Tag Archives: business

Small Business? Beware of Conmen


“Two Hundred trays of eggs needed per week by a leading hotel in Kampala. Please call 0772345678. Competitive price is expected.”

That was the WhatsApp advert that jolted Tadeo into action. He had been looking for market for his eggs and here was a chance to not only sell his own eggs but also other farmers’ eggs. He quckly called the number listed and proceeded to negotiate for the offer. After some haggling, he was given a go ahead to supply the eggs starting the following week.

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My Local Chicken at home sitting on its eggs

With his little savings, Tadeo embarked upon looking for farmers that could supply him 100 trays consistently, since his capacity met only half of the demand. He committed himself and bought the extra 100 trays in time for the Monday morning supply.

On the D-Day, Tadeo hires a car to take his produce to the client. They meet in the parking lot of a busy hotel in Kampala where the transaction is completed. However, there is a catch, the buyer indicates that as is standard procedure, the hotel only pays 25% of the invoiced amount upon delivery with the balance being cleared on the next supply.

Already convinced that this was the start of a long term relationship with a big client, Tadeo gives in and leaves with the 25% pay. He then proceeds to prepare for the next delivery as promised. A day to the planned second delivery, the contact number of the client is not available and this goes on for the subsequent days. A visit to the hotel in question reveals that there has never been any such employee on their payroll.

Tadeo realised he had been conned !!!!

Starting a business is never something easy. Keeping it running is an even harder task. This is further complicated by the ever increasing complexity of getting customers. When someone poses as a customer for your product or service, you always trip over yourself to ensure that you give them the red carpet treatment. In most cases this involves throwing all caution to the wind. That is what Tadeo did and now is in losses he had never anticipated.

On my part, I’ve had a fair share of such incidents and they continue to-date. Having a product on the Supermarket shelves exposes you so much to these conmen/women. They traverse these shelves picking up contact numbers from products and will call you under the guise of placing a big order. They even try to make the matter so urgent and tend to offer money that is above your expectations.

Other conmen come in form of companies. Uchumi is one such company that conned us suppliers of millions on its way down the drain. Due to their branding, they always gave this impression of “We are too big to fail”. This led many of us SME suppliers to blindly continue supplying well knowing that when they pay, we shall get one fat cheque. The day they closed, I believe some suppliers closed shop.

In essence, while you’re out there struggling so hard to come up with a presentable product or service that can rake you some money, someone else is working so hard to con you of the money you are desperately trying to make. As a result, over the years, I have gained some sixth sense ability that helps me sense conmen (at least the unsophisticated) from afar. These are some of the flags that should always trigger you off;

  • Unprofessional Conduct: For someone that wants to do serious business with you, they had better exude some sense of professionalism. I agree there are those cases where the people you are dealing with are purely unprofessional by nature but with the large undertakings, if the prospective customer is making attempts to do things in a manner that doesn’t augur well with basic business processes and principles that is a flag right there in your face. Why for example should I meet you in a car park to supply a hotel food products? Why should first design for you a website before you can pay me even a commitment fee? Why should I undertake that research you need before we have a contract signed?

  • Rushed Approach: Most conmen will want to rush you into their proposition. A few days back we had someone who called and asked about our fish products. A day later he followed up the call with another and this time he was making an order to a good amount of the product. He then requested that we meet in the city centre at a place he would confirm later. At this point, I detected him as a conman and the next time we received a call, I told him to try sourcing our products from the supermarkets. He’s not called back ever since.

  • Changing of Numbers: Most conmen will use different numbers to call you up. This helps them to try and conceal their identity. Sometimes when you call back, you realise that he/she used a public phone to raise you. Another flag right there.

  • Clarity: Conmen are hardly clear in their communication. They will ask you one thing then later alter their request without any particular reason. Before you know it, when they learn of another product or service that you have, they go ahead to quickly express interest in that one too. That is a flag.

  • Talk Big: These conmen usually talk big. They will paint this picture of you getting a lot of business through their contacts. They will lead you on and depending on your appetite for quick gain, in a matter of hours or days, their plan comes to fruition. Thereafter, they disappear into thin air.

As a small business, take care in your search for the ever elusive customer. Be content with the few you have got so far and do the best you can to keep them on board. The mass numbers will eventually come your way if you lay the right strategies. Overnight success is a preserve of Hollywood movies. The tried and tested approach is one of slow but steady progress.

Watch out for conmen/women.

Follow @wirejames on Twitter

Business you can start with less than UGX 100,000/= (US$ 30) – Part 2


In Part 1 of this Article Series we saw how you can start a food business with less than UGX 100,000/= and the story continues. This time we are looking at Household focused businesses.

Household Related Businesses

There are many household targeted businesses that do not require much financial muscle to start yet at the same time have the potential to become serious cash cows. Some of those I have been able to identify are listed here;

Compound Slashing: This one tends to flourish alot during the rainy seasons as a result of faster growth of grass. You can start by using a simple slasher that will cost you not more than UGX 7,000/= and be guaranteed to rake in at least UGX 3,000/= per customer with more money being earned based on size of compound or area of operation. Affluent neighborhoods tend to be willing to pay more for such services than the less affluent.

Gardening: People especially the ladies love flower gardens in their compounds for beauty. Anyone who has skills in this area and can also offer professional advice on what type of flowers to grow and how to blend them with each other will walk away smiling from face to face. This is a business you can start with brain work and a few implements which can hardly cost you more than UGX 40,000/=. For more expensive equipment, when starting, I advise that you only hire per job thereby pushing the cost to the customer.

Dry Cleaning: Not everyone can afford to take their laundry to the dry cleaner and yet they still need these services. A number of bachelors and spinsters living alone tend to have this problem. They are hardly at home and never want to hire full time maids but would want to have a walk in handy person to do the washing say once a day. Interestingly they tend to pay handsomely since they usually have more disposable income. The capital to start this is your strength and washing skills. Otherwise the customer gives you the basin, water and drying line where to hang the clothes.

Car Washing: Washing bays are becoming too scary for some car owners because lately they are associated with networks of thieves that make copies of car keys and use them to rob the cars after trailing the owner. Unfortunately, for many, they have no choice but to continue using these washing bays. The few that can spare time always wash the cars from their homes. However, if you have the goodwill, identifying a neighborhood of affluent car owners could come in handy for you to start a door to door home based car washing business. Investment required is Sponges, a few brushes, soap and a hose pipe, all costing less than UGX 50,000/=. Water is likely to be provided by the customer.


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Garbage Disposal: Before I moved to my own premises, I used to spend UGX 5,000/= per week on garbage disposal. This is a decent sum to whoever offers such services considering that my service provider was a young man that lived in the neighborhood. With just his hands and a hired bicycle, he would collect the rubbish and dispose of it once a week. He definitely didn’t need even more than UGX 20,000/= to start this business.

Home Tutoring: Many parents are busy either looking for money, advancing careers or catching up with various social networks that when it comes to catering for the academic demands of their children at home, they fall short. Children usually have homework or need to revise in order to understand better what they are taught at school. Not many parents have the time nor desire to go through all this. Hence, anyone that can convince them that he/she can fill such a gap will make money comfortably most especially if your results speak for themselves.

Plumbing: Are you a skilled plumber? Take it from me that the mushrooming construction business is a big opportunity for you. Before you complain about not having money to buy equipment, there is an option of renting per job that you do. The most basic of jobs can easily fetch you not less than UGX 50,000/= in income and yet the actual financial investment is much less. I had a job done for me in the bathroom of laying the pipework for a Shower and Sink. The plumber walked away with UGX 120,000/= as professional fees.

Fetching Water: The coverage of piped water services is still wanting in Uganda. Many suburbs of major towns do lack piped water and homes have to resort to fetching water from different water sources. I once lived in such a neighborhood and in a month, I spent not less than UGX 80,000/= paying the man who used a bicycle to fetch the water. My quick guesstimate of that man’s income from only my neighborhood was not less than UGX 400,000/= monthly. You can start off with a second hand bicycle which will cost you not more than UGX 50,000/=. The jerrycans could cost you an additional UGX 20,000/=.

Shopping Services: There is nothing as tiring as having to shop daily from the open market or supermarket. In some cases you are forced to suspend important activities to rush to the market before it gets late in order to ensure that there is food at home. If you position yourself as a Professional Shopper, it is likely that some individuals will take on your services. Another target for such services are the expatriate community. In the cases I have seen, the customer gives you money upfront to go do the shopping. Your investment? Time and Product knowledge.

Dog Training: Dogs are becoming a standard feature in many homes either as mere pets or an addition to the security team. These dogs tend to be of more value to their owners when trained. If you can offer such services, you stand to benefit alot from the elite who tend to have such tastes.

Veterinary Services: Numerous homes tend to have animals as pets or engage in some form of urban agriculture. One of the most common is the Chicken, goat or cow rearing. As someone with Veterinary skills, you simply need to make yourself available to help families whose animals are succumbing to disease and you make clean money. The level of investment required is largely your skills since the customer is always ready to pay for any medicines over and above your professional services.

Do you have any ideas that need to be captured in this Household category?

Let us now review businesses in the General Category as shared in Part 3 of this article.

James Wire is a Small Business and Technology Consultant based in Kampala, Uganda

Follow @wirejames on Twitter

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