Avoid these 5 Mistakes When Starting a New Business in Kenya

Starting a new business in Kenya is a great way to earn extra income. However, as a new business owner, the entire process of setting up and operating it can be overwhelming at first. You will be tested beyond your limit and if you are not careful enough, you might end up making poor decisions. To succeed, you must avoid certain mistakes that could force you to close your business prematurely.

Here is a list of 5 common mistakes that you should avoid while starting a new business in Kenya.

• Starting too big

One common mistake people make when starting a new business is starting too big. Many people mistakenly believe that their business must be big from the start for it to succeed. However, that is not always the best idea and can actually lead you to problems. 

It is better to start small and learn first about what customers like and what doesn’t sell well. Many successful companies started small and gradually grew over time to become formidable businesses today.

• Misuse of capital

Businesses need working capital to pay for expenses and buy more stock. You should only use that money for business needs. Therefore, you should avoid spending it on personal needs.

• Poor time management

As a new entrepreneur, it is important to manage your time wisely. This means being efficient and organised with your time so that you can get the most out of each day working. It is also important to be punctual and open your business on time. Failing to do this can cost you your productivity and potential customers.

• Poor bookkeeping

Bookkeeping is important for all businesses because it helps them keep track of their business’s financial transactions. Without bookkeeping, it would be difficult to know how much money you are making or losing. Bookkeeping also allows you to see if you are heading in the right direction. Lack of bookkeeping can lead to the failure of your business.

• Hiring friends and relatives

Be cautious if you’re thinking about hiring your friends or family members to help you run your business. It’s not entirely wrong to do this, but you may find it harder to correct or dismiss them if they don’t do a good job. Even if you respect them a lot, they could end up being the reason you will not succeed.