A28. Veema House Hold
Production of bed runners in Nairobi Kenya
About the business – Bed runners
We discovered the need for bed runners here in Kenya. Doing a small market survey, we noted that there is high demand of bed runners in Kenya especially in the hotels, guest houses, Air Bnb, residential. We are the only supplier of the bed runners in Kenya. It would be interesting if we do the business both on wholesale and retail. We did prefer doing it on wholesale because it sells faster and reaches a wider market range. This would demand buying materials on wholesale to cut down on costs. The market is guaranteed because Veema Household is the only producer. Therefore, high demand will mean increased sales. This in turn will offer livelihoods, because we will offer direct employment to people (delivery persons and tailors,) and income especially to wholesalers and retailers.
Therefore Weema needs to offer wholesale and retail. Wholesale consumes a lot and also helps the business to sell faster.
Guaranteed market; as we are the only producers.
High demand; high sales volume
Offer livelihood; people who resale are able to get income.
Material. A specific type.of material may run out of stock hence need to get some stock up.of the same.
Operating capital/bulk purchase. Buying in bulk has discounted prices. Also saves on transport as we will only do one trip.
Strategy for Change
Motivation: Being able to invent quality bed runners, something has never been lacking makes me excited and it’s what puts me on toes every day. Seeing peoples’ happy faces when I transform their bedrooms really makes me humbled.
Ambitions To be the leading producer of bed runners in Kenya.
Outcome challenges Lack of enough material. Sometimes the business loose so many orders as there is lack of material.
Activity Secure material, enough stock to keep the business going
Expected Output Purchase raw materials in bulk.With a business loan of (EUR 800) from ActionInvest, Virgina will be able to secure 50 pca plus, which will serve well for now. May 2021
Milestones Purchase raw materials (50+ pieces worth 650 euros). Branding, marketing and distribution (150 euros).
Expected outcome Increased sales. Increased net profit.
Progress markers Stock of bed runners. Average sales per week.
Baseline. 30 pieces of bed runners. 25 pieces per week.
Sources of evidence. Stock of bed runners. Stock of material for bed runners. As presented by the CEO.
Required input. Workhours. Investment capital inform of business loan. ActionInvest loan, that is paid back with 10 % annual interest.
Expected impact Self-sustainable running business.
Cost: 1 bed runner – 750 KSh
Selling @1500 KSh
The Organsiation’s / Company’s name: VEEMA Household
Registration number: BN–KYCZ27LZ p
Address: Nairobi Kenya
Represented by: Virginia NJERI
Title: Social entrepreneur
Position in firm: CEO
Phone number (s): +254720261075
WhatsApp number: +254720261075
Action Talk by Virginia
- Virginia livelihood. She has even employed a delivery, Brian.
- Brian has now opened also a shop. Thus she is sharing skills with others that may also start businesses.
- Challenge ONE: She had not capital but faith. She manage to get small money to survive.Where do start-upers get capital from. Kenya government demands a collatoral/guarantee for the loan. So many who need the governmental funds do not have access.
- Challenges TWO: With time she realised she need skills and a strategy. Compared with Indian businesses family where the children learn early. It can be good to have the loan later when there is already a plan.
- Challenge THREE: The network, discuss with clients and suppliers. Important to be trustworthy and to be faithful. Marketing is a challenge, depend on marketing. Social media marketing, Facebook.
- Challenge FOUR: To reach a break-even. So that they can manage their livelihood and make the business grow. Virginia made the research. Covid-19 made it more difficult. Running on a very low budget to manage the business.
As a young girl in Kenya, she did not get a white collar job. So she started a business for her livelihood and to fight poverty. I started Veema without a single product. In the beginning she was selling other peoples products.
Bootstrapping: find other income, sell knowledge as soon as available, limit the costs, maybe parallel work, borrow from family without interest.
Market: Always be an entrepreneur, in every situation be selling. Bring product to every gathering.
Untapped talents are there in Africa.
Dream, supply bed runners throughout Africa, and give employment to many, direct and indirect through empowering others to be business people.
She would like to have mentorship through HR&S, skills. Funds is not the solution.
She is willing to be a member of our Network for social entrepreneurs.
- Customer segments:
Hotels (users), Families (users) and mainstream customers (buyers but not users).
- Value propositions:
High quality materials, Excellent customer service.
3. Distribution channels:
Online (through social media, Facebook and Instagram) and offline (through our physical shop)
- Customer relationships:
Online communities (Facebook and Instagram), positive word of mouth)
- Revenue model:
Profit from product sales.
- Key Activities:
Purchase raw materials, designing, marketing and selling, branding and supply chain management, advertising.
- Key Resources:
Raw materials for bed runners.
- Key Partnerships:
Raw material suppliers (for bed runners), retailers and wholesalers, HR&S.
- Cost Structure:
Advertising, Raw materials, Stock increment
- Written pitch:
VEEMA is a leading retail and wholesale household shop. We major in quality beddings and general households. VEEMA household is excited to have introduced a unique new product; bed runners. With the new niche of Airbnb/studio apartment, there is a high demand for bed runners and quality beddings. VEEMA household intends to lock this promising market.
To be the leading supplier of bed runners in Kenya and the whole world.
- Business Model Summary- relates to target customers, market, how the product will be sold, etc:
We discovered the need for bed runners here in Kenya. Doing a small market survey, we noted that there is high demand of bed runners in Kenya especially in the hotels, guest houses, Air Bnb, residential houses. We are the only supplier of the bed runners in Kenya. It would be interesting if we do the business both on wholesale and retail. We did prefer doing it on wholesale because it sells faster and reaches a wider market range. This would demand buying materials on wholesale to cut down on costs. We will run online marketing as well as physical. The market is guaranteed because Veema Household is the only producer. Therefore, high demand will mean increased sales. To realize this, we intend to do bulk production of the product. This means bulk purchase of material, hire tailoring services, print and package and sales and marketing (distribution). We hope higher sales will mean improved livelihoods, because we will offer direct employment to people (delivery persons and tailors,) and income especially to wholesalers and retailers.
- Business Model Details:
4.1 Value proposition: We guarantee quality products, excellent customer service and value for your money
4.2 Customer Segments: Home owners, commercial clients,
4.3 Distribution Channels: through wholesalers and retailers.
4.4 Customer Relationships: Through online communities like WhatsApp and Facebook (We do create WhatsApp broadcasts with potential clients where we do follow ups as well as advertisements).
4.5 Revenue: x
4.6 Key Partners: HR&S, Fabric suppliers, tailors, Wholesalers and the customers.
4.7 Key Activities: Fabric purchase, production, packaging, marketing and distribution.
4.8 Key Resources: Raw materials for bed runners, tailoring services, branding experts and finances.
4.9 Costs: Buying fabric for bed runners-650 euros. Advertisement and branding–150 euros
- The team: The tailor, digital consultant, delivery guys.
- Risk analysis: Imitation (counterfeit products in the market offered at cheaper prices) leading to unfair competition.
- Implementation plan:
- Acquire investment capital (800 euros)- From HR&S
- Purchase fabric for bed runners-Virginia
- Engage the tailors for production-Virginia
- Engage branding experts for branding and packaging-Virginia
- Run adverts-Virginia with the help of adverting experts
- Distribution (pick up or delivery)- by Virginia or delivery persons.
8. Cash flow budget:
Cash outflow: Rent- 115 euros per month. Tailor fee-60 euros. Branding and packaging-25 euros. Advertising-150 euros
Cash inflow: Stock sales (Average sales per month-345 euros).
Replies to questions by Action10
Virginia NJERI: I had promised to revert on the loan repayment by end of February. Having assessed all factors I may need more time. The sales went so low and all I was doing was paying rent with the stock for the past few months. For that reason I decided to close the shop and operate online until I come back on my feet. I will try get alternative work for now and raise funds. Kind request allow my loan not to accrue interest as I figure things out. Am so sorry for disappointing.
I live to fight another day and I know I will rise again. Kindest regards, Virginia
Cecilia ÖMAN: Thank you for your message. I am sad to hear it is so difficult, but you are right we will find a solution together. Please share your message in the joint RISE member chat so that we can all discuss together.
We shall make an agreement with our accountant, while discussing in the joint chat about the period where we shall not take interest.
Please be aware that it is difficult for us as well, as we depend on the interest to cover our own costs according to the HR&S Kenya business plan. I think a Strategy for Change road-map will help you much.