Money is the lifeblood of any business, and at some point, every company is likely to need an outside infusion to help it grow. Unfortunately, small businesses do not usually have the luxury of large cash reserves which they can easily access to meet temporary or long-term funding requirements.
At the moment budding entrepreneurs are putting all their efforts to clinch an opportunity in this year’s KCB Lions’ Den Season Three show, which allows entrepreneurs to pitch their business and get financing from top business moguls in exchange for stake. Being a competitive engagement, this means that only the best will get the financing they need.
Here are five things to consider when taking the journey to approach investors for any amount of money.
First, define your startup properly, the sector you’re in, and who could potentially be interested in this sector. Think laterally about the possibilities that your product offers, and what industries it could be used in beyond the obvious. Defining your product and where it stands, will also ensure that when it comes to approaching an investor you have a really strong sense of what you’re offering, why it’s important, and where it fits.
Write a detailed business plan
Writing a business plan is easy. But writing one with sufficient detail for investors, can be tricky. Entrepreneurs often leave out key numbers and are overly optimistic with those they provide. For starters, know your burn rate, which measures how much money a not-yet-profitable business is spending each month, and break-even point.
Have a good estimate on your first-year cash requirements, your gross margin, and how it compares to the average for your industry. Also calculate a realistic growth rate and how your costs will scale up as your sales do.
Clean up your credit
If your business doesn’t yet have its own credit history, many investors will want proof that you can responsibly manage money and pay your debts. That proof is your personal financial track record.
If you find any mistakes, contact the creditor involved, requesting a letter acknowledging the mistake and stating they plan to inform the credit-reporting agencies about it.
Investors might be less concerned with your credit score than lenders, but they’ll be wary of entrepreneurs with major blemishes such as a bankruptcy or loan default on their record.
Line up your team.
The big question for nearly every angel investor is: Can you do this? They’ll want to know that you and your co-founders or management team can execute the ambitious business plan you’ve presented and pay back your loan or generate a return for investors. Make sure you and your key people can talk about what may be ahead for the business, what the later phases of growth might be, what could go wrong, and how you might handle those things.
A Viable exit strategy
Before he or she invests in your business, an angel investor will expect to see an exit strategy. While angel investors are patient and willing to make long-term investments, they need to see how they’re going to reap the return on their investment.
The sale of shares to the company’s principals is a common exit strategy for angel investors who hold equity ownership positions; the sale or merger of the company is a common exit strategy for debt-holding investors. Don’t be surprised that your prospective angel investor wants a time-frame set.
You want to get an investor to help you take your business to the next level? Apply KCB Lions’ Den Season Three on https://www.kcb2jiajiri.com/lions-den/ and achieve your next desired business growth.
By Bernard Gitonga
Kiambu Road Investment Limited has today held an official groundbreaking ceremony to kick-start the construction of its first hospital in the country to be completed in 20 months.
The investment is aimed at meeting the ever-rising healthcare demands from the Kenyan public and will comprise of 115 beds, 4 operating theatres and 11 dialysis stations. It will provide a wide range of general and specialist healthcare services including paediatrics, gynaecology, obstetrics, orthopaedics and a full suite of radiology services.
Speaking when he met the foreign and local investors at the groundbreaking event, Investment Fund for Africa (IFHA) Managing Partner, Mr. Max Coppoolse said the hospital is designed to deliver world-class medical, surgical and diagnostics services to meet the growing needs of patients and the medical community.
“The fast-paced growth of the Kenyan economy together with the commitment of the Kenyan Government to expand access to expand healthcare throughout the country makes Kenya the ideal location to establish this world-class hospital.” He said.
The groundbreaking event was overseen by AAR Kenya Chairman Dr. Frank Njenga who noted that the provider has evolved over the years from providing healthcare to only AAR insured patients to serving all Kenyans including those without insurance covers.
“This hospital represents an important landmark for AAR’s continual growth into a fully-fledged health ecosystem. Once the hospital is operational, the patients, medical community and all our stakeholders can expect the same level of high quality, patient-centric services and infrastructure they have been accustomed to receiving at the AAR clinics,” he said.
AAR is one of the key investors in the project.
The self-declared General of the banned National Resistance Movement (NRM) Dr. Miguna Miguna arrived in London last night to take his campaign of ‘liberating Kenya’ through public lectures and meetings with Kenyans living in the United Kingdom.
His clearance at the airport took rather long after it was delayed for unknown reasons. He arrived at Heathrow airport at 6.30.PM but had to wait for 3 hours to get clearance.
It is not clear what the self-styled general is fighting for as much has gone under the bridge since his deportation from Kenya for his participation in the mock swearing-in of NASA principal Raila Odinga as the People’s President in January.
So far Raila has reconciled with President Uhuru Kenyatta and the two have formed a task force to come up with ways in which they can work together. Raila’s reform and development interests will be factored and implemented together with those of President Kenyatta.
The country has been at peace after the truce and the least Kenyans want at the moment are distractions and noises from loudmouths like Dr. Miguna.
The KCB Foundation has launched recruitment of beneficiaries for 2jiajiri programme. 2Jiajiri is a flagship programme of the KCB Foundation that seeks to create jobs and wealth through targeted skills development in the informal sector.
This year, the Foundation and various partners seek to recruit 10,000 beneficiaries in agribusiness, automotive engineering, beauty and personal care, building and construction and domestic services at various technical training institutions in Nairobi, Machakos, Kilifi, Nakuru, Nyeri, Uasin Gishu, Kisumu and Mombasa counties.
The recruitment is open for scholarships under 2Jiajiri and the Skills and Enterprise Development project implemented in partnership with the German Agency for International Cooperation (GIZ).
Interviews will be conducted across the country from 5th to 10th March after which the successful applicants will commence studies for a period of up to six months at the respective institutions from 19th March 2018.
“Through this programme we seek to develop a new cadre of youthful entrepreneurs in the informal sector to ease the country’s unemployment crisis and to provide a bridge to the unemployment gap that exists among the youth,” said KCB Foundation Executive Director Jane Mwangi.
Application forms are available at selected KCB branches, participating training institutions or can be downloaded from the KCB Foundation website www.kcbgroup.com/foundation
Interviews shall be conducted at the respective technical training institutions where the beneficiaries would wish to undertake their studies.
Since its launch in 2016 the programme has skilled over 12,255 youth beneficiaries on technical skills and financial literacy across the country.
Louis Otieno, in his hey days, was one of Kenya’s finest TV personalities. And that was a valuable time to watch TV. Louis Otieno, Beatrice Marshall, Christine Nguku, Nyatichi Nyasani, Sophie Ikenye, Tom Mboya, Njoroge Mwaura, Catherine Kasavuli, Fayyaz Qureishi. Wa wa wa. The list is not very long.
These TV presenters did their job with honor, respect, and dignity. And because of that, the rest of society idolized them. At the same time, we saw these men and women we idolized as being perfect. Oh how we forgot that even such great men and women are human enough to make mistakes! And that is Louis Otieno for you.
It is a common knowledge that life is inextricably interwoven with scars and bruises and wounds and hurts and heartache and sorrow. Louis Otieno made bad choices. He betrayed people who loved him. Because of the choices he made, some driven by his king-like status in media, some families were broken. It was one mistake after another.
There were/are people hurting because of Louis Otieno. I can imagine these people going down on their knees and praying to the God of Kirinyaga to “deal with the enemy,” and the enemy in this case being Louis Otieno. God perhaps is dealing with Louis Otieno. I do not know. But that is the work of the Master. And He is very good at it! At the same time, God calls on us to love everybody (in Matthew, the word is “enemy”). He does not say “love only those whose mistakes and follies are not in the public limelight.” He does not say “Love only those who are righteous.” In the Letter to the Romans, Paul reminds us that “No one is righteous, no, not one.”
Is it possible to love Louis Otieno after all? To some, it’s difficult. To others, maybe it’s possible.
Today Louis Otieno needs medical attention. And this will cost money. What would the Good Samaritan have done in such a situation? Abandon him for being guilty of so many misdeeds? Now forget about the Good Samaritan, for a minute. What will you do about Louis Otieno? Will you help him meet his medical costs?
The human in me will not look at Louis’ faults. I will look at the human capacity to redeem others. Besides, John Ruganda said it well in the book The Burdens: “Fools laugh at disease, the wise laugh at ugliness.”
Kenya’s’ oldest Supermarket, Uchumi’ has announced its intention to close one of its busiest and most profitable branches, the Hyper, located at the Sarit Centre.
It is not clear why the retailer has decided to close the branch which is located in the prime Westlands area of Nairobi and which has been among the branches that have kept the struggling retailer in business but rumour has it that the closure has to do with costs.
Uchumi had earlier announced its comprehensive turnaround plan and new cost management strategy that seeks to streamline its store portfolio and intensify cost efficiency efforts per store.
The management published on twitter that the branch shall be closed at close of business on Sunday 25th February, 2018. This will bring to 3 the number of branches the retailer has announced of intentions to close in Nairobi in recent past.
In January, Uchumi announced that it will be closing the Capital Centre Branch located along Mombasa road and the Tujijenge Branch Located along Thika Road.
The Chain is currently under the leadership of Andrew Dixon working as the Chief Operating Officer after the resignation of former CEO Mr. Julius Kipngetich who joined the Jubilee Insurance as the regional Managing Director.
The 13-week application process is open to budding entrepreneurs across Kenya
The KCB Bank Kenya has opened the application process for the entrepreneurship reality show, KCB Lions’ Den Season 3, providing fresh opportunities for entrepreneurs to tap growth opportunities for their businesses.
The 13-week process opened on Monday, February 19, 2018 and will close on Monday, May 14, 2018.
The applications are now open online via www.kcb2jiajiri.com/lions-den. Applicants can also express interest by accessing forms from any of the KCB Bank Kenya branches across the country.
The show allows local start-ups to pitch their business ideas to top investors, the Lions, to seek financing and mentorship in exchange of stake in their companies, effectively helping them catapult their enterprises to the next level.
“KCB Bank believes in providing opportunities to catalyse business growth. Youth empowerment is at the core of our business. We aspire to see many entrepreneurs get the support they need not only in financing their business but also mentorship, which KCB Lions’ Den offers. We also desire to support numerous viable ideas become real businesses,” said KCB Group Marketing and Communications Director, Angela Mwirigi adding the application is open to all entrepreneurs with businesses in any sector across the country.
The past two seasons have seen 59 entrepreneurs receive capital pledges of KSh291 million from the Lions, with one business getting KShs40million.
The number of applicants also increased from 5,000 in the first season to over 6,500 in Season Two, indicating rising interest among entrepreneurs.
KCB Lions’ Den is in line with KCB Group 2jiajiri initiative that seeks to create job opportunities for the youth as well as up skill them for self-employment while at the same time provide training, funding, market place and mentorship for future entrepreneurs.
The initiative aims at empowering 10,000 youth every year to start small businesses for the next five years, which is projected to create 50,000 direct jobs and at least 250,000 indirect jobs during the period.
By Jane Mwangi
The beauty and personal care industry is fast becoming Kenya’s new investment hub, attracting massive foreign investment by renowned global brands like Yves Saint Laurent, Black Opal and Oriflame among others. It is also one of the fastest growing industries in Kenya having grown by 400 percent in four years from Ksh 26 billion in 2011 to over Ksh 100 billion in 2015, according to KPMG estimates.
The growth in beauty products and services can be attributed to increased discretionary spending and urbanisation. Market growth is also fueled by a large demand of millennials who want to try new looks – for the perfect selfie shot. This is coming against the backdrop of a handful giant cosmetic manufacturers gradually coming back after keeping away from Kenya out of lack of skilled manpower, the belief that there was low demand for their products and assumption of the country being a low spending power region.
However, in spite of the huge strides, the beauty and personal care industry in Kenya is yet to fully maximise on its potential both from demand and supply side. Kenya’s population of about 45 million is an adequately ready market for cosmetics and beauty products but also a ready workforce for the industry. However, the contribution to the economy is still minimal.
Lack of skilled workforce remains the biggest obstacle to unlocking the beauty market potential. Other market attributes that hinder the growth of this industry are: financial illiteracy and high cost of salon equipment.
I believe that, through concerted efforts, the youth can be involved in the beauty industry by assisting them to gain skills. This can also be an incentive for international investors keen on setting up shop in Kenya.
To attain this, a critical mass of young people need to be trained, given the necessary infrastructure as well as financial access and business advisory support. Moreover, strategic partnerships can be created with established salons to absorb budding salon entrepreneurs who cannot open their own. This would enable them to gain wide experience and in-depth understanding of the industry.
Furthermore, the industry can be promoted through innovative mechanisms such as adoption of the ‘franchise container’ model where students trained in beauty can own franchises of popular local and international brands across the country. The successful Brazil beauty industry for instance has largely been supported by franchising, guided by stringent legislations that guard the interests of both parties.
The ‘Salon Suites’ concept also known as booth rentals, brings a different approach to the industry. It offers beauty professionals an opportunity to own their own business without the large upfront costs and risks associated with building or renting and running a salon, the potential is untold.
KCB Foundation is piloting this revolutionary approach to business premises hosting for the beauty and personal care professionals through a franchise container model. Modified shipping containers are retrofitted to host the salon. The container acts as an incubation hub for students who have completed hair and beauty courses where they can perfect their professional skills even as they prepare to start their own businesses.
The joint venture model takes into account the graduates’ capital inadequacy to assist them meet the operational cost of running the salon. This business model has a co-working style and provides a platform to incubate hair and beauty beneficiaries until they are ready to take up their own containers. The beauty of the concept is that it takes into account issues of space as well as mobility as the container can be moved from place to place depending on business performance and owner preferences. Additionally, the fittings are never disentangled when forklifting the container, hence guaranteeing their safety. Owners of the containers can assist their tenants to place them at vantage points like public and private parking areas, church compounds or at market centres.
KCB Foundation is implementing this through 2Jiajiri, a transformative skill development and wealth creation programme, established in 2016, that seeks to develop a new cadre of youthful entrepreneurs within the informal sector to ease the country’s burgeoning unemployment crisis.
The Foundation will provide business development services to upskill the 2Jiajiri beneficiaries into developing thriving enterprises. So far, over 880 beneficiaries out of the 12,000 recipients have been sponsored to the programme across the country and in various sectors. Upon graduation, the beneficiaries join the KCB Foundation incubation process as they walk through the journey of establishing their businesses. The KCB Foundation has partnered with leading beauty colleges and salons in the country to empower and equip unemployed and out-of-school youth to grow micro enterprises in the beauty industry by providing them with technical skills and access to seed capital. This will enable them to tap opportunities from this growing multi-million-dollar industry. The Foundation has partnered with Ashleys Hair and Beauty Academy, Azizi Hair and Beauty College and Amadiva Beauty and Hair Salon among others.
Measures such as these will see Kenya boost its earnings from the beauty industry as it seeks to match the pace of other leading global players such as Brazil.
Jane Mwangi is the Executive Director of KCB Foundation. firstname.lastname@example.org