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7 Important Precautions when Starting a Business in Kenya

7 Important Precautions when Starting a Business in Kenya
Business

In Kenya, it can be rather tricky when anyone wants to start a business. There is a lot of planning that is required to make your whole idea a reality. Starting a business in Kenya is even harder for young entrepreneurs who have small business ideas and they are seeking to be future employers rather than employees.

The secret of success in any startup is in the planning stage. Once you have everything in place, there will be nothing left to stop the prosperity of your small business idea. Business ideas that people can start are in their thousands. However, there is a reason that two people with the same idea may start up their own business, one succeeds, while the other fails.

The biggest reason for failure is poor planning and therefore it is important that you are not hasty with decision making at the start up stage of a business. Take your time and make the right decision and consider consulting professional if you are not sure about a particular decision.

The Steps to Consider When Starting a Business in Kenya

Here, we will analyze a few tips that young entrepreneurs must consider when starting a business in Kenya. Each and every tip has its own importance and for anyone to succeed in business, they ought to consider them.

Have an Elaborate and on Point Business Plan

This is where you lay down the complete plan of the business and what the future holds for it. With a good business plan, you will be able to organize your entire business plan in one place. Bring together all the expected requirements and logistics.

This business plan can help you determine if you can afford a particular business and if you are assured of returns on your investment. You are able to predict the future and success of the business hence help you in deciding if that is a business for you.

You will be able to determine your finances and whether you require a business loan and how you will go about that. This is the core tip that all the other points below rely on.

starting a business in kenya

 

Be Informed through your Detailed Market Research

However good your product or service is, it is important that you do a proper market research. Assess the market and know the demand for your product or service and who your competitors are. In most cases, you may not be the only one offering the solution to a particular problem. Other businesses may exist that supply the market with that particular demand.

Be careful to inspect your market and asses the number of competitors. Avoid the markets that are already flooded. It can be more difficult to succeed where similar businesses exist already. Take time to learn your potential customer so that you understand what to offer them differently or more.

It is important that before starting a business in Kenya, you answer so many questions that assess the probability of success of your business idea. Failure to this, you will face the consequences of a startup failure that may kill the morale in your entrepreneurship.

Determine the Amount of Capital you have

It is important that you show yourself the money. Capital is a very important part of starting a business. There are various ways that you can come up with the capital. One is through your personal finances and another is through business loans.

Make sure that you know exactly how much you have before you commit to a particular business idea. Poor planning may motivate you to just ‘start up a business’ with the idea that tomorrow will be better. This is being ignorant and the outcome may be a complete failure of your business plan that might have been good.

Your business plan must be on point if you are considering luring a few investors to invest in your business idea.

You Need to Consider Hiring a Good Attorney and an Accountant

If you want your idea to be as perfect as it can be, it may be important that you start off perfectly. This means that you do not have to cut down costs and be your own lawyer and accountant. If you resort to this, your idea may come crushing as fast as it started.

It is important that you seek professional help from the planning stage of the business idea. Business attorneys are very important at the planning stage of a business. This might not be a permanent thing and once everything is set, you can do away with the business attorney.

The business attorney will be vital when it comes to contract drafting, lease review and coming up with a business structure that will work for you. The business attorney and the accountant can make a very good team in determining various aspects of the business like ownership.

From the word go the accountant can determine various vital aspects of a company like book and record keeping. Tax is also a very important aspect of a business and therefore it is important that the accountant you choose is knowledgeable about state laws that any business needs to abide by.

Build a Structure for your Business

There are different business structures to choose from when starting a business in Kenya. You have to choose the best one that will suit your particular business. The paperwork involved in these business structures differs. For example, a sole proprietor structure has different paperwork from a limited liability corporation.

This is one reason why it is very important to get a good lawyer and a good accountant who will play a center role in making these decisions.

Choose a Good Business Name

A business needs to have a name. This name has to be good for your business. Take time and decide on a business name. Discuss with various stakeholders or professionals to determine the best name for your business.

Make a list with various business names to choose from. You can cancel out various names to remain with the ones that you think are the very best. In the long run, you will be forced to settle on a single name. This name must be catchy because it reflects so much on what your business is all about.

At this point in time, every business in Kenya needs to go online. If you want to reach out to many people and also create a level ground between you and your competitors, you have to go online. For this reason, you will be required to choose a domain name for your website.

The domain name must be coined from your business name. Choose a good web design company in Kenya who will design a good corporate website for you so that you can start reaching out to your potential clients online.

It may also be important to consider investing in SEO services to boost your chances of creating leads. Just building a website is not important. You have to market your site to create leads. You can find an SEO company in Kenya that will improve your web presence and create quality leads for your company.

Ensure you have Required Permits and Licenses

It is very important that your business is legal and follows all the laws of the land. In your business plan, it is important that you observe all the legal requirements by obtaining all the permits and licenses that are required.

You can also find out more from the Attorney General’s Website

Your business will run smoothly without worrying about clashing with the authorities. Your lawyer should help you in obtaining all the legal papers. The various legal requirements may cost you a certain fee that you need to incorporate in your budget.

Observing these tips mean that you are now ready to start a business in Kenya. There is a high probability of success with less risk involved in starting the business. Other important aspects may be required, especially technically, but these are the fundamental steps that you must not assume.
Once you observe them, starting a business in Kenya will be a lot easier for you and you will be on the fast track to success.

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