How to establish a successful small business enterprise
There are millions of Small and Micro Enterprises in Kenya, how do you compete as an small business? If you walk on any street in any town, you will see the same or very similar businesses running besides one another. Over and above competition from similar SMEs near you, you will also face stiff fight for customers from the bigger players.
This is always a big challenge to many entrepreneurs as they think through how to be ahead of the competition. To get a notch higher than your competitor, you must stand out and lead the pack. This means identifying a niche, which can be your product, price or variety and then communicate this very well to the wider market so that you are uniquely identified for this.
Price in Kenya can be very difficult to compete on with everyone trying to undercut the other. This means you have be competitive beyond the price. If you can focus on product features that customers would be very happy to identify with, this can lead to more sales and getting ahead.
Customers for example tend to adopt easier-to-use products more quickly. Phone company Nokia had a big success in the Kenyan market at the onset of the mobile phones because the devices proved easier to learn and use. Another feature is efficiency. Everyone likes it when they acquire a product that can do more than its rivals.
Think about the success of the Toyota in our market. The main edge is said to be fuel efficiency as well as easier to service. People also tend to make reference to where a product is sourced from. For example, I would rather buy a pack of maize flour made in Kenya than another country.
At the same time, I may fail to have faith in an electronic product made in Kenya. This just how it goes. In the service industry, some of the things that stand out include better customer service, more favourable opening hours, faster delivery and employees’ expertise or demeanour.
Other overall elements that can position your business better include a wide range of products, better payment options, strategic location such as close to public transport or more parking, appealing premises or having an outdoor for those in the hospitality business.
While all these are general items, you need to keep good records of the business to enable you see what has worked out well. This calls for use of technology in your business. With efficient automated record keeping, you are more likely to get proper reports and analyze fast moving products or most profitable items. You can then focus on where you are winning.
