Business Plan for Mali Mali Business "Mali Mali" markets or stalls often refer to places where a wide range of low-cost and typically substandard goods are sold. These markets are found in various parts of the country, especially in urban areas. Items sold include everyday household items, clothing, electronics, toys, and sometimes even counterfeit brands, all offered at very affordable prices. "Mali Mali" markets are popular among customers looking for cheap alternatives, though the quality is usually lower. This term has become somewhat synonymous with affordable, lowquality, or even imitation goods in Kenya. Kombani! It’s a small, busy area in Kwale County along the road connecting Mombasa to the south coast, making it a good spot for businesses with a lot of local and transit traffic. A mali mali business could attract many customers there, especially given the demand for affordable products in the area. BODY Business Plan for Mali Mali Business in Kombani, Kwale County Business Name: Kombani Mali Mali Traders Owner: Dr. Otundo Martin Richard Location: Kombani, Kwale County Date: November 2024 1. Executive Summary Kombani Mali Mali Traders will operate a business that sells affordable goods, primarily targeting low-income earners, students, and commuters traveling through Kombani. The business will provide a wide range of products, including household items, clothing, electronics, and personal accessories, offering quality at affordable prices. With an initial capital of Ksh. 50,000, the business will leverage its prime location in Kombani to reach a large customer base and expand gradually. 2. Business Objectives  To establish a profitable mali mali business that provides affordable goods to the local community.  To achieve a sales target of Ksh. 100,000 in the first six months.  To grow the business by 30% in revenue each year for the first three years.  To reinvest profits into the business to expand the product range and increase inventory. 1 3. Business Description Kombani Mali Mali Traders will focus on providing a variety of goods that appeal to a wide range of customers, from schoolchildren and teachers to low-income earners and passersby. The goods will be sourced from wholesalers, and the business will focus on delivering products of reasonable quality at the most competitive prices in the area. 4. Market Analysis Target Market  Local residents of Kombani: People looking for affordable household goods and clothing.  Students at Kombani Secondary: Affordable products like stationery, school uniforms, and personal items.  Commuters: Travelers passing through Kombani who need quick, inexpensive items. Market Opportunity  Kombani is strategically located along the busy road to the south coast, ensuring foot traffic from both local residents and people passing through the area.  There is a significant demand for affordable goods, particularly from low-income earners and students. Competitive Analysis  Other small retail shops and street vendors in the area offer similar products, but there is potential to capture a larger share of the market by offering competitive prices, variety, and quality assurance.  Mali mali businesses are attractive due to their low pricing, but differentiation through customer service, product range, and location will be essential. 5. Products and Services The product range will include:  Household goods: Kitchenware, cleaning supplies, and small appliances.  Clothing: Affordable clothing items like t-shirts, dresses, and second-hand clothes.  Electronics: Small gadgets, mobile phone accessories, and other low-cost electronics.  Stationery: School supplies, pens, notebooks, and other accessories for students. 2  Personal items: Personal care products like soaps, lotions, and cosmetics. 6. Sales and Marketing Strategy Sales Strategy  In-store promotions: Weekly or monthly discounts on select items to attract customers.  Bundle offers: Packaging complementary products together at a discount (e.g., school uniform + stationery).  Loyalty program: Offering discounts to repeat customers to build a loyal customer base. Marketing Strategy  Word of Mouth: Leveraging personal networks, especially as a local teacher, to spread the word among students and parents.  Social media: Creating a Facebook or WhatsApp group to showcase new arrivals, promotions, and special offers.  Flyers and posters: Distributing promotional flyers in Kombani, especially targeting students and residents.  Partnerships with local businesses: Collaborating with local businesses to promote each other. 7. Operations Plan Location and Space  Rent a small stall or space in Kombani’s main market or a busy roadside area with high pedestrian traffic.  Utilize a small storage space for keeping inventory organized and easily accessible. Suppliers  Source goods from wholesalers in Mombasa or Nairobi, ensuring products are of reasonable quality and competitively priced.  Develop relationships with local suppliers for specific items like foodstuff or local crafts. Staffing  Initially, operate the business solo, with occasional help from family or students during peak hours. 3  As the business grows, hire one or two part-time employees to assist with sales and customer service. 8. Financial Plan Initial Capital and Budget Allocation  Stock Purchase: Ksh. 30,000 – For initial stock of household goods, clothing, electronics, and stationery.  Stall Rental: Ksh. 10,000 – For a month-to-month stall rental.  Marketing and Promotions: Ksh. 5,000 – For printing flyers, posters, and initial promotional activities.  Miscellaneous: Ksh. 5,000 – For unexpected costs, such as transport, packaging, or small improvements. Revenue Projections  Month 1-3: Ksh. 40,000 – Gradual increase in sales as customer awareness grows.  Month 4-6: Ksh. 100,000 – Aiming for steady growth and customer retention.  Year 1: Ksh. 500,000 – Expanding the product range and increasing marketing efforts to drive revenue. Cost of Goods Sold (COGS)  The cost of goods sold will be approximately 60-70% of the revenue, depending on the product type. This is typical for a business dealing in low-cost goods. Profit Margin  Expected profit margin: 20-30% after considering costs like rent, salaries, and inventory replenishment. 9. Risk Analysis and Mitigation  Low Sales Volume: To mitigate this, the business will focus on a steady product offering with monthly promotions to encourage repeat business.  Supply Chain Disruptions: Establish relationships with multiple suppliers to reduce dependency on a single source.  Competition: Offer better customer service, and focus on product quality and a variety of items to differentiate the business. 4 10. Conclusion Kombani Mali Mali Traders has significant potential to succeed in the local market by offering affordable products that meet the needs of Kombani's residents, students, and commuters. With an initial capital of Ksh. 50,000, the business is poised for steady growth through effective marketing, a broad product range, and strong community engagement. Over time, as the business expands, reinvestment will allow for increased inventory and more diverse product offerings. 5