If you are considering starting a business in 2022, it is imperative to consider the new normal especially now that we are just coming out of the disruptive COVID-19, 2022 general elections and never-ending holidays in Kenya. The pandemic has changed quite a lot about how people consume products and services. For instance, while starting a retail business or restaurant might have been good idea pre-covid, you might want to reconsider those thoughts when you read about struggling businesses in Kenya and East Africa. Not to discourage you however as some traditional businesses are still thriving. Instead of more traditional businesses, think about ones that can support how people live their lives now. While at that, you’ll need to create a sound business plan. Over the last 8 years, there are several challenges we have noticed our customers struggle with, and a good market research on the business you want to do will mostly save you a lot. Among them;
- Limited or Inconsistent Cash Flow
- Not Using a Budget
- No Preparation for Unforeseen Expenses
- Not Raising Enough Capital
- Too Much Debt
- Neglecting Necessary Reporting
- Poor Tax Compliance. Many thriving businesses have been closed down by KRA
- Not Paying Bills on Time
- Mixing Business and Personal Finances
- Poor Marketing Tactics
Having said that, there are many ways to start a business in Kenya with minimal focus on logistics and upfront costs and more focus on getting your ideas started. Having worked with business people from diverse business environments in the last 8+ years, we have listed several businesses that we know will work well with KES 5,000 or less budget (appr. $50).
Reselling
Those passionate about clothing, kitchenware, Home appliances and/or sales may consider starting an online resale business. Although it takes time in research, dedication, and an eye for fashion and or homecare, expert in the said field, and some little cash for advertisement (in this case less than 5k), you can start as a side hustle and turn into a full-time resale business. Start a business on IG, FB or Twitter, get your wares from Eastleigh or Gikomba cheaply and resell. You could start by using online store websites Jumia or Jiji to sell your ware, then expanding to your own resale website. Good news is that you don’t have to own these items.
You only need to contact a reputable wholesaler in Eastleigh or Luthuli, strike a deal with them, get permission to list their items on your page and start making sales. When you make a sale, rush to the wholesaler, get the item and resell at a profit. A good 65’’ Samsung TU8000 TV that would fetch Ksh.120,000 on those high-end shops you see in Westlands and Kenyatta Avenue is retailing from only Ksh.99,999 on Luthuli Ave. potentially giving you a profit margin of Ksh.20,000 ($200)!
What could go wrong: Listing a product from a fraud seller, Listing a product without notifying the seller.
What do you loose: 5k advertising fee on various socials
Online Bookkeeping
With good education and knowledge in accounting and bookkeeping, technology allows many bookkeeping services to be performed online. Around June every year, KRA requires businesses and individuals to file returns. Sad news is that many individuals are still ignorant or the process sometimes can be very bureaucratic. That’s good news for you. If you are an accountant or bookkeeper who wants the freedom and autonomy of running your own business, take advantage of modern technology and start advertising some of these services to start your own online bookkeeping service.
What could go wrong: Nothing really. Unless you don’t have knowledge in bookkeeping
What do you loose: 5k advertising fee on various socials
Freelance copywriting or content writing
Again, this will only need advertising on FB and IG. No one will know you without advertising.
If you’re a natural wordsmith with a bit of marketing knowledge, you can establish yourself as a freelance copywriter or content writer. Whether you write blogs, web content or press releases, plenty of companies will pay for your services. Increase your value by using SEO knowledge to help clients craft a strategy around specific keywords that their target audience is already using in their online searches. Most freelance copywriters in Kenya charge Ksh.500 to Ksh.20000, but those with expertise in a given vertical could charge even more.
Freelance copywriting is a great business to run because as long as you have an internet connection, you can work. It’s a business that you can operate from the comfort of your own home, or even from the road if you travel. If you establish a large enough network and gain referrals from satisfied clients, you could even make it your full time job
What could go wrong: Not getting online gigs. That however only happens when starting. Once you establish your customer base, you are good to go.
What do you loose: 5k advertising fee on various socials
Create Digital Products
Digital products include music, courses, and podcasts, youtube channel etc. There are no recurring manufacturing or shipping costs to worry about, and your margins can remain high. This makes it another no-brainer for being one of the best businesses to start.
For youtube channel for instance, you only need to start with your phone camera. Most good phones today have good camera. As for editing, just because you’re creating videos doesn’t mean you need advanced video editing software (like Final Cut Pro or Adobe Premiere) to edit your content. These software programs don’t necessarily improve your content, particularly if you’re going to be struggling with it a lot during the first few weeks. If you’re new to video editing, you’d do much better with simple programs like Windows Movie Maker or Apple iMovie. These are a lot more user-friendly and are easily downloadable (for free) if you don’t already have them on your computer. As you go along, it may be more challenging to come up with fresh, new content and YouTube channel ideas that will match the hype of your first few videos. But don’t worry—even established YouTube artists go through the same thing every once in a while.
The secret is to look for inspiration everywhere—even when you’re out and taking a break from recording. List down your ideas. Check out other videos and build upon their ideas to make them your own. Avoid comparing yourself to others and focus on your own channel. As long as you like and enjoy the concepts you come up with, your viewers will sense your sincerity and love for your craft, and this will help pique their interest. While you’re at it, take every opportunity to improve and evolve in other areas. Explore other camera filming techniques, editing styles, and approaches to your presentation.
What could go wrong: Starting a digital product that will not appeal to your audience, creating lousy or poorly edited videos.
What do you loose: 5k advertising fee on various socials
Homecare Services
A little while ago, a popular comedian Kennar (Crazy Kennar on IG) started a very interesting business idea. He started a platform where you would register to offer home cleaning services at a fee. The platform saw so many students especially from JKUAT and KU signup for the service- very genius idea. He makes a profit from commissions when you request for the services of these. While we dont encourage you to do exactly the same (He’s done his research and he knows why this will work), we have another idea similar to that:
A background in care and hospitality can go a long way to support housebound seniors who require in-home care. It’s also a service for which demand is only going to grow especially in Kenya. The idea is already HUGE in US and Eastern Europe. According to the National Institute on Ageing in the US, between 2010 and 2050, the 85-and-over population is projected to increase 351% globally.
Many will need care and assistance, often in their own homes. Luckily, you don’t need a background in healthcare to help seniors and grow a successful business at the same time, although those skills will be in demand as well. Many seniors need help with all kinds of tasks, like errands or repairs around the house. With some experience, you could consider growing your business to help seniors transition from their homes to assisted living facilities, offering services such as packing, transporting, setting up, or storing their furniture and possessions.
What could go wrong: Being impatient. Working in this field will need your 100% patience!
What do you loose: 5k advertising fee on various socials
We will be listing 5 more ideas in our next article. So stay tuned and follow us our socials for updates when we do:
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