There is a reason why the failure rate of small businesses in Kenya is very high. Out of every 10 new small businesses are that started in Kenya, 7 usually fail within the first 3 years of operation.
Therefore, whether you are operating a small butchery shop or a fast food joint, you need to consider these fundamental things that will sustain your operations
Return Clients (Loyal Customers)
It costs more to get a new customer than to keep the current customer buying. Your business should treat each customer well enough to guarantee that they will return for the same service (or more services) from you.
A good way to ensure customers return is to find a channel (SMS, email, Messenger etc) that can be used to contact the customer and remind them of the service. Some successful firms go to the extent of calling each individual customer to notify them of new services or offers.
Adding Value Progressively
Value is what draws a customer to you and convinces them to pay for a service. A good way to differentiate yourself from competitors and keep customers interested is to add value as the business grows.
For example, if your Barbershop simply offered shaving, you can add head massage services, face scrubbing services etc. If your Carwash started by just washing cars, you can start selling air fresheners for cars or related accessories to the same customers.
The point is to keep your services interesting so they are not considered basic/boring.
Keeping Costs Low
This seems straightforward but it is not. It is very easy to lose track of how much you business is spending. So, first thing is to keep a detailed record of everything. Second, find a way to buy only the supplies that you need and at the lowest possible cost (as long as the quality is not compromised).
For example instead of buying your hotel’s supplies from Githurai, look for a broker to get them for you directly from the farms/Shambas.
Enhancing Skills Among Employees
Your employees will make or break the business. If you cannot hire skilled people, you have to train the unskilled people that are available. And there is no end to learning. The good thing is that once you improve the skills, you can start to price your services higher than your competitors because your demand will go higher too.
Pricing Creatively
There is a business concept call discriminatory pricing. This is used to make a business grow faster with higher profit margins. The idea is to sell at the price the customer is willing to pay as long as you will make a profit. For example, for a trouser you bought at Kshs. 500 in Eastleigh, a customer in CBD could be willing to pay Kshs. 900 while a customer in Karen will pay Kshs. 1,300 for the same trouser.
