The electronics business in Kenya has become very lucrative due to the high demand for electronics among millennials and Gen Z. In this article. I will provide you with a step-by-step guide on how to start a successful electronics business in Kenya.
Current trends describe wealth in terms of elegance, effectiveness, and efficiency. Regarding electronics, this is particularly true. Unlike Generation Y, who sought usefulness in gadgets, Millennials and Gen Z seek devices that make life simpler while still being trendy.
The more expensive and desirable a device is, the better its value. This mindset has paved the way for electronics companies to saturate the market with sophisticated, pricey gadgets that presumably make work simpler. This is step-by-step guidance on how to open an electronics business in Kenya.
Starting an Electronics Business in Kenya
1. Have an electronic business plan.
You can effectively plan your finances and ensure every cash is spent wisely if you have a solid business plan. Planning the initial capital and choosing a suitable site, revenue predictions, and suppliers are necessary.
2. Determine how to raise capital.
Significant capital expenditure is necessary to start an electronics business. The best way to raise capital is from friends and family, but you can also get a loan from a SACCO or bank.
3. Find the best location for your business.
The profitability of a business is influenced by its location. It would be best if you located your electronics store in a region with a large demographic and where there is a market for electronic goods. The best place for an electronics business to be is in a heavily populated city where there is a significant demand for electronics
4. Acquire Business Licenses.
In Kenya, you need business licenses and permits to establish any business. The county offices or the county council offices are where you may get a single business permit.
5. Identify reputable electronics suppliers.
You must choose a trustworthy and affordable supplier. To increase your profit margins, choose a supplier who offers high-quality electronics at lower costs.
6. Launch and advertise your electronic business.
You should start promoting your business as soon you acquire legal registration; putting posters of your business before opening dates can create awareness among your potential customers.
7. Get insurance cover for your business.
Electronics businesses are risky because they sell expensive products prone to theft, floods, and fire risks. Ensure your product is protected from any damages by a competent insurer. You’ll feel more confident knowing that your business is covered in the event of an unfortunate circumstance.
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Electronic business starting capital in Kenya
The initial cost of opening an electronics business in Kenya varies depending on the size, location, and products you plan to sell. In Kenya, you need at least Ksh 50,000 to open a small electronics business.
Products to sell in an electronics business in Kenya
- Televisions
- Radio
- Woofers
- Speakers
- Smartphones
- Laptops
- Desktop Computers
- Gaming Consoles
- Electronic accessories and gadgets
Read also, How to Start a Movie Shop Business in Kenya
Is the electronic business profitable in Kenya?
Setting up an electronics store in a location with a growing market for electronics is profitable. You may generate at least Ksh 35 000 per month in profit if you are in a high-demand place. Launching one in a busy area with plenty of houses is better.