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KENYA SMALL BUSINESS GUIDES

Street smart guides to help you decide which business to start,how and what to

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1. Petrol Station
2. Gym Business 27. Milk Distributorship
3. Courier Business 28. Gift Service
4. Sifted Maize Flour Mill 29. Wines and Spirits Retail
5. Leather 1: Skin Trade 30. Tents & Chairs Leasing
6. Chemist Retail 31. Free Advertiser Magazine ( Quick Guide
7. Pork Butchery & Eatery & Case Study )
8. Cake Packaging - The Business 32. Bookshop
Opportunity 33. Bottled Water
9. Mitumba Clothes ( R) 34. Hair Salon
10. Timber Yard 35. M-pesa Sub Agent
11. 'Local' Bar 36. Executive Barber Shop
12. Laundry 37. Handbag Rental Service
13. Chips & Chicken Cafe 38. Fruit / Juice Parlor
14. Baking Cookies - Process, Market, 39. Movie Shop
Opportunities 40. Chapati Wholesale Case Study
15. Daycare 41. Smokies & Egg Vending
16. Gas (LPG) Retail 42. Flowers - Nairobi (Retail/ Wholesale )
17. Senator Keg Bar 43. Beef Butchery
18. Money Lending (Informal) - A Quick 44. Supermarket Shelf Space Guide
Overview 45. Restaurant Cooking Oil Filtering Service -
19. Slot Machine (Informal) ( Feasibility)
20. Paint Mixing ( Informal) 46. Tomato ( Greenhouse ) - Quick Market &
21. Second Hand Novels (R) Production Guide
22. Motorcycle Spare Parts
23. Agrovet
24. Cosmetics Retail Shop
25. Car Wash
26. Ice Lollies Making ( Quick Guide )
KENYA SMALL BUSINESS GUIDES

Notes on Capital
Suppliers
PETROL A Brief on Competition
Critical Success Factors
STATION Appendix

This 47 pages
guide will show
you how to start Total : 47 Pages.
and run an Release Date: 31st July 2016
independent petrol station business. It
contains:
".....Because of all these challenges petroleum brokers have
come in between the OMC and beginner independent retail
dealers. Brokers are essentially licensed wholesalers. They
are well capitalized and able to meet the set conditions...
Overview
A Brief on Franchises
Licensing
National Environmental Management Authority .... The exact methods of operations among dealers and
License (NEMA) wholesalers could vary... Now say you agree with the dealer
Energy Regulatory Commission Licenses that he is going to deliver to your petrol station 5000 liters
Construction Permits and Related Licenses of diesel at Kshs.70 per liter next Wednesday. On the agreed
Fire Inspectorate License day you will need to be physically present at the depot or
Outdoor Advertising License send a trustee to meet with the supplier. A trustee is
Company Registration basically a trusted member of your team. The aim of you or
Weights and Measures Permit your trustee being there is to track the diesel from the point
County Business Permit of purchase to delivery at your petrol station. This ensures
Public Health License that the diesel is not skimmed or adulterated. Adulteration
Professional Fees and skimming happens after the fuel leaves the depot and
Set Up not before. Your role or that of your trustee is to make sure
Process and Civil Works that nothing of the sort happens between the depot and your
petrol station.....
Layout
Canopy
Equipment
Fuel Dispensers
Underground Storage Tanks
Other Equipment
Fuel Suppliers
Operations
Selling
Cash Management
Location and Premises
Revenue
Margins
Prices
Operational Expenses
Electricity
Labour
Security

Rent
Sales / What Influences Revenue
Gym Business
Non Fuel Products
Lubricants
Service Bay
Car Wash
Capital Breakdown
KENYA SMALL BUSINESS GUIDES

Operation - Aerobics
Shower
Cleaning
Rules
Membership
Monthly and Daily
Membership
Monthly Members
This 38 page guide is for you who wants to
Turnover
start a gym business. Its realistic and Non Renewal:
street smart. The guide contains: Common Reasons
Members Goals
Fitting In
Keeping up with the trends.
Keeping It Fresh
Overview and Trends
Revenue
The Modern Gym
Fees & Sources of Income
Major Types of Gyms
Major Expenses
Location & Premises
Case Study
Where To Locate Your
Breakeven: A Scenario
Gym
Revenue: Things To Keep In Mind
Factors to consider
Losses: Common Reasons
when picking the location of your Much more
gym
What to consider when
picking the premises "....understand that in the gym equipment
Layout market there are home equipment and
Changing Room commercial equipment. Home equipment are
Licenses
made for use in the house by an individual or
Equipment
Commercial vs Home family, while commercial equipment are heavy
Equipment duty equipment made for intensive use by
New vs Second Hand many users. Home equipment are always
Jua Kali vs. Factory cheaper than commercial equipment.
(Professionally) made
Classification by use Either attracted by price or for lack of
Types of Equipment
knowledge some entrepreneurs in the gym
Flooring
Strength Equipment: business start with home equipment. The
Benches downside of this is that after a short while,
Presses sometimes as short as a month, the equipment
Racks breaks downs or has defects that make them
Bars and Barbells unusable. This negatively affects service not to
Weights:
mention that the entrepreneurs have to go back
Pulleys:
Cardio Equipment : and purchase replacements for some of the
Exercise Bikes defects cant be repaired. Woe unto you if you
Cross Trainer / make the mistake of purchasing home
Elliptical Trainer equipment once more. .."
Treadmill
Rowing Machine
Aerobics Equipment
Other Equipment
Equipment: Things To
Keep In Mind
Suppliers
Capital Breakdown
Notes on Capital
Operations :
Opening and Closing
Hours
Signing In
Self Training and
Personal Trainer
Sanitization
Reserving Equipment
KENYA SMALL BUSINESS GUIDES

Motorcycle Intracity
Courier Service
Courier Business Guide Equipment
Pricing, Margins and
Expenses
Pricing Observations
Quick Case Study
Types of Intracity
Courier Services
Acquiring Customers
In 2015 investment in Competition and
the Courier Survival
Industry was Kshs.327 Figures
Courier Items Traffic
million. This was a dip from Kshs. 397
Courier Outlets
million from 2014. Still the business is Courier Revenue
attracting more entrepreneurs and the Observations
Critical Success Factors
Communication Authority is becoming
Challenges
more vigilant in regulation. What are
the prospects?

This quick guide will help jump start your Total : 35 Pages.
investment in the courier business. It Release Date: September 2016
focuses on Intercity and Intracity
'Motorcycle' courier services and contains: "....The truck consumes an average of
180 liters of diesel to and fro.... The cost
Overview and Trends
of diesel in the month of May in Nairobi
Types of Courier averaged Kshs. 71 per liter. This means
Operators that fuel costs for the whole trip amounted
Licenses
Communication to Kshs. 12, 780.....
Authority License
To get the license or ....Other direct expenses include Kshs.
not?
500 per day allowance for the turn boy
Firms that require a
license during the trip. And Kshs. 1,500 per day
License term for the driver. The drivers amount is be
Penalties for illegal used to bribe the police if need be and for
operation
Licensing Procedure
any such contingencies. ...."
CA License Fees If caught operating without a license there
County Single Business are penalties, specifically a jail term not
Permit
exceeding one year or a fine not
Outdoor Advertising
License exceeding Ksh.300, 000 or both. Of
Starting course if caught there could be ways to
Intercity Courier wiggle around it, but then why get yourself
Operator
Route Choice in that situation in the first place. ...."
Some Factors To
Consider When Picking A Route
Equipment
Premises
Capital Breakdown
Pricing, Expenses &
Margins
Operations
Manpower
Acquiring Customers
KENYA SMALL BUSINESS GUIDES

Premises - Factors to
Consider
Sifted Maize Flour Possible Layout
Rent
Mill Renovation
Equipment
Main Equipment Parts
Factors To Consider
When Purchasing Equipment
If you Equipment Suppliers
Capital Breakdown -
would
Prices of Equipment ,Packaging
like to mill
and Other Items
and pack Licenses
sifted Revenue & Margins
maize Sample Revenue
flour this quick but detailed guide and Breakdown
survey will give you a good picture of Revenue Trends
Consumer Behavior
the business. It includes:
Tips, Tricks& More
Whole meal Vs Sifted
Flour "You then need to have packets and various
Other Maize Products
sacks/bags branded with your colors and logo.
A Note on Packing
The cost includes:
Whole Meal
- That of the actual bag or packet
A General Note on
- That of the mould to be used in the printing
Cereal Processing
Some Quick Facts - Actual cost of printing
About Maize Consumption
Things To Think A mould costs an average of Kshs.7000 per
About quantity. This means if you say have 10kg, 45
Shelf Life kg, 50kg and 90 kg then it will be Kshs. 6000 *
The Market 4 = Kshs. 28,000.Branding the sack will vary
Maize Millers & with the size and company but a 90 kg
Capacity averages Kshs. 48 per sack, 60Kg Kshs. 44,
Barriers To Entry 50kg Kg Kshs. 42. This includes the price of
Competition & the sack and branding. Usually companies
Survival In The Sifted Maize Flour involved in the business will insist on a 500
Business pieces minimum per quantity. Thus if you have
Packaging & 3 quantities 90kg, 60kg, and 50kg it will cost
Marketing you (Kshs. 48 * 500) + (Kshs. 44 * 500) +
Categories of Sifted ( Kshs. 42* 500 ) amounting to Kshs. 24,000 +
Maize Flour Consumers Kshs. 22,000 + Kshs.21,000 = Kshs. 67,000.
Retail Consumers
Institutional
The average cost of a 2 Kg packet is Kshs.6
Consumers
On what is and 1 Kg. Ksh. 4. The exact price will depend
Competition Based On on the quantities ordered and the packaging
Production company. You also need a mould which costs
Major Players in an average of Ksh. 25,000 per each quantity.
Maize Chain From Farm to Table So if you are packing in 2 and 1 kg packs you
Location need Kshs. 50,000 (Kshs.25,000 * 2) for the
Factors to Consider moulds"
When Choosing Location of your
Premises
KENYA SMALL BUSINESS GUIDES
KENYA SMALL BUSINESS GUIDES

tannery is buying Grade 1 skins at


LEATHER : SKIN Kshs.150, then the cost of Grade 2 will be
between Kshs. 60 and Kshs.80, grade
TRADE three Kshs.40. There are times tanneries
buy grade 2 and 3 are bought at one price
if the percentage of Grade 1 is high, say
70 %. Prices fall within a certain range but
are not fixed and there is a lot of
haggling...."

"....Another thing that you need to know is


Would you like to trade in skins? . This quick guide, that when transporting the skins never
first in the Leather Series, will help you become a skin declare the actual quantity- you will pay
trader. You get to know the process, realities, hefty levies on your way. For instance if
challenges and opportunities.
you have 7500 pieces you can declare
The guide contains:
2500 pieces

In the above case if you declare that you


have 7000 pieces instead of 10,000 the
Overview Kshs. 250,000 could go down. No one
The Hides and Skins has time to count.
Value Chain
Notes on The Value
Chain. For a beginner all this may look complex,
Skin Quality and but its not. Once you get into it everything
Grading becomes clear and simpler.
Why Quality Matters
Beginners & Quality On the Kenyan side also make sure you
Key things to keep in
do not declare the actual quantity. The
mind when gauging the quality of
reason being the county officials charge
skins
Where To Buy Skins cess on the number of pieces you have at
Slaughterhouses, an average of Kshs.10 per skin. Traders
Rural &Urban Aggregators sometimes declare 500 pieces even when
The Tanzania Option they are ferrying thousands. County
Revenue and Costs officials dont have the capacity to count
Example One
each of the skins. Of course you could be
Example Two
Revenue : Some required to give a small monetary
Things To Know consideration to the county officials so
Where To Sell that they turn a blind eye......."
Barriers To Entry
Critical Success
Factors
Tips, Tricks and Much
more

"...The selling price of Kshs.150 per piece


is an average for Grade 1 . Prices change
as per demand and supply. If say the
KENYA SMALL BUSINESS GUIDES

On What Is
Competition Based On
Chemist Retail Consumer Behavior
Manpower
Business Guide A Note on
Operations

"...Looking at the table above its easy to be seduced


by the margins... Another reality check is that the sales
don't just happen in a day. It's unlikely that you will sell
200 tablets of medicine A in a single day and make
profits of Kshs.1000. It could take a week or even a
month..... "
Chemist Retail Shops are
popping up at every corner. But how do
".....Still on the same company LMN could also see the
you start the business, grow and survive?
opportunity in the enhancement drugs, and so goes
What are the prospects? out there and finds a different drug by another
The Chemist Retail Business Guide will company which is popular worldwide or in some
help to jump start your investment in the countries. He brings samples but is denied registration
by PPB for a reason or another. Nevertheless because
pharmaceutical industry. It contains: he knows the drug is effective, relatively cheaper, with
good margins and demand for sex enhancement drugs
Overview high, then he goes ahead and imports the drug even
Licenses though its not registered. Of course he will be selling
PPB Licenses the drug illegally. .. There is also what is called "cargo"
Company ... All the above are possible scenarios...
Registration
Single User "...The last alternative is to rent a license: partner
with a registered pharmacist or qualified pharmacist
Business Permit
technologist so that he acquires the licenses on your
Key Bodies in The behalf. The modalities of such agreements are not
Pharmaceutical Business cast in stone and could take many forms. The basis of
Wholesalers and it is that the pharmacist or pharmaceutical technologist
Suppliers is qualified ,registered or enrolled, he can acquire the
requested licenses on your behalf from the PPB, and
Stocking
you will compensate him or her for it. You are
Capital essentially hiring the licenses. Here is how it works..."
Revenue
The Bigger Picture
Total : 31 Pages : May 2016
Sample Wholesale
and Trade Prices
Notes on Revenue
Pricing
Factors Influencing
Revenue
Revenue Summary
Reasons for Failure
In The Chemist Business
Break Even
Competition and
Survival
Competition
Pointers
KENYA SMALL BUSINESS GUIDES

retail price averages Kshs.400 per


kilogram. There are slight variations to
this. Gross margins thus average
Kshs.160 per kilogram....

...From the figures above a quarter of raw


pork is Kshs.100 while that of cooked pork
Pork Butchery & Eatery could be Kshs.140 (served with Ugali).
Guide Now if you consider the cost in labour,
inputs and time is the extra amount,
Kshs.40 in this case, worth it?....
Its a fact that more
consumers are
embracing pork.
Get this 29 page guide Total : 29 Pages.
to start your own pork Release Date: October 2016
butchery and eatery. It contains:

1. Introduction
2. Overview & Demand Trends
3. Licenses
4. Equipment
5. Premises Setting
6. Pork Sources
7. Operations
8. Capital Breakdown
9. Revenue
10. Prices and Margins
11. Notes on Revenue
12. Pricing
13. Factors Influencing Revenue
14. Pork Eatery Case Study
15. Competition and Survival
16. Overview
17. Reasons for Poor Sales
18. Location
19. Dominant Players
20. Barriers to Entry
21. Differentiation
22. Critical Success Factors
23. Summary
24. Consumer Behavior
25. Manpower
26. much more

...As can be seen from the table above


the wholesale price of pork on the upper
side is Kshs.240 per kilogram while the
KENYA SMALL BUSINESS GUIDES

Major Equipment
Time Frame To Set
CAKE BOXES - THE Up / Process
OPPORTUNITY

Pricing & Margins
Cash Cycle
Scalability
Manpower
Management
Conclusion

A business opportunity exists in selling


cake boxes. This quick analysis includes:

The Brief
A Note on Cake
Packaging In Kenya
What Exists in The
Market Presently.
Substitutes
Problems and
Opportunities
Strengths of the
existing cake packaging shops
Weakness of the
existing cake packaging shops
Opportunities
Is the timing right
for this kind of business
Challenges of
starting and possible solutions
Target Customer
Customer
Accessibility & Concentration
Customer Switching
Costs
Customer
Acquisition Costs
Cross Selling /
Branding / Premises
Quality/ service in
relation to competitors
Organic growth
Regulatory
Suppliers
Capital
Critical Success
Factors
Size of Industry
KENYA SMALL BUSINESS GUIDES

Mitumba Clothes
Business Guide

Excerpt
"....To get a better understanding of revenue
let us explore another example ..

Now there is one wholesaler who sells a bale of


trench coats at Kshs.28, 000. Such a bale
contains 100 to 120 pieces. Assume this bale
has 110 pieces. This means at wholesale each
trench coat is being bought at an average price
of Kshs.255.
This detailed guide will prepare you for the
mitumba business. It includes: Assuming you sell each trench coat at Kshs.500
that means that you need to sell at least 56
pieces for you to recover your purchase price
without making profit. (56 x Kshs.500 =
Overview Kshs.28, 000)
The Mitumba Supply
Chain If you sell all the 110 pieces at 500 you will net
Major Players In The Kshs.55, 000. This will give you a gross profit of
Mitumba Value Chain Kshs.27, 000. (Kshs.55, 000- Kshs.28, 000)
The Process In Detail
What Happens When
The Mitumba Arrives In Kenya From this amount you will deduct Transport
Wholesalers costs say Kshs. 1500, Manpower Kshs.5000,
Retailers Rent Kshs.5000. Total Kshs.11500
Steps To Starting A
Mitumba Business
Suppliers
This will leave you with Kshs.15, 500 (Kshs.
Licenses
27,000 Kshs.11, 500), over 50% in margins.
Stock
And you being lucky hardworking and in a great
Premises location you are able to move 3 bales in a
Revenue and Margins month. Not so bad, right?
Revenue Trends This however is a very very ideal situation
Revenue Scenario and not likely to happen.
One First the trench coats in that bale will not all be
Revenue Scenario of the same quality. Whereas some will
Two command a price above Kshs.500 a piece say
Revenue Scenario Kshs.700, Kshs.800, some could be unsellable
Three while others can only be sold in the low realm
Sample Wholesale prices of Kshs.50, 100 and Kshs.200.
Prices
Competition
On What is
Competition Based on
Opportunities and
Survival
Manpower
KENYA SMALL BUSINESS GUIDES

The Prospects
Manpower
Timber Retail Business Consumer
(Yard) Guide Behavior

Excerpt:

....Revenue Scenarios"...From the above


case study let us look at cypress. In this case a
6 by 2 at wholesale prices costs Kshs. 55 per
foot in wholesale. If its sub divided into 3 by 2
then those will be two pieces, each going at
Kshs. 44 per foot (Total Kshs.88). That means
in this particuar case a foot of cypress nets
gross revenue of Kshs.33 per foot If the 6 by 2
Timber Yard? This guide helps you is divided into 2 by 2 then those will be three
start a timber retail business. It pieces. Selling each piece at Kshs. 24 per foot
then that will be Kshs. 72, and a margin of
includes: Kshs. 17 per foot.. Before it sounds too good to
be true let us explore further....."
Overview
Licenses
Equipment
Capital
Breakdown
Some Notes on
Capital
Suppliers /
Wholesalers
Supply Chain
More on the
supply chain
In Summary: How
To Get A Supplier
What to Stock
Revenue
Overview
Sample
Wholesale and Retail Prices
Revenue
Scenarios & Notes
Factors
Influencing Revenue
Sample Hardware
Items Price List
A Timber Yard
Profile
Competition and
Survival
Overview
Barriers to Entry
Factors
Influencing Competition
KENYA SMALL BUSINESS GUIDES

success or failure of your


business)
'Local ' Bar Business Things to Keep In
Mind
Location and
Premises Pointers
Factors Influencing
Revenue
Manpower
Competition -
Observations
Barriers to Entry
Opportunities,
Survival & Critical Success
Factor
The new and very detailed ' Local' Bar Critical Success
Guide contains: Factors
Market entry
strategies
41 Ways In Which
Overview Money Is Stolen In A Bar
Some Changes In Total: 48 pages +
The Bar Business Sample Bar Staff Manual
Quick Statistics
Licenses
Alcoholic Drinks Excerpt:
Licenses
Other Licenses : ...As seen above the bar above sells
Equipment mainstream beer at Kshs.180.
Capital
Key Steps When Taking the price, Kshs.180, as the mean, and
Starting a Bar an average sales of 8 crates Monday to
Factors To Consider Thursday then that amounts to beer revenues
When Purchasing a Bar of 8 *25*180 = Kshs.36,000 every week day.
( 8 Crates, 25 beers per crate and Kshs.180 per
Revenue
beer)
Sample Wholesale
and Retail Beer Prices
With the average of 24 crates per day Friday to
(December 2015) Sunday that averages 24*25*180 = Kshs.108,
Revenue Scenarios 000 for every weekend.
Revenue Scenario
One Keeping everything constant the total beer
Revenue Scenario revenue per month will be 36,000 *4 (Four days
Two Mon Thu) *4 Weeks + 108,000 * 3 (Fri to
Revenue Scenario Sun) * 4 weeks = Kshs.576, 000 +
Three Kshs.1,296,000 = Kshs.1,872,000
Revenue -
Let us now stop the assumptions and face the
Observations
reality. Here are some of the bar's expenses ....
Break even Point
"
Some factors
affecting revenue (and thus
KENYA SMALL BUSINESS GUIDES

REVENUE IN THE
LAUNDRY BUSINESS IS
Laundry Business INFLUENCED BY
Guide BREAK EVEN
POINT
COMPETITION
FACTORS
INFLUENCING COMPETITION
OPPORTUNITIES,
SURVIVAL & CRITICAL
SUCCESS FACTORS
MARKET ENTRY
MANPOWER
TIPS, TRICKS AND
MORE

This guide is for you who would like to


start a laundry (wet as opposed to dry
cleaner) . It includes:

OVERVIEW &
TRENDS
LICENSES
EQUIPMENT
WASHING
MACHINE
THINGS TO KEEP
IN MIND WHEN BUYING A
WASHING MACHINE
DRYER
IRON & IRONING
BOARD
BASINS AND
BUCKETS
RECORD BOOK
AND RECEIPT BOOK,
RUBBER STAMP
CHAIRS , RACKS ,
TABLES
MISCELLANEOUS
SUPPLIERS
PREMISES
CAPITAL
OPERATIONS
REVENUE
COSTS &
REVENUE
REVENUE
EXAMPLE
KENYA SMALL BUSINESS GUIDES

Critical Success
Factors
How To Start A Chips & Competition and
Chicken Cafe what Competition is based on

This quick guide refers to the business


of Chips and Chicken caf found in
urban centers and urban estates with a
bias towards chips and chicken which
are the main servings. Though not
entirely focusing on Nairobi, in some
sections its biased towards the city.
Still most of the information is
applicable in any urban center.

The guide includes:

Market Overview
Classification of
Chips & Chicken Cafes
Licenses and cost
Other Regulatory
Bodies
Equipment,
Suppliers and Cost
Capital
Operations
Stock
Sourcing and Tricks
A note on Kenchic
Revenue - Margins,
Averages, and more
Revenue from
various items
Factors influencing
Revenue
Location
Pricing
Costs
Variety
Management
Operating Hours
KENYA SMALL BUSINESS GUIDES

Way Round the


Risk
Cookies Business Target Customer
Market Guide Customer
Accessibility and Concentration
Customer Switching
Costs
Customer
Acquisition Costs
Revenue, Margins
and Pricing
Barriers to entry
Cash Cycle
Cross Sell
Price Sensitivity
Quality of service
Critical Success
Factors
Barriers To Entry
What are the opportunities available in Addressable Market
Organic Growth
the business of baking and selling
Size of Industry
cookies at a small and medium scale In Market Entry
Nairobi? This detailed analysis is Strategies
suitable for both bakers and non Consumer Behavior
bakers. It includes: Manpower
Management Style
Tips, Tricks and
more
Overview
What Exists in The
Market Presently The players,
varieties, packaging,
distribution, consumption
patterns, competition, on what is
competition based on,
advertising and marketing
Substitutes
Strengths of the
existing cookies bakers
Weakness of the
existing bakers
Gaps and
Opportunities
Licensing and
Regulation
Equipment
Suppliers
Capital
Process
Risk / Challenges of
Starting
KENYA SMALL BUSINESS GUIDES

2nd Sample
Revenue figures
Daycare Business Guide Pricing
Branding and
Revenue
Foot Traffic
Revenue &
Flexibility
Pricing and
Revenue
Other factors
influencing revenue
Break even point
Consumer behavior
If you wish to start a Daycare then get Major complaints
this guide and market survey which and fears among mothers
includes: Manpower
Capital & equipment
Suppliers
Capital
Sample Revenue
figures from a daycare
What drives overall
demand for Daycare services "...Charging below or far above the local
What makes average or mode (the amount most of the
mother's take children to Daycares in the area are charging) has a
Daycares negative impact on revenue, unless in
Important highly densely populated areas like slums.
considerations when choosing a In such there is a variety of customers
Daycare ready to pay a wide range of fees. In less
Licenses - County, populated areas a price 40 % below or
Public health, Individual health, above the local mode reduced the long
educational when necessary term attraction of customers. Despite the
Types of Daycares facilities higher prices seemed like
Competition & exploitation while lower price hinted at
Survival poor standards.
Reasons for closing
Status of
competition
On what is
competition based on - Trust,
Location, Facilities,Flexibility,
Charges, Opening & Closing
Hours, Extras, Niches, Staff
Some things to
think about - Food,
Emergencies, Rules of
engagement
Setting
A note on Marketing
Revenue
KENYA SMALL BUSINESS GUIDES

REASONS FOR
CLOSING
Gas Retail Business OVERVIEW OF
Guide COMPETITION
OPPORTUNITIES
IN THE BUSINESS
DISTRIBUTION OF
COMPETITION
ON WHAT IS
COMPETITION BASED ON
PRICE
LOCATION
RELIABILITY &
TRUST
MARKETING
REVENUE &
MARGINS
FOOT TRAFFIC &
REVENUE
PRICING &
REVENUE
BREAK EVEN
The LPG Retail business guide POINT
includes: CONSUMER
BEHAVIOR
MANPOWER
LIST OF LEGAL
LPG INDUSTRY IN
WHOLESALERS
KENYA - A QUICK OVERVIEW
LPG
IMPORTATION & STORAGE "Average consumption per month
THE FUTURE (Household using alternative fuels) - 7 kg
LPG RETAILER -
WHAT THE LAW SAYS Average consumption per individual per
LPG RETAILER - month - 3 kg
WHAT ACTUALLY HAPPENS
CAPITAL,
Average Monthly revenue - Kshs.53, 000
PROCESS & EQUIPMENT
LICENSES - ERC,
Highest Revenue recorded - Kshs.
FIRE, COUNTY, WEIGHT &
235,000
MEASURES AND MORE
EQUIPMENT -
GAS CYLINDERS, TYPES OF Lowest Revenue Recorded - Kshs.
GAS CYLINDERS, DIGITAL 12,000
WEIGHING MACHINE, FIRE
EXTINGUISHER, METALLIC Average no of LPG sets sold in a month
CAGE (Cylinder plus burner) - 21..."
LPG SUPPLIERS -
LEGAL & ILLEGAL
COMPETITION &
SURVIVAL
KENYA SMALL BUSINESS GUIDES

Tips, Tricks and


much more
Senator Keg Bar
Business Guide

Senator Keg is enjoying a revival. This


guide helps you get into the business.
It contains:

Overview
Licenses
Alcoholic Drinks
License
Other Licenses
Steps To Starting
Equipment
General Equipment
Bar Related Items:
Barrel and Pump
So what to do if you
want to open a keg bar?
Capital
Notes on Capital
Operations
Revenue
Prices
Margins and
Revenue Scenarios
Factors Influencing
Revenue
Expenses
Case Study
Competition and
Survival
Barriers to entry
Prospects
Factors Influencing
Competition
Market Entry
Consumer Behavior
Manpower
Appendix.
KENYA SMALL BUSINESS GUIDES

MONEY LENDING
(INFORMAL) QUICK
OVERVIEW

Do you want to start an informal /


alternative money lending business? This
quick overview will get you started. It
contains:

Overview & Regulation


The Law
Law of Contract
Company Registration
County Business
License
Structuring Your
Money Lending Business
Some Business Models
In The Market
Deciding the Type of
Loan: Factors to Consider
Secured Loans
Unsecured Loans
The Money Lending
Process
The Five Cs
Interesting Business
Models in Kenya

KENYA SMALL BUSINESS GUIDES

Conclusion
Slot Machines
Business Guide

You have seen the informal slot machines


sprouting everywhere. This quick guide
will help you understand the business. It
contains :

Overview
How It Works
So How Do You
Start A Slot Machine Business
Premises
Equipment
Local Suppliers
Licenses
Operations
Capital
Revenue
Competition
KENYA SMALL BUSINESS GUIDES

Market trends,
packaging,consumption
Paint Mixing - Process patterns, competition, on what
and Opportunities is competition based on
A note on vehicle
paints and colour
Operations
( Manual )
Computerized paint
mixing
Substitutes
Strengths of the
existing paint mixers
Weakness of the
existing paint mixers
Opportunities
Licensing
Equipment and
Suppliers
Capital
Process
Revenue, Margins
and Pricing
Risk / Challenges of
Starting and ways round the risk
The paint mixing business both at a Manual mixing and
small scale and medium scale offers computerized mixing
Consumer
some opportunities. The business
Behaviour
thrives on the difficulties of getting the
Barriers to entry
exact colour ( shade) of paint for Cash Cycle
vehicles which need repainting due to Cross Sell
scratches, accidents,aesthetics or Price Sensitivity
whatever reasons. And has expanded Critical Success
to include real estate and carpentry. Factors
Addressable Market
Using small scale paint mixing as the Organic Growth
Market Entry
study understand the market and how
Strategies
the business works and some huge Manpower
opportunities that exist. This quick Management Style
guide includes: Tips, Tricks and
more
Overview - The
Need, The Present,
Relationships with big paint
companies, what is it all about
and more.
What Exists in The
Market Presently Different
players, varieties of paints, A
note on making paint Capacity,
KENYA SMALL BUSINESS GUIDES

SECOND HAND
NOVELS RETAIL GUIDE

This guide and survey will help you get


into the second hand novels business.
It includes:

Overview
How It Works
Sample
Exporter Prices
Licenses
Starting
Process
Suppliers
Revenue and
Margins
Pricing
Competition
and Survival
Consumer
Behaviour

KENYA SMALL BUSINESS GUIDES

Motorcycle Spare Parts


Business

The Motorcycle Spare Parts Retail


Guide and Survey includes:

The Bigger Picture - Positive and


negative trends
Capital , Process & Equipment
Stocking
Licenses
Capital
Revenue & Margins
Sample wholesale and retail prices
Case studies
Revenue Averages
Fast Moving Items
Break Even Point
How consumers make purchases
What influences Revenue and
Margins
Suppliers - Kenya, Uganda
Foot traffic, location and pricing
Mechanics & Marketing
Location and Return Policy
Competition & Survival
Status of competition
Opportunities & Survival
Critical Success Factors
On what is competition based on
Consumer Behavior
Manpower
KENYA SMALL BUSINESS GUIDES

...Licenses

Agrovet Business "....Kenya Plant Health Inspectorate


Guide Service (KEPHIS) License Everyone
commercially dealing with seeds needs to
have a license from KEPHIS. KEPHIS
claims there are about 7000 registered
agrovets, which is about 80% of all
agrovets in the country. However the
reality is that there are hundreds of
agrovets who have not registered with
KEPHIS. Many are not even aware that
they are required to have a KEPHIS
licenses..."

Do you want to start an Agrovet? This info


pack has the crucial information you need
to start:

Overview
Notes on Wholesale
and Distribution
Licenses
Set Up Process
Capital
Revenue and
Margins
A Note on
Agrochemicals
A Note on Seed
A Note on
Fertilizers
Suppliers
Competition and
Survival
Consumer
Behaviour
Manpower
KENYA SMALL BUSINESS GUIDES

Best places to
locate
How to Start A cosmetic Main advantages of
retail Business traditional supermarkets over
cosmetic shops
Competing with
supermarkets
Stocking
Types of products in
the market
Fakes
Suppliers and
wholesalers
Revenue and
Margins
Actual Figures from
a Cosmetics Shop in Kahawa
Sukari, Nairobi
Pricing
If you wish to start a Cosmetics Retail
Factors influencing
Shop this quick guide will provide you
Revenue
with the information you need to plan, Why consumers
set up and run your business. The choose a particular cosmetics
guide will also help you decide whether shop
to invest in the business or not. Critical success
factors
Among topics covered are: On what is
competition based on
List of wholesalers
and distributor

Value of Kenya
Cosmetics Industry
Positive Trends
Negative Trends
Manufacturing
overview
Wholesaler /
Distributor overview
Capital
Licenses
Cosmetics Shops
Set Ups
Major steps in
setting up
Market reality
Reasons for closing
down / selling
Major sources of
competition
KENYA SMALL BUSINESS GUIDES

Equipment
Equipment Suppliers
Car Wash Business
Capital
Quick Guide

Operations
Management
Manpower
Consumer Behavior and
much much more

This quick punchy survey and guide


contains information on:

Trends in The Car Wash


business - Automatic car wash,
Car Salons, Car Park Washing,
Car Wash Events, Female
Cleaners Car Wash and more
Barriers to Entry &
Opportunities
Reasons for Closing Down
Revenue & Margins
Actual Data From a Car
Wash in Kariobangi
Average price of water
Average price of electricity
Pricing
Major costs
What influences revenue
and profits
What is Competition Based
On
Ways In Which Consumers
Purchase Standard Car Wash
Services
Critical Success Factors
Location
Car Wash Facilities and
Setting
Licenses
Services
KENYA SMALL BUSINESS GUIDES

salespeople need to sell volumes..."


ICE LOLLIES MAKING -
THE QUICK BASICS

What is the business side of making


Ice Lollies or Lamba Lamba as
commonly known?
The quick guide includes:

Introduction
Equipment
Storage
Cooler Boxes
Location and
Premises
Sales and
Distribution
Revenue
Licenses
Feasibility
Equipment
Suppliers

".....In 2014 the unit cost of making an ice


lollie ranges between Kshs.2 and Kshs.4
depending on your efficiencies. Direct
production costs are water, electricity and
the lollie stick

which costs an average of Kshs.0.50 .


...Ice lollie makers sell to retailers at
between Kshs.6 and Kshs.7, and the
retailers sell to

consumers at Kshs.10. With such minimal


margins across the chain then you and
the
KENYA SMALL BUSINESS GUIDES

"....Mark up for fresh milk averages about


How To Start A Milk 5%. Presently it's about Kshs.2.
Distributorship Essentially this means that you make
Kshs.2 for every packet you sell. The
retailer makes the same amount. For
example a distributor gets the milk at
Kshs.41 from the company; he sells at
Kshs. 2 to the retailer who sells at
Kshs.45 to the consumer.

Kshs.2 could seem little, however when


you are dealing with volumes it adds up to
substantial amount. To illustrate a
distributor of one of the major milk brands
in the Kasarani region sells an average of
Do you wish to start a milk 95 crates everyday. That translates to 95
distributorship? Get this market x 20 packets which is 1900. At Kshs.2 per
overview and guide that includes: packet then this adds up to Kshs.3, 800 in
a day or Kshs.114, 000 per month gross
profit. The major expenses are rent and
manpower..."
Milk Supply Chain
What Does A
Distributor Do? "....Mark up for fresh milk averages about
How Do You 5%. Presently it's about Kshs.2.
Become A Milk Distributor? Essentially this means that you make
Things to Think Kshs.2 for every packet you sell. The
About retailer makes the same amount. For
How do you
approach a milk company?
What is required to
become a distributor?
Milk Processor
Company Distributor
Requirements
Capital
Operations
Details on
Operations
Tricks and Tips
Revenue - Mark Up,
Trends etc
Manpower
Kenya Milk Industry
Quick Facts & Figures
Market Entry
Milk Processing
Companies In Kenya
and more
KENYA SMALL BUSINESS GUIDES

What you need to


think of when targetting the
How To Start A Gift mass market
Service Competition &
Differentiation
On what is
competition based on
Operations
Key operations
aspects of a gift service
Stock
Pricing
Delivery
Packaging
Expenses
Market entry
Gaps in the Market
Case Study

".....One gift service in Nairobi sells a


How do Gift Services operate? bunch of 20 red roses with no extras at
Kshs.1000 while another sells the same
What are the mark ups? bunch at Kshs. 1800. Still another
services sells 36 roses at Kshs.3600. The
How is the competition ? only slight difference between the
bouquets is the packaging. When
How can you start the business? purchasing directly flowers from a vendor
20 roses would cost between Kshs. 400
What are the critical success factors? and Kshs. 800 depending on the client
and where one is purchasing. At the city
Where are the gaps? What are the market the price of an individual rose
expenses ? remains around Kshs. 20 for most part of
the year. ...."
What defines a gift service?

These and more questions are


answered in this quick overview of the
Gift Services in Nairobi. The overview
is biased towards services operating in
Nairobi and with an online presence:

Overview of Gift
Services In Nairobi
What you need to
think of when targeting
Corporates
Types of Gift
Services In Nairobi
KENYA SMALL BUSINESS GUIDES

Factors likely to
make you fail
Wines and Spirits Retail Barriers to entry
Guide & Market Survey Competition &
Survival
Reasons for
closing
Opportunities in
the business
Trends in the
business
Differentiation
On what is
competition based on
Revenue
Selected
wholesale and retail prices
Average mark up
Mark up range
Average revenue
What influences
revenue
Pricing
Do you wish to open a Wines and Revenue trends
Spirits Retail? Then get this market Actual sample
survey and guide which includes: revenue figures
Capital
Licenses - General Consumer
Retail Alcoholic License, Behaviour
Wholesale license, general Manpower
retail alcoholic license ( off Manpower tricks
license) A note on the
Types of alcoholic Wines & Spirits wholesale
licenses and fees business
Licensing process Wines and Spirits
Licensing suppliers
Realities Notes on
Basic setting up wholesale
process
Equipment and
".....In a 'Flash' Wines and Spirits a
Suppliers
customer spends an average of Ksh.70
Capital
Notes on capital per visit and Ksh.210 the whole day. In a
The Retail Market takeaway Wines & Spirits shop the
2014 Trends and average spend is Ksh.180 with customers
Changes purchasing 1 bottle of whatever drink. In a
Consumption Sit-in Wines & Spirits the average spend
patterns per customer is Ksh. 300. Wine and
Types of Wines & Spirits bars where majority of clients are
Spirits above 30 years the average spend per
Feasibility customer is Ksh.400......."
KENYA SMALL BUSINESS GUIDES

Opportunities,
Tents & Chairs Leasing
survival and critical success
Business factors
Price
Capital and
Capacity
Levels of
Differentiation
Service
Location
Marketing
Market entry
strategies
Revenue
Average prices of
hiring out tents, chairs and
tables
Return on
The guide focuses on the primary investment
business of hiring out tents and chairs. Depreciation
Terms of payment
The entrepreneur in this case
Transport charges
purchases the tents and chairs and Pricing
rents them out to those having events Some Revenue
of sorts. Although such a business pointers
may entail offering related services Consumer behavior
such as photography, video ,sound - What consumers want
and event management the main focus Manpower
of this guide is hiring out tents and
chair at a small and medium level. "...In Nairobi, for instance, there are price
differences of between 10 to 50 % for the
The guide and market survey includes: same service: hiring of tents and chairs,
The Bigger Picture - this for the exactly the same size, make or
Factors influencing the business design of chair or tent. (See Revenue for
at the national level specific details on pricing of different
Capital , Process & services)....
Equipment
Equipment - Tents,
Chairs, Tables, Other basic
items and their prices
Suppliers
Licenses
A note on capital
Competition &
Survival
Status of
competition
Distribution of
competition
KENYA SMALL BUSINESS GUIDES

Very detailed case


study showing possible
Advertiser Magazine - revenues, challenges,
Quick Guide & Case shortcomings and pitfalls to
avoid
Study

You probably have seen them; freely


circulating advertisement magazines.
Is it a feasible business venture? What
is the reality? In this guide and case
study we take a quick look at the
business and the real life experience of
one of such magazines.

The short guide includes:

Introduction
Starting Procedure
Things to think
about
Location - Size of
town,types of businesses,
competition
Licenses and
Registration
Graphic Designer
Printer
Premises /
Reference Point
Capital
Operations
Finding advertisers
and selling space
Designing the
magazine
Printing and
Circulation
Revenue
KENYA SMALL BUSINESS GUIDES

Colleges and
Universities
Bookshop Quick Consumer Behavior
Business Guide

Manpower
Includes a copy of
the Orange Book
.....Sample Data: Average Wholesale &
Retail Prices of a bookshop on the
outskirts of Thika. The owner purchases
textbooks from wholesalers including Text
Book Center & Laxmii Booksellers.

Title

Get this market survey and guide


which has a bias towards textbooks Wholesale Price
and includes :

The Bigger Picture


Licenses Retail Price
Stocking
Tendering for
schools
Set up procedure Primary Social Studies
Suppliers
Publishers
Capital
Revenue 300
Sample wholesale
retail prices
Revenue averages 350
Pricing
Factors influencing
revenue
Competition & Let's Learn Maths
Survival
Competition figures
Competition trends
Opportunities in the 300
business
Differentiation
Status of 340
competition
Critical Success
Factors
Branding and Also included Revenue averages when
Niches purchasing from publishers, schools &
On what is tenders, Average break even point,
competition based on critical success factors and much
more.
KENYA SMALL BUSINESS GUIDES
KENYA SMALL BUSINESS GUIDES

Sources of water:
advantages, disadvantages and
How To Start A Bottled conditions
Water Business Competition and
location
Licenses - KEBS ,
KRA , County, WRMA , NEMA
Location - Factors
to consider when chosing
location and premises
Calculating size of
the market
Storage
Bottle , Caps and
Seals ,
Bottle companies
and their contacts
Labels
Brochures and
Fliers
Branding
Capital
Marketing and
Distribution
Revenue : Margins,
Costs and averages
Pricing
Controlling costs
The Bottled Water business survey and Manpower : How
guide includes: many to hire , staff tricks and
more
An overview of the Tips, Tricks and
industry much more.
Value of the water
industry in Kenya
Competition
Landscape and Differentiation
Equipment : Types ,
Factors to consider when
purchasing equipment ,
Equipment suppliers
Types of
Contaminants found in water
Methods of water
treatment
Suitable methods of
treatment for different
contaminants and their cost
Water testing
laboratories in Kenya
KENYA SMALL BUSINESS GUIDES

Competition &
Survival
How to Start a Hair Competition Figures
Salon & Trends
Market Entry
Strategies
Revenue
Revenue averages
Revenue trends
Manpower &
Reward
Management
strategies
Possible strategies
A few salon stories

"..How a salon enters the market


determines its success in both the short
and long term. The following are the most
common market entry tactics:

The Hair Salon guide includes :


1. Set up in any available space and paint
'Salon' on the wall and wait for customers
Overview to walk in.
The Bigger Picture
Critical Success This strategy is based on the premise that
Factors there is more demand than supply for
Consumer Behavior salon services, and customers will walk in.
The Situation on the It treats lightly the nature of loyalty in the
Ground business and assumes there is a pool of
Location customers dissatisfied by their present
Differentiation
Some stylists who will shift to the new outfit....."
Considerations on Location &
Differentiation
Loyalty This objective street smart survey will help
Social Economic you decide whether to invest in the
and Demographics of the business or not and also strategize better.
location It contains information on competition ,
Random revenue, market penetration and
Observations management tactics, consumer behavior,
To purchase or start manpower, capital, equipment and
from scratch process, and so many tips and tricks.
Licenses
Equipment
Suppliers
Cost
Capital
KENYA SMALL BUSINESS GUIDES

Manpower
Fraud
M-Pesa Sub Agent Actual data from an
Business Guide and Mpesa Shop
Random
Market Survey Observations

".....For every M-pesa withdrawal


Safaricom charges the customer a
transaction fee. A sub agent gets a
percentage of this fee as commission.
Though Safaricom does not charge M-
pesa customers for deposits it pays the
sub agent a commission for every deposit
made through his till. The total
commissions a sub agent gets are net
after taxations and the Agent's /
Aggregators share.......The table below
shows the commissions of various
There is an M-Pesa sub agent at every
transactions....."
corner. Is it still a feasible business?

Quick figures about ".....There are minimal attributes to


the M-pesa Business differentiate one M-pesa outlet from
How M-pesa another. Branding options are also limited
Agency / Sub Agency Works and on the face of it one M-pesa shop is
Super Agents just like the other. The market being so it's
Aggregators preferable to invest in a relatively good
Sub Agents
location and in building loyalty and a
What Actually
positive reputation in service and
Happens
Operations - reliability. Reliability in this case means
Withdrawals , Deposits & Float ability to transact any amounts at all
How Does A Sub times....."
Agent Make Money
Commissions
Competition &
Survival
Opening & Closing
Figures
Reasons for closing
Overview of
comeptition
Trends
On what is
competition based on
Revenue
Revenue Averages
What influences
Revenue
Consumer Behavior
KENYA SMALL BUSINESS GUIDES

..Competition & Survival ..

Executive Barber Shop ...EVERY WEEK IN THE NEWSPAPERS, AN


AVERAGE OF 2 EXECUTIVE BARBER SHOPS ARE
Guide ADVERTISED FOR SALE. IN INTERNET FORUMS
THE AVERAGE IS 4. PRICES RANGES FROM
KSH.200,000 TO KSH.1.2M....SOME OWNERS
QUOTE RELOCATION AND INVOLVEMENT IN
OTHER BUSINESS AS REASONS FOR SELLING. A
KEENER LOOK THOUGH SHOWS THE MAJOR
REASONS FOR CLOSING INCLUDE LACK OF
CAPITAL TO SUSTAIN UNTIL BREAK EVEN
POINT...."

Do you wish to start an Executive Barber Shop ?


Get this market survey and guide which includes :

Overview
The Bigger Picture
Critical Success Factors
Consumer Behavior
Equipment
Licenses
Suppliers and cost
Capital
Actual Revenue from a
barber shop
Competition & survival
Competition Figures
Location
Differentiation
Loyalty
Market Entry Strategies
Revenue
Management Strategies
Manpower

"...The break even point of executive barber shops


averages 9 months. The duration could be longer or
shorter depending on aspects like location, service,
marketing and economic conditions... ...On average an
executive barber shop customer does his hair twice a
month. The highest no of visits by an individual
customer recorded is 9 visits per month. ...The
average spend per visit is almost constant. "...The fact
that the amount a man spends does not change much
from month to month means revenue will be influenced
by foot traffic....Foot traffic is a function of location and
service..
KENYA SMALL BUSINESS GUIDES

HANDBAG RENTAL
SERVICE

(This is study was based on questions


we received from a customer " Can
renting handbags to women become a
viable business in Kenya?
Find out in this quick study.

."...When asked what attracted them to a


handbag before purchase 42% of the
women surveyed said design, 31% price,
while 21% size and necessity, while the
rest could not pin point any particular
trigger. When it came to the actual
purchase it was a balance between
design and price.

..56 % of the women said they purchased


their handbags on impulse . They see a
nice handbag advertised or when passing
by and there and then make a purchase
decision .
KENYA SMALL BUSINESS GUIDES

Manpower
Consumer Behavior
How To Start A Fruit & Capital
Licenses
Juice Parlor
Equipment
Suppliers

( Competition figures biased towards


Nairobi, but other information can be
applicable in any major town

".........The distribution of walk in parlors


within the CBD is skewed with about 85 %
of them located on the lower part of
Nairobi. This means the area south of
Tom Mboya, lower parts of Moi Avenue,
River Road, Ronald Ngala, Kirinyaga
Eating fruits and taking juice has a road, Bus Station, Railways, and all that
become a lifestyle, but what is the part.
business side of this trend?

The survey and guide includes; Streets like Kimathi, Biashara, Loita,
Turbman and the whole of that square
have no specialized fruit parlors serving
them. The section of Moi Avenue between
Types of Juice /
and Kenyatta Avenue and Banda Street
Fruit Parlors
Notes on has two parlors. Koinange Street has
Consumption of Fruits none and many others.This can be
Competition & attributed to the difficulty of acquiring
Survival space for a particular kind of business in
Opening & Closing some sections....."
Figures
Reasons for ".....For fruits retailing at Ksh.15 and
Closing below the average mark up was Ksh.5
Consumption trends this however could go as high as Ksh. 10
Opportunities in the or reduce to Ksh. 2 depending on the
business season and supplier....."
Barriers to entry
On what is
competition based on
Overall look at the
market
Revenue
Margins
Revenue averages
Revenue trends
What influences
revenue
KENYA SMALL BUSINESS GUIDES

Tips, Tricks and so much


17.
much more
Movie Shop Guide &
Market Survey
"....Of the retail price the direct cost is that
of a blank DVD. The price depends on the
source and quantity of purchase. The
range is Ksh.13 to Ksh.20, depending on
the source and bulk with most vendors
purchasing a blank DVD at an average
price of Ksh.16. The price depends on
source, quantity, make and quality of the
DVD. Most shops use DVD of standard
quality...."

What are the prospects of this


business that operates on a legal grey
area, is relatively easy to start and
quite fashionable among consumers
and small investors? The Movie Shop
guide and survey includes:

1. Licenses
2. Capital
3. Equipment
4. Competition
5. Average numbers of
opening and closing
6. Reasons for closing
7. Actual Figures from a
movie shop
8. On what is competition
based on
9. Revenue
10. Revenue averages
11. Margins
12. Revenue trends
13. Average purchase per
customer
14. Manpower
15. Consumer Behaviour
16. Set Up Examples
KENYA SMALL BUSINESS GUIDES

Chapati : Mass Smokies and Eggs


Production / Wholesale Vending/ Hawking
- An Estate's Case
Study

You must have seen them, the smokies


and boiled eggs vendors on the
If you wish to start producing and
streets. But is it a viable small
selling chapati on wholesale in low
business? Is there money in it? What is
income and mid level estates in
the process, capital and prospects?
Nairobi, this survey will provide you
Get the survey and find out. Here is an
with much of the information you need
excerpt
to decide whether to invest in the
business.
".....There are two types of carts:
Though focusing on particular estates the
The official Farmers Choice Cart
survey captures dynamics of Revenue,
Mark up, Consumer Behavior and
This is a branded cart sold by Farmer's
Manpower which remain constant in
Choice. The cart is professionally
similar estates. The particular information
designed with comparatively smooth
will help jog your mind on possibilities in
edges, efficient wheels and well painted
the area you wish to operate.
complete with a Farmer's Choice logo.
Though officially the cart is supposed to
be used for Farmer's Choice products
".....The price has largely averaged
only, some vendors disregard this and
Ksh.10 for over 5 years. Small hotels try
include eggs.
to balance between quantity and size /
thickness of chapati knowing their
customers are conscious about price and
The cart is available at Ksh.13, 000 from
size. Hence such hotels don't always aim
Farmer's Choice factory in Kahawa
for the maximum reasonable chapati that
West....
can come from one packet of flour but for
a number that they can break even on
and have satisfied customers. ..."
'"....Average Daily Revenue (Kshs.).."
KENYA SMALL BUSINESS GUIDES

Flower farms
FLOWERS - NAIROBI
".....On average wholesalers put a mark
( RETAIL & up of between 20% and 40 % of farm
WHOLESALE) prices. The wide range is influenced by
source, season and the market they are
supplying. The average sales per delivery
for a wholesalers at the City Market is
Kshs. 12,000..

..Wholesalers can be found at the City


Market every morning between 3AM and
9AM. Alternatively a retailer can purchase
flowers at slightly higher but negotiated
prices from the vendors at the City
Market....

If you wish to try your hand in the flower


business in Nairobi either as a retailer or
The guide and market survey includes: wholesaler this survey will give you the
information you need to decide or get
started. Done in a slightly different format
it contains specific information on
Quick facts about
process, suppliers, revenue & margins,
the Kenya flower industry
Domestic flower wholesale & retail prices, gaps in the
market market, consumer behavior and so much
Soko la maua more."
Value of the flower
market in Nairobi
Structure of the
flower market in Nairobi
Wholesalers &
Distributors - Operations and
Review
How to become a
wholesaler
Revenue of
wholesalers
Retailers / Vendors
Classification of
retailers
Operations of
retailers
Revenue of retailers
Gaps in the market
Barriers to entry
Consumer
Behaviour
Types of consumers
KENYA SMALL BUSINESS GUIDES

Differentiation
/ What is competition based on
Beef Butchery Guide Revenue
Wholesale /
Retail Prices
Margins
Pricing
Consumers &
revenue
Pricing trends
Flexibility and
Revenue
Ready meat
and revenue
Break even
point
Revenue &
The Beef Butchery Guide includes: Location, Economy, Service,
Quality
Consumer
Overview of
Behavior
beef and meat consumption in
Manpower
Kenya A Note on
Licenses
Kenya Meat Commission
Capital
Equipment &
prices Excerpt
Equipment
Suppliers
"....Average Daily Sales in Kg - 15kg
Meat
suppliers and the supply chain
Abbatoirs and
wholesale markets Second Tier Wholesalers
Grading of
beef As we look more into revenue, let us first briefly
Market touch on distributors/wholesalers who purchase
structure - Low end, Middle and from slaughter houses and deliver to
butcheries; the ones we refer as second tier
high end
wholesalers since they buy from the major
Competition
( first tier ) wholesalers at the slaughterhouses.
& Survival
Competition
Like we pin pointed not every butchery owner is
numbers
able to go purchase meat from the
Reasons for
slaughterhouse. Not that there are any
closing
restrictions at the slaughterhouses markets
Overview of such as Dagoretti and Burma, but the
demand challenges have to do with lack of a means of
Status of transport, time , convenience and related
competition and opportunities in factors.
the business
Barriers to So thats where the second tier wholesaler
entry comes in; he buys from the slaughterhouse
Distribution of market say Dagoretti and Burma in Nairobi and
competition delivers to the butchery in the estate that is not
Critical able to go buy the meat themselves from the
Success Factors slaughterhouse from whatever reasons.
KENYA SMALL BUSINESS GUIDES

Now back to revenue......"


KENYA SMALL BUSINESS GUIDES

Quick Tips To Getting


Supermarket Shelf
Space In Kenya

To compile the tips we talked to a number


of supermarket managers, tried to place
some products on the shelves, talked to a
few with shelf space and did our own
research and observations. The quick tips
should help increase your chances of
getting Supermarket Shelf Space.

If you have ever tried to get shelf space


you know how frustrating it can be.
Often, Supermarkets act up with
bureaucratic barriers and what seems
like a dim view of your product.

But before you give up an understanding


of the psychology of supermarkets will
help. Actually if you are selling some
products like food items juices, sauces,
cooking oil, water and the like you cant
afford to ignore the supermarkets.
KENYA SMALL BUSINESS GUIDES

COOKING OIL
FILTERING SERVICE -
QUICK FEASIBILITY
BRIEF

This brief is part of the Q & A


Biashara Lab Series facilitated by
Crack A Business Kenya
in September 2014. It's based on
the question:

"I saw a cooking oil filter advertised. Do


you think I can purchase it and run a
profitable business offering filtering
services to hotels?" MW


The Situation and the Problem
The Solution
Where to Purchase Cooking Oil
Filter in Kenya
Can a Cooking Oil Filtering
Service become a feasible business?
Target Market
Your Costs
Breakeven
Marketing
Should you invest in this kind
of business
On what is success based on
Licenses
Suppliers

KENYA SMALL BUSINESS GUIDES

o Supermarkets and Hotels


Processors and Processing
Tomato Greenhouse o
o Production of Tomatoes
Farming - Market & o
o
Greenhouse Farming
Advantages of Greenhouse
Production Quick Farming
o Important considerations
Guide before you start growing tomatoes
o Equipment
o Greenhouses
o Factors to consider when
purchasing a greenhouse
o A note on greenhouse
suppliers
o Prices
o Cost Benefit Analysis
o Production
o Tomato Varieties
This quick guide to Tomato o Which seeds to plant
Greenhouse Farming - Market & o Nursery Management
o Transplanting
Production includes:
o Nutrient Management
o Irrigation
o Support
o Pruning
o Value of Tomato Industry
o Weed Management
o Demand for Tomatoes
o Pests & Diseases
o Demand Trends in 2014
o Harvesting
o Tomato Substitutes
o Major Tomato Pests and
o Threats to Demand
o Major attributes considered their control
o Major Tomato Diseases
by retail consumers when
and their control
purchasing tomatoes
o Greenhouse Suppliers
o Some Market Realities
o Agronomist Contacts
o A Note on Timing
o Tomato Processing
o Is Tomato Farming A
Procedures - Tomato Powder,
Feasible venture
o Market Value Chain Tomato Pulp, Tomato Jam, Tomato
o Market Operations Sauce
o Brokers and wholesalers