THE ONLINE BUSINESS

In the recent days there has been a drastic increase the number of online business in Kenya.  This is evident with the increase in number of websites, blog sites, and social media platforms which are being used by different businesses for advertising and selling of products. It has significantly reduced the hustle of shopping physically locally and oversees. The pre-ordering of products especially electronics and cars has been the on the rise thanks to online business. Setting up an online business may seem easy compared to setting out retail stores, but it also has its own challenges especially here in Kenya.
Most people are used to the physically interacting with the product prior to purchase. There is lack of elaborate online business regulatory laws, consumer rights and ignorance of the already existing laws on the same. There is also distrust in most customers regarding the online security of personal credit card data. The technological infrastructure at times cannot support the business model. Product quality is not guaranteed.
In terms of its benefits, gaining online customers through the search engine optimization(SEO), location and comparison of different products is made easier, it is cheaper to run the business since the operational costs are low, always available since it can be accessed 24/7 on the web from any geographical location. The website now is all that matters since it’s your virtual retail store therefore the following have to be in place to easily attract and maintain your customers. Have an easy domain name, an eye catchy logo, all your contacts especially email address. The email is very important since it brings about the concept of email marketing. It being one of the most efficient marketing strategy since it brings the products closer to the customers’ inbox. Make sure that that there is ease in navigation through the webpages, and well-documented content. When all this is in place, the following are some of the tips that will enable you run the startup efficiently. 

1.Launch the product.

It is at times confusing to either start by getting the audience for your site or launching the product first as you wait for your customers to subscribe. There are numerous internet search engines which increase the businesses' visibility, therefore the earlier you do it, chances of addressing a wider market variety is high. It also allows one a grace period of working on their next products especially for startups, and improving the managerial skills where there seems to be hitches. If by any chance the first attempt fails go back to the drawing board and work out a solution and make a comeback. Consistency in your work is what wins the heart of some consumers, it encourages them to try out your product and if it works out for them, they won’t hesitate to share it out to their friends and colleagues.

2.Get your priorities right.

It is not an easy job building a successful business, it might be easier to be an employee rather than being your own boss. Some entrepreneurs perceive it as a way of getting rich easily. I beg to differ on this because there are so many behind the scenes undertakings that are so tough that are never talked about, and one has to engage in to bring about the desired success. I cannot also deny the fact that it brings wealth through the profits earned, but if the profits are not ploughed back and not well invested you will experience financial strains which lead to bankruptcy. Always have a plan of what you want to do, how you want it done, the already predicted challenges that you may encounter, and their possible solutions. Do not be overwhelmed by the fantasies of the overnight success, it never comes easy  must be worked hard for. Stay focused on customer satisfactions and product placement and let the other goodies come if they may.

3.Pick up a line you are passionate about.

There are businesses whose support team main aim is to identify which venture makes a lot of money and can sell out to reach certain targets within the shortest period possible. Am not against it because that’s one of the top objective of an operating  business. Sometimes you can face challenges in due running of the business, and it may become impossible, to work out solutions to situations that you don't care much about. It is obvious you will delegate the task to someone else who may come up with a rush decision. This will eventually lead the business to pitfalls which shorten its’ lifespan. The passion within you is what brings about the creativity flow, the influence to your audience, and also home-made solutions to the frequently uprising business challenges. You should also not pursue your passion dumbly. Have a deep understanding of the venture, to enable you offer complete customer satisfaction. Always be keen on the content you post on your blogs and website, because once it’s online, and you do not have much control over it, any slight mistake may result to a huge lose.

4.Customer reviews.

It is one area that if neglected can be catastrophic to the existence of your business. Physical Interaction with your customers to get to know their thoughts and builds on your product is rare. Reading their comments and their ratings on your product helps you understand the aspects of your product that your audience love most. Majorly dwell on the negatives of your product. This enables you to know what makes them shy away from trying your products. Invest much to improve the grey areas of the product, to ensure it serves well your customers specific needs. You don’t have to be excited about the positive feedback you get from  your customers and relax thinking you already have an established customer base. This should be an indication that there are already potential customers who are appreciating your progress, all you need to do is work hard to win their trust, to make them your product customers if not your product fans.

5.Be unique.

There are various ways in which you can be original and set your own standard in the business. It can be through your web portal, delivery service, discount awards and also the product itself. It’s all about how different you are from the rest because customers have a variety of options to choose from. Do not copy a business idea then replicate, you don’t need to be an inferior version of someone else. You can copy the idea but find a way of making it different and effective from the original one. It maybe through the delivery service, which can be made free.  Packaging, which can be made reusable, edible, or have content that promotes morality in this permissive society. Discount awards to customers who buy in bulk and also those who shop frequently through the portal. 

Content references: www.entrepereneur.com
                                      www.fizzle.com

Contact email: wawerukamotho97@yahoo.com

Overcoming the common business challenges

Innovators and entrepreneurs face a lot of challenges in today’s contemporary business world. There are a lot of resources online to enable them curb some of the challenges, but it seems there is need for more practical solutions  rather than the usual textbook solutions. Innovators come up with ideas quite often that offer good solutions to problems we encounter daily, but transforming it into a business becomes the hurdle, that's now how entrepreneurship comes in.  It is at times so difficult to be good in both innovation and  entrepreneurship, that’s why partners are of essence. Do not be selfish with your idea, share it out to your partners to be able to get their feedback and builds on the same. They will also help work on the market strategy, seek avenues to raise capital and create valuable networks for your success. Having a mentor is an added advantage since they often challenge your ideas and help you brainstorm on other unchartered ventures. Here are some of the challenges that most entrepreneurs encounter and their possible solutions.

1.Lack of self-confidence.

“What will people say about me if I fail”, this statement is the major mental roadblock to success.The lack of courage to step up and face the challenges and all the negative talk is what makes most potential business ideas to remain dreams to their beholders.
You may be running a business that is neither growing nor meeting its set targets. This can be really frustrating and can make one lose their confidence in the business and end closing shop.
To overcome such, form a well-researched strong support team which knows you well. They will guide you in making your goal lists and will work hard and smart to enable you achieve the success. Persevere and bear in mind that the undertakings that you engage in now are definitely going to bear fruits in future.  

2.Marketing.

Different marketing strategies have also different outcomes. Print media, online, advertising and also social marketing are some of the few. The challenge is always to pick that which is economically efficient and meets its targets in the shortest period possible.
The best way is to outsource your marketing plan to marketing firm or a freelancer who has a large mass of followers on social media to put out your ads. Have concrete marketing activities like promotions for customers gets into draws to win grand prices, which will motivate customers to try your product. Ensure that the allocated amount is well crafted and serves a long-term benefit to the business.

3.Accounts management.

The main challenge experienced is management of the cash flow. Sometimes one is not able to separate the business funds, from personal funds. At times when you are given tenders to supply goods or services to customers invoices written mature after a period of thirty days, this leaves you struggling to maintain your business and pay your personal bills.
To overcome such learn to separate business funds from your personal funds.You also need to be a pundit in understanding and managing the working capital requirements of the business. Some strategies include seeking down payments from  customers, balancing average collection period against the average payment terms, establish a friendly relationship with both your suppliers and customers, to make them understand your working strategy among others.Above all always have and stick to a well-planned budget.

4.The Capital challenge.

This is assumed to only affect first timers who are setting up their startup businesses but it cuts across to also the established ventures that needs to grow.  There are many avenues nowadays to earn business funding like loans, investor’s funding and also well-wishers contribution. That’s one way to start or grow your business. I would advise especially for those who already have set up shop to let the business fund its own growing culture. The lack of patience in most entrepreneurs tarnishes this norm. The Priorities set at times is a bit worrying, since it mainly aims at building multi-dollar business empires rather than focus on customer satisfaction, and production of quality products and services. Starting your business small and letting it escalate its way up is the best option, since it enables you to deal with each challenge at every stage before it becomes a problem at a later stage.

5.Tasks delegation.

You cannot engage yourself in all the activities, thinking that without you nothing can go according to your expectations. Admit your weakeness  and give chance to the specialists. Outsourcing the tasks to contract companies is way to go about it though it might be expensive, but it translates to save a lot in the long-run. When engaging such firms, clearly outline what you want  done, and how you want it done. Assuming that they have been trained to do the job well be a disservice to the business. A good example is when you bring system auditors on board for maintance or seal some security loope holes, and you don’t tell them what is system isn’t doing right and you expect them to fix system just because they are trained for the jobl.

6.Product management.

It so hard to pick on what to sell, to compete the well-established products in the current market. You may have an idea of a product but it has to meet customer needs and be sustainable in the market. The solution for such in startups is to delegate the role to a research guru in the field. A freelancer is the best option because hiring a huge marketing or PR firm may be expensive and ends up financially straining your business. Their experience in market research, retail or service industry will enable you know the strengths, weaknesses, opportunities, and threats of the proposed business. The report that will be issued will be play a major role in your decision making, therefore entrepreneurs are advised to stick to their own decisions and not be influenced by a second or third party.

7Lack of managerial skills.

It is a problem that most startups encounter since most of them do not have enough funds to hire managerial experts. It could be in marketing, human resource or finance. It becomes expensive for them to maintain such employees’ on full time basis. The solution to such is  hiring a part time manager or a consulting firm to oversee the running of the business, identify financial traps and give ways to go about them. Having a superb managerial team is all you need to take the business to the next level.

Wawerukamotho97@yahoo.com

Content sources: Business insider UK.
www.theentreprenuermagazine.com
www.fortune.com

MARKETING

The most important aspect is to have a solid marketing strategy that will enable you to propel your companies to sell out to the public amidst other well established competitive company’s.  Examples are close range marketing, undercover marketing, relationship marketing. Its main purpose is to identify and communicate the benefits of your business to the target market. It needs to be flexible so that the products and services are profitable to meet the customer needs both in short-term and long-term basis. In terms of its effectiveness one has to be on toes to maintain its success in customer satisfaction, and keep up with the often technological changes in the market. You have to know your Strength, Weaknesses, Opportunities, and also the Threats. This enables the entrepreneurs understand constrains that they will encounter, the possible solutions, and the whole external environment i.e.: economic, political and legal. One can have a brilliant and working strategy but also the marketing skills have to be on point, especially where you are trying to convince both the literate and illiterate customers.

1.Use audience’s own language.

Speaking to them in their own language creates a unique trust and the audience are encouraged to buy into your product. You have to consider the audience expectations and how you will be able to meet the expectations. Avoid going into much details unless you are dealing in a well versed audience that need you to break down the metrics for them especially partnership investors. Technological wise find out which social media platform your customers mostly interact on, to enable you use those platforms to communicate about the select aspects of your product that they are mostly interested in.

2.Be simple.

You don’t need to be complex when putting out the marketing campaign, because not everyone is interested in what you did to bring out the product. Everyone is interested on how best the product or services serve them. Put out advertisements and forums that leaves out the flashy noise and lets the product speak for itself.

3.Focus on creating a brand.

When marketing some people only focus on selling out the product to the public domain to meet targets or just get profits. This should not be the case, the goal should be to create a memorable experience for the customer which will make have the urge to use the product. When this is in place, it propels the firm to even international platforms and creates a brand for itself.

4.Create a mystery on what you are doing.

According to Apple this is one of the best marketing strategies, you give bits information on your next product. This creates a positive type of anxiety to the customers about your product before the official launching. This only happens if you have firmly established a customer base and you are now at a point of maintaining it. At this point you of having fans to your brand who will stop at nothing to buy your products, even when they do not necessarily need them.

5.Be practical.

When you are out in the field engaging various audiences you should not just focus on the paper work and the verbal entities. Focus on the visuals especially videos which have bring a deeper emotional level to the customers.  This will a long way in ensuring that all your products, new or existing have a greater impact on customer experience.

6.Be based on certain core values.

When customers see you product, they should not only view it as a product but also the core values that are attached to it. This is what should be majored on during the marketing organized forums and also on its packaging. Your customer base will be encouraged to use your product since they know it creates a positive social impact to the current and future generations.

7.Customer feedback.

Always consider the customer’s feedbacks and reviews. Set up online voting polls on social media platforms. This will enable you to first of all market the product and also get to know on how useful the product is, and what can be improved on the product or service to serve the consumers much better.

References: 1. www.quoramagazine.com
2. www.wallstreetjournal.com
3. Www.theentrepreneur.com

Why investors decline investing in our startups

Investors only invest in ventures that multiply in the shortest period possible, mostly between three to four years. This means that the ideas have to be good, address a large market capacity, and value of proposition should be strong and attractive. Reasons why some of our startups are rejected are:

1.Startup costs are too high.

Entrepreneurs may have great business ideas and projects to start, but when the assessment cost by the panel is way too high they opt for other investment opportunities. We need to carry out a thorough audit on our startups and should be based on past achievements and the business potential.

2.lack of records to proof past success.

This mostly affects first timers when they have not yet started the business, and therefore they don’t have any record to proof success in the business. You must present a well-documented audit report to the board, to show the milestones the business will achieve in the shortest period possible, so as to convince your startup is worth investing in, and has value for money.

3.Lack of focus.

This happens with mostly with entrepreneur’s who you launch products or services, and when they it face  challenges they abandon the startup and venture to another, instead of staying on track, dealing with the challenges to improve the business and necessarily, targeting a certain group of consumers. This creates an impression that you are not serious and hence no investor will want to risk their money in your startup.

4.Lack of a market strategy.

You launch a product and start selling it to the consumers but that’s not all. You must have a plan on how to boost your sells, and market the company to gain competitive advantage over the other already established companies in the game. Your market goals should be well outlined.

5.Being narrow minded.

Investors are people who have dwelled in the business ventures sector for quite a while. They happen to know the common trends in the market, and also offer consultancy services to some well-established company brands. When they give advice you ought to listen and put to consideration. The point where we loose is when we become so defensive when suggestions are made to change our products and services, this turns away investors.

6.lack of knowledge on your venture

When you lack the general knowledge, and unable to give the insights of the industry you are to venture poses a threat to your startup. You have to know the past, the current trends, and the anticipated future trends of your venture. This not only shows your seriousness, but also enables you to be able to predict the future events. This also enables you prepare a well published blueprint on your future goals.

Refrence: young entrepreneur magazine

Wawerukamotho97@yahoo.com

The thirty year age bracket money syndrome

In most cases people spend their 20’s finishing up with university studies, sporting, having fun with friends, some even marrying in their late 20’s and getting their first jobs.  The thirty age bracket can really be disastrous if someone doesn’t adjust well. This is when  most people firmly establish themselves in their careers, family responsibilities popup since children are growing up, and some even setting up their own ventures. It is a period if not carefully managed can land one into financial strains that can have a major setback in your family's future. Most people majorly focus on the here-and-now set of living which at a times results to the worse. You put aside their future goals and focus on daily and monthly expenditures only. I will mention to you some of these money mistakes we do commit regulary, that derails us  financially.

1.Lack of a financial plan with your partner.

This is greatest undoing in most relationships in the recent days. It’s now a try and error kind of gamble where you live together before getting married. Someveven set up startups together. As time goes by one wastes their resources with the wrong person when in the end they part ways. This also happens in some marriages where partners do not have an open discussion about the salaries they earn, other sources of income, their spending habits, and the family’s budget. This is very important since it helps in understanding each other’s pocket power to avoid financial constraints. 
2.You overspend on children expenses.

At this point in life is when you get the first born and you are very excited with the change of state to become a parent, and we do everything for the child’s happiness. We do buy them toys, accessories, brand clothes, and furnished baby furniture. This is where we get it wrong, am not against it but you need not to overdo it, let it have a limit. What if the money went to savings for the baby emergency fund account, or their education? They will definitely overgrow the need for toys, and destroy them as they play, so do not let the excitement influence your spending habit.

3.Living beyond your means.

We definitely have different sources of income, pursue different careers with different pay slips. We do meet our friend driving fancy cars, living in high end suburbs, and their children attending the British system type of schools. We tend to do a replica of that with our lives. Some even want to live the same standards as our parents forgetting that they spent decades accumulating that wealth. This becomes the ulcer that eats up our happiness, and goes a long way to hurt us in future since when you go broke the children cannot understand because they are used to that high kind of lifestyle.

4.Expensive house rent.

Some find it classy to live in lavish apartments, in high end estates that rent is almost half your salary just to be perceived to be in a certain class people.  If you’re living in a house that you are paying rent that is more than 30% of your salary then you better vacate it. This means that you will work to strive to maintain that social class which turns out to be expensive, and not worth it. This denies you the opportunity to invest for your future.

5.Ignoring the life insurance while it’s cheap.

According to the life insurance policy the younger and more healthier you are the cheaper the monthly premiums you pay. This will accumulate to a lot by the time we are old, weary are sickly it will serve you well and you won't regret it.  The advantage is that it cover some of your loved ones as the beneficiaries even when you do not make it. Having it gives you peace of mind knowing that if at all the worst happens you and your loved ones are covered.

6.Lack of an emergency fund plan.

We cannot stop natural calamities like fire, floods, and sickness.
At times we may become sick and unable to work, and even accumulate large medical bills when the worst happens. The NHIF scheme, is not enough. In some situations specialized treatment maybe of necessity to some. In such it may not be of help hence one has to dig deeper in their savings accounts or even sell out investment shares. 

7.Dependency on credit card debts.

It’s been the quickest solution nowadays due to the cashless transfers, gives an extra help as one awaits paychecks. It also comes with goodies of earning points and getting to various draws to win lots of prices. Coming to thinking of it, it makes one glued its fantasies and you get addicted to impulse buying, not forgetting their service charges, and interest rates. This really derails your finances and making progress really becomes a challenge.

8.Lack of plan for retirement.

This is the last thing that ever crosses one’s mind while working especially if employed. Getting a house, a car and children attending school should be an indication you’re getting old.  You have to either start up a venture, invest in shares and stocks, or even save. We should not just consider the RBA government scheme, we should let that be our fall back plan if the set out plan fails in one way or the other. In some cases some retire when they still have children in school, let us not ignore that possibility, so lack of a solid plan may make your years of sheer hard work be a waste making you even broke like you were in your 20’s when you were still hustling.

Wawerukamotho97@yahoo.com

Content sourced from the young entrepreneur magazine and
Business insider uk