For ‘young’ people, starting your very own business and becoming self employed is the most suitable alternative to the ever growing hard to get 9 to 5 jobs. Starting a business is always the best alternative to the ever elusive jobs.
A survey by the Kenya National Bureau of Statistics (KNBS) revealed that seven (7) million Kenyans are unemployed. An additional figure of over 1.4 million are actively looking for employment. With those figures, it is easy to see why more and more people are looking for alternatives.
Because we know very many business ventures require huge amounts of capital to get started, this new How To series will only show you how to start and execute several small business that require capital from as little as 5,000 Kenyan Shillings. Thus giving you the keys to the kingdom of starting a profitable business with little or no capital.
If you are also just looking for a side hustle to maybe supplement your 9 to 5 or full time job, this is for you.
All that you need to thrive in these businesses besides capital, is good customer service of course, great managerial skills, a suitable business location, and a clear cut vision.
Today’s article will show you how to set up your very own Bar business in Kenya. While this is not exactly a 5,000 Kenyan Shillings capital business, I am sure you would agree that this is also a very viable option.
Bars due to their reputation for being very profitable, have become a huge hit in Kenya. There is almost always an operational bar in every street. Especially in residential areas that are urban.
How To Start A Bar Business In Kenya
How much do you need to start a Bar business? What paperwork, and or equipment are you required to have in Kenya? If you are considering this option, here is everything you will need to kickstart your Bar business in Kenya.
- A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Bar business will succeed.
- Capital. Just like with any other business venture, you would need Capital for your bar business. You will need around 800,000 Kenyan Shillings.
- Employ More hands. No one is an island, you really cannot carry out all the daily activities of a Bar business efficiently, on your own. Hiring a couple of your friends or other external parties altogether to help you handle the day to day activities of your bar, might be a good idea.
- Figure Out Your Target Market. Know your demographics. Knowledge like that, should help you fine tune your marketing towards said market.
- Obtain Your Alcohol License. All businesses in Kenya that involve alcohol, are overseen by the Alcohol Drinks Act 2010, also known as the ‘Mututho Laws’. The Alcohol Drinks Act 2010 dictates that the license bars located within a municipality or city is 30,000 Kenyan Shillings for 6 months and 50,000 for 1 year. The license fee for bars that are located urban areas which are not within a municipality or city, is 18,000 Kenyan Shillings for 6 months and 30,000 Kenyan Shillings for a year. Bars that are located As for premises outside cities, municipalities or urban areas, the fee is 9,000 for 6 months and 15,000 for a year. For Bars that are not situated in municipalities, cities or urban areas, the license fee is 9,000 Kenyan Shillings for 6 months and 15,000 Kenyan Shillings for a year.
- Secure A Public Health License. A Public Health License is issued by Public Health Officers, after inspecting your bar business and confirming that it is up to standard. Securing this license would cost you at least 6,000 Kenyan Shillings.
- Secure A County Single Business Permit: This is another important permit or license that you need for your Bar business. The cost for this however , varies from county to county.
- Secure A Medical Certificate: This refers to your staff i.e your individual workers. Every member of your staff is required to have a medical certificate. It costs 500 Kenyan Shillings for each Medical Certificate.
- Secure A Fire Clearance Certificate. This is received after undergoing an inspection which you pay for. It also involves getting advice regarding the guidelines of protection against fire, and the installation of the required equipment like fire extinguishers.
- Music Copyright Of Kenya. Every business establishment that uses music, need a music copyright license. The cost is based on sitting capacity. A bar with a 25 person capacity will cost you 2,331 Kenyan Shillings.
- A Performers Rights Society of Kenya. The Performers Rights Society of Kenya, is a collective management organization that is licensed by the Kenya Copyright Board to represent the interests of performers, regarding their dramatic and musical works. They also distribute and collect royalties for the artists.
- A National Environment Management Agency License. This costs 3,000 Kenyan shillings and is used to make sure that you do not make too much noise.
- Decide Your Pricing. Having a realistic pricing point, will ensure that you will stay relevant. When doing this, please put into consideration, your labor, logistics, expenses, as well as your competition, branding, demographics and other factors. It is advisable that you charge less than high end clubs.
- Equipment. This encompasses everything you will need from furniture (which could cost as much 100,000 Kenyan Shillings), Television sets, to the alcohol itself and other necessities.
And that is it! All you need to know about starting your very own Bar business. Depending on demand, you can make as much as 10,000 Kenyan Shillings to 15,000 Kenyan Shillings in profits per day. Cool right?
Is the Bar business suitable for you? That question, is left for you to think on and answer. This writer’s goal is to open your eyes to the various entrepreneurial opportunities that abound in the country.
Also while the prospects are very promising please have a realistic approach as well. As with any business, there is a chance that you might incur losses. Especially at the beginning, so please keep your overheads low.
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