According to Statista, Kenya recorded 63.9 million phone connections at the beginning of 2023. This is 117% of the country’s population, indicating that some individuals use multiple mobile devices.
Do you know you can make a fortune from these figures by opening a phone accessories business in Kenya?
To start a phone accessories business in Kenya, you need an initial capital of Kshs 100,000 and above. This venture earns monthly profit margins between Kshs 30,000 and Kshs 250,000.
Every day, Kenyans buy, upgrade, or repair damaged phones. All these require phone accessories to ensure optimum functionality and enhance the gadgets’ appearance.
In this guide, I will equip you with the following:
- What phone accessories business entails
- How to open a phone accessories business
- Pro tips to boost your business growth
- Common phone accessories business questions
Let’s delve in!
What Is a Phone Accessories Business?
A mobile phone accessories business deals in cell phone parts that optimize the gadget’s functionality. Whether looking to enhance the phone’s appearance or repair damaged parts, customers visit this business for solutions.
Here is a list of the items you’ll find in a phone accessories business in Kenya:
- Phone chargers
- Screenguard or screen protector
- Mobile phones
- Flash disks
- Cell phone batteries
- Mobile phone covers
- Power banks
Advantages of Phone Accessories Business
- There’s a high demand for phone accessories in Kenya
- This business has the flexibility to expand and grow
- It has a low initial cost compared to its equivalents; computer accessories are pricy
- The phone accessories business has the potential for high profits
Disadvantages of Phone Accessories Business
- It’s challenging to source affordable and top-quality goods
- This business faces stiff competition from existing premises
- The phone accessories can be easily stolen due to their small size
Requirements of the Phone Accessories Business In Kenya
Whether a first-time or experienced business owner, you must familiarize yourself with the updated requirements for a seamless setup journey.
Here’s how to start a phone accessories business in Kenya
Step 1. Develop a Phone Accessories Business Plan
Although you can find an excellent cell phone accessories business plan sample online, avoid using it for your business. But why? You can never copy your way into building a successful venture; you must extract facts from the business environment.
You must conduct thorough market research to complete a suitable business plan. This step will help you understand key factors in the business, including the demand for phone accessories, the existing competition, the best location, and the gaps in the market.
Here are the elements of a good business plan:
- The best location for your phone accessories business
- Your budget
- Sources of capital
- The goals of your business
- Strategies to accomplish your business goals
- The existing competition
- Strategies to gain a competitive advantage
- Marketing strategies to optimize your business profitability
- Your business culture
This document clearly defines the different actions you should implement during your company’s setup and operation stages.
Step 2. Legalizing Your Phone Accessories Business In Kenya
To run any business in Kenya without constant distractions, you must register with the government of Kenya and apply for the necessary permits and licenses.
The registration process is straightforward and affordable, at about Kshs 1050. You can complete this step on eCitizen with your KRA PIN, National ID, and official contact details. The main activity here is to register a unique business name. Ensure it resonates with your business and the people in your location.
Once you register your business name, apply for a single business permit. The average cost of this document is Kshs 5,000. However, this figure varies between counties, so consult your county office.
Step 3. Find a Suitable Business Location
Your location is among the most influential elements that can lead to the success or failure of your business. A strategic location with high foot traffic, excellent visibility, and accessibility gives prospective clients all the good reasons to visit your premises.
As a result, you should choose a good business location that will allow you to attract lots of clients. Again, you need a location with adequate utilities to enable seamless operation while minimizing losses. So, ensure you get an excellent rental space in a secure area.
Step 4. Identify Reliable Suppliers
During your market research, you should identify the best phone accessories suppliers. But who is the best supplier?
A good supplier provides top-quality goods at affordable prices and on time to ensure your inventory matches the needs and preferences of your customers.
In addition, a reliable supplier stays at the top of the game by following trends and sourcing new accessories in high demand. And during financially challenging times, you can secure goods from them on credit to pay later.
Step 5. Budget for Your Business Setup
Depending on your initial capital amount, you should budget for all the necessary items in the order of basics and then wants. Assuming you have a budget of between Kshs 100,000 and Kshs 200,000, you can allocate your funds in the following order.
- Business registration and licenses – Kshs 10,000 to Kshs 15,000
- First stock – Kshs 50,000 to Kshs 100,000
- Rent – Kshs 10,000 to Kshs 25,000
- Premise modifications – Kshs 10,000 to Kshs 20,000
- Miscellaneous expenses – Kshs 10,000 to Kshs 15,000
- Marketing – Kshs 10,000
Once you have all the essential elements, you can prioritize adding more stock with the remaining amount.
Step 6. Hire Experienced Staff
Are you planning to open a big phone accessories shop? You need several attendants to serve your customers. Furthermore, if you have a full-time job and require someone to run the business on your behalf, you must find suitable apprentices.
During this process, it’s easy to settle for the lowest-wage employee. However, you will incur losses in the long run if they’re unfamiliar with the phone accessories business and lack vital skills such as customer service and communication.
So, ensure you hire experienced or skilled attendants who can run your shop efficiently.
Step 7. Prepare Your Premise and Purchase Your First Stock
Your rental space needs some modifications to add an excellent display and branding. Most first-time business owners spend much money at this stage. However, you don’t have to fall into the same trap; you can find a good and affordable carpenter to cut costs.
Connecting with a reliable carpenter means accessing cheap materials and friendly-priced labor. Moreover, you will also enjoy exceptional services.
Again, you need an artist to paint your premise and craft your business name on the shop’s top section for easy marketing to your target audience. You might also need them to complete a signboard directing clients to your business.
Before you contact your supplier, start by writing a list of the items for your first stock. It should comprise fast-moving items and high-demand gadgets to kickstart your business journey successfully.
The main items you should purchase include chargers, phone covers, screen protectors, USB cables, power banks, Bluetooth speakers, headphones, earphones, smart watches, and wireless buds.
Step 8. Launch Your Phone Accessories Business
Once you have your first stock and shop ready, arrange your items for the best display. You may need supplies such as hooks to hold the gadgets. Use the miscellaneous funds for the same.
Spread the awareness that your business is opening for shopping on a specific date. Depending on your budget and premise size, you can use social media, signboards, or billboards to invite prospective customers to your business.
Are you experiencing difficulties in any of these steps? Don’t hesitate to ask for professional guidance from business consultants or marketers to drive your business goals. You can also leverage niche Facebook groups such as 52-Weeks of Savings and Tujengane for expert advice.
How To Establish a Profitable Phone Accessories Business In Kenya
You must develop effective strategies to build a successful business. Which plans can you implement to maximize the growth and profitability of your new venture?
Tip 1. Marketing
Social media platforms are taking the business world by storm. From Facebook and TikTok to Instagram, companies are raking in huge profits through marketing through these media. When you launch your business, ensure you keep your customers updated on new gadgets and engage them consistently for the best outcome.
Word of mouth plays a crucial role in most Kenyan businesses. How? Every time a client is served well on your premises, they refer you to different close people who need your products. So, ensure you provide top-quality products to make repeat clients.
Promotion and online challenges are emerging trends that can fetch you massive profits. Collaborate with your marketers to develop a fitting strategy to encourage customers to buy from you to maximize your earnings.
Tip 2. Leverage eCommerce and Site Listings
The easiest way to utilize these services is by listing your business on the site listings. This will allow you to provide your prospective customers with your entire inventory.
Start by offering accurate features regarding the goods, prices, and appealing yet authentic images. Then, ensure your purchase process is easy to follow for the best customer experience.
Once your business records significant growth, you can develop an online store with the best eCommerce platforms in Kenya. This option will give you more control over your business, allowing you to manage the orders and track sales.
Tip 3. Apply for an Insurance
Most business owners overlook the role of insurance. Unfortunately, they cannot continue running their phone accessories stores when accidents or burglaries strike due to excessive losses, forcing them to close down. You don’t have to follow suit; you can apply for a suitable insurance policy that will ensure you continue operating despite unforeseen events.
Although this is a safe route that minimizes risks, you must conduct proper research and find insurance with the best terms and conditions. Remember, your goal is to salvage your business in case of theft or fire accidents, among other occurrences.
Tip 4. Always Match Your Customers’ Needs
What does your target market need?
Learning what is in high demand and what the most preferred items are helps you stock fast-moving items. As a result, you can maximize your business sales and returns. So, ensure you identify and match your client’s needs.
Frequently Asked Questions
1. Which Phones and Accessories Sell Fast?
The most popular cell phones and gadgets currently include
- Wireless Charging Phones: Wireless charging phones are gaining popularity fast. Although pricey, they have huge profit margins you can enjoy with the budget.
- Large Screens: Phones with large screens have become customers’ favourites. You can stock them depending on how fast they sell at your premises.
- Dual Camera Phones: With more upcoming online business owners, such as influencers and interior designers, individuals are looking for phones with the best cameras. Stocking dual-camera phones will fetch you high demand.
2. Is Mobile Phones Business Profitable In Kenya?
The mobile phone business is lucrative, with some owners reaping up to 25% profit margins. However, you must keep up with emerging technology trends and sources for top-quality products to accomplish this figure.
Also, remember that every business growth requires patience, so don’t be in a rush to hit high returns. You can additionally incorporate services such as MPESA business to boost your profits. Here is how to start an MPESA Business.
Every businessperson dreams of establishing a successful venture to drive their financial goals. If you plan to open a phone accessories business in Kenya, start by familiarizing yourself with the requirements and securing all of them. Then, apply tips such as marketing, insuring, and setting up online shops.
Not sure how you should go about your financial goals? Check out our store for expert budgeting, debt clearance, and financial freedom guides.