Sustainability Prospects Key For Any Business Start-up

The quail business sensation seems to have come and gone too soon, therefore fast-tracking into its initial full cycle. The fast movers have already made their fortunes. The story of those who waited to start when the idea had already matured,  may not be the same.

The market forces of supply and demand seem to have ruled. The supplies have outstripped demand leading to what is commonly known as market saturation. The effect is poor returns in declining markets, before complete collapse. These experiences  bring to mind a scenario in the 1990s.

As retrenchment was first implemented by the government, most of the subjects used their golden handshakes, to set up chicken farming businesses especially in the outskirts of Nairobi. Other cities as well as towns were not left out.

Suddenly, there were enormous supplies of eggs and chicken that could not be accommodated by the hotel industry as well as retail consumers. The prices shrunk rock bottom, whereas many suppliers had nowhere to take their stocks. This resulted to too many people burning their fingers, some for good.

Further, the retrenchment program of one corporation that we interacted with between 2006 and 2008, coincided with the introduction of tuk-tuks and boda bodas. No matter the discouragement, some of those who retired especially from Western Kenya (where this writer spent considerable time), could not resist owning commercial tuk-tuks and boda bodas. It was an irresistible opportunity of the moment.

Soon, towns were flooded with tuk-tuks and boda bodas. The effect was nose-diving of returns, until the market forces ejected most of the players. Such scenarios are all too common in our society? People over-benchmark from one another to the extent of self destruction.

Ideally, every business or industry transits through a 5 stage cycle, which is marked by introduction all the way up-to collapse. The last stage needs not happen unless business is allowed to follow a natural cause. The nature of activities and the market dynamics on the other hand, determine the longevity of each stage of the cycle.

More still, profitability or otherwise of the individual ventures is determined by the entry point of the cycle, at the commencement of business. It is important therefore to be properly endowed with the right business skills and competencies to ensure sustainable success of the varying investments.

That is the essence of business mentoring as well as strategic planning and management solutions. Disregarding  the same for any business, could have unpleasant consequences, especially in a highly competitive environment, now subject to global dynamics.