1) Is this legal? It is legal to start a mitumba business in Kenya. You will have to have a license from the Kenyan Bureau of Standards that is used for all manufacturing and trading of non-agricultural products. Your products will also need to be inspected for quality and compliance before you can sell them. It is advised that you start small when trying to get a mitumba business off the ground as it can be hard to compete with those who have been in the industry longer.
2) Know the market you’re selling to. There are a few other things to keep in mind when trying to start your own mitumba business in Kenya. For example, the quality of clothes you sell can vary based on where they come from and what their original use was. Clothes sold at the roadside are mostly out of date and used as rags or raw materials for further manufacturing. Wholesale buyers will typically buy from upscale shops that cater to well-to-do customers. Therefore, how you brand your clothes will also depend on which type of clientele you're catering to.
3) Know your competitors and what they offer. Mitumba is a business that's big in Kenya. Knowing what your competitors offer and how to differentiate yourself is crucial for starting a mitumba business. These are some of the ways to start a mitumba business and get an edge on your competition: Know who you're competing with: Who are the other sellers in your community? The sellers in my area have similar items to mine but they specialize, while I sell everything related to clothing. What sets me apart from them is that I buy large quantities of clothing, which means better prices and more selection. How do you find out who the other sellers are in your community? One way is by asking around at different shops or stores, or simply going to their shops and looking at their stock. What makes me stand out from them is that I'm willing to work hard, providing excellent customer service while they only provide basic customer service (or none at all).
5) Get your products sourced from China. Mitumba is starting to grow and there are still many items you can sell, but the trick is to know what products sell. I would suggest getting your goods sourced from China because it is cheap and you won't have any quality control issues. They also ship faster than most suppliers which saves time. Once your items arrive at the destination, make sure you give them an inspection before you take them out of the container. If everything checks out and looks good, then proceed with your business operations. Just remember that you will need a license for every product sold in Kenya so that should be another step in this process. Once your company is set up and running smoothly, you will need to learn how to deal with taxes and invoices. You should also do your own accounting because if you hire someone else they may not report all of the money made on their end or not pay taxes on the profit they made for themselves. It's much easier if you keep track of all income and expenses yourself so that way when tax season comes around, it will be easier to file your returns without being audited by the government.
4) Use google analytics. It is not always easy to start a business. It is full of different challenges you will need to tackle such as the company's concept, the market and industry, competitors, the location and much more. With an organized step-by-step guide on how to start a business you can avoid problems in this journey and save valuable time for better things. If you are about to start your own clothing recycling company in Kenya then here are 7 tips that will guide you in reaching your goal.
6) Choose a name for your company. Kiko Watches is a proposed business that would primarily sell mitumba watches. We will primarily sell these products through our website and through Facebook Ads, but also at trade shows. To avoid ethical issues with the mitumba industry, we plan to not have any dealings with second-hand goods directly from Africans. Instead, we will provide loans to first-time mitumba entrepreneurs to start their own businesses and then buy all the watches they produce for Kiko Watches (including raw materials like metal, glass and leather).
7) Choose a business structure (Ltd, PLC etc.). Choosing the best company structure for your business can be a challenging process. There are many to choose from, with each having pros and cons. If you're just starting out, it's easier to start small with an individual or a sole trader business where you can operate as either the proprietor or the managing director. However, if you want to expand and start generating some passive income you might find that more formal structures like Limited companies and partnerships might suit your needs better. Once again though, there are always pros and cons so it's worth considering all of them before making your final decision. What is good about LLPs? - They provide some protection for debtors against an individual becoming bankrupt.
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