The Strawberry Store

A whole lot of people dismiss Kenyan online business as being ahead of their time. Some people even go as far as claiming online entrepreneurs in Kenya as being misguided, or even plain silly. The usual explanation is that Kenya is still very new and untested as far as the internet goes…etc etc. But who will do the ‘testing’ if no one dares to try? The good news is that more and more Kenyan online businesses are being launched. When are you launching yours?

Today, we’re going to take a look at the Strawberry Store, a Kenyan online business that specialises in importing and selling home, office and institutional furnishings and accessories. One of the co-founders, Naomi Konditi-Kivuvani, has been interviewed over at Tujuane – click here to go and read the interview which talks about the Strawberry store at length.

What I found interesting was that the store exists purely online. There is no physical showroom or shop. While I have doubts on how well this approach works in Kenya, it is a commendable and brave move. For one thing, the expenses of the store are very much reduced and the only overheads are those of hosting and maintaing the website – which are usually very minimal.

When you buy items from the Strawberry store, you either collect them at their pick-up center near Adam’s Arcade, or you can have them delivered to you starting at Kshs 200/-. Again, this is a commendable approach. However, I’d think that several strategically located pick-up centers would work better.

So, how does the Strawberry store get it’s clients? Naomi mentions that they rely on email marketing and facebook advertising. Both of these are powerful ways of getting people to notice you, especially here in Kenya. However, I wonder how well the facebook campaign is doing. To me, facebook – at least in Kenya – wouldn’t be a suitable advertising medium for most products/services. Why? Well, the majority of people who use facebook in Kenya are teenagers and other youth. Unless you’re selling something that this group can afford and would want to buy, getting their attention is not worth much.

One thing that I would wholeheartedly recommend for the Strawberry straw is a blog. The absence of a blog was something that struck me within a few minutes of browsing the site. As far as internet marketing goes, a blog is almost always something like your mothership.

All in all, I love the work that Naomi and her team are doing. I recommend that you check out the site (and make a purchase).

Parting shot:

“Running a web-store may look easy, but it’s really harder than running an ordinary physical store. This is because there’s nobody just ‘passing by’ to come into the store, you have to make people be aware of the store using creative methods. ” – Naomi Konditi-Kivuvani.

Photo by Muffet.

Rich Dad, Poor Dad Part 1

Rich Dad, Poor Dad was my first business book. I read it over a week or so in High School and, to date, I still remember very well it’s core teachings.

One of them is this: always think in terms of assets and liabilities. Assets are things that put money in your pocket while liabilities are things that take money out of your pockets (like a car). If you want to get rich, all you have to do is accumulate assets and minimize on your liabilities.

Interesting, eh? Watch the video.

http://www.youtube.com/watch?v=pa6vheNPH-U

The KCB Mobile Wallet

Just the other day, I was thinking to myself: do I really have to go to the bank? I really dislike going to the bank, especially inefficient banks like mine. And that’s, really, been everyone’s complaint against KCB over the years: it is very inefficient. Or it was.

In a surprisingly innovative move, KCB recently announced that they will be launching the “mobile wallet” next year. While Zain’s ZAP is posing a commendable challenge to MPESA, I think the mobile wallet is what will really challenge MPESA. It looks to be a game-changing service for at least the following reasons:

  • KCB is a large bank, by all means. This means it has considerable leverage and, possibly, experience to make this product a smashing success.
  • The mobile wallet will not only work for KCB account holders, it will work for anyone who has a mobile phone in Kenya. Thus, the potential reach is quite large.
  • KCB are going to build an interface to the already popular MPESA for the mobile wallet. This is a notable case of cooperation that may well fasttracks the rise of the mobile wallet’s popularity.

I am very much looking forward to the mobile wallet. One impact of MPESA has been making ‘banking’ services available to all and sundry. I am excited to think of how many more people can be reached by the mobile wallet. Good job, KCB.

Do The Work…

You’ve probably heard this a million times but I’m going to say it yet again. Many, many people do not succeed because they don’t take action. You may have a beautiful, solid plan and all the tools you need but if you don’t do anything with them, you will fail.

Procrastination has the power to kill any business.

You cannot sit idle and expect to make money, at least when you’re starting out. You must put in the time, or you have to spend money to get others to do the work for you. There is no other way.

Are you sitting on your behind? Are you just waiting for success or are you making it happen with hard work? Are you properly focused and are you prepared for success?

You have to keep taking action. If you’re not working hard to get that profit, it surely won’t come. Your success depends on you; the buck stops at you. You cannot procrastinate, you cannot sit idle.

Let’s get to work…tujijenge tukijenga Kenya.

Photo by Rennet Stowe.

Nokia’s Ovi Mail In Kenya

So, recently, Nokia has been very hard at work telling us about the new Ovi mail service they’re introducing in Kenya. It sounds wonderful, doesn’t it? You can have access to email on your phone as long as you own a Nokia. You don’t need a Blackberry anymore.

I think it is a move that is long overdue. Mobile phone manufacturers have a unique opportunity to influence the way we use our phones. Just imagine this: Nokia could have an MPESA-type service that works the world over, couldn’t they? I wonder why they took so long to try and “own” their phones and what we do with them. But I digress.

Back to Ovi. While it is a super move and I am very much interested to see where it is going to end up, I think the advertisements are a bit dishonest.

One in particular says, “you can get upto 1,000 emails free of charge.” First off, this means that Nokia is going to charge us to use Ovi mail at some point. Can this really work? Probably. I would never pay to use Ovi mail, though. Because I can get email cheaper elsewhere. You can too – just download Gmail for mobile and you’re good to go. Or if you are comfortable working with POP and other email settings, almost all Nokia (and other) phones allow you to set up POP and IMAP access to email from your phone.

Secondly, “1,000 free emails” is just downright untruthful. You will still have to pay your mobile phone network operator for the data you use. For Safaricom this is Kshs 8/- per Megabyte while it is Kshs 3/- for YU – don’t know about the rest.

I love that Nokia is introducing Ovi Mail. I’d prefer some honesty though.

That said, Nokia’s Ovi is so much more than just email. I encourage yo to try it out!

Edit 12/10/09: I have confirmed that the first 5MB worth of emails using the Ovi Mail service is absolutely free. No network charges. Good deal made by Nokia.

Six of the Best Banks For Startups In Kenya

So last week we wrote here about our frustrations in finding a good bank for a young startup business – we had walked in and out of banks for hours and non struck us as particularly attractive for our young business. Following the article on Like Chapaa, we received a lot of emails and other feedback from a whole lot of people giving us advice on which banks would be suitable for startups in Kenya.

Are you a business owner? Are you planning on being one? For your banking needs, try one of these:

  1. Equity Bank. Evans says, “Try Equity bank, I have a business Account with them and its good and even accessing credits is easy.They have helped in the growth of my business,so I m a proud member of the bank. All the best as you start your business.”
  2. Chase Bank – Maingi says, “They are really flexible in terms of handling transactions for instance I comfortably transact without ID…in a nut shell they try to know their customers and treat them as such. Also there are good in Forex. Try them.”
  3. Fina Bank
  4. Bank of Africa
  5. Eco bank
  6. NIC

The banks in the above list are ranked according to the number of recommendations received for each. I hope you will find this useful.

All in all, the picture of banking in Kenya that I got from this experience is not good. At all. Our banks seem to be interested only in making money off their customers and they are very poor at supporting new businesses.

That said, I shall close this post with the best piece of advise that I got. Many thanks to the author, Sagongonyi. Thanks also go to everyone else who helped.

“Most banks will require a six months statement (minimum) for any meaningful assistance. It also depends on the nature of business you would like to engage in. For example if it is a simple transaction like you have an order to supply some items to an organization, Equity can finace you and you agree on how to share the profit.

There are other institutions like GroFin that can finance start up businesses but with a well presented business proposal. They will also require you to contribute a percentage of the initial capital outlay. They will also require you to personally manage your business and you will also share profits with them. They have assisted quite a number of my friends who import second hand Prime Movers. They are in Upper Hill CIC Plaza.

NIC are also good but they require you to have some experience in your business, even 3 months can be ok. Their systems are very good and you can get money in two weeks. They are very clear on what they want and they are very straight forward. They have financed my business for a period of three years now and i am not regretting. No bank can give you 100% financing for a start-up business; better start small and grow it.”

Make Money By Receiving Text Messages – In Kenya

I recently came across an interesting Kenyan site: Jumuika. Why is the site so interesting? They will pay you for each sms that you receive from them. Imagine that! I could read text messages all day and all night….

The idea behind it is simple to grasp – all the text messages that they send to you are advertisements. Given the popularity of text messaging in Kenya, I think it is an amazing idea and, in my view, the company should have no trouble turning this idea into a success.

So, I’ve registered with Jumuika and I’m eagerly awaiting my first text message, and chumz. I shall keep you updated, dear readers, on how I find the service to be.

One thing I really like about Jumuika is that you can send 10 free SMS messages a day from your Jumuika account. Nice, eh? It may be too late for them to be as popular for free SMS as Sasanet once was, but its something. 🙂

However, their system is rather slow/buggy. I registered my account quite a while ago and I’m yet to receive my activation link/code. Hopefully they’ll iron this out soon. Jumuika feels like it can be a success.

What do you think?