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 Procurement or Supply 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.
Whenever an organization or company is in need of good deals for supplies in bulk, they almost always source for the services of a procurement or supply company. For individuals interesting in setting up one, this is where you come in. In Kenya the business of procuring or supplying goods and services, is also to a large extent known as the Tendering Business.
How To Start A Procurement or Supply Business In Kenya
How much do you need to start a Procurement or Supply 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 Procurement or Supply business in Kenya.
- Have A Business Plan. For every business, having a concise and effective business plan is very important.
- Carry Out Sufficient Market Reseach. For every business, it is essential that you know and understand the market that you are getting into.
- Figure Out The Best Niche for Your Procurement Or Supply Company. When first starting out your procurement and supply business it is always advisable to focus on where your profit margins are and could be larger. This could be on one specific product, products or customer or customers.
- Choose The Most Suitable Business Structure For Your Procurement Or Supply 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 that you choose the business structure that is most suitable from the get go because changing structures later on, could lead to tax consequences. Consult a business accountant and a lawyer too before deciding if your Procurement or Supply business would be a Sole Proprietorship, a Partnership, a Corporation or a Limited Liability Company (LLC).
- Figure Out How To Raise Capital. A Procurement or Supply business like any other business, requires capital investment. After completing your budget, 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.
- 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 Procurement or Supply business. Although the cost of a business licence or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
- Employ More hands. No one is an island, you really cannot carry out all the daily activities of a Procurement or Supply business efficiently, on your own.
- Plan Out Your Marketing. Next after figuring out your target audience, should be planning out your marketing. Yes, a Procurement or Supply 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. Find out what is most effective for you and use that or a combination of all of them.
- Be Visible To Procurement Officers Of Organizations or Companies. Let these companies be aware of your existence. You can send emails out to said procurement officers as they may be in a better position to make larger orders. Doing this, will ensure that they will look for you whenever they need supplies. Keep in mind that procuring officers look at factors like convenience, the pricing, the presence of valid legal documents that are required and of course the quality of the goods or services.
- 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 Procurement or Supply business. Examine, study and understand their various business models, where they purchase from and how much they make in profit, from the goods they sell. You never know, you just might pick up one or two nuggets of wisdom from them.
And that is it! All you need to know about starting your very own Procurement or Supply business.
Is the Procurement or Supply 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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