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Starting Small, Thinking Big: How to Choose the Best Business to Invest In

Introduction:

Many young entrepreneurs often feel that the biggest hurdle to starting a business is lack of capital. But in reality, the most significant challenges lie elsewhere: coming up with viable ideas, having the courage to start small, developing a strategy to scale, and moving away from the mindset of quick success through “deals.” In this article, we’ll explore the factors that truly matter when choosing the best business to invest in—skills, experience, passion, requirements, research, and trends—and offer some tips on how to overcome common challenges.

1. Skills, Experience, and Passion: The Building Blocks of Success

When thinking about what business to start, one of the first considerations should be your skills, experience, and passion. These elements not only give you a head start but also help you stay motivated and grounded through the inevitable challenges of entrepreneurship.

  • Skills: Think about the expertise you already possess. Are you good at cooking, coding, or perhaps event planning? The business you choose should leverage what you’re already skilled in to reduce the learning curve.
  • Experience: Have you worked in any particular industry before? If so, consider starting a business in that sector. Experience gives you insight into the market, customer behavior, and potential pitfalls, making your entrepreneurial journey smoother.
  • Passion: Passion is what keeps you going when things get tough. It gives you the drive to learn more, innovate, and push boundaries. Without passion, even the best ideas can fail because you’ll lack the emotional stamina needed to sustain the business.

Example: A young Kenyan with a passion for fashion but no capital might start small by selling second-hand clothes online. With time, they can scale by creating their own clothing line as they build experience and capital.

For more guidance, check out Kenya Youth Employment and Opportunities Project (KYEOP), which provides training and support for Kenyan youth entrepreneurs. Additionally, https://www.doingbusinesskenya.go.ke/ offers valuable resources and insights on starting and running businesses in Kenya.

2. Market Requirements and Feasibility

Before jumping into a business idea, it’s essential to assess its requirements and feasibility. These include the legal requirements, startup costs, and the amount of time and effort required to get it off the ground.

  • Licensing and Legal Requirements: Some businesses, like restaurants or taxi services, require licenses and permits. It’s important to research what’s needed to stay compliant.
  • Startup Costs: While it’s tempting to focus on capital as a roadblock, many businesses can start with minimal investment. Online businesses, freelance services, and certain trades often require little more than a phone or computer.
  • Time and Effort: Some businesses require significant time to build up, while others can start generating income immediately. It’s vital to weigh these factors based on your own capacity.

Example: A freelance graphic designer only needs a laptop and internet connection to start offering services. Over time, they can invest in better tools and training as they grow.

You can get more detailed information on business requirements and regulations through Kenya Business Licensing Portal. It helps entrepreneurs understand the licenses and permits they need in various industries.

3. Research and Trends: Aligning with the Market

A viable business idea is one that solves a problem or meets a need. Conducting thorough research and staying up-to-date with market trends is crucial.

  • Research: Before investing your time and resources, research your target market. What do they need? What are their pain points? Are there existing solutions, and how can you improve on them?
  • Trends: In Kenya, for instance, tech startups, agribusiness, and the creative economy are gaining momentum. Youths are finding opportunities in e-commerce, delivery services, and digital marketing as more businesses go online.

Example: A young entrepreneur notices the rise of e-commerce in Kenya but also the lack of fast, reliable local delivery services. By researching market demand, they could invest in creating a niche delivery service for small e-commerce businesses.

Resources like Kenya National Bureau of Statistics (KNBS) offer valuable data and reports that can help you understand economic trends and market demand. Additionally, the internet provides information on trending business ideas and opportunities.

Tips: Start Small and Scale

  • Start Small: You don’t need a lot of money to start a business, but you do need a strategy. Start small, learn the ropes, and scale as you gain more customers and experience.
  • Develop a Plan: One major issue with many startups is the lack of a concrete plan. Outline your strategy from day one, including how you’ll finance the business, reach customers, and expand.
  • Network: Surround yourself with like-minded individuals, mentors, and advisors who can provide insights and support. Kenyan youth often miss out on opportunities because they’re not actively networking in the right circles.

Example: A young farmer might begin with a small greenhouse project. Once they master small-scale production and create a reliable customer base, they can reinvest the profits to expand into a larger agribusiness.

For tips on scaling your business, LinkedIn can be a great platform to network with experienced entrepreneurs.

Conclusion: Overcoming Perceived Challenges

While lack of capital is often seen as the biggest barrier to starting a business, the truth is that the real challenge is finding a viable idea, having the courage to start small, and developing a strategy to grow. With the right skills, experience, passion, and market understanding, you can turn your small venture into a successful enterprise. 

At Cleanslate Consulting Limited, we specialize in helping entrepreneurs develop strategies, comply with legal requirements, and make informed financial decisions. Contact us today to discuss how we can help you start and grow your business!