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 start a Boda Boda business in Kenya. While this not exactly a 5,000 Kenyan Shillings capital business, I am sure you would agree that this is also a very viable option.
The Boda Boda business is one of the fastest growing entrepreneurial ventures in Kenya, with most of not every town in Kenya having quite a large number of Boda Boda riders or operators who conduct their business, day in day out. It has gone on to empower many ‘unemployed’ individuals, while also creating opportunities for others.
How To Start A Boda Boda Business In Kenya
To start a Boda Boda business in Kenya you will need:
- A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Boda Boda business will succeed. Look at it this way; it is no secret that certain areas or parts have a higher demand for Boda Bodas than others. For example, places like Bomet, Bungoma, Busia, Kakamega, Kisii, Kisumu, Luanda, Meru, Mtwapa, Naivasha, and Nakuru. Nairobi Boda Boda operators earn between an estimated 800 Kenyan Shillings to 1,500 Kenyan Shillings per day. With this knowledge, the importance of knowing where to ‘plant’ your Boda Boda business can not be over emphasized. Please keep in mind however, that more areas are coming up with an increasing demand for Boda Bodas, so do not feel restricted to the above mentioned examples.
- Know your options. Do you want to go the independent route or do you want to use any of the already available ride hailing apps as it is also quite profitable. You can also utilize both simultaneously.
- Capital. Just like with any other business venture, you would need Capital. With the Boda Boda business, you will need between 60,000 Kenyan Shillings to 110,000 Kenyan Shillings. This will go towards buying a new motorcycle (Boda Boda), an insurance cover for it, as well as protective jackets and helmets for your business and of course fuel. Please keep in mind that this figure is per motorcycle. You would need to multiply this by the number of motorcycles you would be getting.
- Reliability. The more your customers know they can trust you, they more likely they are to patronize you above anyone else. This will ease the ‘burden’ of you looking for clients. Very few things are more powerful than word of mouth.
- To secure a loan. No one is an island. Well it is possible to get the full amount on your own, you should consider easing the load by getting a loan. A few financial institutions offer Boda Boda loans that come with repayment plans which are both flexible and friendly.
- Be presentable. You are addressed the way you dress, is just as true in business as it is in our personal lives. Nobody wants a ride with an dirty looking rider or bad looking Boda Boda. Dress smart, maintain your Boda Boda, make sure it is clean. You will see the difference.
- Decide on the specific Boda Boda(s) to purchase. Make your decision based on the cost(s) of repair or maintenance, the purchasing price, aesthetic, and of course fuel efficiency. There are very many options available in the Kenyan market so finding one that meets your taste, will be easy. Alternatively you can opt to rent or lease one.
- To Learn From Customers And Other Boda Boda Riders. Doing this will help you learn new things both from the riders who are already in the business, and from the customers who will most likely show you things to do to make you better than the competition.
- To Get A ‘Driving’ License. You cannot operate or ‘drive’ a Boda Boda in Kenya without a license. It is illegal. Learning to ride one from a certified driving school is advisable. Alternatively, you can employ a rider who already has all the requirements. Just make sure that you regulate him or her by making sure they have daily or weekly targets.
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.
And that’s it! All you need to know about starting your very own Boda Boda business.
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