While a student at Daystar University Athi river campus, Max Mburu identified an opportunity out of his fellow students’ biggest challenge, laundry. Most of the students disliked doing their laundry and within the environ there were no available laundry services at affordable rates. He took it upon himself to set one, Hamoo laundry which he launched in 2016 to meet this need.
He started by charging per bag of laundry, but later changed to charging Sh100 per kg of laundry. He figured that to keep his core clientele, he had to charge an affordable rate.
Close to two years into the business, Max has employed one permanent staff and two casuals and aims to set up a branch within Nairobi. To help him with nuggets in the laundry business, I linked him up to Grace Mwakesho of Lorenzo dry cleaners that has been in operation for close to six years. Mwakesho has established her brand amongst the elite through its positioning within major malls in the city such as Village market, Muthaiga, Nextgen mall. Here are some nuggets shared by Grace.
Encourage employees to cross-sell and up-sell
The customer service team within the laundry business need to invite customers to buy related or complementary items i.e. cross-selling and also encourage customers to purchase a comparable higher-end product than the one in question i.e. up-selling in order to increase the value of business from customers. This is vital as a business from a customer is periodical – weekly or monthly.
Have a strong value proposition
A business is only as strong as the value proposition. Lorenzo brand picked up fast in the market as a result of its two-hour service value proposition, which entailed customers having their laundry ready after two hours of submission. This was a first in the market at the time.
Uphold a strong work culture
A business thrives as a result of the culture nurtured within. When on boarding any new employee to the business, the business owner has to ensure that the employee has been brought to speed with and encouraged to embrace the culture within the organization.
Learn all aspects of the business
An entrepreneur within a business should not only concentrate on bringing in new business but also know all technical aspects involved in the business. Through this the entrepreneur is not only able to cater for gaps when the employees are unavailable but also serve as motivation for the team.
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World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.