Being an Entrepreneur in 2022
After surviving a pandemic that had a major impact on the economy since 2020, entrepreneurs in Kenya had high hopes for 2022. As the dust was settling, Russia attacked Ukraine, leading to a shortage of various goods and commodities. Back home it’s the electioneering period, the 2022 general elections, now known as a time of uncertainty. Guess entrepreneurs need to fasten their seat belts a little tighter, 2022 has proved to be a bumpy ride.
Every business owner understands the importance of having a strategy. A sales and marketing strategy, a customer service strategy, a financial strategy, and more. Part of a strong financial plan is knowing where you can get funds at a moment’s notice.
The 2022 General Elections
The president-elect has just been announced. Entrepreneurs are hopeful that business will start to pick up after a long go slow as witnessed in the past general elections too.
Elections in Kenya have been known to spark a certain degree of uncertainty for investors and entrepreneurs. This leads investors to hold back and entrepreneurs to hoard whatever they have anticipating a rainy day.
2017 general elections saw a majority of businesses in major towns close for a couple of months. When the Supreme court nullified the presidential elections and called for a rerun, that didn’t help. It is said that history repeats itself, not to be prophets of doom but we’d rather hope for the best and prepare for the worst.
Is a loan a good idea with all the uncertainty looming around? Let’s look at a few reasons why it might be a good idea.
Why take a loan?
1. Upgrade the security system
In the past, businesses have had to close down during the vote casting and tallying period until results announcements. This means that majority of businesses might remain closed from the vote casting day to the vote tallying day.
This means while you are away from your business you still need to protect your assets and investments. Investing in the latest surveillance technology, and alarm systems and partnering with a reliable security company will be a great start.
2. Invest in insurance
Simply put, insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. We never know what tomorrow holds, the least we can do is prepare ourselves with proper measures to mitigate risks.
There are different insurance covers you can buy for your business. You can insure against, fire, theft, post-election violence, and terrorism (PVT). Be on the safe side, think about it.
3. Stock up
After a couple of days or weeks of closing your business, businesses are expected to boom after we are done with the elections and the elected leaders have been sworn into office. This means there will be many opportunities to take advantage of.
New businesses will be looking for suppliers and service providers. Government officials will be looking for new suppliers and service providers as well. Preparing yourself well in advance will give you a competitive advantage.
This is the time to explore your industry and how you can position yourself to take advantage of the opportunities that will open up post elections. This means you might need a consistent flow of cash to help you boost efficiency.
4. Explore new market
If there is one thing that the 2020 pandemic has taught investors and entrepreneurs, is to be ready to explore new ventures. Post elections will be a great time to explore a new industry that you can expand into.
When new leaders come into the office, they might need to bring in new vendors on board. Why don’t you explore the unexplored market that might be needed? To sum it up, be a go-getter and position your business where no other business dares to go.
What you should consider
Taking a loan comes with a lot of responsibility it should not be taken lightly. Understand what you are getting yourself into early in advance. Here are key factors you should consider to make it easy for you.
1. Interest rates over time
Loans are not cheap; you need to pay interest. With this in mind, it is important that before you sign that contract you consider all fees you will incur. Some institutions will offer you a low-interest rate with many hidden fees that you didn’t factor into making your loan more expensive. Ask all the right questions and read thoroughly the agreement of the loan before signing.
2. Repayment plan
Choose a provider with a flexible payment plan depending on your needs. Have in mind the shorter the payment plans the more your monthly installments. Stick to the payment plan of your choice and ensure you make the payments on time to avoid penalties imposed by your lender.
3. Customer service
When taking a loan, you will need a partner that will take the time to understand your needs and tailor a package that will suit your business needs. You will also need to consider their promptness to respond to your questions and concerns. Quality customer service will give you an easy time during the loan processing and throughout the loan repayment period.
To know and understand how well an institution’s customer service is, go through their customer reviews on social media platforms.
Yes, taking a loan is a great idea but have in mind that having a well-thought-out plan and executing it to the latter will be crucial to the success of your business. Therefore, before applying do your due diligence and look at both the pros and cons.
To make a more informed decision, we invite you to talk to one of our advisors on 0709 650 000.