Thursday, April 25, 2024

I saved Sh. 3 million by age 28 to start my construction business

How to build using prefabs: At age 28, Irene Wanjiku quit a well-paying job in the construction industry to venture into her own business. She now sells roofing material across East Africa.

Rexe Roofing Products, nurtured from scratch, was an idea put into action in November 2011.

“As I worked in the construction industry, I realized that there was a big gap in supply of quality roofing products. That was six years ago. The few products that were available were expensive and not of the best quality,” says Wanjiku.

Having always dreamed of starting her own business, she had saved Sh. 3 million, but the amount was still insufficient to successfully kick-start the venture.

Nonetheless, she had the contacts of roofing experts from Belgium and South Korea, from where she planned to import the materials. Equipped with knowledge of the construction industry and her capital, she faced the hurdles.

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“I had a perceived market already, so I started by taking deposits from well-known clients who wanted roofing materials,” says Wanjiku.

Her biggest challenge was how to convince developers and other home builders to pay half the money upfront. She eventually got enough customers who trusted her with their money.

She also had a difficult time marketing her products, but eventually found a way to attract customers to order the little stock she had.

“Being an entrepreneur is about taking risks. In May 2012, I gathered courage and used part of my capital to book a stand at the Kenya Homes Expo,” she says.

Good publicity

This was her first attempt at marketing her company and its products. She was a bit fearful as she faced experienced business people at the expo. She later realised that if the products are of high quality, then the business gets good publicity regardless of whether it is an old or new company.

Displaying her wares was a  great marketing strategy. The expo ran for three days, during which she attracted deposits of over Sh3.5 million.

She was amazed by the massive response to her little venture, realising that there was a wide gap in the industry which she could strive to fill.

With the recent changes in local authorities brought about by devolution, Wanjiku has embarked on expanding her business to counties and the wider East African region.

Her products are used mainly by well-known developers in the market, among them The Hub Karen, Aberdare Hills Golf Resort, Telkom Kenya, Mount Kenya Wildlife Estate, Mount Kenya Holiday Homes, and Acacia shopping mall in Uganda.

Although she started alone, Wanjiku now employs 13 people on a permanent basis and another 20 to assist in assembling and roofing.

Among the challenges she has faced are destabilisation and unfair competition by competitors.

Negative publicity

She tells of discouraging factors such as negative publicity from competitors who want to maintain monopoly in the ever-growing industry.

One of her mentors in the industry is Maureen Ojijo, the lead organiser at Kenya Homes Expo. Ojijo says Wanjiku’s fearless attitude in the trade has taken her places.

“Most entrepreneurs fear venturing into the construction industry due to lack of capital or means to penetrate the market. Wanjiku was willing to give it a try… and see the results!” she said. How to build using prefabs.

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