Creating your very own business and becoming an Entrepreneur, has now grown to become one of if not the most popular alternatives for young people in today’s world. The increased success rate of this occurrence, has subsequently resulted in people securing traditional 9 to 5 jobs, becoming a much less attractive path. Especially in the demographic of individuals who intend to accumulate long term wealth and also build stability.
About 7 million individuals are unemployed in the East African Nation of Kenya, with over 1.4 million individuals constantly on the lookout for jobs. Those figures were made public via a survey that was conducted by the Kenya National Bureau of Statistics (KNBS). In addition, statista.com, put the nation of Kenya’s unemployment rate at 9.31 percent as at 2019. The rather hard reality on ground coupled with the current Coronavirus pandemic, is part of why the self employment route, is expected to continue to grow in popularity, use, and of course success.
mpesapay.com’s How To series, will put you on game and open your mind and eyes to the quite numerous business ventures available in today’s world that can potentially put more money in your pocket, while also increasing your purchasing and spending power and keeping you adequately occupied.
If on the flip side you are only looking for a little something to set up on the side i.e a side hustle to go alongside what you already have in place, you might still find this series quite helpful.
With a crystal clear vision, Capital, amazing skills in management, top notch customer service, among other things which will be pointed out in each post in the series, you are almost assured success in whichever of business ventures you decide to start.
The article for today, will show you how to start your very own Plumbing business in Kenya. While this is not exactly a business that requires small capital, this writer is confident that you will view this as a very viable option.
Plumbers in a nutshell, fix and or install pipes that supply water, gas or both into homes, businesses and other buildings. They also fix and install pipes for sewage.
In addition, Plumbers set up everything needed for installing bathtubs, water heaters, sinks, toilets, washing machines, dishwashers and other appliances.
How To Set Up A Plumbing Business In Kenya
Exactly what does it take to run a Plumbing business? How much would you need to set it up? What equipment, paperwork and materials are essential or required to have in Kenya? Well if this is one business venture option that you are considering, below is everything you will need to kickstart your very own Plumbing business in Kenya.
- Acquire The Needed Training. Yes, the Plumbing business also requires a certain level of training. Especially if you have never done this professionally before. The training will help you better understand the technicalities behind your chosen business. You can get this by working or interning under an already established Plumbing business. YouTube might also provide a ton of information and knowledge, in the form of Do It Yourself (DIY) tutorials and videos available on the platform. Doing this will ensure that the Plumbing services you provide, will be of the best standard and quality attainable, thus increasing the confidence of your customers in your business. It also improves your skill level and ultimately boosts the reputation of your business.
- 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 which is Plumbing.
- Have A Business Plan. For every business, having a concise and effective business plan is very essential.
- Figure Out Your Market. Figuring out your target market is quite essential and can never be over emphasized. Especially before starting off your Plumbing business. Your potential customers will basically be everyone from home owners, construction companies, businesses, owners of business premises, schools, hotels, malls, hostels, restaurants, the middle class, upper class, the list is almost endless.
- Plan Out Your Marketing. Next after figuring out your target market, should be planning out your marketing. Yes, your Plumbing Business business just like any other business venture, definitely needs marketing too. Learn how to get the attention of your target market. Would discounts suffice? Or referrals? Or a combination of both? What about fliers, posters and sponsored advertisements on social media. Email marketing for example, is also a cost-effective way that is very efficient in building the customer base for your Plumbing business. If you have a website for your business, you can put a list of the email addresses of people who visit your site by asking them via the site if they would like to be part of your mailing list. Fliers, are also another cost-effective way to market. These are one ‘page’ advertisement pieces that can be created at little or no cost. You can distribute these to people one on one, in and around the area where your Plumbing business will be located. Find out what is most effective for you and use that or a combination of all of them.
- Carry Out A Name Search. You will need to do this to confirm that the name you settle on for your Plumbing business, is not already in use by another company. Carrying out a name search costs around 300 Kenyan Shillings in Kenya and you will receive results in a couple of hours.
- Register The Name Of Your Plumbing Business. You will need to register the name of your Basket Weaving business 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 Plumbing business will become a success. For example, if your Plumbing business is located at a street with a large amount of foot traffic, it will benefit from said foot traffic as more people will get to know about it and possibly even check it out even if it is just out of curiousity. With that in mind, find a location that is both easy to gain access to and also ideal. Especially for customers who would prefer to meet up in physical premises or official settings as opposed to just conversing online or over the phone. Also make sure that the location you settle on, is within your budget or in other words affordable. In addition, please confirm that the location or premises, does not have severe or extreme cases of shoplifting, break-ins and or theft. In instances where you are renting, make sure that you get the required approval from the owner of the space, for any adjustments and or alterations you might decide to carry out when occupying said space. Doing this will help you avoid any misunderstanding or tension between you and your landlord.
- Figure Out How To Raise Capital For Your Business. The Plumbing business just like all other businesses, also needs capital investment. After knowing your target market, putting together your business plan and finding a location, raising capital should be your very next move. While pulling from Personal funds is sometimes the major source of funding for many new business ventures, doing that alone is almost never enough. Bringing a financial partner on board, might just be your best option. Particularly in scenarios where obtaining a business loan from a bank or other financial institutions becomes cumbersome, the next option should be getting it from friends and family. Loan arrangements in this setting usually tend to be much more flexible as they come with much lower interest rates and terms. All you have to do is convince said friends and family of the profitability of your business. Please ensure 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 your financial partner in the future.
- Choose The Most Suitable Business Structure For Your Plumbing Business. Choosing a business structure can help you determine your personal liability, figure out how much you will be paying in taxes, as well as your ability to raise adequate financing. Those are just some of the reasons why it is extremely essential that you choose the right business structure and one that is the most suitable for your business from the get go. This is because changing structures later on, might inevitably lead to tax consequences. Make sure you also consult a business accountant and a lawyer too before deciding if your Plumbing business would be a Partnership, a Sole Proprietorship, a Limited Liability Company (LLC) or maybe even a Corporation.
- Secure A Business License Or Permit For Your Plumbing Business. This is one of the most fundamental permits that businesses in Kenya are required to have by law, before commencing operations, so you will definitely need one for your Plumbing business. While the cost of a business license or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
- Decide Your Pricing. Yes you should decide on your pricing before going into the market. One important factor that should influence the pricing of your Plumbing services, is what is attainable on the market currently. What are you competitors charging. And how can you put your pricing in such a way that it is competitive and also profitable. You should also put into consideration, your labor, your logistics expenses, as well as other bills that your Plumbing business would incur. Keep in mind however that while competitive pricing is always suggested, customers and potential customers will be more inclined to patronize your Plumbing Business because of the quality of your services and in some cases, with or without competitive pricing.
- Get An Employer Identification Number. If you will be looking to set up checking accounts for your Plumbing business and or hire employees, you will need an Employer Identification Number. To get one, simply get in touch with the Kenya Revenue Authority (KRA) 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 Plumbing business efficiently, on your own. Especially when your customer base, eventually begins to grow.
- Be Trained In Sales. Make sure that you as well as your staff are very well trained in sales. This training will come in handy when your Plumbing business starts to grow.
- Create A Unique Logo. Yes even your Plumbing 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 customers. Please ensure you create a logo that will set you apart from your competition and help you stand out.
- Secure A Fire Clearance Certificate. This Fire Clearance Certificate is received after undergoing an inspection which you pay for. The certificate also involves getting advice regarding the guidelines of protection against fire, and the installation of the required equipment like fire extinguishers.
- Get Insurance For Your Plumbing Business. While nobody really likes to incur extra costs, securing Insurance is one very important part of starting any business. So make sure your Plumbing business is insured.
- Brand Yourself As Authority In The Plumbing Industry. Customers and potential customers have a tendency of believing businesses who are perceived as Authorities or seen as authoritative in their fields, a little bit more. When you are making a pitch to a potential customer, make sure you exude confidence.
- Document Your Plumbing Work. A very effective way to win over potential customers, is to impress them with visual showings of your Plumbing work. You can either go for hiring a professional videographer or photographer, or taking the photos and videos yourself with the aid of a smartphone. You can then proceed to upload and display said content on the social media pages and website of your Plumbing Business.
- Make Sure Your Plumbing Business Has An Online Presence. Yes, you need to have an online presence. This includes creating Twitter and Instagram accounts as well as a Facebook page for your business. You should also get a website created for your Plumbing business, to help you attract larger customers who may require your services on a contract basis. Make sure your content is also very engaging and that the website is easy to navigate. Ensure that all the relevant information about your Plumbing business (which includes testimonials from happy customers and the contact details for your business) is included, as well as the privacy policy and terms & conditions. Doing that makes it presentable and shows to anyone visiting the website, that it is very well done. Make sure you hire a professional. 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 as well. Just make sure that you update your LinkedIn frequently.
- Figure Out Payment Arrangements That Work Best For Your Customers. You will need to know the various 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, Airtel Money, T-Kash, via POS or in cash. This information will help you offer more payment options and also be way more equipped to serve your customers better.
- Make Sure The Accounting For Your Plumbing Business Is In Order. Make it a necessity that you always have a record of your expenses as well as the income your business generates. Doing this, will ensure that you have a complete understanding of how your business is performing financially. It will also help you when it’s time to file your annual taxes.
- 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 sometimes 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 Plumbing 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.
- Acquire An Already Established Basket Weaving Business. If you want to get straight to and have the resources, you can go for buying an already established Plumbing business, instead of going through the motions of setting up a new one from the ground up. Buying an already established Plumbing business means that the production line, equipment, premises and even customers are already in place. It also means that there is already staff set up and actual sales figures that will give you an idea of just how much money the Plumbing business makes and if it is indeed a profitable venture. Keep in mind however, that buying an already established Plumbing business could be an expensive and complicated 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 end up over paying for said business. Make sure the financial and legal necessities are in order as well.
And there you have it! Basically everything you need to know about setting up your very own Plumbing business in Kenya.
Is the Plumbing business, the right business venture for you to delve into? That question, is up to you to think on and answer. The aim of this entire How To series at mpesapay.com, is majorly to open you up to the various entrepreneurial opportunities that abound in the country of Kenya.
One essential take away from today’s article for you, is to keep on thinking of new ideas and ways to grow and expand your business. The suggestions and tips included here, are entirely for the purpose of pointing you in the right direction and are only a small fraction of what you really need.
In addition, while running a Plumbing business might seem easy and the prospects very promising, please have a realistic approach as well, as it still requires a sizable amount of dedication and patience regardless. As is the case with every other business on planet Earth, there is a chance that you might incur losses. Especially at the very beginning, so with that in mind please keep your overheads low.
How helpful was this article? Are there any other How To topics that you would like us to write on? Feel free to reach out to Mpesa Pay in the comment section.
