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Looking for a small business idea with high returns? Opening an electronics business in Kenya will earn you Kshs 60,000 and above monthly returns.
You can set up an electronics business with a capital of between Kshs 100,000 and Kshs 5 million. Depending on your interest, you can specialize in smartphones, laptops, smart TVs, security cameras, speakers, home appliances, and electronic accessories.
Technology improves lives, making it necessary for people to acquire electronic goods. Think about it; online workers need laptops and tablets, while fridges have become a necessity for food preservation.
This means you have a high demand to supply when you reach and market to the right audience.
In this guide, you will learn
- What is an electronic business
- The benefits of investing in an electronics business
- How to start an electronics business in Kenya
- Tips to establish a thriving electronics business
Let’s dive in!
What Is an Electronics Business?
An electronics business deals in machines or devices that run on electrical currents. Presently, at US$3,465.0m consumer electronics market value is expected to grow by 7% between now and 2028.
This shows there’s great potential in the electronics business, making it a worthwhile venture.
What You Will Find In Electronics Business
The main products in an electronics business include the following;
- Home Appliances: These include fridges, microwaves, ovens, cookers, and washing machines.
- Electronic accessories: Chargers, cables, laptop cases, screen cleaners, USB drives, and phone cases.
- Smartphones
- Sound systems
- Cameras
- Laptops and tablets
- TVs
- Gaming gadgets
- Lights like LED and regular bulbs
Why Invest In Electronics Business?
Why channel your hard-earned money into the electronics business?
The Growing Demand for Electronics
According to Statista, Kenya’s electronics market is expected to grow by 7% between now and the year 2027. This increase will result in a market value of $3465 million.
Put another way, the electronics business in Kenya is a future-proof venture as there’s a constantly expanding demand for electronic gadgets. If not phones, appliances such as fridges and water dispensers are used daily.
Highly Profitable
Electronics products have high profit margins, allowing you to reap huge returns. When you find a reliable and good supplier, you will enjoy low purchase costs, selling them at a good price.
You Can Start Small
One of the main challenges of starting a business in Kenya is inadequate funds. Fortunately, the electronics business only requires a little capital to set up.
You can start small with the amount you have, then expand gradually as your venture grows. Note, however, that the minimum capital to open an electronics business is Kshs 100,000.
This figure can fund a small electronics business in a small town with low rent prices. In addition, you will only be able to sell basic items such as bulbs, cables, and switches.
Electronics Business In Kenya Requirements
What do I need to start an electronics business in Kenya?
To open an electronics business, you will need the following
1. A Good Business Location
Your location determines your business visibility and demand. If you set up your business in a small, growing town, you’re more likely to get high demand for your goods. However, setting up your premises in a remote area will restrict your sales.
So, start by researching the area to understand your industry’s demand and future estimates. This way, you can decide whether the place you open your business is lucrative or not.
2. Secure Necessary Business Documents
Like any other business, an electronics has its authority demands you must fulfill before you start operating. Here are the crucial documents to open an electronics business
- A Single Business Permit: Apply for a single business permit from your local authority. This document costs an average amount of Kshs 7,000. However, the price varies in different counties.
- Business Registration: To register your business, go to eCitizen and follow the provided steps.
Acquiring all the necessary licenses protects you from lawsuits and penalties. It also helps you build trust as it proves you are a genuine dealer.
3. Purchase the First Stock
Now that you have all the requirements, you can acquire your first stock and start operating your business. Depending on your location, you should integrate items in high demand in your area.
You can find out what moves in your location by visiting different electronics businesses in the town and noting what to buy.
4. Staff and Transport
Operating a medium or large electronics business can be daunting. Hence, you might need to hire a few apprentices to help you run the business smoothly. When hiring the team, you should ensure the members are well-acquainted with the different items.
Transport is also necessary when operating a large electronics business. You might need it to deliver bulk orders to your customers. So, budget for this when computing your initial capital.
How To Establish a Succesful Electronics Business In Kenya
Opening a business is one thing, but establishing a successful venture is a different process. To buy a thriving electronics business, implement the following tips
Tip 1. Find Credible Electronics Suppliers In Kenya
Finding a credible supplier offers you numerous benefits, including:
- Timely Delivery: A reliable supplier will always deliver your items before the deadline. This means your clients will get their orders on time, proving you’re a reliable retailer.
- Quality Products: A credible supplier will provide you with durable, high-quality goods that serve your customers best. Hence, your clients will trust you becoming loyal to your business.
- Fair Pricing: The right electronics supplier offers you goods at a reasonable price, allowing you to obtain the maximum profit margins. This helps you increase your returns exceptionally.
- Credit Advantage: Things can get tight in business, leaving you only one option – acquiring items on credit. Fortunately, when you build a good relationship with a reliable supplier, you can negotiate and get your products on credit to keep your business running.
Tip 2. Implement a Suitable Marketing Strategy
Marketing increases your reach, leads, and conversion rates, improving your sales and revenues. Nevertheless, you must develop a fitting marketing strategy that matches your business needs to realize your goals.
For instance, you can use influencer marketing or social media marketing to improve your sales. However, before settling on a marketing strategy, you must identify where your target audience hangs out and the best way to reach them.
Tip 3. Stock Fast-Moving Goods
When starting a business, it’s easy to get caught up in purchasing all types of electronics since you want to offer your customers a wide range of products. Unfortunately, approaching your purchases in this manner may mean piling dead stock.
You can avoid this by identifying the items that sell fast in your area. Then, stock these products in your business to ensure quick sales.
Tip 4. Investigate Your Competitors
What gap is there in the market?
What can you do to gain an advantage over your competitors?
You should answer these questions before opening an electronics business in your area. Start by learning what your business rivals are doing and develop a strategy to stay ahead of them.
You can provide aftersales services or source top-quality goods depending on the gap in the market.
Also Read
Frequently Asked Questions
1. How Do I Start a Small Electronics Shop In Kenya?
To open a small electronics business, you should follow these steps
Step 1. Research the market
Step 2. Acquire the required capital
Step 3. Register your business
Step 4. Find an appropriate business location
Step 5. Connect with a reliable supplier
Step 6. Set up your premises
Step 7. Hire staff
2. What Are The Fast-Moving Electrical Items in Kenya?
Also known as FMEGs, fast-moving electrical goods sell fast, increasing your cash flow and business profitability. Depending on your area of specialization, here are examples of FMEGs
- Smartphones
- Home appliances
- Televisions
- Kitchen Appliances
- Laptops and tablets
- Home security systems
- LED lighting
- Electric irons
- Chargers and power banks
Final Thought On Electronics Business In Kenya
Setting up an electronics business in Kenya can be an uphill battle if you’re a first-time entrepreneur. Fortunately, this piece provides the necessary steps to establish a successful venture.
Whether you want to open a small or medium-sized electronics premises, you can build a profitable business.
Want to learn more money-making hacks? Check out our exhaustive guides and masterclasses in our store.
