Want Your Own Online Business? [Interview]

September 15, 2010 by 3 Comments

For the readers that don’t know, Andrew Mutua is one of the founders of www.pamojashops.com.

PamojaShops is a community of buyers and sellers of African handmade wares. We hope through this platform which is not limited to time and/or place, we will open up our creativity and art to the world. PamojaShops is the online version of open air markets, commonly known as Maasai markets that showcase our creativity, our culture, our enterprising spirit, our art, and our unique identity with various influences both from within and outside.

Today, Andrew opens up to Like Chapaa.

Q. You’re quite an achiever, tell us about you.

I’m a 29 year old tech enthusiast, who loves Jazz (check out my blog). I have been in the IT industry now for 8 years and I recently co-founded PamojaShops.

Q. How do you make money online?

I believe you’re asking about our business model. Initially, we had thought of having a rental model, whereby each vendor pays a fee to open and maintain an online stall. Pretty much what happens in the physical world.

However, this has since changed to commissioned-based model where each product sold will be charged a small percentage over and above its price. (The most unique part is that the vendors acquire their own micro-site and they can use that to market themselves i.e www.vendor.pamojashops.com)

Q. How did you start?

The idea had been brewing for a while now. I think it has been a year since I first thought of having the online version of Maasai Market (African Handicrafts open air market).After some prodding from my sister I decided to plunge in and pursue the dream. She followed that up with a promise to be an investor and partner in the venture. With that major boost it was full speed ahead to making it happen.

Q. What challenges did you face and how did you overcome them?

Initially it was hard getting someone who could translate my idea into a digital platform (site) which could set up and host online shops (E-stalls) and facilitate payment and shipments. But lucky enough I did finally get someone (Nickel Pro) who understand and even further refined my idea – I guess through persistence it finally panned out.

The other challenge is the target user, (Maasai Market Merchants) is mostly not computer literate. And considering we had hoped to have a system fully automated and within the control of the user we’ve had to step back and evaluate the viability of this approach. What we’re now doing is working hand-in-hand with the merchants taking them through the entire process. So it’s gonna be pretty involving and hands-on at the start…again this is good, it may help in understanding the trade more intimately and to craft a more relevant solution.

Q. What are the challenges of being an entrepreneur in Kenya?

Funding is an issue but I believe this slowly changing. I think there’s a lack of support structures to help any start-up out there e.g. have a forum for startups, advisors, incubation centers and low cost administrative support for start-up.

Again, there’s good news here the development of initiatives such i-Hub and Nailab seek to tackle some of these challenges.

Q. What was critical to your success?

We we are not there yet, but Passion in whatever you’re undertaking is very important because when all else fails it’s the only thing that keeps you afloat, energized and fired up to move on.

The other is a community of people; be they techies or any skilled person ready to rent their expertise; entrepreneurs who offer their advice and inspire you with their experiences. The community helps you where you can’t; gives you guidance and direction and, there are people out there ready and willing to help and I think the i-Hub has doing a great job in fostering this kind of community support and partnership.

Over and above all, the other attributes of hard work, teamwork and more belief in God has also been key in this venture. When you take the uncharted road and you don’t know what the next step holds, God gives you the strength and bravery to plunge in and keep going.

Q. What about the competition and marketing, do you need to advertise, print flyers participate to conferences or is it mostly word of mouth?
Marketing is a critical element to any business as a means of putting the word out, promoting, raising awareness, seeking participation, etc., to eventually result in conversions (sales).

Word of Mouth ranks up there as best means of Marketing. And in this regard we’re leveraging Social Media Tools – Facebook, Twitter, Blogs etc- to raise awareness; create a community of fans around our product and service.

In terms of Offline Marketing we’re looking to engage in intense evangelism of our product in every meet-up that we’re part of. And we’re also considering doing some flyer print-outs or some other print marketing materials.

Q. Do you think that in order to “make it big” online you have to live in a Western country? Or does Kenya offer more or less the same opportunities?
The Internet has since leveled the playing field quite dramatically. And although Western countries have certain advantages (support structures, availability of VCs, etc) I think now, in this day and age, we all have a chance to play in the same league as them. Look at platforms as Ushahidi that were birthed here and have since gone global. This is a testament that we have what it takes to develop world-class products.

Q. Where do you see yourself and your business (es) in the next 5 years?
I hope we’ll grow PamojaShops to be the world’s largest marketplace for all African Handicrafts.

I also see myself been involved heavily in various community service initiatives that I’m passionate about i.e. education and social entrepreneurship.

Q. If you had to do it all over again, what would you do differently?
No. I think the lessons, missteps, failures that I’ve made in life made me who I am and I wouldn’t trade that for anything. You can’t go back, we only move forward.

Q. What advice do you have for Internet business entrepreneurs in Kenya?
Act on that idea. Don’t get hung up on how unique that idea is and holding on to it like your life is depended on it. The best idea is the one that has been executed. Go ahead and make it happen or as Nike would say – Just Do it!

That’s all for today readers. If you like what you hear, why not go over to www.pamojashops.com and buy something or become a vendor?

Check out PamojaShops Facebook Page and Follow them on Twitter.

Or contact Andrew MUTUA- andy[at]pamojashops.com

Filed Under: Interviews, Make Money, Small Business

Do You Also Make This Mistake In Business?

September 14, 2010 by Leave a Comment

As the person who has the last say in everything that happens in my business, I, like all other business owners, run the risk of trying to micro-manage every last detail. One of the greatest lessons that I am learning is that I must simply let some things go. Having my “signature” on all matters of my business is one thing; having my hand in every single task and function is quite another.

Because this business is my heart and soul, I want to ensure that everything is done right. I want to oversee all these aspects because I know the way in which I want things done and I want to make sure that tasks are completed in a way that reflects my business and personal philosophy. This only makes sense—like most other business owners, I have saved and scrimped and fretted. The responsibility for success is most assuredly on my shoulders, so I want to make sure that success will come.

The only problem with this is that overseeing every little aspect of the business can become a full-time job in itself. I find myself staying late at night putting check-marks on my employees’ work and ensuring that it all comes up to snuff, when I could be allocating time to the tasks that I am actually responsible for as the owner of my business. Not only does this kind of task control take over my professional life, it also hurts my personal life as well.

For example: if I had it my way, I would have a clean list of prospective clients in our database, but the fact is that it really doesn’t matter. I can clean the list or just delete the questionable ones. Yet, this is just one example of how I realize that I need to keep my hands out of each of these aspects of my business. As the owner of my business, it is not my job to keep a fresh list of prospects in our database, nor is it up to me to hire entry level staff and interview interns. The time that I spend cleaning something up is time that I could be spending on larger questions facing my business such as future considerations and the overall functionality of the organization.

Really, when you think about it, this micro-management style really comes down to a lack of confidence in my staff and a belief that only I am aware of how to do things the way that I think they should be done. It is a controlling style of management, and it is not the most effective personnel management style. How inspired will my employees feel if I don’t show them even a modicum of trust and respect in their decision making . They will likely not feel too eager to take initiative or to make suggestions, if they feel that I will inevitably shoot down their input, or alter it severely in most cases.

In this respect, it is important to find that necessary balance between having your say and vision obvious in your business, but also allowing your staff to work for you, not against you. You need to firstly hire staff that you believe share your vision and are capable of delivering that to your clients, and will make decisions similar to your own, in your absence. This will leave you time to focus on the bigger questions facing your business and you can feel rest assured that your staff are looking after the “little problems” on your behalf.

Filed Under: Small Business

The Way You Look

September 12, 2010 by 2 Comments

It has been a pretty festive weekend, but then again it’s almost always ‘festive’ in Nairobi right? We always have an excuse to have a good time. And by all means we should.

Among the ‘best sellers’ when it comes to kujienjoy in Kenya is  nyama choma – roast meat.

So let’s say that you were going out to get some nyama choma. Would you get it from this guy:

Or, would you get it from this guy:

The first guy looks more experienced right? He’s got his chef hat-thing and that no-nonsense look going on. He actually went to school to learn how to roast your meat just right. That’s right, it’s your meat now, so you have to worry about who’s handling it. But who’s to say that the second guy has no experience? He’s could have been working way longer than the first guy. And who can prove that he does not know how to roast meat? Other than the fact that he’s not looking at it at the moment of course. As long as it’s not burning right? He could probably argue that he just doesn’t have the 3000 shilling jiko that the first guy has.

How would you decide which one to go to? Could it be by how clean they appear to be? The quality of the meat? The price? Location?

All these are reasonable factors to consider before choosing one of the two. In fact, every client thinks about these factors. What differs is the order of priority that they put them in. Some are more concerned about the price than how clean the guy is, while others are the opposite.

With an online business, most of the time you do not need to actually meet your clients face to face. There is the occasional meeting when the client needs extra attention, otherwise you are good to go. So most of us don’t really need to worry about what we look like because our clients won’t see us. So they can’t really judge us based on our outward appearance.

This could be a good thing since more often than not, if you have an online business that is successful, what you look like really does not matter. Other times, this is a disadvantage since you have to make up for the lack of ‘visibility’, if I can call it that, with other things. Like say, make your website ‘appealing to the eye’. This is not so hard though since you can always just hire someone to do it for you. You have to work hard on the other departments though like customer service and product delivery. Everything else has to be twice as good as a ‘physical’ business.

Anyway, on a normal weekend the two guys above get roughly the same number of clients. Surprised? Different locations, different target groups, different priority orders, but clients all the same. So it’s pretty much your choice. What kind of guy do you want to be? As long as you market yourself well and to the right people, you’ll still do good.

PS: If I were you, I’d pick guy A. Not giving you ideas or pushing you against a wall or anything like that. Just saying 🙂

Filed Under: Make Money, Small Business

E-commerce By I & M Bank

September 9, 2010 by 8 Comments

I just got off the phone with Mr. Reddy from I & M Bank. A real gentleman. He had called in response from yesterday’s article: I & M Bank got it wrong, to inform me of some erroneous information in that post.

First off, the very fact that I & M Bank responded is impressive. Not many organisations in our country monitor – and respond to – what is said about them online. least of all banks! I & M Bank got that very right, kudos to them.

Mr Reddy made some valid points in defense of I & M. First, we have to understand that PayPal and similar other services are not banks. They operate under different legal environments from banks. Banks like I & M operate in a more controlled environment, and have to live by the rules set forth by the Central Bank of Kenya (in I & M’s case). Naturally, this will make comparing PayPal to I & M a little like comparing apples to oranges.

What does I & M Bank Offer?
Through I & M, you can set up a very tightly integrated e-commerce solution that is tied directly to your bank account at I & M Bank. This means that whenever someone pays you, it goes into your account immediately.

Setting up the e-commerce platform will cost you, however:

  1. Small organisations – charges are $500 and this includes extensive support, even “hand holding” to ensure that you set up everything just right.
  2. Large organisations – charges start from $500 going upwards depending on the features and how much work needs to be done.

According to Mr. Reddy, the bank will not charge transaction (commission) fees. Instead they will charge $50 to $100 monthly depending on your agreement with the bank.

I still think that I & M’s charges are on the higher end of things but I must say that I do believe there are advantages to using their service. If I was heading a small to large company, I would think very seriously about using I & M instead of services like PayPal. Why?

  • No transaction fees. As long as you are making enough to cover the monthly charges, it is beneficial not to have a commission of your sales taken by the payment processor.
  • The money goes directly into your bank account.

When you use services like PayPal, the money that you make is not held in Kenya until the day that you choose to withdraw to Kenya. I believe that if, instead, we could all use a service that is fully local, the country would benefit in general. I & M is one such local solution. Their service may be a tiny bit pricey to set up, but if your company can afford it, go for it – they sound like they know what they are doing.

Filed Under: Small Business, Tips Hacking and Reviews Tagged With:

I & M Bank Got It Wrong

September 8, 2010 by 4 Comments

Yesterday I cam to learn that it is possible to receive money online in Kenya through I & M Bank. Their e-commerce processing solution is indeed impressive – you can have your website or shopping cart fully integrated with your bank account at I & M Bank.

However, I & M Bank’s set up fees start from around Kshs 160,000 (USD 2,000!!) $500 and Kshs 20,000 $50 – $100 a month plus a percentage of your transactions. A Mr. Reddy from I & M Bank confirmed these figures.

Let’s go back in time to the day that the wildly popular PayPal launched its services. On opening day, PayPal:

  1. Allowed any eBay seller to process payments online
  2. Was free to start using
  3. Had very minimal charges

That kind of strategy got PayPal to where it is today, an internet money processing behemoth. And they have made hundreds of millions of dollars to date.

I & M Bank does not get it! You cannot charge such outrageous sums of money and hope to grow your service beyond a handful of customers. I & M Bank’s service was launched early this year. It was launched at a time when their service was one of the only ones that worked. If their pricing was sensible they may have gotten more customers than they could have handled. They would also have entrenched their position and made it harder for any other payment processor to succeed in Kenya. But they did not.

Now PayPal works in Kenya and is rumored to be working with Equity for full integration early next year. What will happen to I & M bank then? Their short foray into e-commerce may come to a brutal end.

Update: E-commerce By I & M Bank.

Filed Under: Internet Culture, Small Business, Tips Hacking and Reviews Tagged With:

6 Time Management Tips For The Small Business Owner

September 7, 2010 by 1 Comment

These are some Time Management Tips I utilize (most of the time……) to reduce my time commitment in the business, so I can spend time on more valuable activities or just for personal time. I think they can be effective no matter what type of business that you are involved in.

1. Put a Price Tag on Your Time
Take the amount of money that you made last year and divide it by 2000 (40 hours x 50 weeks). This is your hourly rate. Whenever you are doing something of questionable value, ask yourself if you would pay yourself to do that activity? If it’s not, either eliminate that activity because it’s not productive, or outsource it to someone at a lower rate. You can now focus on more valuable work.

2. Meetings are Time Management Killers

  • Don’t schedule meetings if they aren’t really necessary. I used to have a lot of scheduled weekly calls with some suppliers and other partners that we worked with. They would often be valuable at first but after several meetings, everyone felt obligated to join the meetings because they were valuable previously. Unfortunately, we spent the same amount of time in them and got less and less done. Maybe you can block off the time and meet only if someone really needs to that week. Better yet, don’t meet with them unless you have some specific business decision to make.
  • Don’t schedule meetings for an hour if you need 15 minutes. If that is the time needed to cover something, schedule it for that amount of time.
  • Have agendas for your meetings and stick to them. There really should only be 1 or 2 things that you need to talk about
  • Meeting to talk about nothing specific is a waste of your time.
  • Try to limit uncommitted conversations. In the business environment, it is perfectly natural to have small talk amongst people you work with on an every day basis. These are conversations about the weather or television shows you watched the previous night. It is important to have these conversations with others in order to connect with them and show you are a human being. However, too many of these kinds of conversations are wasteful of your valuable time . It takes hard work to know when you are doing it, catch yourself and get focused back on the business item at hand.

3. Limit Hypothesizing
A lot of smart people waste a lot of time hypothesizing an answer to something when they should just stop and go get the facts. Too much time can be spent guessing or speaking with feelings versus speaking with data and facts. It is perfectly acceptable to admit “I don’t know the answer” as long as you follow it up with “but I will find out and get back to you”.

4. Keep Your Workspace Clean and Organized
Keep your desk and computer clean and organized. I don’t have a permanent workspace or office (and never have in my young business career), so I treat every location I go into as a temporary workspace. At the end of the day, I pack everything up I need, put it in my briefcase and leave.

5. Use a “To-Do” list
Yes, one and only one list. I personally like to use Google calendar to keep my To-Do list but I know a lot of people who are proponents of taking it off the computer and away from e-mail so they aren’t tied so closely together. I might do that eventually.

Here are some other real important points around To-Do lists:

  • Do not use your email inbox as a To Do list. Your email is a business tool used to communicate with others.
  • Always make your To-Do list short enough that you can complete it the next day. Don’t have 20 things that you will never realistically be able to accomplish. I like to have 2 or 3 big things that I need to accomplish.
  • Complete your “To Do” list for the next day before you close up shop for the night.
  • Review your list and work to move things off it and always place new things on it.
  • If you have your list in Outlook or Google Calendar, print it out and work off that paper.
  • I read Stephen Covey’s 7 Habits of Highly Effective People a couple of years ago and he had a great concept of placing your time in quadrants. He noted that highly effective people prioritized their time around important items and urged the notion that not everything is urgent all the time. So, I prioritize actions around these categories and try to spend most of my time in Quadrant 2 (Important Stuff but Not Urgent). There are enough unforeseen problems that pop-up and consume your attention each day. It is always okay to ask others when they want something back from you to gauge the importance and urgency.

6. Check Voicemail and E-mail Twice a Day
Check your voicemail and e-mail twice a day. Don’t check them first thing in the morning. I recommend checking it at 11 AM and 4 PM.

This means that you absolutely have to remove any new e-mail notifications from your computer so you’re not getting a notification whenever you receive your e-mail. I even turn off Outlook’s automatic Send/Receive so that I can get stuff in e-mail without checking out everything that was sent to me.

Best of Luck with these Time Management Tips
These time management tips are intended to be helpful. They work for me on most occasions. No one is perfect all the time and it takes great discipline to police yourself if you want to achieve higher levels of productivity and effectiveness.

Filed Under: Small Business, Tips Hacking and Reviews Tagged With:

What Successful Companies Do Differently

September 2, 2010 by Leave a Comment

This article was submitted to Like Chapaa anonymously.

To be frank – your best clients and your easiest jobs – I don’t want. We don’t look for typical clients looking to build a website or implement some online marketing. We turn down all requests that come our way.

Here Is The Goldmine I’ve Discovered…
Create “products” for niche markets and sell them to the masses of small businesses who are eager to buy them.

We’ve perfected the formula. It goes like this. Pick a niche. Develop something that works and passes the following test:

  1. It is simple and inexpensive to produce
  2. It can be priced to produce a killer profit
  3. It can be marketed like crazy

Successful Businesses Create Niches Where They Don’t Exist
Most businesses are the same company with different owners and a different name and logo. They’re all chasing after the same prospects and leads with the same marketing and sales methods and the same products.

Successful businesses, on the other hand, sell a different type of product or service. They are not carbon copies of their competitors. They have found a different type of product or service to sell to their clients.

  • Maybe they add something to their product to make it different from what everything else sells
  • They sell their service as a premium version of the commodity that everyone else sells, since it is unique
  • They are able to control the price as their product/service is unique

Do SOMETHING different than everyone else. Usually that involves the product or service that you sell. When you dig real deep, it might be the same type of thing that your competitor is selling. However, successful businesses have done something different – made it more special somehow. Once you do that, it’s easier to sell, you can make more money, and you don’t have to struggle to reach a hotly contested market. Why stay in the shark-infested waters when you can seek out the deep blue ocean?

For example, if you run a web design company, or if you do web design on a freelance basis, do you really think you can compete in today’s market? Everybody and their mother is a web designer nowadays! If you run your business just like every other web designer out there you will be dead in a few months. You have to be smart. So be smart. Be different.

Filed Under: Small Business Tagged With: