 Yes, welcome back. This is business today on Y-254 channel. My name is Miram Asasava and before we begin this show, Mike Tyson once said that everyone has a plan until they get punched in the face. Now the question you're asking you, as you plan and execute your business, does it have the ability to adopt if it gets punched in the face? According to Ken BS, there are almost 17 million registered SME in Kenya with 98% of them contributing 25% of the country's GDP. SMEs employ at least 90% while micro business employ at least 10 people in a business. So, are you planning a business? This is the discussion for you. And to help me discuss this, we have such amazing gentlemen on the show. Karubonisan. Yes, I just want you guys to introduce yourself. Because if I do, I will be doing an injustice to you. First of all, thank you so much for having me today. And I'm grateful that we gathered here so that we can be able to discuss matters of business. Because to me, matter of business and especially with the youth, it's something that is very, very key and very, very paramount when it comes to those people who are starting start-up as we'll be able to discuss today. Okay, sure. You haven't told us your name though. Oh, and Andrew Shionko. And Andrew Shionko. And who did? I'm a business youth leader and mostly we normally do trainings in the workshop for the youths. Those who are starting their business. And we are saying that it's all about my hustle, hustle and go. I can see it on your t-shirt. Yeah, hustle and go, risk and go. Nice. Yes, and the other one. Good evening. My name is Shemaina. Okay. I love the topic. Mike Franklin, one of the funders of USA, he once said that failing to plan is planning to fail. And that can be the main agenda why businesses fail. I'm an entrepreneur. I have a company. It's called Yes Africa Solutions. And what we do, we just bring solutions to Africa. You mentioned that you are an entrepreneur. Let me just start with you. I know you made goals at the beginning of the year. You said some goals in your... I know you said some goals at the beginning of the year. Have you accomplished some or have you implemented some or you just forgot it by the second year of January, second weeks or second week of the year? I believe I'm more intent in my planning. So 60% complete. Wow. Mentor. Yes. Mikuangu, to be honest, I've really actually tried to be able to see if they come to a reality. But when I say makuwa, ground between different... We Kenyan proverb. We Kenyan proverb. But it's always good when you say something forward, you actually work hard towards it. I will not be able to achieve maybe that thing during that year. You can be able actually to pick it from there the following year. Well, you mentor youth. So youth, amikuja kwa kwa. Which is the easiest business field I can venture into? Which is the advice you can give them? I think right now to be honest, we are living in very different times whereby technology is moving things so fast. And if you're not able to move with time, time will actually tell. And you will not actually make it to the other end. So for me right now if you look at... Sometimes ago you will actually find whereby people who are doing business of selling goods were actually doing so well. But if you look right now, services are actually doing tremendous because in terms of capital that is needed for you to run a service is actually a bit lower. And with the presence of online business it's actually making it so easy especially for the youth who want to venture into the business to be able to stay afloat and to be able to run their business. So for me I can advise, if you are doing any business, try service and do it online. You never share most of the youths usually say that akimi sinato. I don't have funding. I don't have the capital to start a business. Is funding a main issue or what can you advise them? With you, with your experience? With my experience funding is really not an issue unless you plan to do a huge capital investment. But for any business you can start from wherever. My business I started with 3,000 shillings only. I just set up a website only. And from that I was able to get clients, I was able to get businesses and I was able to solve problems. So it's really about you starting. It's not really about the money. It's about you. Are you ready to start? Are you willing to start? If you're willing it's not even about the registration of the business. It's about you starting to get a customer, trying to get an opportunity so that you can tap into it. Okay. You've mentioned service. Funding was not an issue. So if I want to start up a service kind of business, I need a physical address as well. You can talk, you can discuss. There are issues like licensing and so much that is involved in setting up a physical address. Do you think the government is putting up enough measures to protect the small enterprises as well as the micro businesses? First of all I can say yes. Because you need to license your business for it to be viable. For it maybe people know that this person is doing this thing and especially with the error that you are into here by being called so easily. First of all you need to license your business. But sometimes if you look in terms of cost we are discussing about a youth who maybe have a capital of starting a business. Let's say for example 10,000. If maybe half of that money will go to licensing. That means that business will not be able to stay afloat for quite some time. So that is one challenge that the youths are facing. They don't also know which avenues to follow. For example you can get maybe someone might think like if I need a license I can go maybe to a police station and ask for a license. And you'll find when you go maybe to the county offices maybe the channels are not the right way that you can be able to follow even with the country that you know ourselves so well in Chieki Tokidogo. So before you get that license you will find maybe you're frustrated and maybe someone might even give up before they even begin. And this idea that you have how do you make it a reality because everybody has an idea in this world. Everybody has an idea but the question is as an entrepreneur as a youth who is coming up with a business how do you make it a reality and how will you keep that reality afloat the longest time possible. That will be the different. Is it necessary for me to set up a physical address if I'm providing I'm doing a service kind of business. I believe at this time at this age things are moving. The way the business of the 20th century used to operate is not the same with the business of the 21st century is operating. Right now a physical address is not really a mandate or a need right now. Unless you need to have a physical business. But there are a lot of businesses which really do not have physical addresses and they are really working. So it's really a matter of understanding what kind of business you're doing. Because for a service industry it's not so much a need to have a physical address. You can just have a website maybe an online presence of Facebook page Instagram page or something and do something with it. And at the end of the day I think what will come into supplement maybe to mitigate you liking a physical address is the kind of service you provide the kind of work you do. Okay. Now let us just jump into the main topic and all guys have been waiting and excited about these topics. What are some of the mistakes the start-ups make? I think if you look at statistics and econometrics they will tell you out of ten start-up eight of them actually fail. And as my colleague said capital is not always the biggest challenge when it comes to business because you can actually take a loan your friend or your parent or you can actually take your salary and start a business. But the question is how will you be able to use that money to the next level. I find people when they start their business they have not done something called need assessment. Do people need the product that I'm going to offer to them? Let's say for example I normally give this example if you visit me at my place and find me selling eggs and you see these eggs are doing so wonderful then you think I need to start this business at my place you can start that business not knowing that a few days down the line no customers are there because you are not able to do a need assessment maybe the people in your place all of them own chicken they don't need eggs they need maybe layers, some food to give to their chicken so first of all do a need assessment do they actually need that product that they have then after that maybe you can go into testing and so on and you'll be able to survive. If I can add on that what he said factually 42% of businesses fill in the first year 70% fail by the third year 80% fall by the 80th year so it's really about when most people begin a business they have an idea after they have an idea they create a product after creating a product they sell the product after they sell the product people fail to buy after people failing to buy they run out of cash after running out of cash they out of business why because they follow the idea not the opportunity not where the problem is and that's the huge challenge now how can I overcome these mistakes how can I not make these mistakes I think it's just being able to first of all before you venture into something just consider the risk that will be associated with the business that you're going to venture into risks will always be there so it's for you to know how will I be able to deal with the risk that are associated with the business that I'm going to venture into for example with the presence of online right now if you're thinking maybe to venture and maybe to a business that you want to start selling clothes and so on you can actually buy a few do a test post them online if you post them and maybe in two weeks ask you about if I can buy this dress then that will be the wrong business to venture into so test the waters don't jump into the water and also we have mentors who have already been in business go and share with the people that maybe you trust with your idea go and share with them tell them I want to start this business will this business be viable will it be sustainable or how long will I be able to continue doing it or maybe jump into it and then maybe this you are out of business you close and actually being able to get that capital took you a very long time especially if you are a youth because there are risk involved when starting a business Shem do you have an insurance for your business because you actually need an insurance before how important is insurance really insurance insurance is important because insurance is a cover for uncertainty we are living in times where anything can happen you can have theft maybe looting can happen we are living in times where terrorism is a threat though so low right now we are living in times where let's say a lot can happen maybe fire can happen in your business premise so insurance is important but again for the a challenge to the insurance company especially for business insurance business insurance has to be for the business at times you find how they are packaged is really not so good it's not convenient for the business either way you lose for most not all some are good so my challenge to some insurance company is to ensure that the insurance covers it really makes sense for us we had cases of some business sitting aside at least 500, half a million let me say half a million for fall back do they start also need to do the same I think one yes you think you need to do some money for in case you fall down at least you can be able to rise again and move on and that is why as we begin I said like if you have a capital let's say for example 50,000 and maybe you want to buy stock do go and buy stock of 50,000 in the first day you can actually decide ok I have already market that is already there why don't I at least do a stock of maybe like 20,000 and then maybe you can come maybe it doesn't work or in case maybe of case that we are talking about insurance maybe you don't have an insurance fire happens or maybe they are stolen you don't close business and go home and then maybe by the way you start saying like the devil was on your side and so on no at least have a fall back have a plan that maybe you can fall into in case things don't work maybe a business maybe to add on that a business is like an individual per se me and you probably have a savings plan so it's also more emphasized for a business to have also a fall back plan a good business person a good entrepreneur should have a fall back plan because in business there are cycles that time where the business will come up as a startup sometimes it will grow it will mature and at times business will be bad so for a business to be safe it has to have a savings plan old call a fall back plan or a risk plan so that you have to see to foresee that probably in the next two years business will be bad especially maybe for a service company maybe let's say a wedding company maybe so much weddings do not happen in January so what happens and you have people to play you have hired people to play and say ok so when that times comes what do I do what do I do to my people what do I do to my business premise I have to pay for a rent maybe have a lease agreement so it is important to have a risk or a fall back plan as you have put it final comments as we end up we show speak to that youth speak to that youth service just encourage them and you can give an advice as they plan to start their business fearing to fail here fearing to fail like you don't want to do it but you have to do it so do it and learn as you continue venture into it and make it a way in which you will learn as you continue moving don't fail and say like everybody who have been in this business have always failed actually learn from their mistake and grow from what they have actually failed from it so for the youth who is out there and maybe they are saying that the business is bad and things are not working do not fear venture into that business be able to find ways of maneuvering through it because challenges will be there each and every day but it will depend with how you will be able to dive inside that will be a very big determinant in deciding if you will be able to make it the other side of the river or will not make it so do not fear going for it thank you so much Andrew for me I will say this if you have an idea just start it doesn't matter how much capital you have how much knowledge you have just begin and trust yourselves and as you trust yourself ensure that you meet solutions you make solutions to problems which are existing don't imagine that there is a problem where there is no problem and as you do that focus on three things people, product and profit people, product and profit thank you so much Shem and Andrew for making time to join me on Y254 business news yes one thing I have learned today is fallback plan fallback plan is important fallback plan is very important well that marks the end of our show here on Y254 until next time that is next tuesday same place my name is Miriam Masawa don't go anywhere because the buzz is up next but first I want to thank Brian our editor Timu our director the crew who made this production a success God bless you, good night