I have been doing a lot of thinking lately, wondering whether an MPesa startup is worth an investment or otherwise. From the time the company started, until today, we’ve seen the number of people buying the idea of mobile money transfer grow rapidly.
For many Kenyan, MPesa is the most convenient and secure method of sending and receiving payments. For agents and banks, the mobile processing service is a bog business opportunity. A big thank you to Safaricom Limited.
Apparently, the number of mobile money transfer agents in every Kenyan town is quite large. So much, in fact, you’d think that the business might lose its value in the future.
However, the chances of the business idea ever losing its worth in the future is high unlikely. In the heart of it all, here are 10 reasons why an MPesa Startup is the best small business idea.
A person in Nairobi can send money to a friend in Nakuru, and in less than 20 seconds, the recipient get a notification from MPesa that they’ve received a payment.
It works perfect, isn’t? In the heart of it all, the sender and the recipient all have to rely on an agent to receive payment. Still doesn’t make sense? Let me explain.
If someone in Nairobi has cash and they would like to send it to someone in the same or different city, they will approach an agent and request to deposit the money.
The agent processes the request according to the terms and conditions of the service, and then the money is deposited in the requester’s account.
Once an agent deposits the money, the sender sends the cash to a person on the other end. If the recipient wants to get money in hand, they go to an M-Pesa agent and withdraw the money for use. The hassle ends there.
You can see that an agent is required here. He is the intermediary. This person connects the sender and the recipient together. He controls how the sender and recipient deposit, send, and withdraw money. Without agent, M-Pesa would be just another bunch of useless gateway in Kenya.
Out there in the lawless world where anyone can do anything, quite a few human beings decided that the easiest way for them to make money is through theft. And, they go for paper cash.
At the end of the day, the crooks only steal what they get. Sounds like a stupid statement, but it isn’t. Money theft is as real as death itself.
M-Pesa and their agents appeared to change the way people handle their money. Today, pin-protection is the rule of the game. A thief will hardly steal money from you. While they may make away with your expensive phone, they can never steal your money.
Mobile money transfer is a blooming business in the city. But the rural areas still crave for the same service. For anyone who wants to become an agent in the rural area, this is a great small business idea in Kenya.
We know for a fact that MPesa hasn’t reached so many people. So, if you can take on the business, this might be your best chance to grow a stronger rural market.
A barber’s markets are people who want their hair done. Not everyone goes for massage. Same case, butcheries can never attract vegetarians. And the list goes on and one; you get the flow.
Mobile money is different. Everyone is a market. Whether they come from the rural community or the bigger city, and have a lot of money or otherwise, they all use the mobile money service.
So, if you are looking for a business idea that can target everyone, regardless of what they prefer, start an money business.
I have never fancied the MPesa services at the ATM machine. I have never call at a bank to withdraw money from M-Pesa.
There are over 5 million people like me. We believe that agents are the best channels that can help us send and receive payments anytime. In fact, agents are everywhere, even in your shopping center, a five-minute walk from your home.
This is good news to those aspiring to become MPesa agents.
Everyone talks about M-Pesa these days. Even someone who has never used the service before, the under 18 to be precise, understands that it is the best way to send and receive payments.
Above all, everybody wants to join in. Many customers are signing up for MPesa, and the community is growing swiftly.
Because everyone wants to have and enjoy the M-Pesa thing, why won’t the need for many agents in the business be necessary?
It is disheartening when your startup business ideas won’t take off the ground. You look back at the time you started the company, and you see nothing new.
Your investments have not paid off that much. And, you keep getting undesirable returns on your investment.
Your customer base is not growing. The meager profit is becoming too unbearable. And, it seems that you are just in business to pay the bills.
At this point, you begin to question whether you are making mistakes that won’t let you scale up your enterprise. Moreover, the chances of questioning whether you choose the best business startup ideas are highly likely.
Here is the bitter truth: you didn’t choose wrong startup business ideas. Don’t even think that it’s been a silly run all this while.
If your business is able to pay the bills and make small returns, then you can’t conclude the startup was – or is – one of those worst mistakes of your life. Besides, serial and newbie entrepreneurs alike don’t invest in startup businesses that they don’t love.
Where then is the mistake? Why exactly aren’t you able to keep your head above the waters? Why is your startup stagnant when your competitors seem to be doing so well?
If there is one thing that is for sure, it is that you are making brutal startup mistakes, which will eventually kill your business. Below is a list of errors new businesspersons – businesspersons like you – make, and the simplest, stupid killer solution for each.
Customer acquisition is the process of bringing in many customers to your business. Big enterprises treat the progression as the number one focal strategy for growth.
While rapid customer acquisition is a healthy growth approach for already established businesses, it is no so for new enterprises. Why? Because a new business in its young stage incurs too much losses by investing in rapid customer acquisition.
When you focus on bringing in more customers, the business becomes difficult to handle. The more customers a small startup have, the more the likelihood of failure.
Let me explain. In the early stages of your startup, you will be working alone. You will have a few goods to supply. And if you are providing services, it won’t make much sense to keep customers waiting.
Now, imagine you have an array of customers who’ve already built trust with your brand in the early stages when your business is trying to get off the ground but they can’t get their orders delivered. That – in many cases – means 110% failure.
Don’t market a young startup to the whole world. And, customer retention should be your seed keyword; it should be where your investments go.
For now, spend much of your time making your small consumer base happy, and then expand your list as your business grows.
What makes profitable startup business ideas?
CEOs, Business executives, and small-scale business managers all agree that a unique idea is the one that solves people’s problems at an affordable price.
However, so many new startups set unrealistic pricing points for their products and service, making what they sell expensive, hence the less number of buyers they get.
Make your products affordable. And, if you have no idea how to price your products, talk to as many successful entrepreneurs.
Utilize their advice so that you can create a reasonable pricing structure for your products and services.
SWOT analysis is a significant business analysis strategy, but it is often ignored by new startups.
The problem is the failure to do a SWOT analysis denies you the opportunity to learn four fundamental metrics that have enabled serial businesspersons to establish a strong presence in the market.
Unless you do an evaluation, you will never understand the Strengths and Weaknesses of your small business ideas. You won’t discover juicy market opportunities. And, you won’t know where startup competition and threats come from.
Get out of your comfort zone.
Go out there and start doing SWOT analysis before you begin operating your startup.
Simple, isn’t it?
Every new entrepreneur has a fundamental goal. Some want to take their businesses off the ground in the shortest time possible. Others want to go to work every day hoping to interact with as many new customers as they can possibly get. Some wish overnight success and growth were possible. And, others hope that their consumer base will grow over time. Amazing thoughts, right? But, up until now, these are wishy-washy desires that won’t translate into success unless you pay more attention to customer satisfaction.
You see, customers are the foundation of every business. They are the reason why every trade is in the market. That is why businesspersons work so hard to expand their customer base through marketing. But, establishing a well-defined target audience is only a part of a competitive battle. Why? Because having a long list of customers doesn’t necessary mean doing more business.
In my honest opinion, unless you are investing more in customer satisfaction, garnering brand loyalty in a highly competitive market won’t be possible. If you want stability in business operations, then you must make your customers happy.
But, how can you make your customers happy? How can you know for sure that they are willing to do repeat business with you? Will your business ultimately succeed? Well, here are the 3 unusual ways to build customers’ loyalty.
Why would you even put your business in the hands of customers in the first place? It sounds like a counterfeit advice to give to a marketing pro who has years of experience in customer satisfaction survey. It reads like a sham, and if you don’t like this, you are probably going to stop reading. Now, let me explain.
Who decides what and when to buy from your business? Your customers. Who makes the conclusion that your product is the best or otherwise? Your consumer base. Who decides whether to trust your brand or search for alternative products on the market? Your customers. It makes sense now, doesn’t it?
When you put your business in the hands of customers for analysis, they are going to give y0u unbiased reviews. They will tell you if your products and services need improvement. And, they will tell you outright if they feel you are in the wrong job. At the end of the day, customers are usually right.
Without a doubt, your customers often buy similar or alternative products to yours from your competitors.
Remember, your customers are also your competitors’ clients. And, this is something you can’t control; you can’t just decide where a consumer buys their goods. But, you can try to outdo your competitors by asking your consumers to be your spies. Here is how it works.
You download a blank comparison chart template, or create one yourself, and print as many copies as you can. When a customer comes to make their next purchase from your business premises, ask them if they would be interested in helping you to do a competitor analysis. Then, give them a comparison chart template for doing the comparison.
Give them at least a one-week deadline, and then request them to submit their analysis. You will be surprised how much information you can receive for free from loyal customers.
Creating billboard ads that tell people to come and buy your products at a slight discount price seems like a great marketing technique. Let me be honest with you; this is not going to help you nearly as much. People hate buying things they know nothing about. So, stop pitching sales. That’s not going to make your customers happy.
The only best way to boost interaction and augment customer satisfaction is to teach your target audience about your products. Write reviews about your products, and then print them on brochures and pamphlets. Use these files as your teaching kits by giving every customer in your target market a copy of the document.
Remember, if customers are going to trust you, they need to establish a relationship with your brand first. But they can’t know anything about you if all you do is put more focus on is pitching sales. If you want to sell more, teach customers. Let them know why they should buy your product.