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.
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.