Eagles Green Developers.

01/08/2024

20/09/2021

....."Some people are like birds🦜
you help them to fly,
once they are in the air, they s**t on your head...

01/07/2021

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We serve passion We sell fresh and fried fish and other fish species from lake Victoria,lake Turkana,Lake Nakuru and Lake Naivasha, including; kamongo,omena, mbuta, mumi, sire and otherals all fr…

01/07/2021

*HOW TO GROW YOUR KSH.100,000 INTO KSH.5 MILLION IN 4 YEARS WITH EUCALYPTUS GRANDIS*

If you are a patient investor who is willing to risk it all and wait for returns in 5 years or so, then Eucalyptus farming might just be the right business idea for you. Not only is this an opportunity to create some income but an avenue to help the country achieve a 10% tree cover by 2030 as well.

But is there market for these trees or is it just hype as usual? Well, don’t take my word for it. Statistics from the Kenya Forest Service show that Kenya imports Ksh.7 Billion worth of timber from countries like Tanzania every year. Local forests can barely sustain the nation’s demand hence the need for farmers to step in to fill up this gap.

Eucalyptus trees in particular have a wide variety of uses including as: electricity transmission poles, props for construction industry, production of essential menthol oil, timber for furniture and fuel wood for industrial and domestic use.

Demand for mature Eucalyptus trees is very high in most parts of the country and this trend is expected to hold for at least the next 20 years – and herein lies a good investment opportunity for you.

*Eucalyptus Tree Farming Business Idea in Kenya*

*Step 1: Get A Piece of Land*

Eucalyptus trees can grow in almost every part of the country (from Turkana to Central Highlands and Coastal Lowlands). Ideally, you should purchase or lease a minimum of 1 acre piece of land. If leasing, let the lease period be at least 10 years so that you have enough time to utilize the land. An acre of land goes for as little as Ksh.200,000 (purchase) and Ksh.5,000 per year lease.

*Step 2: Prepare It*

You don’t need to till the land but you will need to dig holes in which to plant the trees. Spacing of 1 meter in between holes and rows is recommended (but you can always talk to a forestry expert for more concise advice on this).

*Step 3: Obtain Seedlings*

Only get seedlings from reliable outlets. For starters, you can check with your nearest KEFRI office, they have branches in Muguga, Maseno, Kitui, Nyeri, Londiani, Gede, Kakamega and Turbo. Alternatively you can consult the Kenya Forest Service or any KFS-approved tree nursery in your area. Good seedlings retail at a price range of Ksh.20 – Ksh.30.

An acre piece of land can accommodate up to 3,800 seedlings. But you can always start with as few as 3,000 seedlings.

Note: Different types of Eucalyptus Species Include Grandis, Saligna, Globulus and Regnans. A forestry expert will be able to advice you on which species best suits your region. Generally Grandis is the most popular type in Kenya.

*Step 4: Plant & Wait*

Plant the trees at around the long-rains season and cover with enough soil. Keep animals off the young trees and if possible keep checking every few weeks to see how the farm is faring. The trees are not susceptible to frequent infections; but if you spot any signs of improper growth you will need to either destroy the weak trees or consult an expert.

*Step 5: Market*

Market is readily available with mature unprocessed poles being bought at Ksh.3,500 per piece by processing plants which then sell to electricity suppliers in Kenya, Northern Uganda and Southern Sudan.

Each processed pole is then sold for Ksh.17,000 per piece. One example of a processing plant that buys eucalyptus directly from farmers is the Millennium Trading House located in Ndenderu, Limuru in Kiambu County.

*Useful Tips*

-Grandis Eucalyptus trees take less than 4 years to reach market maturity.

-A few trees may die or fail to grow properly along the way. 90% success rate would be a good estimation to start with.

-Sometimes you can harvest the trees at only 18 months of age if you have ready market for props and posts (mostly this market comes from real estate constructions). Props go for Ksh.100 per piece.

-Always get KFS certified seedlings. Don’t take shortcuts as you might compromise the quality of your final product.

*How Much To Invest*

You will require about Ksh.150,000 to set up the farm with around 3,000 trees. You can set aside another long-term budget of Ksh.50,000 to cater for other charges that may arise in running the farm.

So total investment Ksh.200,000.

*How Much To Expect*

If you manage to harvest 3,000 trees at full maturity (which is 4 to 5 years) and sell each unprocessed piece to a processing plant at Ksh.3,500 then you will expect Ksh.10,500,000 in sales revenue. This is largely passive income because you don’t need to spend every day managing the farm once the trees are planted.

*Final Word*

In this world you have to make two choices. The first choice is to work hard for your money and the second choice is to let your money do the hard work for you.

If you choose the former then your options are quite limited. But if you go for the latter, and think about eucalyptus farming in Kenya seriously, you will realize there’s a lot in store for you in the future.

01/07/2021

*HOW TO START A RETAIL SHOP IN KENYA*

The retail business in Kenya employs thousands of people. To succeed in the retail shop business, you need creativity and skills.

Retail shops mostly sell general household items like sugar, rice, cooking oil, flour, snacks, etc. Retail shop businesses thrive in town and rural areas. Most retail shopkeepers in the villages have become famous for the success of their businesses.

Starting shopkeeper business in Kenya requires one to have a good business plan. Before starting your business, do market research and find out items that most other retail shops are selling and not selling. Find out where you can source those products at a lower price.

Also, seek to find out a market gap within your area. For instance, many people could be using cooking gas, but there isn't a shop selling. This would boost your business and get customers for the other items.

*Develop a Good Retail Shop Business Plan*

A good business plan should have startup costs, revenue projections, business location, strengths and weaknesses of the business. The startup cost for a retail shop will depend on the location of the business and its size.

If the business is based in a rural area, the startup capital will be significantly lower compared to a town. Also, list the startup items and how you will market your business in your business plan.

*Find a Suitable Business Location*

Finding a suitable place for your business is one step to succeeding in your retail shop business. Look for a business location near households and high numbers of on foot traffic. You can also set up your business in a market center or a shopping center.

Since there might be other businesses surrounding you, ensure that your business is unique from them. Do not compete on price; instead, compete to offer quality customer service.

*Secure Business Licenses and Permits*

You need to register your business and get the necessary permits and licenses to operate a business legally. You will need a single business permit that goes for roughly Ksh.10,000 every year. You may also need advertisement and signage licenses if your business is in a town center.

Other licenses you will need include trading licenses, fire clearance licenses and food hygiene certificates that cost Ksh.600 every six months.

*Identify Products to Sell in Your Retail Shop*

The market needs will significantly determine the products and services you will be selling to your customers in your retail shop. Therefore, get to know what your customers require.

However, you will realize that most retail shops sell household products. You can stock the following: rice, sugar, flour, cooking oil, snacks, sweets, tissue papers, salt, tea leaves, matchboxes, milk, bread etc.

*Determine the Startup Capital*

The items you will be selling and business location will determine how much you will need to start your retail shop. It is possible to start a small shop with capital less than Ksh.50,000. You can grow your business and stock it as your business grows.

The most expensive part of a retail shop is to pay rent. If you can find a cheaper place to rent, it can significantly reduce your startup capital.

You will also need to set up shelves where you will be keeping your stock. Get an experienced carpenter to do this for you.

*How to Boost Your Retail Shop Business*

You can boost your retail business by offering other complementary products and services. For instance, you can start an M-Pesa business if your customers may need to withdraw or deposit money into their mobile wallets.

The best way to go about it is to find a market gap and seek how to address it. For instance, if people require cooking gas and many businesses are not offering the service or product, you can stock that item.

*Is a Retail Shop Business Profitable in Kenya?*

Yes. With a good business location, you can make huge profits. Business revenue from your shop is enough to pay for your retail shop expenses and leave you with a 30% profit.

Getting cheaper suppliers will help you maximize profits. When setting your product prices, ensure that they are not above those of your competitors.

*Final Word*

Starting a shop business in Kenya is a profitable venture. It is one of the startups in Kenya that employs the majority people. To succeed in the retail shop business, make sure that you offer quality customer service and have a unique business (differentiate your business from that of your competitors.)

01/07/2021

01/07/2021

*8 LITTLE SECRETS OF RUNNING A SUCCESSFUL HARDWARE STORE BUSINESS*

80% of those who venture into hardware business close shop in less than 2 years due to losses and cash-flow problems.

The good news however, is that there are those few lucky ones who survive against all odds and live to share the cake as cut-throat competition fades away. But what really separates the wheat from the chaff?

As a potential hardware owner, it is important that you are up to speed with some trade secrets…In other words you need to be armed with some market survival tactics that an ordinary business classroom doesn't offer.

In this brief article, I will give you some street smarts of starting a successful general hardware and construction equipment supplies shop in Kenya.

*1. Know Your Market*

As a rule of the thumb you need to understand your market thoroughly before you commit your money to the business. First, you need to identify places with ready (and growing) market potential for hardware products.

Secondly, you need to be in sync with the trends and ruling prices of the industry. You also need to do a strength, weakness, opportunities and threats analysis (S.W.O.T) with particular focus on what your potential competitors are up to.

To guide you in your research work, here are some 5 questions that you need to find answers to:

(1) Which is the best place to start a hardware business in terms of market potential?

(2) How many competitors are already on the market?

(3) How much money I'm I willing to spend to pe*****te the market?

(4) What is the greatest weakness with my potential competitors and how can I use it as a launching pad for my business?

(5) Given past, and recent past trends, what does the future for the business look like?

*2. Which is the Best Place To Start a Hardware Shop?*

The best place to start a hardware is where there is an upcoming community of people who are building their first homes.

Look for possible future satellite towns and start small. As the estate grows, your business will most likely grow as it benefits from customer loyalty which can be earned by operating in the market over a long period of time.

For those in Nairobi and its environs, the best places to set up shop would be along Kangundo road, Eastern Bypass and Magadi Road.

It is however important to ascertain that you’re choosing a market that has enough purchasing power i.e. customers who can potentially spend at least Ksh.20,000 per month and pay on time.

*3. What about Competition?*

Hardware business has minimal barriers of entry and for this reason cut throat competition is quite a common feature.

The first step in dealing with competition is to avoid it in the first place. Ideally, you should set-up shop in upcoming estates and grow slowly as the market expands.

It's also important to create strong relationships with the market – this can be achieved by doing the following.

(1) Creating a low price image e.g. by offering price discounts on basic products such as cement, steel bars and iron-sheets and recovering the profit margin through minor products such as door locks, hinges, sand paper and trowels.

(2) By encouraging convenient shopping e.g. by allowing your trusted clients to place orders via phone, delivering to the site for free and allowing them to pay you later in the evening.

(3) By providing a one stop shop for your clients such that they don’t have to go shop for anything else in any of your competitors’ shops. You may want to talk to your suppliers so that they avail any items that may be on demand but are missing from your shop as quickly as possible as you strive to achieve the status of a one-stop-shop.

*4. Which Products “Move” Off The Shelves Quick?*

Because hardware business is quite capital intensive – i.e. huwa inafunga pesa sana – you will want to invest mostly in fast moving products. These are:-

*Cement:
*Steel bars and rods
*Nails
*White cement
*Door hinges
*Roofing nails
*Flooring tiles
*Welding rods
*Plumbing material

Please note that although products such as cement and steel bars sell quite fast, they have very slim profit margins.

You can start your hardware with these basic items and then expand your inventory by adding other new products based on what your customers are frequently requesting for.

*5. Marketing*

Don’t make the mistake of sitting in your shop the whole day waiting for customers to walk in. With the kind of competition that’s there nowadays, you are better off getting the word out there yourself.

You can hire a salesman to be going around you area scouting for any new upcoming construction sites. Field trips such as these will help you initiate fruitful relationships with site owners and foremen.

*Tip*: When you go marketing to different customers, the first question you’re most likely to get is, “How much do you price cement and steel bars?”

At that point, you’re better off giving a price discount for these two crucial commodities even if it means recovering the cost through other products which the customer might require later.

Most potential customers use the price of cement and steel bars to judge how friendly your deals are – so don't make the mistake of overcharging them on these two.

*6. Managing The Hardware*

Hardware business requires a hands-on approach. And although it is quite possible to run it alongside an 8am to 5am job, you will surely need to burn the mid-night oil in order to keep track of its performance.

Ideally, you should have a stock taking exercise done after every two weeks – this will help you understand which products are “moving” fast off the shelves and which ones need immediate restocking.

Stock taking can also help you control possible theft by your employees; which has often been cited as one of the biggest challenges in running a hardware shop.

*7. Minimum Cost Breakdown*

*Starting stock – Ksh.500,000 (200 bags of cement, 100 pieces of steel bars among others)

*Rent & Deposit – Ksh.50,000 (May vary)

*Single Business Permit

*KRA ETR Machine

*Other Minor Requirements

The minimum starting budget for this SME would be Ksh.700,000.

*8. Profitability*

On average a good performing hardware makes a net profit of 10% its daily sales. Therefore if you make a daily sale of Ksh.100,000 you can look forward to making Ksh.10,000 net profit per day.

Please note that this figure may vary depending on your pricing policy and list of expenses.