Spotting a real problem

A business solves a problem

A business is an activity where you offer something that people need or want, and they pay you for it. The best business ideas start with a problem, not with a product.

Here are some examples of problems:

• Office workers in Westlands have no time to cook lunch.
• Parents in Kisumu cannot find school uniforms in the right size.
• Busy families in Nairobi need someone reliable to iron clothes.

If you can solve a problem in a way that is cheap, quick, clean or friendly, people will pay.

Where to find ideas

• Your skills. What can you already do well? Cooking, braiding, sewing, repairing phones, cleaning, teaching or driving?
• Problems around you. What do neighbours complain about? What do you wish you could buy nearby?
• Gaps. What is missing in your area, or is of poor quality?
• Your experience. If you have worked in a home or a care setting, you know what employers and families value.

Four questions to check an idea

Question	Example
Who is my customer?	Office workers near the Kisumu bus park
What problem do I solve?	They want a cheap, hot lunch in 10 minutes
Why would they choose me?	My food is fresh, and I deliver to offices
Will they pay enough for me to make a profit?	Yes, if I sell plates at KES 150 and my cost is KES 90

Profit is the money left after you subtract all your costs from your sales.

Look at competition

Competitors are people who sell something similar. Their presence is often a good sign, because it shows that people buy. Visit them. Ask yourself:

• What do they do well?
• What do customers complain about?
• How can I be better, or different?

Start small

Do not borrow a lot of money or quit a job for an untested idea. Start on a small scale, for example on weekends, and learn from real customers.

Remember: A good idea is one that customers will pay for, not one that only you like.

For example, Wanjiku in Kisumu saw that nurses leaving night shift at the hospital had nowhere to buy hot breakfast. She started with one flask of tea and 30 mandazi, and added porridge when customers asked for it.

Key points

• Start with a customer problem, not just a product.
• Good ideas come from your skills, the problems around you and gaps in the market.
• Check who your customer is, what problem you solve, why they would choose you and whether you can make a profit.
• Start small and learn from real customers before you invest more.