Having a business in Kenya is a profitable source of income. If you’re an entrepreneur who wants to start a business in Kenya, then this article is the best resource for you.
In recent years, Kenyan’s have started to implement the idea of starting a business of their own. Having your own business is a great idea because the profit you make is entirely yours, and you can afford to do things when you want it without anyone looking over your shoulder. Yet, with all the amazing prospects that comes with owning a business in Kenya, starting a profitable business is a very demanding task that requires a good plan to start and survive.
In this post, we’ve detailed everything you need to know about a business and what you need to start a business in Kenya.
What is a Business?
Business is the activity of making a living or making money by producing or buying and selling products (such as goods and services). Simply put, it is “any activity or enterprise you venture into to make profit. Starting a business doesn’t mean it must be a company, a corporation, partnership, or formal organization, but it can be as little as having a street shop to import and export business e.t.c
Starting a business isn’t meant for a certain kind of people or a certain age. Infact, there are no limits to who can become a business owner or an entrepreneur. Also, you do not need a huge sum of money in your bank account or a business degree before starting your business.
To start a business in Kenya, you need to have a good business idea, a concrete execution plan and passion for your business. This post contains the key steps and processes to start a profitable business in Kenya.
Why you need to start a business in Kenya
Kenya has approximately 53 million plus inhabitants and is one of the most populous country in Africa.
In Kenya, there is a huge population of youth and Kenya is viewed as a multinational state because it has many ethnic groups. There are still diverse languages in Kenya, and are identified with a wide variety of cultures.
How to start a business in Kenya
To start a business, you need to;
- Evaluate yourself
- Find a business idea
- Find a location for your business
- Conduct market research
- Create a business plan
- Get business funding
- Register your business
- Employ people
- Grow your business
1. Evaluate yourself.
There are some crucial questions you need to ask yourself. These questions are; Do I have the skills needed to run this business?? Do I have what it takes to raise capital for the business? Do I have the passion and motivation to grow my business? Do I have what it takes to lead or manage employees
These questions are important because your business survival will depend on the positivity of the answers you give. So, be very sincere with your answer.
2. Find a business idea.
A business idea is simply what kind of business do you want to start. In starting a business, not every business idea is worth starting at all. You should choose a business idea that is unique, practical, needed by the market and easy to scale. To make the best choice, you can start by looking at what problems exist in your environment and try to provide a solution to such a problem and monetize it.
If the business idea you decide on is completely new, think of what the services or products the business can offer and think on how to create something better and cheaper. You can do a survey, ask people questions and get their opinion, make your own research and as well listen to advice from entrepreneurs.
3. FIND A BUSINESS OR OFFICE LOCATION
If you want to start a business or office, you need a location. You can find a Solicitor to assist you on available options. Approvals and assessments (including environmental and structural assessment) and other regulatory requirements may differ between state jurisdictions.
4. Conduct market research.
Ensure you know every detail about the business you want to start. If you do not know everything about the business, try conducting a market research by asking your potential customers a few questions about the problem you will like to solve for them.
Don’t forget your competition or those already in the business. Try to know about their products and services and how you think your business can be better than theirs.
5. Create a business plan.
After conducting a market plan and knowing about your competitors, create a good business plan. Wikipedia defines a business plan as a formal statement of business goals, reasons they are attainable, and plans for reaching them. The business plan may also contain background information about your business or team attempting to reach those goals.
Whether you want to start a big or small business in Kenya, you need a good business plan for that business. With a well written business plan, you will be able to stay focused and organized. organizational skill is one of the skills of every successful entrepreneur. If you haven’t written a business plan before, you can check out some business plan samples online to serve as a guide.
6. Get business funding.
If you don’t have your own capital to start your business, there are different ways like bank loans, grants, equity investments etc. to source for funding. Apart from skills and effort, money is important in starting a business. No matter the kind of business, it requires a startup capital which will be used in funding the day-to-day operations of the business.
7. Business Registration.
Business Registration is very paramount for everyone that wants to start a business in Kenya. You should register your business with the Nigerian government or with the body responsible for business registration in Kenya.
In Kenya, you can register your business with the right authorities at the federal level and then with Chamber of Commerce at the state level. Registering your business with the required bodies gives validity and authenticity to your business.
8. Employ people.
If your business is small, you may not need to employ people immediately. But if you intend to start a big business, you will definitely want to employ people.
The people you employ will make up a business team because these people will work to contribute to the growth of your business but if the team is not well built, your business will not move forward.
9. Grow Your Business.
Anyone who starts a business will want the business to grow and yield more profit and income. Infact, growth is vital to the survival of a business. Plan ahead and do everything possible to ensure the constant growth of your business.
The number one metric to measure the growth of a business is a steady positive profit or cash-flow. The more money your business generates, the more it grows and expands the business.
So, if you want to start a business in Kenya, be sure you have what you need to grow your business and keep the money or cash-flow consistently coming in.
Cost Of Starting A Business In Kenya
Starting any business requires money. The business might require little or much capital. So when starting a business, bear it in mind that you must surely spend money. So the cost of starting a business in Kenya might vary from $20 and upwards.