The computer business is one of the booming businesses in Kenya. In a time when many people are working from home due to Covid-19 movement restrictions, the demand for computers and laptops is high. With a good business location, proper marketing strategies, it is a great way to start making millions.
One of the ways to excel in the computer sales business is to identify a market gap and a business opportunity. For instance, you can set up one where there is a college that is under-served. This is how you can start a computer business in Kenya.
Write a Computer Shop Business Plan
You need to have an elaborate business plan to make it in the computer sales business. A good business plan should have a business location, startup costs, and future business revenue projections. It should also address the market segmentation by focusing on the market size.
Competition is also an important factor to address in your business plan. Look at ways you can use to compete with your rivals in the market. With a good business plan, you will manage to plan your business finances, launch and market your business.
Read more: How to write a business plan.
Choose a Business Location
One of the factors affecting the success of the computer sales business is the business location. With a good business location, you are assured of a high flow of customers. The computer sales business is best suited for urban areas with high foot traffic.
If you can get a business location next to a college or a university, you are assured of a large market. It is because there is a high demand for computers and laptops by college and university students.
Acquire Business Licenses and Insurance
You will need to get business licenses to operate a legal computer sales business. You can obtain business licenses from the County Government offices or the County Council offices. The price of business licenses varies from one county to the other but it’s roughly Ksh 5,000 and it is valid for one year.
You may also need to insure your computer sales business against possible risks. Among the risks, you need to insure against include theft and fires. With insurance, you are protected against such losses.
Read also: How to start a bookshop in Kenya.
How Much Does it Cost to Open a Computer Shop?
The cost of starting a computer sales business depends on the size of your business and its location. If you are starting a computer sales business in Nairobi, the startup cost will be higher compared to a smaller town like Murang’a. On average, you will need around Ksh 500,000 to start a small computer business.
The following is a breakdown of the startup costs.
- Rent – Ksh 20,000
- Licenses – Ksh 6,000
- Stock – Ksh 400,000
- Branding – Ksh 20,000
- Insurance – Ksh 15,000
- Shop attendant – Ksh 20,000
Where to Source Computers for Your Business
If you are planning to start a large-scale computer sales business, it is cheaper to import stock. It will leave you with large profit margins and gives you a chance to sell computers at lower prices to compete competitively with your rivals.
Is Computer Sales Business Profitable in Kenya?
A computer sales business is one of the profitable businesses you can start. With a good business location, you can fetch lots of profits. Normally, computer sales businesses have a profit margin of 30%.
Therefore, if you make sales of Ksh 300,000 in a month, you will be making a profit of Ksh 90,000. After deducting other expenses, you will be left with around Ksh 50,000.
Read also: How to start mobile repair business.
How to Market Computer Sales Shop in Kenya
One of the ways to advertise your computer sales business is through social media platforms. You need to have a business page on platforms like Facebook. Post your stock from time to time. You can also market your business by joining sales online group where you can be posting your stock. Make sure to provide contact details. Customers will start reaching out to inquire about computers and laptops.