How To Start A Small Business in Uganda. A small business is any business with few employees.
There has been a rise in the number of people starting small businesses in Uganda today.
If you too are inspired to join the growing multitude of entrepreneurs and are wondering what has to be done to start a small business in Uganda, this post is yours.
Now let’s dive in.
1) Carry Out Market Research
Market research is the process of gathering information about your business’s buyers’ personas, target audience, and customers to determine how viable and successful your product or service would be, and/or is, among these people.
As you start any business, you need to be clear about what you are going to sell, who you are selling to, where you are going to sell from and how much you are going to sell.
All this data is collected when carrying out market research.
Market research will tell you if there’s an opportunity to turn your idea into a successful business.
Market research is a way to gather information about potential customers and businesses already operating in your area. You will use this information as a competitive advantage for your small business.
2) Write a Business Plan
After completing your market research, you need to write a plan of how you will start your small business. This plan is what we call a business plan.
Your business plan should have details of how you will start your business from raising capital to getting employees, to stocking your business.
It will act as a blueprint for your business.
Your business plan is the foundation of your business. It’s a roadmap for how to structure, run, and grow your new business.
Read: How To Write A Business Plan
You’ll use it to convince people that working with you — or investing in your company — is a smart choice.
3) Raise Fundings
Step number three in starting a small business in Uganda is raising capital. You need capital to start your small business.
There are different ways how you can raise capital to start a small business in Uganda and they include;
- Use Personal Savings
- Ask friends and family
- Get A Bank Loan
- Get Money from Investors
The capital required to start a small business in Uganda is 3 Million UGX to 20 M UGX depending on the type of small business you are starting.
For More Info on Raising Capital: Read How To Raise Capital for your small business
4) Find A Suitable Business Location
The success of most businesses is highly determined by the location of those small businesses.
You need to think about the place where your business will be located.
Your business location is one of the most important decisions you’ll make.
Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make will affect your taxes, legal requirements, and revenue.
Whether your small business will be located on the main way or subway, town or village, you need to plan for all of this when starting a small business.
It is best to locate your business where it will be easily found because the more customers see your business, the more likely they will buy from you.
5) Register Your Business
Registered businesses are the only legally recognized business in Uganda.
Should any government program come up like government grants for businesses, they will go to the legally registered business and those are the registered businesses.
Read: How To Register Your Business in Uganda (And Get a TIN Number)
In registering your business, you need to choose a business name that is not already taken by other businesses and make it legally yours by registering it.
Some of the advantages of registering are;
- Obtaining legal identity/status
- Safeguard your business name by acquiring a trading name
- Access opportunities like loans, tenders, financing
- Business formalization creates more employment opportunities through business expansion.
- Enables registration for licenses e.g Investment, trading and taxation licenses.
- Better marketing and advertising opportunities for increased clientele
- Improved competitiveness in the regional market
Read: How To Start an electronic shop in Uganda
6) Get A Trading Licence
In order to operate your business legally without interference from the government, you need to get a licence to conduct your business.
The state of Uganda offers a grace period of a year to all new small businesses. You need to use this grace period to raise money to pay for your licence.
The location of your business determines your tax that is businesses in cities and towns pay more tax than those in villages.
7) Start Your Business
The seventh step is to open your business to customers.
You may make a grand opening for your business so that people may get to know it or you can start small.
Read: How To Start a business in Uganda
In starting a small business, you don’t need to stress yourself so much. Start with what you have, and let your business grow.
Don’t do what most people do which is “WAIT“. It is a time waster to wait. Use the money you currently have whether it is little.
Use that little money to start your small business and build on from there.
8) Promote Your Business
Much as this is not required in starting a small business in Uganda, you need to promote your business to your customers soon or later.
You can do this through adverts on the radio, Tv, paper and also social media.
By promoting your business, you must have a group of people whom you are targeting.
So you need to get the best method to reach your targeted customers at a cheap price.
Read: How To Promote Your Business Online For Free.
If you are low on income to invest in advertisements, utilise social media platforms majorly Facebook and Instagram.
Your Turn…
Here we come to the end of our steps to follow when starting a small business in Uganda.
One point to note however is you need to start your business no matter how much money you have.
Small businesses thrive in Uganda nowadays. Many people have started small businesses and have been able to succeed. You too can make it.
What have you learnt from the small business ideas in Uganda? What idea has caught you most?