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Kenyan entrepreneurs are earning big bucks through the spare parts business. Startled? The only prerequisite to succeed in this sector is meeting the needs of your target market.
So, what do you need to start a motorcycle spare parts business?
To start a motorcycle spare parts business, you will need an initial capital of Kshs 250,000 and above. This venture will earn you between Kshs 2,000 and Kshs 7,000 daily returns.
It’s common for bodaboda riders to encounter wear and tear impacts such as tire bursts. As a result, they require replacement items to keep operating efficiently. Providing the most needed spare parts will maximize your sales and returns, boosting your business.
In this guide, I will cover the following:
- The fundamentals of a motorcycle spare parts business
- The process of starting a bodaboda spare business in Kenya
- How to boost your spare parts business
Let’s take an inside look!
The Fundamentals of a Motorcycle Spare Parts Business
Are you enthusiastic about starting a new motorcycle spare parts business in Kenya? Here are the primary elements you should familiarize yourself with before you can invest your hard-earned money in this sector
Why Start a Motorcycle Spare Parts Business In Kenya?
There are many spare parts categories you can invest in, including mobile phones, computers, cars, and appliances. However, putting your money in the motorcycle spare parts business stands out in the following ways.
- Guaranteed Demand: The daily income for the boda boda industry is Kshs 1 billion with 2 million registered motorbikes. Hence, there’s a guaranteed demand for motorcycle spare parts to keep them in good working condition.
- It’s Not Capital Intensive: Unlike selling car spare parts, the motorcycle category requires less capital. Surprisingly, the Nairobi Wire interviewed a business lady who opened a motorcycle spare parts business with Kshs 50,000. Of course, this amount is currently limited due to the inflated prices of goods.
- A Growing Market: While there exists a huge pool of clients you can sell to, the fun doesn’t stop at that; more young people are buying motorbikes. So, your market is growing every day.
- Minimum Requirements: You only need to fulfill a few legal requirements, like applying for a business permit and license to operate. On the contrary, the health and food sector requires numerous certifications, which can be costly.
- Great Profit Margin: Once you connect with a reliable supplier, you’ll enjoy the lowest buying prices, which will ensure you earn great returns. Moreover, you’ll always receive high-quality goods.
The Bodaboda Spare Parts Business Cost Breakdown
When working with a budget of Kshs 250,000, you can open a small motorcycle spare parts business. Here is a cost breakdown to help you budget accordingly
| Business Requirements | Amount |
| Spare Parts and Accessories | Kshs 200,000 |
| Rental Costs | Kshs 20,000 |
| Premise Modifications | Kshs 20,000 |
| Business License | Kshs 5,000 |
| Marketing | Kshs 5,000 |
| Total | Kshs 250,000 |
This figure can change depending on the location and size of your business. So, ensure you customize your budget according to your business specifications.
Challenges of Opening a Bodaboda Spare Parts Business
- Competition: When starting a bodaboda spare parts business, you must identify the established enterprises. This will help you develop a strategy to stand out from your rivals.
- Market Needs: Not comprehending what your target market needs may mislead you into purchasing the wrong items, which can lay on your shelves as dead stock. So, conduct thorough market research to stock what your customers want.
- Financial Challenges: While starting a bodaboda spare business is not capital intensive, the initial funds can be high for most low-income earners. Additionally, first-time entrepreneurs struggle with bookkeeping, which is crucial for any business.
- Suppliers: Connecting with the right supplier takes much time if you’re new in the industry. Hence, most new businesspersons get conned or source goods for high prices, leaving them with low-profit margins.
How To Start a Motorcycle Spare Parts Business In Kenya
Having a plan that will guide you through the process of starting a business will save you time and money. It will also help you lay a robust foundation for your venture’s success. Here is a step-by-step guide to opening a mobile spare parts business
Step 1. Conduct Market Research
Conducting thorough market research is the first step to opening a profitable business. During this stage, you should find out essential aspects of this sector including:
- The market gap or what is missing in the market
- The highly demanded-goods
- Your competition
- The risks associated with motorcycle spare parts business
- The best locations to set up a spare parts business
- Your target market and their preferred product types
- The common types of motorcycles
This information will enable you to make the most beneficial business decisions and develop effective strategies to mitigate risks.
Step 2. Write a Bodaboda Spare Parts Business Plan
Once you’ve gathered all the necessary information during your research, take ample time to craft a comprehensive business plan. Ensure to include the following details in your final document
- The initial capital budget
- The cost breakdown depends on your business location and size
- The business location
- The range of products depending on the motorcycles available
- Your short and long-term business strategies
- Your revenue projections
- Operational plans
- Pricing strategies
- Marketing strategy
Your business plan gives your new business a direction. As a result, it should be comprehensive and precise to guide you in every aspect.
Step 3. Choose The Best Business Location
The location of your business determines how many people access it and your sales amount. As a result, you should choose a suitable location with the following requirements:
- Accessibility: Your Bodaboda spare parts shop should be easily accessible. Find a rental space that your customers can visit without challenges to attract many customers.
- Visibility: How fast can residents and visitors in the region see your premises? Or will they get lost after a friend refers them to your shop? Choose a business location that is easily visible to anyone.
- Safety: Safety not only keeps your business away from theft losses but also encourages your customers to shop anytime.
In addition, you should find a location with enough utilities such as water, electricity, and an efficient sewerage system. It will help you and your employees operate your business seamlessly.
Step 4. Choose The Right Spare Parts Supplier
The right motorcycle spare parts supplier provides top-quality products at an affordable price. This allows you to sell them at friendly prices, increasing your sales volume and returns. A good supplier also delivers your products on time to ensure you have a complete inventory that can serve your clients sufficiently.
Finding the right supplier can be challenging for most first-time spare parts business owners. Fortunately, industry-specific events such as conferences and seminars congregate reliable businesspeople. You can leverage this opportunity and connect with them.
Step 5. Get The Necessary Business Documents
Kenyan authority requires every entrepreneur to have business permits and licenses. When opening a motorcycle spare parts shop, you will need the following:
- Business Registration: Start by registering your business in the government’s records. You can complete this process on the eCitizen website. The government has few precise step-by-step instructions to help you implement this step.
- Business Permit: To operate a physical shop, you must apply for a single business permit.
- Other Requirements: Depending on the county location, you might be required to get other documents such as a fire safety certificate. Ensure you visit your county offices to confirm the additional requirements.
Step 6. Modify Your Motorcycle Spare Parts Shop
Preparing your premises for storage, display, and marketing is crucial. As a result, you should find an experienced carpenter or artist who can build nice shelves for you to place your products.
You should also paint and create signboards that match the spare parts business. Additionally, write the name of your business at the top center of your shop with conspicuous shades to attract prospective customers.
Step 7. Purchase The First Stock
Now that the shop is ready, visit our supplier with a list of fast-moving spare parts. Prioritize the most in-demand products if you’re on a tight budget.
Organize your stock according to type and size for easy display and accessibility, then launch your business.
Suppose you get stuck in one of these steps, don’t hesitate to consult business experts for professional guidance.
How To Boost Your Motorcycle Spare Parts Business
Establishing a profitable business is challenging to most entrepreneurs as this process poses many challenges such as competition and fluctuating raw materials prices.
Here is how you can maximize your motorcycle spare parts business profitability
1. Choose The Best Supplier
Your supplier will determine your buying price, inventory, and the quality of spare parts. As a result, you should do a thorough research of every supplier recommended to identify the one that fits your business needs.
Additionally, you should consider the supplier’s packages for example, aftersales services, continuous updates, and timely delivery. Don’t collaborate with a supplier who’s always missing highly-demanded items,
Go for leading spare parts suppliers in your region or nationwide.
2. Get Fast-Moving Spare Parts
During your market research, you identify the highly demanded spare parts. Your list should comprise of this range of items to ensure there’s no dead stock in your shop.
Here are some of the fast-moving bodaboda spare parts in Kenya:
- Tires
- Spark plugs for ignition and riding
- Brake pads
- Batteries for powering
- Oil filters for efficient engine performance
- Safety and aesthetic lights
- Mirrors
- Sprockets and chains
- Exhaust systems
- Grips and levers for efficient performance and style
Stocking fast-moving goods ensures you’re making significant sales within a short time, helping you grow your business.
3. Develop a Marketing Strategy
Nothing excites Kenyans like product bundling. If you can identify the products that are sold together, you can create a bundle discount however small, it will attract prospective customers to your shop.
Social media is taking small businesses to exceptional heights. Hence, you can open Facebook and Instagram pages for your spare parts shop and start creating awareness that your shop is located in a specific location and share the list of items available.
4. Purchase High Quality Goods
Bodaboda owners have been in the business, hence they can differentiate original and fake spare parts. Stocking counterfeit spare parts can be beneficial in the short term since you’ll use less money to acquire them.
However, your customers will realize you sell fake spare parts that serve them for a short time, going to alternative shops. So, ensure you build a good business reputation by providing approved items for your clients to trust you.
5. Have a Complete Inventor
Picture this; you visit a shop two or more times and the dealer tells you they don’t have what you need. This scenario will disappoint you, pushing you to find alternative stores.
This applies to your customers too; every time they visit your spare parts business and don’t find what they need they look for another seller. So, ensure you stock all the necessary spare parts so as not to lose clients.
Also Read:
Frequently Asked Questions
1. What Is The Most Popular Motorcycle In Kenya?
The Hero Hunter is the most common motorcycle in Kenya since it is highly reliable and affordable for most Kenyans.
2. Which Motorcycle Brand Is Preferred For Bodaboda Business In Kenya?
The most popular motorbike brands for the Bodaboda business in Kenya include;
- Honda
- TVS
- Bajaj Boxer
- Haojin
- Captain
- Haojue
When purchasing your spare parts, you should ensure they fit these motorcycle brands.
Start Your Motorcycle Spare Parts Business In Kenya
Being well-acquainted and passionate about motorcycle spare parts is not enough! You must take the action of establishing a bodaboda spares business if you want to generate income and build wealth.
Fortunately, Kenya’s business environment allows you to start small and expand gradually. As a result, you can open a small motorcycle spare parts business stocking only the necessary and fast-moving items with little capital.
To boost your business sales and returns, you can market your products online, stock top-quality goods, and always have an inventory that meets your customers’ needs.
Looking for more financial planning help? Visit our store for debt clearance, budgeting, and expert financial plans.
