Starting a business in Kenya without a Professional Business Plan in Kenya is likened to starting to climb a mountain without a map and compass. Eventually, at the top, you increase the chances of getting lost while navigating the changing terrain.
Many business people are aware of what they want to achieve in their businesses, they also know which services and products to bring to the marketplace. They know very well the competition in the market, however, sime businesses in Kenya have never built a business plan in the first place when starting their entrepreneurship journey. These businesses need to do research,predict the sales,do calculation for the costs based on finacial estimates and other relevant predictions.
To come up up with an effective business plan in Kenya you need to come up with mission,vision,business concept and reseach on the intricasies of your business to have a very presentable business plan in Kenya which can help in managing your enterprise and present to investor or government authorities.
Key Components of a Professional Business Plan in Kenya
1.Executive Summary
This is the research statement and states business plan aims. Use this
technique (who, what, where, when, why, how, how much) when you are referring to the following:
- What your business aims and why you envision success.
- Mention your management and what their strengths are in your business.
- Talk briefly about your organization or institution.
- Incase you are in need of financial support how much you are planning to have and also how you intend that and return then borrowed money to the investors or your lenders.
Reminder: The executive summary is writen after all other parts of the business plan are done since it is a statement of purpose and summarizes your remaining business part sections.
2. Company Description
This section helps your share your business or company story to the world or public.Include the following in this area:
- Mention your business name and business location
- Tell us what business structure do you have for example it could be a sole proprietorship,partnership or limited comapany.
- Include your mission state which is your grand goal as a business.
- Tell us about a brief history regarding your business operations if you have already lauched your entrerprise.
3. Market Research and Analysis
Share the details you have discovered about your industry as based of your research you have found our while carrying your studies.
- Tell us more about who your ideal target customers or potential customers or audience are for your products and services.
- Walks us through the size of the market and the trends you have seen based of the research.
- Talk aboit your competitton and how you are unique in terms of your offering and your advantage over them.
- Speak on the regulations and econmic elements that affect the business of your nature.
4. Organization and Management Structure
Here is the section where you will explain what happens in your business dail operations or day to day activities or running your organization whic includes the following:
- Have an organization chart that shows the key roles of the memmbers in the management structure.
- Share the information you have about the management team and theur previous experience in the roles.
- Add any seniro advisors or people who can offer mentorship to you that you have access to.
5. Products or Services Offered
This section that you will describe whatever you are selling in details and consider the following:
- Speak about what exactly does your serices orproducts do.
- Walk us through the benefits of using your products or services to the customers.
- Talk about any uniques form of features available in your products and how that sets apart in themarket in comparison to your competitors.
- Discuss the current stage of developing the product or service that you are right now if you have launched it in the market yet.
- Also add any future advancements or innovations or new services or priducts you will be availing to your customers.
6. Marketing and Sales Strategy
Walks us throught how you will be able to attract,acquire and retail your customers once you lauch youtr product or services.
- Mention your pricing strategy your intent to use.
- Speak about the ways you will be able to grow your enterprise through promotion and advertisement on social media or word of mouth and any other channel outlet you plan to use.
- Discuss your sales process of acquring customers for your products or services.
- Add about any partnerships pr future colllaboration you have of helping to sell your products or services to the market.
7. Financial Plan and Projections
This is where you speak about the financial estimates and projections for the products or services you have based of research and actual data.
- Project the startup costs if you are a new enterprise.(if you’re a new business)
- Mention the projected income statements which is how much money you expecting to make.
- Discuss the cash flow statements which is how you will be moving money in and out of your business.
- Speaks about the balance sheet which is the assets and liabilities that you have as a business.
- Walk us through the break-even analysis which is the point you will start making profit from the business.
- Any funding needs or if you are going to need an investment discuss it as well.
8. Appendix
Explain any other extra information you have left in your plan to be complete and include the following:
- Add the resumes of key members in your teamResumes of key team members
- Look into the market research data you have and add it here for reference. Market research data
- Place any other legal document requirements.
- Include the product’s images that you have and the technical aspects or specifications going to be functions or performed.
3 Types of Business Plans
Business plans depend solely on the purpose and necessity behind each one as well as the complexity of the industry of the business. With this in mind, there are three main types of business plans identifiable and that we facilitate in preparation:
- Short business plan – This plan is best suited for young companies that do not have complex interrelations and are in the early stages of their development.
- Extended business plan – We conduct in-depth market analysis, revenue, cost, and financial planning to prepare this kind of plan since it is more profound and detailed than the first type.
- Operational business plan – Our industry experience helps us in drafting this kind of plan for well-established companies. This kind of plan is very detailed due to the vastness of the company and its operations.
Business Plan in Kenya FAQs
How to write a business plan in Kenya?
Depending on the complexity of the business idea and the amount of data required, a business owner can opt to write the business plan by themselves if the concept is not too complex. Alternatively, they can opt to engage a consultant to help them come up with a professional business plan with extensive market research and accurate financial projections. Contact business plan writers today for more.
How much does a business plan cost in Kenya?
The cost for business plans varies depending on the complexity of the idea and the amount of research work to be carried out. Reach out to business plan writers today for a free quote. Business plan writing services start from KES 25,000, depending on the complexity and requirements of your business. There is also an offer of ready-to-use templates starting from KES 4,999. Contact business plan writers for a customized quote based on your specific needs.
How much capital do I need to start a business in Kenya?
The capital requirement for starting a business in Kenya depends on the specific business idea, and hence the need for having a business plan to guide you on the costs related to successfully running and growing the business idea. A Business plan will form a good basis to support your business idea when seeking funding.
The importance of having a good business plan in Kenya includes the following;
- Clarify your vision and decide whether to forge ahead with the business idea.
- Determine if your product and/or service has enough market to support it and whether or not it will be profitable.
- Provide an estimate of your start-up costs and how much you’ll need to invest or finance.
- Convince investors and lenders to fund your business.
- Define your target market (who your customers are or will be) and how to best reach them through strategic marketing actions or expanding market coverage or reach.
- Establish or reevaluate your competitive position within the marketplace, by conducting a thorough analysis of the competition (finding out where your competitor’s weaknesses are and how you can take advantage of them).
- Define corporate objectives and programs to achieve those objectives.
- Help your business make money from the start by developing effective operational strategies.
- A business plan in Kenya helps you understand the risks involved and anticipating potential problems so you that can solve them before they become disasters.
Some key points to focus on are:
The Business: What is your offering, and who will be your customers? This section should also detail your management structure, key products and services, innovations, and insurance and legal considerations. It can be as simple or as complex as your business is.
The Market: Defining your market is important to help focus your marketing strategies. What is the benefit you are selling? What makes you stand out in the market? How are you going to promote your business? Who is your target market?
SWOT Analysis – this is where you look at the Strengths and Weaknesses internal to your business and the opportunities and threats coming from outside of your business.
Your competitors – who are they and how are they performing? They are your benchmark, and the more you know about them, the more you’ll learn about your company and potential customers.
Advertising and sales – what marketing strategies are you going to use? What is your budget for this and how will you measure their success? How are customers going to find you? Consider short and long term strategies and options.
The Future: Vision and mission statements (what you stand for) accompanied by your goals and objectives. These will help you and your company stay focussed within its market boundaries and not spread itself too thin.
Finances: You’ll have fixed costs you have to spend to set up your business and then ongoing costs. Develop a month by month cash flow budget to help you manage the start-up phase when outgoings can exceed income for some time.
Your business plan is your roadmap to success. It needs to be fluid and flexible, reviewed and revised at regular intervals throughout the year. And like any roadmap, it’s a plan. You can take a side trip or take a different route. But it helps to have something with a destination, to keep you focussed on the goals ahead.
