Internet business in Kenya, the consuming businesses have increased in Kenya. This is partly due to the increase in the number of people working from home
Many people are venturing into online jobs like currency trading, online writing, and other freelancing gigs. Consequently, internet distribution can be an extremely profitable venture.
That said, you will need a substantial capital investment if you want to dip your toes in this line of business. You will need to invest in equipment, infrastructure, and a power source. With a good customer base, you have the opportunity to become your boss.
Here are the steps to follow when starting an internet distribution business in Kenya:
1. Scout a suitable location for your business
Ensure the area you pick has potential internet users. Lucrative areas might be around gaming stores, universities, urban areas, high-end residential areas, estates, apartments, etc.
Look for multiple dwelling units to further increase your customer base.
2. Establish a fibre connection
You’ll need to subscribe to a fibre connection as the source of your internet network. You will then find a building installed with fibre cables to act as a ‘base’ for your fibre network
An internet search on fibre-connected buildings in your area will show you the ideal base location for your business.
Zuku is one of the most popular fibre internet providers with speeds of up to 50 Mbps. Their monthly package ranges from Ksh 2500 for 10Mbps to Ksh 5000 for 60 Mbps. Alternatively, you can opt for Faiba or Safaricom internet.
Reliability: Fiber optic internet can handle many users and more data at high speeds.
No overload: Fiber internet is less susceptible to overload by multiple users, hence less likely to ration their internet speed.
Multiple connectivities: Most people use multiple devices in their homes, from laptops, tablets, phones, TVs, etc. Fibre optic internet has greater bandwidth that allows for connectivity of multiple devices simultaneously.
3. Find hotspot sites
These sites will help you relay your internet wirelessly to your customers. They will amplify your network from your “base” so your customers can access the internet.
These hotspot sites should be easily accessible to you for regular maintenance. They must also have a clear line of sight to your customers so there will be no blockage of the internet network.
4. Purchase necessary hardware
Depending on your budget, purchase and set up hardware that will help you distribute the internet to your customers. These will include the following:
Repeater: a device that enables your signal to travel over long distances.
Hubs are networking devices used to connect many devices simultaneously using cables.
Switches: These ensure that communication between the connected devices does not slow down.
Router: devices that are used to connect two multiple networks. Routers bring the internet to your devices.
5. Establish a payment method and customer support
Make sure your customers can pay you. You can establish a till number, or they can pay you directly to your phone number. Decide whether you will be paid monthly or weekly.
As an internet provider, you’ll need software that reminds your customers of their monthly dues and disconnects their internet if they don’t pay on time. One such software is XceedNet.
It allows multiple payment options like prepay, postpay, and pay-as-you-go. This software also allows customers to pay via Mpesa, Paypal, Mastercard, and Visa.
You should also ensure you can handle any complaints or questions from your customers
6. Design your network
To make your network reliable and reachable to your customers, you’ll need to install routers, switches, Ip addresses, etc. You can use this network design to make your internet access to customers.
Let people know about your business. You can market your business using posters, social media, word of mouth, campaigns, etc.
Conduct regular maintenance to your internet hardware to ensure it runs smoothly. Respond to customers’ complaints asap.
Budget of an internet business in kenya
Starting an internet distribution business in Kenya will need a budget of roughly Ksh 45 000. You will not only need to acquire the necessary permits and licenses, but you will also need to purchase internet distribution equipment
Here is a rough breakdown of the costs of starting an internet distribution business:
internet business budget in kenya
Starting an internet distribution business in Kenya is no mean feat. Despite the hustle and cost of acquiring business permits and internet distribution hardware, you’ll also need to market your business to your target customers.
However, the rewards are worth it. Not only will you be receiving money at the end of every month, but you will also become your boss with your customized working hours and days.