There’s few things more intimidating than step 1, especially when you don’t know what step 1 should be. So where should an entrepreneur begin?
The mobile payment transfer company Chura and the famous Kenyan rapper Octopizzo both started off with almost nothing. Chura came from a few university students while Octo came straight out of Kibera, the largest slum in the world. Both found their own strengths and a plan to create a business without any money or resources to start.
##Starting a business from university
Chura’s story began with a group of friends attending university in Nairobi. They came together with lots of business ideas which they could experiment with in their free time. Working with a group meant they could spread the work out between them and still do their studies.
“We ended up focusing on ideas we could still execute on campus.”
-Samuel Njuguna, Co-Founder of Chura
Their first business ideas didn’t work very well with being in university. They had a public relations company, they rented audio equipment for events, but they realized these business were difficult to run from a dormitory. They tried and failed at several ideas, but each time, they were learning more about the needs of students and what worked and didn’t.
One realisation was how students managed their money and their airtime credit between networks. Often, students would get stuck with no cash but still have airtime remaining. This sparked the idea for Chura, and airtime and mobile money exchange network.
Chura was something their fellow students would use, they could learn more about their customers by walking around campus, and it was entirely online so they could easily build it from their dorm rooms. They also had access to labs and computers are the university, so some of the resources they needed were already there.
“It was easier to execute Chura [because] we could utilize [university] resources.”
-Samuel Njuguna, Co-Founder of Chura
The best part about Chura was that they could start the business with a minimum of technology, just a website and a few mobile phones. They ran the exchanges manually, taking shifts to process requests on their own phones. They started to make money without writing any code.
“We also didn’t have money to pay people to run the business. But with Chura, it was very easy to execute, everything was under our control and we could do it from our dorm rooms.”
-Samuel Njuguna, Co-Founder of Chura
Using their own time and university resources gave Chura what it needed to get off the ground and start earning some revenue. From that base, the service now handles more than 3k transactions a month and has over a million Kenyan Shillings in revenue.
##Starting from a slum
Octopizzo had to fight even harder to get his rap career and business off the ground. Coming from Kibera, he knew an expensive degree wasn’t an option. He started becoming interested in rap and discovered there were freestyle events at a local British Council.
“I owe my career to that [British Council]. That’s where I started, built my fan base, learned to freestyle, I’m not good at writing songs, I just freestyle.”
-Octopizzo, Hip Hop Artist and Venture Philanthropist
He took advantage of free resources to practice, develop skills, and build a small fan base.
“I went there for like a year without doing anything, just studying, I was interested in music but didn’t know I could rap or do anything. I just thought this is cool, but I thought nobody ever came from Kibera, that was one, second there was a lot of negative and mediocre stuff people were saying.”
-Octopizzo, Hip Hop Artist and Venture Philanthropist
Once he had some better skills he went to events. He pressured to get stage time whenever he could. When he felt like he was ready, he created a basic mixtape using free beats he downloaded online. It was important not to focus on making money right away. Early on, experience and reputation were more important. Octo even spray painted his own name around town to make himself better known.
“I’d ask people have you heard of someone named Octopizzo… then I’d tell I know this guy, listen to his music, he’s cool. I would never say it was me. Then I bought a spray and wrote my name all over the streets… so when they hear the music they think I’ve read that name on a wall in a toilet in Kibera.”
-Octopizzo, Hip Hop Artist and Venture Philanthropist
Once people knew his name he could charge for concerts, charge for CDs, leverage the personal brand he was building for whatever he needed to sell. That brand and his rap career became his business. Now, two albums and many tours later, he’s arguably the most famous rapper in Kenya. He uses that brand he created to create other projects like the Young Gifted and Black or to work with refugees.
What ultimately made the difference for Chura and Octo was seeing what they could do for free, where they had resource they could devote to building a business. Once they figured that out, time, perseverance, and good planning all helped make their success.
What does this look like for you?
If you start with an idea or a business plan that requires resources you don’t have, you’ll have difficulty ever getting started.
If you start with an opportunity that requires skill, like Octopizzo, you have role models to watch, study and emulate. Whether it’s music, computer programming or business, being self-taught means you’ll hone in on your specific opportunity and develop unique, marketable skills quickly.
If you start with a customer group and try different ideas to help them, like Chura did, you’ll find a something that you can do that customers are willing to pay for. Congratulations! Your first shilling earned means you have a real business that can grow.
Let’s share
Give this some thought. What customer group do you have easy access to? Can you try small ideas to help them to learn what is really valuable to them?
Is there a clear opportunity you can see that requires a skill you don’t have? How can you learn enough to get into that game? Feel free to respond to this email and share your thoughts and ideas.