How To Set Up Your Own Electronics Retail 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 Electronics Retail 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.

Electronics stores provide a wide array of products to consumers. These products include smartphones, Laptops, Desktop Computers, Televisions, Speakers, Gaming Consoles, as well as various electronic accessories and gadgets. The popularity of these products has led to the electronics business, becoming a very profitable endeavor.

How To Start An Electronics Retail Business In Kenya

How much do you need to start a Electronics Retail 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 Electronics Retail business in Kenya.

1. Figure Out How To Raise Capital. An Electronics Retail business, requires a significant capital investment. For example, if you are setting up a physical store, you will need to factor in the costs for your store space rent or lease, your inventory, external storage space (this depends on the size of your inventory), wages for your employees, advertisements and other marketing costs. If on the other hand you are setting up an online Electronics Retail Store, you will additionally need to factor in the creation of a website as well as maintenance costs for said website. You can raise capital by getting a bank loan or getting a loan from Cooperative credit societies as these institutions tend to give out loans to small businesses. It also helps if you have an asset or assets that you can put up as collateral. The best and most convenient to raise capital however, might be to get it for friends and family. Even if they are loans, those arrangements are usually much more flexible as they come with much lower interest rates for example. 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 require money from them in the future.
2. 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 Electronics business. Although the cost of a business licence or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
3. 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.
4. 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.
5. 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.
6. Have A Business Plan. For every business, having a concise and effective business plan is very important.
7. Figure Out Your Market. It is very important that you figure out your market. Especially before starting your Electronics Retail business.
8. A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Electronics Retail business will succeed. In the case of a Electronics Retail business, your best bet would be a busy business area or an area around or inside a shopping center or supermarket.
9. Plan Out Your Marketing. Next after figuring out your target audience, should be planning out your marketing. Yes, an Electronics Retail business definitely needs marketing. 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. Find out what is most effective for you and use that or a combination of all of them.
10. Talk To Others Who Have Done This Before You. No man is an island. Talk to entrepreneurs who have gone into or are still in the Electronics Retail business. Examine, study and understand their various business models. You never know, you just might pick up one or two nuggets of wisdom from them.
11. Figure Out Electronics Suppliers And Their Requirements. Your Electronics Retail business would be nothing without suppliers and reliable ones at that. Find out the electronics suppliers that operate in your area and figure out what the terms or requirements are like their minimum order amounts. Alternatively, you can contact the manufacturers of the electronics you would be selling and find out if they would be open to establishing a direct relationship with your business.

And that is it! All you need to know about starting your very own Electronics Retail business.

Is the Electronics Retail business, a suitable venture 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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