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How to Start Electronics Business in Kenya

The demand for electronics makes the electronics business a lucrative business to start. It is one of the businesses in high demand due to its profitability and high demand for electronic items. You can start the business in the suburbs and urban areas. With proper planning, the electronics business is a profitable venture. This is a guide on how to start an electrical shop in Kenya.

Write an Electronics Business Plan

The first thing before starting any business is to plan. You need to plan the startup capital, identify a good business location, suppliers and determine revenue projections.

With a good business plan, you can plan your finances well and ensure that every coin is spent well. It also helps you navigate through business risks and competition. A business plan is a road map for any business.

Read also: How to start a furniture business. 

Identify a Good Business Location

The location of a business determines its profitability. For an electronics shop, you need to set up your business in an area with large population and where there is a demand for electronic items. Finding a business location in a fast growing town where there are many households will be a boost to your business.

Obtain Business Licenses

To operate any business in Kenya, you need to have a single business permit. You can obtain it from the county council offices or the county offices. Its price varies from one county to the other but it averages at Ksh 7,000.

If you are operating a large electronics shop, you may need to register the business name. You can register a business name on eCitizen for Ksh 1,000.

Find a Reliable Electronic Supplier

You need to find a reliable and cheap supplier for your electronics business. Look for a supplier with quality electronics items at cheaper prices for higher profit margins.

It is best that you source the electronics items from manufactures to be sure of quality and get them at low prices. If you are not in a position to source from the manufactures, identify reputable wholesalers and suppliers.

Read also: How to start a mobile repair business. 

Cost of Starting an Electronic Shop Business in Kenya

The cost of starting an electronic shop depends on the size of the business, its location and items you wish to sell. To start a small electronics shop in Kenya, you need at least Ksh 400,000. Most of the startup cost will go into buying electronic stock.

The following is the startup capital breakdown:

  • Rent – Ksh 15,000
  • Licenses – Ksh 10,000
  • electronics stock – Ksh 350,000
  • Branding and partitioning – Ksh 20,000

Some of the electronics you can stock in your electronics shop include radios, televisions, woofers, DVD players, mobile accessories, mobile phones, chargers, speakers, ear phones, mobile phone batteries, remote controls, extension cables and aerials.

Is Electronics Shop Profitable in Kenya?

Yes. An electronics shop is profitable if you set it up in an area where there is high demand for electronics. If you are in an area with high demand, you can make a profit of at least Ksh 60,000 per month.

It is best that you start one in a busy town where there are many households. Some of the fast going electronics you can sell include televisions, radios, DVDs, woofers and speakers.

Launch and Market your Electronics Business

Once you have everything in place, you are ready to launch your business. Immediately after launching your business, you are likely to get very few customers. This is normal since your business is new and customers don’t know about its existence. Also, they don’t have an experience with the electronics items you are selling.

As such, you need to market your business. Let customers know that you are selling electronics and where your business is located. You can use banners and signage, business cards and flyers to market your business.

One of the best ways to attract and retain customers is to offer excellent customer services through competitive prices and quality products. This way, customers can trust your business and tell others about it.

Read also: How to start mobile phone accessories business. 

Final Word

electronics business in Kenya is among businesses that are in high demand. The business is suited for fast growing areas. Make sure to sell electronics that are in demand. To do so, you would need to carry out a feasibility study. With proper planning, good business location, excellent customer service, you are sure to make significant profits in the electronics business.