Over the years, the number of Kenyans who own mobile phones has significantly grown. Meaning that starting and running a business around mobile phone accessories can be quite lucrative. The Communications Authority of Kenya in 2023, stated that there were about 66.1 million active mobile SIM subscriptions. With over 60% in mobile phone uptake.
Do you want to start a mobile phone accessories business in Kenya? Here are a few budgetary factors to consider. The general recommended amount for starting by people who have ventured into this business ranges from 100,000 to 500,000 Kenya shillings. And this is dependent on the stock, the location and also the size of the premises where the shop will be located.
Let’s break it down. You will need a physical shop and of course some counters and shelves to store items and also for display to customers. Since you probably would want some good security for your items, you will also need to invest in grills and good quality padlocks. You will also need a business permit, some branding material and probably add on other things as you go.
For a physical shop, you will need rent. The shop should be located where a lot of people frequent. Probably in cities and towns, or in busy estates etc. The goal is to get a place where customers are and also where the rent is quite affordable. Also, it is recommended to pay rent two to three months or more (if you can afford) in advance.
You want people to see your products even from afar because sometimes a person is looking for something but since they don’t see it, they might bypass your shop. Therefore, investing in good displays is not only good, but also beneficial for your business. Especially a mobile phone accessories business. Good display will include a counter, display boxes, etc. Which can be estimated at about 10,000 Kenya shillings.
Shelves are also a necessary purchase when it comes to a mobile phone accessories business. This is where you will place the items for sale. Shelves also help to enhance the display. This could also be estimated at around 10K. In terms of security, invest in grills and good quality padlocks that even have alarm sensors just for extra security. The same can be also around 10 K. You will need a business permit from the government. This can be gotten from the E-citizen platform from around 10K or from county offices.
Branding and marketing are also key. Look for colours that clearly show that your shop is a tech shop. Hence, colours like pink may not really do it, probably blue. You don’t want people guessing what you are selling. You want them to know right from the get go. You can also have posters indicating that this is a mobile phone accessories shop. Maybe posters with mobile phones graphics, chargers, earphones etc. This may range from around 5 K to 10 K depending on the location, the quality, quantity, among other factors.
With all that out of the way, what then do you sell in a mobile phone accessories shop? Of course, mobile phones, screen protectors, mobile phone covers, phone batteries, earphones, head phones, chargers-all the types; type A, B and C cables, you can also stock up on car chargers. Stock up also on flash disks, power banks, micro-SD cards, adapters, speakers etc. Depending on a few things, like the volume of the stock and on the entire budget. It could altogether cost around 30,000 to over 300,000 Kes.
On top of locating the shop where there are people or rather there is people traffic. There are also other things to consider including variety, pricing and supply. When it comes to variety, it is important to have a variety of products and a variety of items in your shop. You want to avoid people constantly asking for certain items and missing them because they won’t ask forever, eventually they will just move onto another shop.
Talking about pricing, give good prices that cover your initial investment and the profit. The profit especially when beginning doesn’t have to be extremely high, you want to first break even then add gradually when necessary. When beginning don’t charge exorbitant prices, there is a high possibility that you could lose customers. In business, as the business guru and venture capitalist, Vusi Thembekwayo says: start small while thinking big. The prices shouldn’t also be too low. This can cause people to suspect the quality of your products and also shy away and you don’t want that. Also, you don’t want to eat into your profit. Therefore, it will be good to look for similar businesses around the area you are setting up your business, and check what they charge and price the items in that range.
Where to get the items and products could be another question on your mind. There are several options including importing. However, if you haven’t done it before, give yourself time to study the process to avoid being in unfortunate circumstances. You can to begin with, go to places like Luthuli Avenue in Nairobi city where a lot of places there, sell mobile phones and accessories in bulk or wholesale and also in the Nyamakima area within Nairobi city. There are reasonably priced items there.
The mobile phone accessories business is definitely a worthwhile business and hopefully with the above recommendations, and with time the business can pick.
I appreciate your cautionary advice on the complexities of importing for inexperienced entrepreneurs and your suggestion of alternative sourcing options like wholesale markets in Nairobi. This reflects a thoughtful approach to risk management and highlights your commitment to ensuring the success and sustainability of budding businesses in the mobile accessories industry.
This is great advice