Becoming an entrepreneur and creating your very own business, has now become one of the most popular alternatives for present day’s youth or young people. This development’s increased success rate, has now led to getting traditional 9 to 5 jobs, becoming a much less attractive option. Particularly among individuals looking to build stability and also accumulate long term wealth.
In the East African nation of Kenya, around 7 million individuals are unemployed, with more than 1.4 million individuals constantly on the lookout for jobs. This was made public in a survey conducted by the Kenya National Bureau of Statistics (KNBS). statista.com, also put Kenya’s unemployment rate at 9.31 percent in 2019. The tough reality on ground coupled with the current pandemic, is part of why the self employment path, continues to grow in use, popularity and success.
The How To series at mpesapay.com, will open your eyes and mind and put you on game to the quite numerous business ventures available in today’s world that could potentially put more money in your pocket, increase your purchasing and spending power and also keep you busy.
If you are only looking for a side hustle to go alongside what you already have going i.e a business to set up on the side, you might still find this series quite helpful.
With fantastic management skills, great customer service, Capital, a very clear vision, among other things which will be noted in each post, you are almost guaranteed success in whatever business venture you settle on.
Today’s article will show you how to set up your very own Basket Weaving business in Kenya. While this is not exactly a business that requires small capital, this write is confident that you will view this as a very viable option.
Basket weaving sometimes regarded as a rural or traditional craft, is the process of sewing or weaving pliable materials, turning said materials into three-dimensional artifacts, such as mats, furniture, mesh bags and of course baskets.
How To Start A Basket Weaving Business In Kenya
Exactly how much would you need to set up a Basket Weaving business? What materials, equipment and paperwork are you required to have in Kenya? Well if you are considering this option, here is everything you will need to kickstart your Basket Weaving business in Kenya.
- Acquire The Needed Training. Yes, even the Basket Weaving business also requires a certain level of training. Especially if you have never done this professionally before. The training will enable you better understand the technicalities behind your chosen business. You can get this by ‘interning’ or working under an already established Basket Weaving business. YouTube will also provide a ton of knowledge and information, in the form of Do It Yourself (DIY) videos and tutorials available on the platform. Doing this will ensure that the Woven products you create, will be of the best quality attainable and will also increase the confidence of your customers. In addition, it will enhance the reputation of your business and ultimately improve your skill level.
- Know If There Is A Demand. Yes this is very important. You need to find out if there is a demand for you intended business which is Basket Weaving.
- Have A Business Plan. For every business, having an effective and concise business plan is very important.
- Figure Out Your Market. Figuring out your target market is very important and can never be over stressed. Especially before starting your Basket Weaving business. Your potential customers will basically be everyone from interior decorators and interior decoration companies, malls, hotels, hostels, restaurants, the middle class, upper class, the expatriates as well as anyone in general who is heavily into purchasing more artsy and unique products like your woven good.
- The Name Search. You will need to do this to confirm that the name you settle on for your Basket Weaving business, is not already in use by another establishment. The name search costs around 300 Kenyan Shillings in Kenya and you will receive results in a couple of hours.
- Register The Name Of Your Basket Weaving Business. You will need to register the name of your Basket Weaving business if you plan to run it as a legitimate business. The business name registration would cost you around 1,000 Kenyan Shillings.
- Figure Out How To Raise Capital. The Basket Weaving business like any other business, also needs capital investment. After completing your business plan, knowing your market and finding a location, this should be your next line of action. Although Personal funds are sometimes the primary source of funding for many new businesses, doing that alone might not be enough. Bringing a financial partner on board, could just be your best option. Especially in scenarios where obtaining a business loan from financial institutions becomes difficult, the next option should be getting it from family and friends. Loan arrangements in this setting are usually much more flexible as they come with much lower interest rates. All you would need to do is convince said family and friends, of the profitability of your business. Please make sure however, that you pay back the money and in good time too, so as to maintain confidence which you would need if you would require money from them in the future.
- Find A Good Location. As with most businesses, a good location is one of the major factors that determine whether or not your Basket Weaving business will become a success. For example, if your Basket Weaving business is located at a major street, it will benefit from a large amount of foot traffic as more people will get to know about it and possibly even check it out even if it is just out of curiousity. Hence, find a location that is both ideal and easily accessible. Especially for customers who would prefer to meet up in official settings or a physical location as opposed to just receiving deliveries. Also make sure that the location you settle on, is affordable and within your budget. In addition, please confirm that the location, does not have extreme or severe cases of theft, shoplifting, and break-ins. In scenarios where you are renting, ensure that you get the necessary approval from your landlord or owner of the space, for the alterations and adjustments you might decide to carry out when occupying said space. Doing this will help you avoid any fall out between you and the owner.
- Choose The Most Suitable Business Structure For Your Basket Weaving Business. Choosing a business structure can help you figure out how much you pay in taxes, determine your personal liability, as well as your ability to raise financing. Those reasons are why it is extremely essential that you choose the right business structure. A business structure that is the most suitable for your business from the get go. This is because changing structures later on, may inevitably lead to tax consequences. Make sure you also consult a lawyer and a business accountant too before deciding if your Basket Weaving business would be a Sole Prorietorship, a Partnership, a Corporation or a Limited Liability Company (LLC).
- Secure A Business Permit Or License For Your Basket Weaving Business. This is one of the most fundamental licences that businesses in Kenya are required to have by law, before commencing operations, so you will definitely need one for your Basket Weaving business. Although the cost of a business permit or licence differs from county to county, it usually sits at around 3,000 Kenyan shillings.
- Figure Out Your Pricing. Yes you should decide on your pricing before going into the market. One important factor that should influence the pricing of your Basket Weaving products, is whether or not the intended buyers will be retailers (retail buyers) or wholesalers. When figuring out your pricing, you should also put into consideration, your labor, your logistics expenses as well as the cost of every single ingredient used. Keep in mind that while competitive pricing is always best, customers and potential customers will be more inclined to purchase your Basket Weaving products because of their quality and in some cases, with or without competitive pricing.
- Make Sure Your Basket Weaving Products Are Well Packaged. Buy and source for packaging materials like boxes, labels as well as containers. You will definitely be needing all of those when delivering your Basket Weaving products.
- Secure An Employer Identification Number. If you will be looking to set up checking accounts for your business and or hire employees, you will need an Employer Identification Number. To get one, simply get in touch with Kenya Revenue Authority which is Kenya’s internal revenue service.
- Employ More hands. No one is an island, you really cannot carry out all the daily activities of a Shea Butter business efficiently, on your own. Especially when your customer base, starts to grow.
- Create A Unique Logo. Yes even your Basket Weaving business needs a logo too and the importance of a very well done Logo cannot be over emphasized. Especially with regards to having a positive first impression on your potential customers. Make sure you create a logo that will set you apart from the competition and stand out.
- 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.
- Get Insurance For Your Basket Weaving Business. Although nobody likes to incur extra costs, Insurance is one very important part of starting any business. So make sure yours is insured
- Be Trained In Sales. Ensure that you as well as your staff are very well trained in sales. This training will come in handy when your business begins to grow.
- Brand Yourself As Authority In The Basket Weaving Industry. Customers and potential customers have a tendency of believing a little bit more in businesses who are perceived as Authorities or seen as authoritative in their fields. When you are making a pitch to a potential customer, make sure you are confident.
- Plan Out Your Marketing. Next after figuring out your target market, should be planning out your marketing. Yes, your Basket Weaving Business business just like any other business venture, definitely needs marketing too. Learn how to get the attention of your target market. Would referrals work? Or discounts or both? How about sponsored adverts on social media, posters and fliers. Email marketing for example, is one cost-effective way that is also very efficient in building the customer base for your Basket Weaving business. If you have a website for your business, you can gather email addresses of people who visit your site. Fliers, are also another cost-effective way to market. Flyers are one ‘page’ advertisement pieces that can be created at little or no cost. You can distribute these to people, in and around the area where your Basket Weaving business will be located. Find out what is most effective for you and use that or a combination of all of them.
- Take Photos Of Your Basket Weaving Products. A very effective way to win over potential customers, is to impress them with visual showings of your Basket Weaving products. You can either go for hiring a professional photographer or videographer, or taking the videos and photos yourself with the aid of a smartphone. You can then upload and display said content on your social media pages and website.
- Make Sure Your Basket Weaving Business Has An Online Presence. Yes, you need to have an online presence. This includes creating a Facebook page, as well as Twitter and Instagram accounts for your business. You can also get a website created for your Basket Weaving business as well, to further attract larger customers who may require your products in bulk. Make sure the website is easy to navigate, and that your content is also very engaging. Ensure that all the relevant information about your business (which includes the contact details for your business and testimonials) is included, as well as the privacy policy and terms & conditions. To ensure that the website is very well done and looks presentable, make sure you hire a professional. The hired professional, will also make sure that your website is well maintained and updated regularly. Creating a LinkedIn profile for your business will also be a good look and will help you further network with other businesses. Just make sure that you update your LinkedIn frequently.
- Figure Out Payment Arrangements That Work Best For Your Customers. You will need to know the payment methods and arrangements that would work best for your customers and potential customers i.e if they would prefer to pay via M-Pesa, T-Kash, Airtel Money, via POS or in cash. Knowing this will help you offer more payment options and also be more equipped to serve them better.
- Make Sure The Accounting For Your Basket Weaving Business Is In Order. Make it a given that you always have a record of your expenses as well as the income your business generates. Doing this, will ensure that you have a full understanding of how your business is performing financially. It will also help you when it’s time to file your annual taxes.
- Talk To Others Who Have Done This Before You. No man is an island. While a number of established business owners are more than happy to give advice to new entrepreneurs, it can sometimes take a while to find one who will be willing to do so. The wait however, will be worth it. Talk to entrepreneurs who have gone into or are still in the Basket Weaving business. Examine, study and understand their various business models and strategies. You never know, you just might pick up one or two nuggets of wisdom from them.
- Acquire An Already Established Basket Weaving Business. Alternatively and if you have the resources, you can opt for buying an already established Basket Weaving business, instead of going through the motions of setting up one from the ground up. Buying an already established Basket Weaving business means that the customers, production line, equipment and premises are already in place. It also means that there is already staff set up and sales figures that will give you an idea of just how much money the business makes and if it is indeed a profitable venture. Keep in mind however, that buying an already established Basket Weaving business might be a complicated and also expensive process. To successfully pull this off, ensure that you and your team have the right skills and experience for carrying out an acquisition. This will almost guarantee that you will not over pay for said business. Also make sure the financial and legal necessities are in order.
And that is it! All you need to know about starting your very own Basket Weaving business in Kenya.
Is the Basket Weaving business, a suitable business venture for you to go into? That question, is left for you to think on and answer. The goal of this How To series at mpesapay.com, is primarily to open you up to the various entrepreneurial opportunities that abound in the country.
One important thing you should take away from this article is to continue thinking of new ways and ideas and to expand and grow your business. The tips included here, are only a small fraction of what you need and are solely for the purpose of pointing you in the right direction.
In addition, while the prospects are very promising and running a Basket Weaving business might seem easy, please have a realistic approach as well, as it still requires a sizable amount of patience and dedication regardless. As is the case 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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