Many people will wish to a start a business once they have capital either secured from loans, family, savings. The big question has always been, which business?
In this article I will highlight how much you need to start a successful electrical business. The basic information one requires to start and add more stock along the way.
With capital of Ksh.100,000 you can start a standard electrical shop in your town or shopping center.
The following tips can help you start and run a successful electrical business in your town.
*1. Location*
The best place to have an electrical shop in near a hardware store or electronics shops with huge traffic.
You can as well look for a space where there are other electrical shops. Never mind about the competition because those shops might as well serve as your customers for the products they don't have and vise versa.
Never tell a customer that you do not have a product. In case you do not have, ask from a shop next to you or tell them to come later as the products are on transit.
If the customer places an order make sure you have the product at the agreed time of collection.
*2. Have a variety of products*
The higher the stock the more customers you get. If you are new in the business and not sure of what electrical products you should stock, just ask for a quotation from an electrical technician and tell them that you want to install electricity into your new house.
They will give you a list of items which will serve as initial stock for your electrical shop.
Always make sure you have a variety of products.
You might not know them well because you are still new in the field, don't worry, you will learn along the way most probably by the second month in business, you will be able to know what products sell fast and which ones complement the others.
*3. Look for a supplier*
There are many suppliers in the market, ask for quotations from a variety of them and compare the prices.
Go for the best price. Don't limit yourself to one supplier. For example you can order cables, gangs, consumer units, cut out among others from a supplier that has the best price.
And for sockets, earth rods, bulbs, junction box, circular box, breakers from another supplier.
These products are made from different manufacturers and the supplier will be in a position to guide you.
Different manufacturers have different prices. Stock products from at least three suppliers.
From the quotation you will be able to ascertain which products to stock more than the other. You can as well consult the supplier.
*4. Pricing*
With hard economic times always be mindful of the price you place on your products. Do a thorough research on the prices offered by your competitors, you will not want to be the most expensive seller around because no customers will come.
Also don't put a lower price that will eat into your profit. It is recommended that as a starter, always have a competitive price over your competition. This will help you grow through referrals especially if you get to know a few technicians.
*5. Never mix business and friendship*
When someone starts a business, he/she becomes excited and tries to market his/her products to relatives and friends. Some may take advantage of the friendship and ask for cash or take products on credit.
People tend not to pay debts and most of the time they will avoid buying from you if they owe you.
*6. Employ active and respectful staff*
You might need at one point a helper. Consider having someone who knows how to talk well to customers and most probably who has prior knowledge of selling electrical products.
The best traits for a good helper are aggressiveness, active, humble, convincing, respectful, gentle and polite to the customers.
*7. Be mindful of loans*
Loans are easy to get nowadays thanks to the introduction of mobile loans. It is because of this that one might be tempted to apply for one.
Loans can be good or bad depending on the season you apply and what you intend to use the loan for. The best times to look for a loan is from August to December. Most people tend to build houses during such times.
The period between January and June, people tend to focus their expenditure on school fees and farms. These are the riskiest months to commit your business to a loan.
*8. Check on your expenses*
Make sure that whatever you spend is for the good of the business. Be realistic with the overheads like rent, bills and staff payment. Most of the cash should be ploughed back into the business.
With the above Knowledge, you are good to start an electrical business. The most important thing is to start, some of the things will be learnt along the way.
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