Business Plan for a Mitumba Business in Kenya (Step-by-Step)
- Business Idea and Market Research • Business Idea: Selling quality second-hand clothes (mitumba) in a high-footfall area like Gikomba, Umoja, Rongai, or even via online platforms like Facebook or WhatsApp. • Target Market: Low to middle-income earners, students, and young professionals. • Competitors: Local stalls, street vendors, online resellers. • USP: High-quality selection, trendy styles, affordable prices, and reliable online delivery.
- Write a Business Plan Executive Summary: Start a mitumba business targeting budget-conscious buyers by sourcing from Gikomba and selling at a local stall and online. Startup Costs (estimated): • Stock (first bale): KES 15,000–30,000 • Stall setup: KES 10,000 • County licenses: KES 6,000 • Marketing: KES 3,000 • Total: KES 34,000 – 50,000 Revenue Target: Daily sales of KES 1,500–3,000; Monthly revenue ~KES 45,000–90,000. Break-even: Within 1–2 months with good location and marketing.
- Choose Business Structure • Sole Proprietorship: Simple and affordable to register for this small business.
- Register the Business Via eCitizen: • Create account • Search & Reserve name: e.g., “Klasik Thriftwears” – KES 150 • Register sole proprietorship – KES 850 • Get the Business Registration Certificate
- Obtain Licenses & Permits • Single Business Permit from County Offices – KES 5,000–10,000/year • Public Health Certificate (if selling from stall) • Fire Safety Certificate (in some counties)
- Set Up Operations • Location: Rent a stall in a market or near a bus stop/roadside (KES 2,000–8,000 monthly) • Stock: Source bales from Gikomba or Eastleigh • Equipment: Hangers, mannequins, table, branded bags – ~KES 5,000 • Online Setup: Create WhatsApp Business, Facebook Page, Instagram • Hire Assistant (optional)
- Branding and Marketing • Name: Klasik Thriftwears • Flyers/Posters near schools, hostels, and estates • Daily status updates with new stock • Promotions: “Buy 2, Get 1 Free” or “Happy Hour Sale” • Use Influencers: Local ones or micro-influencers (KES 500–2,000/post)
- Tax Compliance • Register for KRA PIN via iTax • If revenue is under KES 5M/year: • File Turnover Tax (TOT) – 1% of gross monthly income • Submit monthly tax returns via iTax • Keep basic records of stock, sales, and expenses
- Monitor and Grow • Reinvest profits to buy more bales (e.g., jeans, baby clothes, designer tops) • Open a second stall or expand online delivery • Explore partnerships with boda boda riders for delivery • Record daily sales and identify fast-moving items Summary: Mitumba Business Startup Budget Item. Cost(KES) Bale (1st stock) 20,000 Stall rent (1st month) 5,000 Business registration 850 Business permit 6,000 Equipment & branding 5,000 Marketing 3,000 Total 39,850
0
0
0