After successfully failing in a carelessly launched business
endeavor, I now have accumulated enough wisdom I think to comment on a number
of factors that I think propel most Kenyan businesses to their doom. These are
just a few things I have noticed:
1. The number
one thing that I learnt from experience will not help a business is cutting
corners. Kenyan businesses I believe are in a league of their own when it comes
to this. It is a plague that holds back many a great business idea. From the
public transport sector to the service business, corners are cut shamelessly.
It has almost become an acceptable custom to Kenyan businesses. Symptoms range
from rickety public service vehicles that are badly in need of a proper service
to eateries who hire waiters so in need of training that they forget or mix up
your order a minute after you state it. When a business cuts corners like this,
the end result is not being able to deliver the value that the customer pays
for, hence nullifying the reason for the business in the first place. This is
the reason most people in Kenya are skeptical when one announces themselves a
business person.
2. The second
important lesson I learnt is that accounts form the backbone of the business.
Every transaction should be recorded in the proper way else the business has no
proof of its dealings, among other problems. Most Kenyan businesses avoid book
keeping as if it is a disease that will result in them losing their sanity.
They steer clear of book keeping also so they may plunder the cash register at
will and have no records of their misdeeds after. I did not keep accounts
myself at first because I thought they were tedious and were only important for
companies that could afford accountants. I later learnt the importance of
recognizing trends and the value of statistics acquired from proper book
keeping.
3. Marketing -
One of the plagues of most kenyan businesses is Ineffective Marketing. I know
this because I applied ineffective marketing to my business too and yet I still
expected mind-bending results. I did get results though, results that pointed
directly at the flawed marketing strategy and execution. I used flyers and the
internet to the best of my ability and concentrated on making the adverts as
visually appealing as i could. I later discovered that the whole process of
selling a business begins with a process called market research which many
Kenyan businesses ignore. Understanding, the customer, the need and the market
including all factors affecting it is the most important thing that a business
can do. It is the first part that forms the key to a successful business. The
marketing process facilitates the business's existence through research, it's
selling points and also the future strategic adjustments for long term sustainability.
4. Most kenyan
businesses do not identify a specific business need to address. Some businesses
seem to exist because they can rather that to serve a purpose. Some businesses
come up as a means to make some money because someone else was seen doing the
same thing. There is a guarantee in this country that if you start a business
and it seems to be thriving, numerous similar enterprises will be established
and attempt to follow your formula for success. If the original business owner
does not patent their business technology or have strategic plans that take the
business venture to its potential success levels, then the business usually
runs out of steam after some time.
5. Customer
service - many businesses are quick to accept your money, they are eager in
fact to receive it but they are way less enthusiastic when it comes to
delivering the value a customer pays for. The effect that this has on customers
is eliciting a response such that they hold on to their purses tighter and
spend a lot less because they are used to receiving little value for their
money. Also, some businesses in the service industry hire people who are
outright rude. Some waiters and tellers leave the customer with a bitter taste
in their mouths because of the lack of professionalism with which they have
treated. In more ways than most consider, this contributes greatly to the way
in which customers spend their money and their time at certain business
premises.
Though many
businesses fail for the reasons mentioned above, there are some though that
thrive in this harsh business environment because of their adaptation and
integrity. That is an article for another day though.