BIZ CLINIC: Starting business on the Ugandan market

Dr Smart,
I own a cosmetics business. During December of last year, I borrowed money to increase my stock targeting Christmas season. To date I realise that some of that stock is not bought. This stock is holding my working capital. How can I do it right next time?
Maggie Okot, Gulu

Dear Maggie,
Learn to talk to your customers, they know too well what they like and dislike. The mistake that you did last time is to assume that you know what they need. Matters of disconnecting “loose change” from customers’ pockets do not work through guess work. Take trouble to seek out what your existing and potential customers’ actual need is in order for you to get matching instructions from them or market. If you’re a keen observer of your customer buying habits, that’s where to begin the interview from.

Secondly if you keep records of your sales, those sales will tell you what sells most or what is asked for most and you don’t have. It’s a business best practice - that you need to adopt - to always ask your customers what they need and want and why. Needs, wants, preferences and trends keep changing, so you need to be on a constant look out for what the current taste is. Be careful to distinguish what you think your customers need from what they actually need. Many times what you think may not be exactly what your customers desire. Ask them they will tell you.

I was privileged to be part of the team that did the market survey for the establishment of Shoprite. Coming to the Ugandan market for the first time, they had to find out the status of the market before setting foot. And this must not only apply to a business of Shoprite’s status, it must be a business practice for owners of micro, small, medium and large businesses.

Your customer’s interest is the reason you’re in business. Why are you lazy at getting instructions from them before you stock? Some customers might not tell you exactly what they prefer, but talking to them will give the basis for taking buying decisions. You could also use some of your loyal customers; customers that repeatedly buy from you, to help do the survey for you.

Over a cup of tea you could announce this request, and then schedule another for receiving the results. If your chosen loyal customers do an excellent job, you could retain them as your business advisors. Learn to engage your customers. When your relationship with them is cordial, they will tell you what they would like to buy. Others could even book, or pay in advance what they ardently desire.

Smartmoney@monitor.co.ug