Your startup can make money online, but you need to be cautious

Faith Hakala, a construction specialist, works from her office in Finland.

She uses online platforms to reach her vast network of customers in Kenya and other parts of the world.

Facebook has specifically worked to her advantage, connecting her to a web of customers since 2009.

In just about 20 minutes online, she strikes a deal worth Sh200,000 and makes even more as she engages more customers.

In Nairobi, 25-year-old Paul Nyaga Munene, a businessman dealing in timber, has equally thrived in online marketing.

He seeks customers all over Africa through Facebook, Twitter, OLX, and Pinterest. However, he has been conned several times.

Mr Nyaga and Ms Hakala are among entrepreneurs who are leveraging on social media to boost their sales and market their products to the online community.

The same dynamic is playing out among startups in different industries in Kenya.

Businesses, big and small, have discovered that they have to reach the online market and relate with their customers in order to drive sales.

This is largely due to the rapid growth of technology in Kenya fuelled by the availability of affordable mobile gadgets that are now making businesses mobile.

STIFF COMPETITION

“At the click of the mouse, business deals are struck, money is made, and businesses boom,” Ms Hakala, who was born in Kenya, said.

The online market, though risky, is lucrative if one finds the right formula, Ms Hakala told Money.

“Challenges such as copyright arise, con men thrive online, competition is stiff, and one has to be original,” Ms Hakala said.

“Startups should, however, know that as they dwell online, taking baby steps is the best approach going into the business. One can become rich and make a lot of money, but this has not worked for many people,” she noted.

Economic analyst Karithi Murimi considers the internet world necessary for every startup and big company striving to reach potential customers.

“Startups have an advantage going online because these are free platforms that connect a person to the rest of the world and help build more insights in business,” Mr Murimi said.

“However, consumers and businessmen should both be on the alert in this free market.”

Ms Mary Muguza’s first attempt at making an online purchase went sour, so she does not trust online business deals.

“I would rather deal with people I know or walk into an office that is used by other consumers,” she said.

“A parcel I was shipping  from Kenya to Uganda never arrived at its destination and efforts to contact the shipping company a year down the line have failed,” she recounted.

ROGUE TRADERS

The Kenyan business community has come up with a Facebook page intended to expose such fraudulent businessmen and buyers.

They use the page, Buyers Beware, to track rogue traders and alert consumers not to deal with them.

There are also tales about businesspeople being abducted when they went to meet clients, underlining the need for caution among both online consumers and entrepreneurs.

Mr Munene believes that it is important to conduct a thorough background check on a potential customer.

“Safety comes first, so Google must be our first friend in researching companies to find out if they are genuine and registered,” he said.

“When meeting a client, make sure it is in an official place, preferably an office, and that a colleague accompanies you.”

Some startups tag along Facebook updates of well-known corporates and post comments on their pages.

Mr Murimi believes that as a businessman, one should stick to attracting an audience while maintaining professionalism through the use of the right marketing channels.

“By marketing on a page that belongs to another firm, you portray yourself as a person whose business is not genuine, so buyers will shy away from you,” he said.

He challenges entrepreneurs to invest in skills, organisation, and professionalism in order to attract the right audience.

You could take the steps that Ms Hakala and Mr Munene did to persevere as they started their businesses.

They now have a great following on their online platforms.

Ms Hakala’s most challenging moment was when malicious rumours meant to taint her image and destroy her business  were spread on the internet. However, her strong network and successful online deals saved her business.

FORMING NETWORK

“Making a network is the most challenging part. It is not those who know you who become your clients; it is those in need and are serious about engaging in business,” she said.

Looking back, Ms Hakala says that her affordable construction deals that cut across customers of all walks of life have paid off.

Through the online network, she has trained and recruited teachers, hawkers, nurses, and watchmen into a scheme that showcases steps on how to own an affordable home.

Mr Munene, on the other hand, has firmed up his business through professionalism.

“I offer bulk timber that can be used to construct houses. They get my business contact online and engage with me.”

According to Mr Marty Zwilling, the CEO and founder of Startup Professionals, Inc, any business can flourish using free online marketing.

He says that startups need zealots, disciples, and influencers to help them base their businesses online.

He defines influencers as mentors, people who have made it in business and have used the internet as their marketing tool with great results.

“They require a culture shift to drive acceptance, which can best be accelerated by a visible chief disciple such as Steve Jobs.

Other sources stronger than paid media today include key social media influencers such as business bloggers and popular You Tube events,” Mr Zwilling is quoted on his blog, Start up Professionals Musings.

He also explains that media exposure from a neutral third party also comes in handy.

These include unpaid news story on the new product or service to highlight innovations or social value.

“This exposure is highly credible since you don’t control the message and is extremely valuable since it is not viewed as part of any advertising context,” he said.

He also urges entrepreneurs to use real sources to market their products, whether online or in real time.

“Marketing media content from real customers in real time is now commonplace via sites such as Yelp, Foursquare, and online reviews,” he explained.

“This word-of-mouth media source is also highly credible and valuable since it comes from ‘peer’ customers rather than you as the source or any paid source.”

OWN WEBSITES AND BLOGS

Apart from using free media to market, he urges entrepreneurs to own their own media such as websites and blogs, which should be frequently posted on Facebook, Twitter, Pinterest, Tumblr, Instagram with up-to-date information on the business.

“These usually provide a customer’s first impression of your offering and should not be blatantly self-promotional, but instead informative, educational, and even entertaining,” Mr Zwilling said.

As you engage in marketing online as an entrepreneur, experts advise that you keep track of your progress and change tack to match market demand.