How To Start a Motorcycle Spare Parts Business In Kenya
Motorbikes are everywhere in this country. The Boda Boda sector has occasioned the heavy reliance of motorbike transport by most Kenyans over the recent past until now.
When you want to go on a short errand or trip, I bet you just give your favorite Boda Boda guy a call, they take you where you want to go and sometimes even back to where they picked you from.
With the wear and tear that comes with, and the need to keep these bikes in shape; a new business venture has emerged.
*The Motorbike Spare Parts Business.*
Those motorbikes get spoiled at some point. And soon, they need new spare parts depending on the degree of damage to the existing ones, and they will also require someone to fix the new or repair the old damaged part.
The Motorbike Spare Parts Business then comes in to fill the gap.
So profitable is the business that if you asked me, I will say it falls on my top 10 list of the most profitable businesses in Kenya.
Interestingly, you cannot talk about motorbikes in Kenya, as many as there are, without talking about their spare parts and repair.
If this is the business you want to venture in this year, then brace yourself for riches.
*The best location for a Motorcycle Spareparts Business in Kenya.*
Look at a place where most people rely mostly on Motorbike transport or Boda Boda.
This may be either in rural areas but near a town or in urban areas like major towns in Kenya.
The place should also have a number of garages and motorbike repair bases. You will sell your spare parts to these motorbike repair garages.
If you have identified such a place, then also ensure that not so many businesses of such kind operate in the area. That will ensure that competition is not chocking your business to death.
If such location conditions are met, then you have just found the place. Establish your business there and build your empire.
*Requirements for operating a motorcycle spare parts business in Kenya.*
What do you require to start your successful motorbike spare parts business in Kenya?
*Identify a market gap* – you cannot afford to just venture into a business so blindly without considering whether there is a market gap to exploit or not.
You would rather not start than start and make losses just because you didn’t conduct the proper prior analysis.
Know whether the market is overcrowded with other such businesses or not, and if so, how you will stem competition to survive.
*Know the Motorbike Models* – you need knowledge about the bikes and their models. This is because spare parts are tied to the model of the bike. A spare part meant for a certain bike model may not be suitable for a bike of a different model.
However, certain spare parts like tires, rims, side mirrors, and headlights may be shared across models. Get the knowledge from asking around or from the internet. You can also enquire from your potential suppliers. Common models include:
*Identify suppliers* – you need reliable suppliers for your stock. You need suppliers that can sell to you at wholesale prices as you sell at retail prices. Ensure you do not get duped and deal with counterfeit spare parts. Only work with reputable companies and wholesalers.
*Acquire premises* – get a small or large room depending on your scale of operation. This should be around motorbike repair hubs and where many Boda Bodas operate. A room of this nature may cost you about Ksh.5,000 to Ksh.15,000 monthly rent.
*Branding and Renovation* – You need to renovate your shop by painting and installing the necessary furniture like shelves and the counter. Brand the outside well so that it is evident from both near and far that you sell Motorbike Spare Parts. This may cost about Ksh.4,000.
*Acquire the necessary licenses* – you need a license from the county government to operate a business. This is the County Council Single Business Permit which may cost about Ksh.5,000 for a small business.
*Stock the basic Motorbike Spare Parts:* Rim, Side mirror, Brake pads, Side Mirrors, Tubes, Tyres
Stock different types of spare parts of different models of bikes. Give spare parts that sell faster a priority – tubes, lights, brake pads, and side mirrors among others.
Offer quality and original products to retain customers.
*Next, Market your Motorbike Spare Parts Business:*
If you can market on Social Media and popular blogs, you can get customers from far.
Word of mouth, Posters and good branding will help.
Big businesses can place ads on Google, Facebook, and Instagram.
*How much Capital do You Need to Start This Kind of Business?*
How much exactly do you need to set up a Motorbike Spare Parts Business? It all depends on the scale of operation you have in mind, whether small scale or large scale.
To start a small Motorbike Spare Parts Shop, you will require:
*Stock – Ksh.30,000
*Premises – Ksh.5,000
*Renovation – Ksh.4,000
*Licensing – Ksh.5,000
*Marketing – Ksh.5,000
With Ksh.50,000, you are ready to start a small Motorbike Spare Parts Shop. A large shop may require Ksh.100,000 and above.
A small shop with a good flow of customers may give you Ksh.5,000 – Ksh.7,000 a day.
Given that consistency remains, you only need 6 months to break even with this kind of business.