Why You Need to Consider Location of Your Business - Daily Kenya

Why You Need to Consider Location of Your Business

Which street would you rather host your business on? Downtown or the CBD. Or maybe in the outskirts of the city.

A lot comes to mind when you think of a business location. Nowadays, business is even virtual, and with no specific location. However, at some point, people will have to come to your store or shop.

Choosing a strategic business location is one thing you want to do right. You get this right, and you are on to a good start. 

Have you ever seen businesses fighting over a spot? 

It is a hot spot like a wi-fi. There are those specific places with a strong network. In business terms, there are those corners or streets with most clients. Willing buyers.

I challenge you to walk on any city or town streets, and you will notice that some shop space cost way more than others despite being in the same city or town. 

The answer is simply the location. This is an obvious thing. If you want a shop within the CBD, let’s say Tom mboya street in Nairobi, that might be like Ksh.50,000 per month for rent. It can even be as much as Ksh.90,000.

That pricing can be justified considering the crazy human traffic in that street, Tom Mboya is the main street in Nairobi city, and thus business space is expensive. You will definitely get clients, and that rent will pay itself in two to five days. And by the time you clear your stock, you will be glad you put your products or services on that part of town.

How to get a good business spot?

First of all, the motivation for getting a good place is to get clients – not just clients but customers with the buying power. You don’t want your business in a bad part of town with only window shoppers.

One thing you will notice about a good business location is that it is very pricey. It costs an arm and a leg to get a store in the CBD of any city. 

If you are just starting out and you don’t have enough money for a strategic business spot, instead of putting your business in the rundown part of town where you can be robbed, I would suggest you share a spot with another like-minded individual.

This is how it is done here in Nairobi, and in any city in Kenya. This is simple and let me explain how it works. 

Let’s say you want to sell clothes, and you find someone who wants to sell shoes, why can’t you guys be in the same space, share the rent and even share customers. 

I can go into the shop and get both clothes and shoes in one spot without having to move around. This is convenient for both the customer and the business owners.

I can give many more examples of this. 

Another common one is between an M-Pesa agent and any other business stall. It could be a food joint or a mobile shop. If you walk into any business shop in Nairobi town, you are likely to find an M-Pesa guy within. 

They are putting efforts together to share the cost of the rent. I can just come to that shop, withdraw my money from the M-Pesa guy and go ahead and buy whatever I want within.

No Partner, go virtual.

The main reason for wanting a specific business location is to have access to the crazy traffic they give to your business. It is the exposure that your business gets by being on that busy street that you want.

There is another way you can get to expose your business even without that spot on the CBD. And that is what we all know as social media.

Create a business account or page for your shop on social media and promote your products there. Look for a delivery guy who will be dropping items to your clients, and you are good to go. Most young businesses that can’t afford a location do this.

Just open an Instagram account and get it running.

A good physical spot alone is not enough in this digital era. You also need to boost the traffic to your shop by marketing your business on Instagram and Facebook.

How will I know that a shop in Moi Avenue has beautiful dresses? 

By seeing their sample photos on Instagram or Facebook. And then I will easily locate it because the street is in an open and safe place.

Today, Nairobi is ranked as one of the most expensive cities in the world appearing at position 97. Rental accommodation was found to be high among other services.

It is this high cost of rentals in the capital city especially in the CBD that is forcing small-scale traders to think out of the box by considering e-commerce in place of rental shops.

“I know of my neighbours who were running a small jewellery shop who are now selling their goods online after packing out last year to operate from home,” said John Mungai who runs men’s cloth business along Tom Mboya Street in the CBD.

He says that most of the shops around charges up to Sh.25,000 a month depending on the size and still the traders have to sort out the city council taxmen.

But how are these small-scale traders who have decided to go online operate their businesses and still make good profits?

You will realise that today there are many social media pages with advertisements of people selling goods and services. Most of them are individuals posting shoes, clothes, electronic accessories and cutleries among others.

No wonder you frequently come across the messages “please retweet, my next client could be on your timeline”

Trust me, once such people find their footing in online business, certainly they will not go renting shops or go back there if they ever had one before.

Certainly, e-commerce is eating up the rental business slowly in the city.


We have seen business literally fight over spots. A good market that makes their business bring in more revenue. It is the same way major corporations fight over certain markets that are likely to bring in revenue.

It is all about where the buyers are. And buyers are not only looked for physically in this era, you can equally go online. By online here I mean social media and classified ads sites like jiji.co.ke

Also, tomorrow we shall be starting our training on Business Plan Writing. 

Most people who think about starting a business usually don`t consider writing a business plan.

I have read from different business experts about the fact that most start-up entrepreneurs do not write a business plan but what I have not read from anyone is why this is so.

Why is it that most people have fear (so to say) about writing a business plan?

I know the answer.

You see, there are many myths and lies you probably have heard about the subject of business plan. 

Some people present business plan as if it was a university thesis or an academic report to be defended before certain professors. 

Other people think that a business plan has to be 50 pages long and that it must be written in a certain “approved” format.

Well, I am here to tell you that all those opinions are not valid. 

Because there are some ugly lies around this important business step, most people are “afraid” of doing it.

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