How To Set Up Your Own Cheese Business In Kenya

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 Cheese 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.

Cheese is a dairy product that is essentially derived from milk (with cow milk, goat milk, sheep or buffalo). It is produced in a wide range of forms, textures and flavors, through the coagulation of the milk protein casein. Although Cheese is not exactly a traditional African delicacy, the growing middle class community in Kenya and the expatriate community, has led to a steady and gradual growth in its popularity and consumption. Another incentive is that there’s very little competition in the cheese sector in Kenya, as compared to other businesses.

How To Start A Cheese Business In Kenya

Just how much do you need to set up a Cheese 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 Cheese business in Kenya.

• Acquire The Needed Training. The entire concept of making Cheese, has been practiced for hundreds of years. While the process especially when produced on a small scale has not really changed over the years Cheese making which is considered in some parts of the world as a traditional art is to a certain extent, viewed as a little bit complicated. So yes, even the Cheese business requires some 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 Cheese business. YouTube will also provide a ton of information and knowledge, in the form of Do It Yourself (DIY) videos and tutorials available on the platform. Doing this, will ensure that the cheese you produce, will be of the best quality attainable and will also increase the confidence of your customers, while enhancing the reputation of your business, and ultimately improving your skill level.
• Have A Business Plan. For every business, having an effective and concise business plan is very important.
• 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.
• Figure Out Your Market. It is very important that you figure out your market. Especially before starting your Gym business. Your potential customers will basically be health food stores, food shops, farm shops or stores, restaurants, hotels, the middle class, upper class, the expatriates and foodies in general who are usually open to paying substantial amounts for products like Cheese.
• A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Cheese business will succeed. A Business located at a major street, will benefit from a large amount foot traffic and more people will get to know about it maybe even out of curiousity. Especially clients who prefer to meet up in official settings or a physical premises as opposed to just receiving deliveries. Find a location that is both ideal and easily accessible. Also make sure that it as affordable and within your budget. In addition, confirm that the location you settle on, does not have extreme cases of break-ins, theft and shoplifting. Do ensure that you get the necessary approval from your landlord or owner of the building (in scenarios where you are renting), for the alterations and adjustments you might be carry out when occupying said space. This is to avoid any fall out between the both of you.
• Figure Out How To Raise Capital. The Cheese business like any other business, requires 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 just that may not be enough. Taking on a financial partner is your best bet. If obtaining a business loan from financial institutions proves difficult, the next option should be getting it from friends and family. 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 friends and family, 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.

• Choose The Most Suitable Business Structure For Your Cheese Business. Choosing a business structure can determine your personal liability, how much you pay in taxes, as well as your ability to raise financing. This is why it is very important that you choose the business structure that is most suitable from the get go because changing structures later on, could lead to tax consequences. Be sure to consult a business accountant and a lawyer too before deciding if your Cheese business would be a Sole Proprietorship, a Partnership, a Corporation or a Limited Liability Company (LLC).
• Secure a Kenya Bureau of Standards (KEBS) License. This will cost you an estimate of around 20,000 Kenyan Shillings.
• Decide Your Pricing. One important factor that should influence the pricing of your cheese products, is whether or not the intended buyer is a retail buyer or wholesaler. When figuring out your pricing, please put into consideration your labor, logistics expenses, as well as the cost of the ingredients used. While competitive pricing is always best, remember that customers and potential customers will be more inclined to purchase your cheese products as a result of their quality. With it without competitive pricing.
• Secure Packaging For Your Cheese Products. Source for and buy packaging materials like boxes, as well as labels, as you will need them when delivering your Cheese products.
• Get 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 Cheese business efficiently, on your own. Especially when your customer base, begins to grow.
• Secure A Food Handling Medical Certificate. This basically confirms that anyone handling your Cheese products including you and your staff, is free from any diseases that can contaminate said food. A Food Handling Medical Certificate costs 600 Kenyan Shillings and is valid for 6 months.
• Secure A Food Hygiene Certificate. This costs 300 Kenyan Shillings depending on the size of your business, and is valid for an entire year.
• Create A Unique Logo. Yes even your Cheese 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 clients. Make sure you create a logo that stands out and sets you apart from the competition.
• Register The Name Of Your Cheese Business. You will need to register the name of your Cheese business if you plan to run it as a legitimate business. The business name registration would cost you around 1,000 Kenyan Shillings.
• A Business License Or Permit. This is one of the most fundamental licences that businesses in Kenya are required to have before commencing operations, so you will definitely need one for your Cheese business. Although the cost of a business licence or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
• 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.
• Make Sure Your Cheese Business Is Insured. Although nobody likes to incur extra costs, Insurance is one essential part of starting any business.
• Be Trained In Sales. Ensure that you as well as your staff are well trained in sales. This will especially come in handy when your business begins to grow.
• Brand Yourself As Authority In The Cheese Sector. Customers and potential customers tend to believe 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. After figuring out your target audience, should be planning out your marketing. Yes, your Cheese business just like any other business venture, definitely needs marketing too. Learn how to get the attention of your target market. Would discounts work? Or referrals or both? How about posters, sponsored adverts on social media and fliers. Email marketing for example, is one cost-effective way that is also very efficient in building the customer base for your Cheese 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 Cheese 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 Cheese Products. A very potent way to win over potential customers, will be to impress them with visual showcases of your Cheese products. You can opt for hiring a professional photographer, or taking the photos and videos 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 Cheese 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 business as well, to further attract larger customers who may require your services in bulk. Make sure the website is easy to navigate, make sure your content is also 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 terms & conditions and privacy policy. Be sure to hire a professional for this, so as to ensure that the website is very well done and looks presentable. 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.
• Make Sure The Accounting For Your Cheese Business Is In Order. Make sure 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.
• Figure Out Payment Arrangements That Work Best For Your Customers. You 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.
• 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 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 Cheese 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.
• Buy An Already Established Cheese Business. Alternatively, you can opt for buying an already established Cheese business, instead of going through the motions of setting up one from the ground up. Buying an already established Cheese 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 a profitable venture. Keep in mind however, that buying an already established Cheese business might be a complicated and also expensive process. To successfully pull this off, ensure that you and your team have the right experience and skills 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 Cheese business in Kenya.

Is the Cheese business, a suitable venture for you to go into? 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.

One important thing besides the tips provided here, is to be good at what you do. Continue to think of new ideas and ways to expand and grow your business.

Also while the prospects are very promising and running a Cheese business might seem easy, please have a realistic approach as well. It still requires a fair amount of dedication and patience regardless and 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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