List of Small Business in Kenya
The real estate market in Kenya is growing. Demand for cheap homes is on the rise. Bricks are cheap to produce and thereby providing a cheaper building option. You need Brick making machine, enough sub-soil, spades, and labor, etc to start brick making business. Training in brick-making before you invest will come very handy.
Computer Repair and Sales
Category: List of Small Business in Kenya
With the increase in sales in computers and laptops, the scope of repairing services will automatically grow in Kenya. Computer Repair and maintenance service is a good business idea to start in Kenya. Additionally, you can also provide computer cleaning services.
E-Book Writing-: Internet Café Business
Category: List of Small Business in Kenya
You can start an Internet café business with many other add-on services like printing, online researching, and other computer services. This is a money-spinner in Kenya, as people always want to surf the net. You can position your internet café in a very busy area.
Start a Driving School
Category: List of Small Business in Kenya
Every year, anxious teens that have attained the driving age requirements and even adults alike, who don’t know how to drive; approach driving schools to learn how to drive. If you are looking for a steady source of income in the automotive industry, then one of your options is to open a driving school; a place where you can teach people how to drive.
Snacks and Drinks
Category: List of Small Business in Kenya
Snacks are everyone’s in between meals they come in handy at the office, in school, on special occasions such as parties, meetings, conferences, seminars and so on. Soft drinks usually accompany them as well just think of selling egg rolls, sausage rolls, donuts, and other tasty light snacks especially cakes. These can be sold in schools and in busy places such as bus stops and commercial areas along with milk, mineral drinks, yogurt and so on.
Mobile Store/ Office Supply
Category: List of Small Business in Kenya
People who work in offices find it difficult to go out to the market to buy certain things like Wrist Watches, Shirts, Ties, and Perfumes. You can decide to help busy [people do all their shopping. You will be doing this at a fee. So you have to work out what your service charge will be. This is so that you can make some good profit.
Private Lesson Teacher
Category: List of Small Business in Kenya
How about teaching children after school? Many parents are busy and can’t afford to pay home teachers, you can organize a small after school lesson from home and charge just a little less than home teachers and make some cool money you know? You will have to choose your area of expertise.
Gardening and Landscaping
Category: List of Small Business in Kenya
Turn your clients’ backyard into a breathtaking panorama. Doing this business requires a lot of training and creativity. So you will have to undertake some research and trainings so that you can do your best to attract the best of clients at all times.
Advertising Campaign Developer
Category: List of Small Business in Kenya
You can plan and build creative online campaigns and content for your clients— from successful social media campaigns, apps, mobile contests, video, email distribution, search engine optimization, online media ad buys or a mix of all of the above.
Creating Music Videos
Category: List of Small Business in Kenya
People will always be in love with music and good music. This is why you can consider opening a music-related business. Nowadays, a lot of companies look for music videos for brand building activity. Artists and singers also look for music videos for promotion. You can try this creative work if you enjoy doing so.