Since time immemorial, an individual’s wealth has been gauged by material possession. The definition of a valuable item is as vast at the human population, largely due to the fact that the definition of wealth is determined by human behaviour and socialization. Factors such as culture, environment and world view are a great determinant of what can be considered wealth. In some cultures, large herds of cattle are a sign of wealth, for the farmers it’s the size of land, while for more labour intensive societies wealth is determined by the number of children.
Modern trends define wealth based on efficiency, effectiveness and style. This is especially true when it comes to electronics. Unlike Gen Y who sought functionality in electronics, the Millennials, and iGen demand for electronics that make life easier with style. The fancier the gadget, the more valuable it is and the higher your social rating as an owner. This mind-set has opened the doors for electronics entrepreneurs who have flooded the market with all sorts of fancy, expensive gadgets that supposedly make work easier. So just how does an entrepreneur start and run an electronics business in Kenya?
Put Down an Electronics Business Plan
A business without a plan is set to fall. Therefore, you should have a well-analysed business plan to break even. A well-detailed business plan should contain information about popular electronic gadgets. Keep in mind that this sector grows day and night therefore make your plan dynamic. You shall need adequate start-up capital. The electronics business is capital intensive at the beginning; ensure that your plan provides for incremental capital to satisfy customer demand. In your plan include expenses that arise from rent, salaries, licences, taxes etc. Additionally, consider the costs arising from initial purchases from wholesalers. Make sure that your resellers price is appropriate based on the market trends. As a new entrant, plan to distinguish your brand by having a flagship product; the electronics market is flooded you need to stand out. A flagship product will quickly provide a niche for your business and the much needed footfall.
Find an Ideal Location of the Business
The most ideal location for an electronics business is in a densely populated urban area where demand for electronics is high. Consider setting up in a mall with a high footfall, or public transport stage. When selling high end electronics, it is best to set up shop in a place with proper and secure parking. It also guarantees the security of your stock. If urban life does not meet your fancy, set up shop in a rapidly growing rural town. Competition will be less and your shop is bound to be a reference point for all electronics need. When selling in an urban area, depending on your electronics it may be prudent to set shop next to fellow electronic business owners. This is called clustering. It works very well if you have to import your products because logistical costs can be easily shared between businesses thereby increasing profit margins significantly.
Register your business
Getting licenses has never be easier in Kenya. With the advent of digitization, many government services are now online. If you want to start a legitimate business that has potential to grow and outlive the owner, you need to get it registered on https://www.ecitizen.go.ke/ . Depending on the kind of business you want to register, you should have a certificate of registration in less than 21 days. This document will be important in the next steps of setting up your business. The registration certificate will be used to open a bank account for the business, get business permits from the County Government, register with the https://itax.kra.go.ke/KRA-Portal/ all other government agencies. All these services can be accessed by visiting https://www.hudumakenya.go.ke/
Get a Reliable Electronic Supplier
Strive and get reliable suppliers who sell electronics at a fair price for a better profit margin. On the other hand, make sure the electronics are of high quality to avoid counterfeit electronics. You can use your networks or use search engines to get manufacturers’ contact details. If you are able to buy from the manufacturers direct you may be able to scoop better margins. But this may require that you buy huge quantities which may be risky at the infant stage of your business. The most popular electronics are TVS, Woofers, Decoders, Satellite dishes, speakers, extension cables, and TV antennae.
Start and Market Your Electronics Business
Once you are officially registered, its time to hit the market running, sometimes it is good to start marketing your shop before you opening doors. Consider putting up a “opening soon” sign on strategic points of the shop. This starts to whet the appetite of potential customers. It also helps your businesses to experience the novelty boom as soon as your doors open. Depending on your financial muscle you could even put up a similar bill board along a street that your potential customers frequent.
Even if your marketing budget is thin, you must be on social media. There are plenty of opportunities to become visible online. You can set shop on https://business.instagram.com/shopping/setup , https://www.facebook.com/business/shops or even become a vendor in a popular ecommerce site. In the electronics business all visibility is good. Once all procedures are settled, start your business, but you must put effort into marketing. Give your products a niche either by packaging, after sales service, or delivery. Most importantly remember to give discounts. Electronics are synonymous to discounts and bargains. It is the surest way to drive traffic to your business.
What is the greatest risk in electronics business? What can bring down your electronics business down in a flash? Fire, floods, and robbery. Any activity that threatens your stock should be your greatest worry. Make sure that you have reliable insurer to cover your stock from any damages. This will give you peace of mind knowing that your business is secured in case of any misfortunes.
Train your staff
Get staff that is passionate about electronic gadgets, and technology. They will be instrumental in explaining to customers how the various gadgets work, the features and how they make work easier. Remember that your customers are not just merely interested in purchasing an electronic; they are seeking for efficiency, effectiveness and style. Make sure your staff have adequate knowledge of your products and can explain its value to clients eloquently.
In conclusion, this business can thrive based on the effort and strategy the business owner adopts. Strategies like competitive prices and reliable sources of original electronics are vital to soaring more incredible heights. You are now ready to become an electronics Entrepreneur. Good luck!