Wines and spirits is one of the best businesses to start in Kenya. For many aspiring entrepreneurs, how to start a business is the issue, ideas are there but taking necessary steps is the big problem Any successful entrepreneur will confirm that the willingness to do a business won’t take you anywhere unless you put into actions the ideas.
There are steps you should follow when you aspire to own a wines and spirits shop.
- Look for capital
The first step is to ensure you have enough capital to start the business. The gross capital comprises of money to pay for licenses, rent and the general furnishing and equipping the room. You need between Ksh200,000 and Ksh400,000 in capital.
Capital can be obtained through a loan or savings.
- Look for a business premise
The second step is to look for a strategic business premise. Most people go wrong when it comes to seeking for the right business premise. While looking for one ensure that it’s close to the road, there is enough human traffic, there are also some wines and spirits shops that are doing well near the premise. However, if there are too many wines and spirits around, chances are that you will struggle to gain clients.
The business premise should not be expensive. The average income from a wines and spirits shop is Ksh 40,000 to Ksh 100,000 per month, which means that rental costs should not exceed Ksh20,000
- Registration of the business and obtaining of permits
The most crucial stage in a business is to have the identity of the same. After you have looked for a business premise, register the business and get the necessary permits.
To register the business, go to Huduma Center, do name search, reservation and registration. The process takes less than 2 weeks until you fully register the business. You will spend less than Ksh 3,000 in the process. Please ensure that you register your business as a Limited Company.
- Obtain KRA Pin
After you have successfully registered your business, go to KRA iTax online and register to obtain a pin. The exercise will take minutes.
- Obtain Liquor License
You cannot be allowed to operate a wines and spirits shop without a liquor license. After you have secured a KRA pin, visit your county offices and obtain a liquor license. The costs vary depending on the county you reside in. If you are in Nairobi, here is the amount you will pay;
Liquor License application(Ksh6,000)
Liquor License for one year(Ksh50,000)
You might also be forced to bribe up to Ksh30,000 or be forced to wait for long for the license
- County Business Permit
Anybody owning a wines and spirits shop should also get a County Business permit. This is to allow you to operate the business within the county. The permit is issued annually.
- Look for a supplier
It’s important to have a reliable supplier. Don’t worry how you will get a supplier, when you have the will you’ll get the way. Do your research by visiting wines and spirits shops near your area and ask workers how they get supplied the products, don’t ask the owners because he may be suspicious. But first develop a positive relationship with the workers by occasionally buying wine from them, once they are comfortable with you, they will tell you everything.
After you have gotten the essential contacts, you can call the suppliers and discuss the way forward.
8.Furnish the room and stock your business
The last step is to furnish the room and bring the stock. You need nice chairs, shelves, tables etc. Furnishing the room will cost you up to Ksh100,000.
Stocking will cost Ksh100,000 to Ksh200,000
There are those who prefer wholesale business,In this case you need a capital in excess of Ksh1.5 million.