Starting a business is not a walk in the park but still it is not that hard. One can start up any business however small or big it is. But before you can be ready to start your business, there are key things and requirements on needs to know and have before setting up your shop. In this article I take you through requirements for starting any business in Kenya.
Requirements for Starting A business
Familiarize yourself with the type of Business you want to start
Before you open your business, first come up with the business idea and get to understand how it works. You will need to know the nitty-gritties of the business you wish to venture in. the viability of the business, market and completion are some of the factors to consider. If your business is going to thrive, then you must consider the market demand of your products or a service, getting to know your target customers is the first step in the right direction for any successful business. Consider choosing business ideas with big returns
After doing your survey, the feedback should give you the basics on how to go about it however small or big it is.
Get A Strategic Location
Depending on the nature of your business, you will need to be strategically located for customers to easily find you, some business however may not be limited to physical location. If you can find customers online as well, prioritize building and advertising your products or services to your online community.
Get a Business Permit
Starting up a business or opening up a shop requires that you get a business permit from your local government. Visit the county or sub-county offices to get the business permit for your business. The amount you will pay for the business permit will depend on your location and nature of business you are starting. Businesses within town tend to attract higher permit fees than those outside the Municipal.
It is good to start small so as to manage challenges that may be unforeseen. The more your clientele base expands, the more you can add more stock or diversify. With time you will be able to grow your business to reach a wider and bigger market.
Taking a loan to start a Business is a bad idea
Most business do not start making profit for the first few months. It might take you three to four months before you’re your business starts generating profit depending on the nature of business. Taking a loan that will need to be serviced immediately will sink you into more trouble. This is because your business will not be able to sustain itself for some times before getting profitable. Setting aside some money to pay rent, workers, sustain your personal needs and manage your business for three to four months before starting the business is the best way to go.
Once your business starts generating reasonable profits, you can now take a loan to expand your business. In short, take a loan to expand your business but not to start a business.
According to the Micro, Small and Medium Establishment ( MSME) Survey, a total of 2.2 million Kenyan MSMEs close in the first five years of starting up . Nearly a third (29.6 per cent) of survey respondents said this was because they ran short of operating funds. This is perhaps the most important fact to know as you set up your own business.
Expect Ups and downs
As it is always said, Success in life is seldom a straight and smooth line from the bottom to the top. This is especially true of entrepreneurship and any business person. One day you’ll be worried about whether you can pay wages and suppliers; the next, you could be celebrating a massive deal. Successful entrepreneurs need to look past the small setbacks and defeats, celebrate the little victories and keep their eye on the long-term prize.
Have a Vision
From the onset of your business or enterprise, you should have a straight forward set vision and goals. Outline a plan of where you want to see your business in the next couple of years. Having a short term and long term vision will keep your business on the move.
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