Tuesday, 2 July 2013

Kenyan Business Owners Should Think Hard about Using Internet for Business Growth

Kenyan Business Owners Should Think Hard about Using Internet for Business Growth
I have been writing this blog for the last few weeks, I must admit am happy due to unwavering support, growing following and important encouragement,  I have received since I started writing this blog. In this post I would like to emphasize why Kenyan businesses need to take internet seriously as a good medium of marketing business and growing innovative business ideas. 

I would like to focus on some important things that business in Kenya and Africa can do online to compete with other businesses globally.Since the last general election in Kenya the terms ‘Digital’ and ‘Analog’ have been household names that all Kenyans have mentioned at one time or another.

 The idea of going digital seems to be met by great amusement by all Kenyans; I can’t help but wonder does the average small business owner understand the benefits of digitizing their business? Most probably, they don’t have an idea on how to go about that.

Thinking Hard about Digitizing Kenya Small and Medium Businesses

There is one old saying that was repeated severally by my teacher ‘there is strength in numbers’. This was to encourage us towards team building for success in academics. Looking back to those years of school, I see my sheer ignorance or stupidity for blatantly refusing to be part of academic groups. I was simply the kind of students who wants to read and no discuss groups.

In a different perspective, I have learnt for growth of any business, there are two things that must be present:
  •          Goods or Services
  •         People willing to buy the goods

Success in business is defined by profit made which depends on the NUMBER of goods sold or NUMBER of clients offered a service. This seems to be pretty obvious to anyone reading this post, but it is not practically obvious.

Why did Safaricom become so Successful?
In Kenya today the most successful company is Safaricom, have you ever stopped to think about Safaricom business model, why they came into the market in the last 10 years and they were able to make such a big difference? 

Let me help you think; the sole reason Safaricom continues and will continue to make more money into the distant future is not a secret, their subscriber base or if you like clientele base is the driving force behind great profits and success. The more subscribers they have the higher the chances of making more money through sales of technology goods, advertisements and services

Secondly, the nature of the services and goods they sell is another contributing factor to their success.

There is a third reason that may not be obvious; some people will want to call this monopoly but let’s sugar coat it as; entry to new market that did not have existing similar goods or services.

These three reasons are the most like the pillars in the business model of a mobile company like Safaricom that enters a new market.

Why Did Equity Bank Grow Very Fast?

Equity Bank is another example of a successful business within the last decade. When Equity started aggressive marketing they had one thing in mind, increasing their subscriber base or if you like account holders. Unlike the traditional ways employed by banks in marketing Equity was able to start opening banks in places that banks did not exists.

This is the element of venturing to new markets. They also provided the common mwananchi with a way of banking. Instead of banking for only the corporate, salaried and business men they started venturing out to small farmers in the village, small business owners and so on. Were they successful? Be the judge.

3 Ingredients for Digital Business Success
  •          Building a huge client base or subscribers list
  •          Goods or Services of high Value
  •          Venturing to new Markets or emerging markets

Success Tips for Digitizing Businesses in Kenya
There are two benefits that Kenyans venturing to Internet businesses will continue to enjoy but not for a long time.
  •          Low Competition
  •          Cheap Services 

In Kenya today, getting a website design for you can cost as low as 10,000, It is therefore very easy for anyone in Kenya who owns a business to have a professionally designed website for their business.

Internet Marketing in Kenya is also at its infancy with so many business owners who have not even heard about search engine optimization. Kenya business owners can take advantage of this low competition online to establish themselves through internet marketing.

The future will be more competitive and this time present a great time to start marketing your goods and services through internet in Kenya.

Social Media marketing in Kenya- Marketing through social media in Kenya has not picked the pace and still more and more people will start realizing its potential and the competition will be higher.

Important Digital Business Tips
When you venture to new market you are fulfilling all the three success principle shared by both Safaricom and Equity business growth models;

Venturing to new markets: you will not find any tough competition, Internet in Kenya presents all businesses with a great place to establish a following and numerous business leads with less competition or no competition for keywords and search terms

Huge audience: The audience in Kenya online is growing rapidly especially through the smart phones.  This audience will obviously be ‘hungry’ for your business services and goods. It is very easy to establish this huge clientele base if you are offering valuable services.

Nature of your Services or Goods: Kenya internet audience is ready for ‘the next big thing’ this opens a window of opportunity for any business that wants to add value to their goods and services. 

Example:  A restaurant owner may consider issuing coupons for special offers via the restaurant website. He not only promotes his brand popularity, increases the website audience but also grows his business significantly.  

The past decade belonged to Safaricom; your start up today could dominate next decade!

What are you doing towards success? 

Get in TOUCH with me or  you can also FOLLOW ME on twitter and like my FAN PAGE 
 

Have a Great Day 

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