Kinyozi business has become among the top startups in the country due to the growing demand for its services. This comes at a time when the traditional kinyozi that only dealt with trimming hair is being replaced by a modern one with increased services.
These changes have made it necessary to evaluate various factors if you want to get and remain in this business. Hence, below are some of the factors to consider when starting a Kinyozi business in Kenya.
You need to be very clear on the services you plan to offer when starting a Kinyozi business in Kenya. Naturally, Kinyozi deals with haircuts. However, the current trend is that the business is more attractive with more services.
Some of the services you can offer in a Kinyozi include;
- Custom hair cuts
- Facial scrubbing
Setting up all these services comes at a cost. Hence, you need to have both short-term and long-term plans depending on your capital levels.
The goal is to offer the best services in the market to attract and retain customers.
Another factor to consider when coming up with business services is pricing. This is a key element in this business that could determine your market failure or success.
The prices should be at par with the services offered and competitors’ pricing. Doing competitive pricing requires you to do adequate market research to avoid either underpricing or overpricing.
A kinyozi business should be strategically located in an area where customers can easily and conveniently find it. Some of such places include shopping malls, town centers, and residential areas.
These places have huge traffic making it easier to get customers in need of your services. The earlier factor of services will also play a role in determining where to locate the Kinyozi and pricing mechanism.
As an example, if you intend to offer massage services, you should consider locating the business in a middle-income and high-end area where you are more likely to get customers. This is because these services tend to be pricier than most average customers can afford.
Another factor to consider when choosing the location is the cost of renting and running the business premises. Most Kinyozi business owners normally rent and lease business premises with the rates varying with the locality. Prime areas such as central business districts and shopping malls will cost more to rent than the other locations.
Other necessary elements to consider when choosing the location include access to supporting services such as water, electricity, security, and finally parking.
Capital is the startup money that you need to get the business going. Hence, it is among the critical factors to consider when starting a Kinyozi business in Kenya.
Capital is what you need to sustain your business until it can break even and become profitable. This makes it a necessity to ensure you have enough as the business takes time to become self-sustaining. On average, it could take between 3 – 6 months to break even.
Other uses of capital include paying for the premises rent and buying the business tools such as hair cutters, barber chairs, and cleaning detergents. These are the physical elements that are key in supporting the functions of the business.
You can get the business capital from various sources such as savings, borrowing from family and friends, and finally borrowing from financial institutions such as banks and SACCOs. Learn more on the factors to consider before taking a loan in Kenya.
There is a high chance if you are planning to start a kinyozi business, you will need some employees to assist in running it. This is because the more services the business is offering, the higher the need for employees.
You need to ensure the business gets competent and experienced employees who can offer quality services. The success of a Kinyozi business is based on the ability to satisfy your customer needs. To achieve this level of satisfaction, you should get the best talent in the market.
Some of the best ways to get employees are through hiring from competitors and third-party recruitment agencies. During recruitment, there are factors you need to consider such as experience and academic qualifications.
Employees with more experience in such a business and those that have better school qualifications, especially on the skills you are seeking are better.
However, you need to note that recruitment is the first step in dealing with employees. You also need to focus on retention for business stability. Some of the ways to increase employee retention rates include competitive remuneration and flexible working hours.
If you pay them lower than the market rate, there is a high chance of them moving away to better-paying competitors. As result, this will affect the business negatively.
As a business of beauty, customers tend to associate closely with the employees. Hence, you need to put effort and resources into retaining employees to avoid losing some of your customers. Other ways through which you can motivate your team include paying them bonuses and other statutory contributions such as medical insurance. How to Pay for NHIF Through M-pesa.
5. Business permits
All businesses operating in the country require specific business permits that make the business legal. Hence, the Kinyozi business is no exemption. Below are some of the legal documents that you need to operate the business.
- Business registration certificate
- Single business permit– This varies from county to county in terms of cost. In Nairobi, it costs 15,000 shillings to get.
- Music Society of Kenya Licence– This is necessary if you want to have music/Tv in your business.
- Kenya Revenue Authority Pin
You can access these documents from the relevant government offices across the country. Meeting these legal requirements is mandatory as operating against them makes the business illegal and could lead to prosecution.
Conclusion on the factors to consider when starting a Kinyozi business
The above lists represent some of the factors to consider when starting a kinyozi business in Kenya. The better you evaluate these factors and make the necessary plans, the higher the chances of success in this business.
Information on these factors is readily available making it easier to consider them. Some of the places you can get it to include online sources such as Google, engaging experienced businessmen, or through various government offices.