Many of us would like to invest in a business that does not cost much to set-up – and one that is easy to manage. A quick look at local Google analytics shows that ―small business ideas in Kenya‖ is one of the most searched keywords. This shows just how aggressive we are at looking for business information. Probably you are also looking for some ideas and that‘s why you‘re reading this guide. Watch selling is one brilliant venture that you can start with less than Ksh.25,000/= capital.
Start Importing Watches and Re-selling Them
The main advantage with this kind of business is that you do not have to open an expensive store right in the middle of the city to reach your market. You simply need to start a Facebook Page or Twitter Profile where you will be marketing your merchandise. You can then charge your customers a small delivery fee and hire a messenger to be delivering on all orders made.
Martha Kirobi Waceke, a graduate of Dedan Kimathi University, has been doing this kind of business for a couple of years. She started her Facebook Page (Adore Jewelry) some 4 months ago. In her own words ―This is like my small shop where the world comes to see and buy my jewelry, I have no regret choosing social media to market my merchandise.”
Martha started selling jewelry while still in campus and to date, she candidly adds that there is no need for one to tarmac looking for a white collar job. ―There are many opportunities that lie unused out there, it is upon (the youth) to identify and make good use of them,” adds Martha.
Where can you get the watches?
China is known for its cheap merchandise and this should therefore be your first place to go shopping. Of course, i know you might not be in a position to fork out over Ksh.1 million in the name of air fare, so what about you do shopping online? There are many websites that sell cheap Chinese merchandise. All you need is to shop around for the best deal in the market before you place an order. Alibaba.com is one of them.
How do you avoid conmen?
Well, the easiest way to avoid being conned would be by asking your friends or relatives who live in China to confirm if the seller is indeed legitimate. Else, if you don‘t have a reliable contact person in China you can run a brief Google search of the company to see what other people have to say about it.
For instance, if you‘re dealing with say YongYoon Watch Merchants, all you need to do is Google ―YongYoon Watch Merchants Reviews‖, this search should bring you results that explain how good or bad the company is. Avoid dealing with companies that have no reviews posted about them – – chances are that they‘re non-existent. A normal company should have a credible address on Google Maps.
A nice watch goes for about $2.1 on alibaba.com (china‘s equivalent to eBay). Most sellers will require you to order for a minimum of 100 watches, so if you order the minimum amount you‘ll spend $210 (Ksh 17,000).
Then you can expect to pay an additional Ksh.5,000 shipping charges (e.g via Kenya Airways). Now you‘ve spent Ksh. 22,000 out of Ksh 25,000. Let‘s say you use the remaining Ksh.3,000 to pay for Facebook Ads.
NOTE: Unless your item is zero-rated, you will be required to pay tax upon collection. You can estimate your tax liability by visiting www.kra.go.ke.
In short, you‘ll have spent Ksh.250 on every watch by the time you start selling your merchandise. Assuming that you get every customer to buy at an average of Ksh.1,000 how much will you have made in profit? Let‘s do the math:
Ksh.1000 X 100 Watches = Ksh.100,000
Ksh.100,000 – Ksh.25,000 (Capital)= Ksh.75,000
Even if you pay taxes, the messenger and other miscellaneous charges, you will still be left with something worth talking about. This is something you can do in less than 1 month.
You see, the beauty about a watch business in Kenya is that you can run it comfortably from the comfort of your home. All you need is access to a good computer, internet and good communication skills. Other than that, you need to be an excellent customer service person so you can build a good relationship with your customers who will in turn refer you to their friends.