Everything You Need To Start A Spare Parts Business In Kenya

Spare Parts Business In Kenya

The spare parts business offers the business-minded unique opportunities to make money while running the spare parts business most especially the “auto spare parts business” which is the most profitable type of spare parts business among the rest.

As an industry that supports the daily activities of vehicles & motorcycles, having a basic understanding of how it works before embarking on this venture will surely be a rewarding business for you.

If you look into Kenya’s automobile and machinery sector coupled with the rising numbers of vehicles and motorcycles on the road, you will get to understand why this business is very profitable.

Additionally, most of these vehicles require repairs and maintenance and this can’t be achieved without spare parts. However, this presents an opportunity for you to tap into the spare parts market and that is why in this article we have provided information on how you can start a spare parts business in Kenya.

What Are The Types Of Spare Parts Business In Kenya?

Below are the 3 major types of spare parts business in Kenya:

1. Motorcycle Spare Parts Business: Motorcycle spare parts business deals in the sale of motorcycle parts like lights, tires, engines, and brakes.

2. Automobile Spare Parts Business: Also known as “auto spare parts business” is the type of spare parts business that involves the sale of vehicle parts such as body parts, batteries, electrical parts, etc.

3. Mobile Phone Spare Parts Business: This type of spare parts business deals with the sale of phone parts used for the repair and maintenance of phones. Examples are charging ports, screens, cameras, phone batteries, and so on.

How Lucrative Is Spare Parts Business In Kenya?

The need for spare parts is always increasing. Let’s take the cars as an example, every day there is a repair and maintenance of cars. Many drivers and car repairers are buying spare parts of the damaged ones.

As such, starting a spare parts business that deals in vehicles which is an “auto spare parts business” will continue to be profitable due to constant repairs and maintenance. This often results in significant markets and high profit potential.

However, selling spare parts is a good business for this reason.

How Can I Succeed In Spare Parts Business In Kenya?

To succeed in the spare parts business, you need to first identify the right market and know the type of spare parts that sell fast there, and then come up with strategies to sell your products to them.

Though it may not come easy, it all involves applying the right strategy.

Additionally, try as much as possible to deal with quality spare parts. This will differentiate your business from other spare parts businesses, and make you stand out from your competitors.

With these few tips, you will succeed faster in the spare parts business.

What Is The Cost Of Starting A Spare Parts Business In Kenya?

To start a spare parts business in Kenya, a significant amount of money is required. You will need at least Ksh 800,000 on average to start a small-scale spare parts business. With this capital, you can rent a shop, stock your shop, and run other expenses.

For a large-scale spare parts business, you will need the least Ksh 5 million or more to get started.

How Can I Start A Spare Parts Business In Kenya?

To start a spare parts business in Kenya, following the below steps will be required:

1. Do A Market Research: When it comes to starting a spare parts business, market research is very important because it helps you understand the “dos and don’t of spare parts business”.

This is a business that needs a careful analysis of the market, which market research shouldn’t be exempted.

To get started, you have to first understand the spare parts market, demands, competition, customer preference, pricing, and marketing strategies.

2. Write A Business Plan: You will need to write a business plan for your spare parts business. This will help you with the plans on how to run your business successfully.

To begin, you have to ask yourself who your target market is, and the persons that will be patronizing you. The next is to list the services to offer, pricing strategies, and marketing strategies.

Putting together all these components in your business plan will propel your business to the next level.

3. Find A Good Location: You will need to find a location where your target customers can easily locate you. The location should be visible and accessible. Then rent a shop for your business in that ideal location.

4. Obtain License And Permits: Before you start operating a spare parts business in Kenya, you are required to obtain all the necessary licenses and permits. This will prevent your business from legal issues, thereby operating with full confidence.

5. Stock Your Shop: This is the stage where you need to purchase spare parts in bulk. You can decide to buy from major importers or you start importing by yourself. However, this depends on your budget.

Anyhow you choose to do it, just ensure that you deal with quality spare parts. This should convince people to buy from you.

Conclusion

Identifying the market and their preference are the key requirements to succeeding in the spare parts business in Kenya.

Additionally, if you can deal with quality spare parts and sell them at competitive prices, this business will surely be a rewarding venture for you.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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