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 Toy 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.
Setting up a Toy Retail business, is another one of the numerous ways entrepreneurs can make a living. The added benefit of putting smiles on the faces of children, is not a bad one either *wink.
How To Start A Toy Retail Business In Kenya
Even though the Toy Retail business has a number of opportunities, you still need to do your research before going into it. Just how much do you need to start a Toy Retail business? What paperwork, and or equipment are you required to have in Kenya? If you are considering this option here is in no particular order, everything you will need to kickstart your Toy Retail business in Kenya.
- Have A Business Plan. For every business, having an effective and concise business plan is very important.
- Figure Out Your Market. It is very important that you figure out your market. Especially before starting your Toy Retail business. Your potential customers might predominantly be Parents with toddler and children between 3 to 5, as well as Daycares, Kindergarten schools and Montessori school. the working class, middle class to upper class.
- Plan Out Your Marketing. Next after figuring out your target audience, should be planning out your marketing. Yes, your Toy Retail 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.
- Figure Out How To Raise Capital. The Toy Retail 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.
- Register The Name Of Your Toy Retail Business. You will need to register the name of your Toy Retail startup if you plan to run it as a legitimate business. The business name registration would cost you around 1,000 Kenyan Shillings.
- A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Toy Retail business will succeed. Find a location that is both ideal and easily accessible.
- Figure Out Your Suppliers, Their Requirements And Set Up A Supply Chain. In the case of your Toy Retail business this will be the toy manufacturers themselves as well as the wholesale distributors. These ‘suppliers’, are an indispensable part of your business. You have to make sure that the ones you eventually work with are reliable. Find out the toy manufacturers and or wholesale distributors that operate or deliver in and around the area where your Toy Retail will be located. Once done, figure out what the terms or requirements are. This could be their minimum order amount for example. Try to set up a direct relationship between your Bookshop business and them. Ask them about the toy products that are successful and that sell out the most. You should ask them about toys that are equally good but that other Toy Retail businesses, tend to overlook. This information will help you make your stock will also remain exciting while also generating sales.
- Choose The Most Suitable Business Structure For Your Toy Retail 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. Consult a business accountant and a lawyer too before deciding if your Toy Retail business would be a Sole Proprietorship, a Partnership, a Corporation or a Limited Liability Company (LLC).
- 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 Toy Retail business. Although the cost of a business licence or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
- Music Copyright Of Kenya. You might need music as an added source of entertainment for customers as well as potential customers, who visit your Toy Retail store. Every business establishment that uses music,need a music copyright license. The Music Copyright Society of Kenya (MCSK) license, costs between 15,000 Kenyan Shillings to 35,000 Kenyan Shillings depending on the size of your business and the county where you are based.
- 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.
- Make Sure Your Toy Retail Business Is Insured. Although nobody likes to incur extra costs, Insurance is one essential part of starting any business.
- 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.
- 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.
- Sort Out Transportation. In situations where kindergarten or Montessori schools place large orders of toys from you, you will need to sort out transportation for your Toy Retail business. This means, investing in a Van or Truck. Doing this, will ease your movement to and from delivery locations. It is also advisable that you have your campany name and or logo imprinted on your Van and or Truck, as it is also part of advertising the presence of your Toy Retail business.
- Vehicle Maintenance. After sorting out your transportation needs, it is important to also budget for the maintenance of said vehicles.
- 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 Toy Retail business efficiently, on your own. Especially when your customer base, begins to grow.
- Diversify. Do not just say one kind or type of toy, have variety. Let your customers, be spoilt for choice over and over again.
- Make Sure The Accounting For Your Toy Retail 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.
- Make Sure Your Toy Retail Business Has An Online Presence. While your product is mainly print media, you still 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. 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.
- 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.
- 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 worth it. Talk to entrepreneurs who have gone into or are still in the Toy Retail 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.
And that is it! All you need to know about starting your very own Toy Retail business in Kenya.
Is the Toy Retail business, a suitable venture for you to go into? That question, is left for you to think on and answer. The goal of this writer, 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 Toy Retail 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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