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5 Forbes Tips on Building Business to Great Heights in Kenya

2 April 2021 - Tuko

With over 48 million people, the majority being young, the East African country offers a stable and reliable market for any investor keen on building a business venture that would sprout its branches across the country.

In 2020, World Travel Awards (WTA) named Kenya's capital, Nairobi, as the continent's top Business Travel Destination, beating other giant cities such as Cairo, Accra, Johannesburg, Lagos, among others.

The country has also been making great strides in digital advancement for the past couple of years. In 2019, Kenya was ranked by Expat Insider as the best African country in offering good digital life.

In addition to this, the World Bank report of 2019 on the ease of doing business worldwide ranked Kenya 56th, having risen 80 places since 2014 to emerge as one of the most improved countries in Africa and globally.

Despite a few challenges of poverty, taxation, health issues, and sometimes cases of insecurity, Kenya remains one of the best business destinations for both local and foreign investors. It is, however, paramount that you understand the dynamics and tricks of penetrating and navigating through the Kenyan market

We share with you five Forbes business ideas that can help you achieve this. 1. Study the market and identify an opportunity Before pumping money into any business venture, it is important to survey the market to identify a gap and think of a possible solution. Studying the market will help you understand new trends and shifting patterns, which will guide you in formulating appropriate policies and strategies. It would help if you took some time to interact with locals to understand their concerns and the shortages they face daily. If well collected and analysed, this information will help you identify a gap, anticipate future changes and prepare in advance, make policies based on knowledge and facts and, above all, have the edge over your competitors.

2. Be strategic and flexible to future changes Business patterns tend to shift quite often in Kenya, and one has to keep tabs on new ideas and developments to remain afloat. Assess your policies and review them from time to time. Ask yourself if the product or service you are supplying offers the required solution and whether or not it will withstand market dynamics in the future. To get a clear picture of how your business will look in the future, you may be required to carry out experiments with definitive time frames, clear parameters and clear goals. Being strategic and flexible is an integral part of business management in Kenya since most investors often welcome and implement new ideas they consider problem-solving and solution-providing to their ventures. You may not want to be left behind in this. In all these, it is important to note that carrying your clients along and making them part of your journey is key. Studies have shown that most customers in Kenya tend to stick with companies that they feel they helped build.

3. Comply with regulations and build a good rapport with authorities Building a business in Kenya can sometimes be hectic and overwhelming due to a raft of compliance documents required before being allowed in the market. Many businesses endure the burden of overregulation and taxation that sometimes force others out of the market, especially foreign companies. However, taking time to understand regulation policies and genuinely getting the required licenses by following the right procedures can open doors of success for your business. Building a good rapport with regulators and learning to operate between the delicate space of being obedient to rules and resistant to punitive measures could help navigate this challenge.

4. Look for friendly fundraising options Sometimes getting funds to build your business can be challenging in Kenya due to several factors such as the high rate of unemployment, poverty, mistrust, high-interest rates and bureaucracy involved in getting loans from banks. Read also The top 10 best accounting courses that are marketable now For these reasons, it is often advisable that you consider family and friends as your primary sources of capital. This, however, depends on the size and nature of the business you have in mind. If you feel the above sources can get nag you along the way, look for people with prior investing experience and formalise the process of exchanging cash for equity with the appropriate legally binding paperwork. Other viable options to consider could be applying for grants, entering funding competitions and seeking funding from local and foreign investors.

5. Build your reputation as you build your business As you build your business and conquer the market, it is important to promote its brand and build your reputation. This is where publicity comes in handy. Publicity helps to build your business brand as well as sharpening and elevating your profile. Read also Business plan for pig farming in Kenya It is an extra advantage that keeps you ahead of the competition and helps retain your customers as you reach new ones. In Kenya, TUKO.co.ke is one of the most sought-after media companies that provide these services in a unique and incredible way. TUKO.co.ke is the number one online news and entertainment platform by audience in Kenya and is a market leader in every area of media production. The giant digital platform applies cutting-edge technology and provides high-tech advertising solutions to clients to suit their specifications. TUKO.co.ke has a longstanding reputation in this field. With a huge following of over 3.4 million on Facebook, the online news platform will, without doubt, push your business brand and build your reputation to desirable standards. As the heartbeat of Kenya, TUKO.co.ke features breaking news immediately and readers never miss important updates. The platform also delivers highly relevant news and outstanding interactive experience that touches on politics and business, bright entertainment and gossip content and engaging human interest stories.


Source: Tuko

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