The Artisan Business Handbook​:  

A reference for micro and small entrepreneurs in 
Africa  
 

Christine W. Gitau 
 

   

 
 

Overview 

I have worked in the artisanal sector for a little over 14 years 

and I have taken on nearly every role within the ecosystem - 
content developer (on the Craft Afrika blog), maker (I dabbled in 
decorative ceramics), business enterprise trainer (I ran a 6month 
full time course on how to run a small artisanal business), 
business development advisor for both private companies and 
donor funded projects, host of an annual conference, shop 
owner aka buyer aka retailer and now, author. 
All this to say that I have acquired an in-depth knowledge of the 
sector, and it is now my wish to share what I know with fellow 
entrepreneurs through this publication. 

It is my impression that the more things change, the more 

they stay the same. I remember going to my first craft fair more 
than 20 years ago and engaging several exhibitors on the 
challenges they were facing in running their enterprises. The 
script reads the same in the present day: small businesses 
within the sector are still grappling with the same challenges. 
Indeed, it has perhaps become even tougher today - what with 
the ever increasing number of artisans and a market that is 
fickle and unpredictable. 

But it is not all bad news. 

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We continue to see a steady increase in the number of 

domestic buyers - consisting mainly of young, lifestyle oriented 
Kenyans. This is a trend that is set to continue, but to 
successfully tap into it, the entrepreneur must do a number of 
things to stand out. More on that later. 

In this book, you will discover that it is indeed possible to 

not only run a profitable artisan business, but to scale up and 
create a business that will impact thousands. The book provides 
practical and easily applicable business tips, success stories 
from some of the biggest artisan enterprises within the 
continent and links to additional learning resources. 

I would like to take the opportunity to celebrate your 

entrepreneurial spirit; a spirit propelled by a desire and purpose 
to do something distinct, needed and meaningful. 
When you are driven by purpose, the creativity bit comes 
naturally and there is no question about whether or not to be an 
entrepreneur. It is only a matter of time. And led by this fire, you 
set out to do your part in creating a better world. 

I wish you every success in your endeavours and hope to hear 

only wonderful stories of how this book was part of both your 
personal and business success. 

Christine W. Gitau 

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CHAPTER ONE:  

THE PERSONAL SIDE OF 

YOUR BUSINESS  
1.1​ Passion Made Me Do It 

1.2​ Finding The Sweet Spot 

1.3​ Staying Motivated 

1.4​ Your Relationship With Money 

​ ultivating Financial Wellness 

1.4.1 C  

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1.1 Passion Made Me Do It 

Do what you love. Follow your passion. Do the things that 

make you come alive. 

People love hearing these kinds of statements. They make them 

feel all warm and fuzzy; like a special breed of people who have 
the immense privilege of doing what they love, while the rest of 
the world slogs away in the drudgery of 8-5 jobs. 

These statements have become a kind of rallying call for 

millions of people around the world, more so creative 
entrepreneurs. I suppose the momentum comes from facing so 
much skepticism from close family and friends when we choose 
to pursue creative careers, that we feel the need to defend 
ourselves. So we take on the armor of these ‘universal truths’, in 
a bid to explain to ourselves and to others - without too much 
strain - the path we have chosen.  

But how true are these statements? 

While there are many proponents on both sides of the 

divide, many financial gurus agree that there is not much 
practicality to these kinds of statements, and that they are 
merely ‘feel-good’ mantras. 

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And here is why: ​career decisions are not so much about doing 
what you love most, rather, they are about the kind of life you 
want to set up for you and your family.  

If you have a picture in your mind of the kind of lifestyle you 

would like to have, it makes sense to pursue an occupation that 
affords you this lifestyle, doesn't it? Because if doing what you 
love is going to leave you paralysed with fear about how you will 
meet your financial obligations at the end of the month, what is 
the point? 

And so comes the million dollar question: Is it ​really​ possible to 

do what you love while creating the lifestyle you desire? 

The answer is a resounding YES! There are millions of people 

who are doing what they love and pocketing a healthy 
paycheck.  

How do they do it?  

Wealth creation experts talk about finding a ‘sweet spot’ or 

defined as the place where your passion, talent and money 
converge.   

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1.2 Finding The Sweet Spot 

I have summarised the process in these three questions 

below. 

But fair warning; even though the questions seem pretty 

straight forward, they are not easy to tackle. It will take a good 
amount of time, good old honesty and curious research to come 
to a point where it feels like the sweet spot.  

1. What is the need I am responding to? Or what is the 

problem I am attempting to solve?  

Too often, we articulate a problem, not because it actually exists, 

but because we want to present ourselves as the solution. We 
want to justify the existence and validity of our business idea. 
But here is the thing: if there is no proven need or demand in 
the market for your product or service, you are setting yourself 
up for a whole lot of misery. Drop it or do it as a hobby.  

2. Can I create a demand for my product or service? 

It has often been said that the creative industry creates demand 
by making supply apparent to the target market. Meaning that 
demand follows supply rather than the traditional market 
dynamics where supply follows demand.  

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This however only holds true for truly innovative ideas. The kinds 
of ideas that make us look up and say “how did I ever live 
without it?” These ideas are disruptive, because that is precisely 
what they do. They completely change how we approach an 
existing challenge. Sometimes the ideas are remarkably simple 
and genius, sometimes they are complex and multi layered. 
Either way, products and services that fall into this coveted 
category are not commonplace.  

Which brings us to the most commonly used adjective within 

the artisanal sector: ​“unique.”  

So many times I have met entrepreneurs who will not engage in 
social media because they don’t want their ideas copied. They 
prefer to operate as a one-man-show because they are afraid 
employees will be the ruin of them. And don’t even ask them to 
create a short video sharing their creative process with the 
world. It will be the most absurd idea they have ever heard! 

The reality is that our ideas are not as unique as we think they 
are. And the more paranoid we are about someone stealing our 
ideas, the more suffocated the idea becomes. 

What is the worst thing that can happen if someone copies your 
idea? And what is the best thing that can happen if someone 
copies your idea? 

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In my opinion, the answer to the first question is simply, 

nothing. Nothing will happen. There are thousands of car 
brands, lotions, sunglasses, phones etc in the market, but 
consumers have the capacity to choose which one is preferable 
to them. And that is what you should be occupying yourself 
with. How do you become the top of mind brand for the target 
market? What strategies will you employ to make yourself the 
brand of choice? Is it in the messaging or is it in using only the 
best raw materials so you end up with the best quality product 
in the market? Is it in the pricing or is it in the customer service? 
Whatever it is, your market proposition is what will make you 
stand out. So stop giving so much power to something that is 
out of your control, and instead recognise that being copied can 
actually work for you. It will keep you on your toes. Every 
business worth its name needs this.   

3. What is the market willing to pay for my product or 

service?  

Many entrepreneurs get quickly disillusioned when they begin 

to realize that the market doesn't care nearly as much as they 
do for their creations. 

As a creator, it is easy to get caught up - and attached to - the 

features of a product; what it looks like, what it is made of, how 

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it works, what makes it unique etc. However, customers are 

almost always focused on the benefits i.e how the product will 
solve a specific problem they have. In this sense, they are buying 
a ​solution​ rather than merely a ​product​. 

Image via WebEngage Monk 

 
During the creative process, it is important to remember that it 
does not matter how special you think your product is. It doesn't 
even matter how much you think customers should pay for it. If 
the product does not solve the customer’s needs, or if the 
product does not immediately come across as a solution 
provider, you can forget about making money.   

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1.3 Staying Motivated 

By its simplest definition, motivation is the desire and the 

drive needed to accomplish a task or achieve a goal. 

Self-motivation is the force that keeps pushing you forward; it is 

the internal drive to achieve, create, grow. When you think you 
are ready to quit your self-motivation is the thing that keeps you 
going. 

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1. Motivation is an inside job:​ ​Recognise that more often than 

not, you will have to be your own (and sometimes only) 
cheerleader. Cheering for yourself with passion and a true sense 
of love and appreciation is not arrogant, it is actually required if 
you intend to live a life of fulfillment and meaning. 
2. What is the motivation behind what you are doing? 
Answering this question with clarity and honesty is an 
important aspect in staying the course. When things get heavy 
and you begin to feel the fatigue, resentment and lack of focus, 
remind yourself why you started. If it still makes sense to you, it 
will be the kickstart you need. 
3. Motion creates emotion: T
​ he way you feel emotionally affects 
the way you feel physically and vice versa. Change the way you 
move, and you change your feelings in other words, take control 
of your physical movement to change how you feel. If you feel 
depressed, you hold your body in a certain manner. You stand, 
sit or walk with the shoulders hanging forward and the head 
bent slightly as if you were tired and bored. Your breathing is 
shallow. But it’s within your power to stop yourself feeling 
depressed by taking on a different body posture. It’s difficult, if 
not impossible to be depressed if you stand tall, head up, and 
with a smile on your face. 
4.​ K
​ eep learning: T
​ here are so many powerful reasons to keep 
learning, especially as we grow older. Everywhere around us, the 

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universe presents opportunities for learning something new. 

We are either too jaded or too busy with other things to notice. 
Never stop learning! Infact, seek any opportunity that will 
expose you to something new, because your growth lies therein. 

5. Hang out with superstars: ​As the saying goes, show me your 
friends, I will show you your future. W
​ hatever goals you are 
trying to achieve, hang out with people who have achieved or 
are trying to achieve those same goals and objectives.  

​ cknowledging and rewarding yourself for 

6. ​Reward yourself:​ A
all the small steps you are making towards your goals is a big 
component of self care. When was the last time you told 
yourself, “Well done, great job”? It is vital to recognise your hard 
work and progress and give yourself a pat on the back from 
time to time. Don’t ever feel that you don’t deserve it. 

7. Challenge yourself with a daily goal: S

​ uccess is the sum of 
small efforts, repeated day in day out - Robert Collier. 
Oftentimes, facing a big challenge can leave us paralysed and 
lacking motivation. A massive effort might do the trick for quick 
fixes, but when it comes to finding true success, we need to be 
willing to commit to a plan every single day and put in the 
necessary work at a consistent rate.    

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1.4 Your Relationship With Money 

“One’s relationship with money is life long, it colours one’s sense 

of identity, it shapes one’s attitude towards other people, it 
connects and splits generations; money is the arena in which 
greed and generosity are played out, in which wisdom is 
exercised and fully committed. Freedom, desire, power, status, 
work and possession: these huge ideas that rule life are enacted, 
almost always in and around money.” John Armstrong  

One of the most complex and often dysfunctional relationships 

within the creative industry is that between an individual and 
money. There is an evident love/hate relationship, characterised 
by poor financial decisions, procrastination on decisions that 
involve money, unmanageable debt and an aversion towards 
wealth creation goals. 

Author Elena Aguilar developed ​Mind the Gap tool​, a 

framework that allows us to understand why this relationship 
tends to be as it is. She posits that the status quo is caused by 
any number of variables, including a gap between what the 
individual knows and what they need to know inorder to 
progress or change their current habits.    

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She divides these gaps into 4: 

● Knowledge gap​: We lack the information necessary to 
make changes  
● Skills gap​: We have the information but we don't know 
how to apply it and make it work for us 
● Will gap:​ We have the information, the appropriate skills 
and resources to make changes, but we lack the will and 
fortitude to push forward 
● Emotional intelligence gap:​ E
​ motional intelligence in 
personal finance is understanding what we f​ eel​ about 
money and w
​ hy​. It is really zeroing in on what money 
means to us emotionally   

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1.4.1 Cultivating Financial Wellness 

Financial Wellness involves the process of learning how to 

successfully manage financial earnings and expenses. Money 
plays a critical role in our lives and not being able to manage it 
effectively can lead to stress and anxiety. The concept of 
financial wellness encpmpasses various aspects including 
● spending within one's means 
● being financially prepared for emergencies 
● having access to the information and tools necessary to 
make good financial decisions​ 
● Having a plan for the future 
 

According to Brad Klontz, a financial psychologist, our financial 

relationships stem from childhood; which is when we develop 
“money scripts.”  
These scripts are the narratives that govern all our ideas, 
thoughts and aspirations about money, and by extension 
wealth and poverty. 
Examples of these scripts include: 
- money avoidance scripts (money is unimportant, rich 
people are greedy, I am not in it for the money, I am not 
good with money)  

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- money worship scripts (More money will make me happier, 

there is not enough for everyone and so I have to fight the 
other to acquire their portion) 
- money status scripts (Your self-worth equals your net 
worth, rich people are more important, I don't like poor 
people, poor people are lazy etc 

Because of how powerful these scripts are in our lives, it is 

important to be curious about them. “It is critical to make your 
unconscious money scripts conscious,” Klontz says. This way, 
you can begin to challenge your beliefs around money and 
change them to improve your financial situation.  

What is your money script? Take a money personality quiz 

here​. But remember as with all surveys, the outcome is not 
definitive of who you are. It is merely a guide and is meant to 
merely give you insights and tease out the narratives you hold 
about money. 

 
   

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No matter where we are on our financial journey, we can 

develop or strengthen certain habits that strengthen our 
financial well-being.  

1. Practice mindfulness with your finances 

Financial wellness is as much about your state of mind as it is 
about your financial situation. Think about your relationship 
with money, especially your emotional connection to it. You also 
want to cultivate a grateful mindset that reminds you of what 
you have, and that you deserve to be happy and free to 
accumulate wealth.  

2.Pay yourself first 

By paying yourself first, you're basically putting away some cash 
for yourself, whether that's into a savings or retirement account. 
Make sure you set aside a portion of your income to save. 
Thinking of personal savings as the f​ irst bill​ you must pay each 
month can really help you build tremendous wealth over time. 
 

3. Don't shy away from money conversations 

Too often, we find ourselves avoiding money conversations - 
whether it is with friends, partners, family members or 
colleagues at work. And yet, it is precisely in talking about 
money openly and as the need arises that we begin to dilute the 
‘taboo-ness’ around money. 
 

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4. Identify where to find help  

Where necessary, approach professionals to assist you when 
you feel overwhelmed. Whether you are looking at 
understanding your debt-to-income ratio, investment 
opportunities or statutory obligations, there is plenty of help out 
there. 

5. Create multiple streams of income 

Spreading your income across a variety of passive and active 
income streams is a great way to lower your financial risk, as 
well as increase your wealth-building potential. 

   

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CHAPTER TWO: 

UNDERSTANDING THE 
SOCIAL ENTERPRISE 
2.1​ Social Enterprise as a Business Model 

2.2​ Advantages and Disadvantages of a Social Enterprise 

2.3​ Examples of Successful Social Enterprises in Africa 

   

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2.1 Social Enterprise as a Business Model 

It has often been said that in developing countries, the 

artisanal sector is the second largest employer after agriculture. 
It provides meaningful work and income to millions of people 
around the world, allowing them to participate in the 
mainstream economy. The main reason for this is that the 
sector is non discriminatory, with low barriers to entry. This 
makes it accessible to individuals and communities who live on 
the margins of society. 

Due to the sector’s potential for social as well as economic 

impact, many businesses within the sector consider themselves 
social enterprises.  
A social enterprise is defined as a business model that goes for a 
triple bottom line: profit, environment and positive human 
impact. 
Profit:  Just  like  for-profit  companies,  ​social  enterprises  seek  to 
make  a  profit  and  grow  their  business.  However,  the  profit  is 
directed  towards  serving  their  ultimate  goal:  that  of  furthering 
their mission.  
Environment:  Now  more  than  ever,  people  are  demanding  for 
information  about  how  consumer  products  are  made. 
Awareness  of  what  is  purchased  and  how  it  fits  into  the 

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consumer’s  personal  mission  has  become  central to purchasing 

behaviour.  Social  enterprises  therefore  tend  to  use  sustainable 
resources,  reduce  waste  and  conserve  the  environment  in  their 
manufacturing practice. 
Positive Social Impact:​ ​ Social impact ​can be defined as creating 
change that is vested in the well being of society. A practical 
way of conceptualising social impact is as in changes to one or 
more of the following:  
● people’s way of life – how they live, work, play and interact 
with one another on a day-to-day basis 
● their environment – the quality of the air and water they 
use, the adequacy of sanitation, their physical safety, and 
their access to and control over resources 
● their fears and aspirations – their perceptions about their 
safety, their fears about the future of their community, 
their aspirations for their future and the future of their 
children 

Measuring social impact 

Social Impact Measurement (SIM) is a system, tool or 
framework that evaluates if an intervention is indeed creating 
positive social impact.  
There are several key reasons for tracking your social impact: 

To stay on track: T
​ o determine how you will achieve your 

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desired change, you must first look at the relationship 

between your activities, outputs, outcomes and impact. Using 
measurable outcomes helps to not only prove your social 
impact, but holds you and your staff accountable, ensuring 
you are working towards your stated purpose. 
Attract additional funding: ​Due to the recent rise in socially 
conscious investors who are keen to support initiatives 
creating social impact, data from measurement could be the 
difference between securing funding or missing out 
altogether. 
Effectively communicate the impact of your work: ​Our 
programs allow us to be in contact with our beneficiaries, so 
we can see the change that our services create. However, 
communicating such changes is much more difficult. Being 
able to quantify social impact - in terms all stakeholders can 
understand and relate to - is essential to maintain and grow 
supportive partnerships.  

Inform program improvement:​ ​Applying a SIM framework with 

measurable outcomes allows an organisation to review if 
interventions are having the anticipated impact, or if there is 
need for re-designing​.  

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2.2 Advantages of a Social Enterprise 

● A niche market group: The conscious consumer 

The millennial generation has widely been recognised as the 
biggest group of consumers globally. A major characteristic of 
this consumer group is their desire to make an impact through 
their purchases. Their values drive them towards brands that 
have a purpose and that espouse ethical business practices. 
They are more likely to purchase from brands that create social 
impact through their work than those that don't. 

● Alternative means of raising revenue 

Besides trading for profit, social enterprises have the 

opportunity to apply for grants and other funds that target 
organizations that work for social good. It is important to note 
that transparency is an important value to have here. Even 
though you are set up as a for-profit, you must be willing to 
open up your operations to recipients of donor funding. 

● There is a high likelihood that you will attract a loyal 

following 

Brands that focus on social good tend to create a powerful 

ripple effect and with it, help from very unlikely sources. If you 

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keep an open door and transparent policies - correctly 

measuring, tracking, assessing, and showcasing your social 
impact - you will be amazed at the goodwill and support 
available.  

Disadvantages 

● Social entrepreneurship is a relatively new concept and the 

larger population is still trying to understand the dynamics 
of this business model . Many will generally assume that 
you are a profit making company masquerading as a 
non-profit. This lack of understanding breeds skepticism 
and a lack of trust in your intentions. 
● It requires a very specific set of skills to maintain a triple 
bottom. The challenge is further exacerbated by the fact 
that acquiring these skills is not as straightforward as many 
would like to believe. Only a handful of private institutions 
offer related courses and even then, only a handful of 
admissions are available with every intake. 
● While social enterprises have the possibility of raising 
revenue through grants, it can often become a time 
consuming exercise. Indeed, there are enterprises that are 
so occupied in raising money through donor funding that 
they neglect putting in place the all too important profit 
making mechanisms necessary within the enterprise. It 

24 
 

may seem like the easier way to acquire capital funding 

and recognition; but it can be an uphill task as donors 
become more and more demanding.  

   

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2.3 Examples of Successful Social Enterprises in Africa 

Kenana Knitters - Kenya 

(Image: The Little Market) 

Founded in 1998 in Njoro, Kenya by Patricia Nightingale, 

Kenana Knitters main objective is to support women in the local 
community by directly providing them with a source of income, 
thus enabling them to improve the quality of their own lives as 
well as those of their communities. 
Currently, Kenana supports over 300 knitters as well as 200 
spinners who hand spin the wool into yarn using recycled 
bicycle wheels. The women take the knitting home and are able 
to work on it during snatches of time within the context of their 
daily lives. ​Each item is a unique piece that bears the signature 
of the woman who created it. [​Read more:​ ​kenanaknitters.com​].   

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Gone Rural - Eswatini 

 
(Image: Gone Rural) 

Founded by Jenny Thorne, Gone Rural began as one 

woman's mission to empower women in Eswatini’s most 
remote areas. Her objective was to create a way for rural women 
to earn an income from home as well as share their beautiful 
craft with the world. From working with 30 women in 1992, 
Gone Rural now provides gainful employment to more than 750 
artisans, creating products that are on demand all over the 
world.  

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Gone Rural attributes its continued success to the fact that they 
place the artisans at the heart of all the business activities of the 
organization. Furthermore, the artisans benefit from b
​ oMake 
Rural Projects​,​ a social support system put in place to address 
their physical, mental and social needs. To date, the program 
has impacted the lives of more than 20,000 community 
members in the areas of health (water, sanitation and hygiene), 
education (both in and out of the classroom) and sustainable 
livelihoods (achieved primarily through training in financial 
literacy and business skills to promote income generation). 
 
[Read more:​ ​goneruralswazi.com​]​. 
 

   

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Lulu Life - Kenya/Sudan 

 
(Image: Healthline) 

Since 1955, Sudan has been involved in one conflict or 

another, with women bearing the brunt most severely. In 
response to this resulting despair, hunger and need, the French 
NGO MEDIC founded the Lulu Livelihoods program in 2000.  
Focusing on the Lulu tree - a resource that grew in abundance - 
MEDIC set about educating Sudanese women on sustainable 
extraction of Lulu oil, a lightly scented oil that transforms 
readily into a creamy butter. However, it was not until 2005 that 
Lulu Works launched the Lulu Life brand label, manufacturing 
body butter, soap, scrub and lip balm, in the process becoming 
the o
​ nly​ producer of Sudanese Shea Butter in the world.  

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To remain sustainable and maximize on profits, Lulu Works 

does not export the nut in raw form, which is unlike the case for 
many of Africa’s natural resources. By adding value to the butter 
themselves and selling directly to the consumer, Lulu Works 
ensures maximum returns to over 400 women in Southern 
Sudan, helping them maintain a healthy household with money 
for food, clothing, education and medical care. InFocus 
Productions have captured in startling depth the story of Lulu 
Life in the documentary​ ‘​ The Brilliance Of Oil’. 

[Read more:​ ​lululife-sheabutter.com​].​  

   

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WomenCraft, Tanzania 

 
(Image: Branch Out Market) 
 

WomenCraft's  history  began  in  2007  as  an  implementing 

partner  of  the  United  Nations  High  Commissioner  for  Refugees 
(UNHCR)  to  generate  income  opportunities  for  refugees  fleeing 
instability and violence in neighbouring countries. 
​Over  300  artisans  have  benefited  from  this  initiative,  advancing 
themselves,  raising  stronger  families,  stimulating  their 
communities and inspiring the world around them. 

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As in the case with Gone Rural, artisans are the driving force 
behind the organization and the ultimate reason it exists. As 
artisans gain skills, knowledge and economic independence, 
they assume greater levels of responsibility within the 
enterprise. 

Recently, WomenCraft collaborated with UNHCR on the 

MADE51​ project, ​a global initiative designed to link refugee 
artisans with markets. MADE51 – an acronym for Market Access, 
Design and Empowerment – showcases handmade product 
collections through branding and a marketing platform, 
widening sales opportunities and offering new market access 
for refugee artisans and their supporting social enterprises.  

[Read more:​ ​womencraft.org​].   

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Neema Crafts - Tanzania 

 
(Image: ttnotes.com) 

The Neema Crafts Centre was started in 2003 as a project 

of the Anglican Diocese of Ruaha in Iringa, Tanzania. The main 
objective was to meet the training and employment needs of 
people with disabilities within the area. 
The program started with 3 deaf young men making handmade 
paper from sustainable resources which was then used to make 
cards, books and other crafts popular with tourists. Within the 
first 12 months, the number of deaf people trained and 

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employed at the workshop had risen to 15, and by the end of the 
second twelve months, 70. 

Such was the success of Neema Crafts that by 2013, the 

organization was fully sustainable, no longer relying on donor 
funding to run their operations. 

Many years later, the organization continues to support, 

advocate and change the public’s perceptions of people with 
disabilities by providing evidence of their capacity. 

[Read more:​ ​neemacrafts.com​].​    

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The Djiguiyaso Cooperative - Mali 

 
(Image: djiguiyaso.com) 

Based in Bamako, Mali, Djiguiyaso was founded by Aissata 

Namoko (pictured), in 1994. Having previously worked as an 
accountant for the National Directorate of Cooperatives in 
Bamako, Aissata knew that the cooperative model was her best 
bet if she was to realize her objective of economically 
empowering women within her community.  

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Using locally sourced textiles, the cooperative - which currently 

has 110 members - creates home textiles and apparel items that 
are in demand all over the world. All production is centralized at 
a workshop/studio that was built in 2010. The centre provides 
training in cutting and sewing, natural dyeing (indigo and 
bogolan) and cotton spinning. 

From exhibiting in the most popular trade fairs in the Europe 

(Maison et Objet) US (NYNOW, SantaFe Folk Market) and Africa 
(Design Network Africa, SIAO) Djuiguiyaso also boasts various 
other achievements including being recognized by UNESCO for 
their works towards preservation of heritage. 

[Read more: ​djiguiyaso.com​]. 

   

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Prescraft - Cameroon 

 
(Image: prescraft.cm) 

A member of the World Fair Trade Organization (WFTO), 

the Presbyterian Handicraft Centre, otherwise known as 
Prescraft, is based in northwest Cameroon. As the name 
suggests, the organization owes its existence to missionaries 
who established it in the 1960’s with the aim of creating a 
common interest between themselves and the local population 
and therefore a platform for spreading the gospel. 

Several decades later, Prescraft works with over 1700 crafts men 
and women in different parts of the North West and West 
regions of Cameroon, providing various services including 
training in different artisanal trades and market access.  

Prescraft uses a hybrid supply model, incorporating both home 

and centre based production. 

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Over the years, one of the major aims of the organization has 
been to stem emigration not only to other countries but also to 
urban centres. By providing gainful employment to youth by 
utilizing skills passed down from one generation to the next, the 
organization creates a sense of pride in a demographic that is 
easily lured by the glittering lights and fickle dreams of large 
urban towns. 

Due to the fact that the organization is a certified Fairtrade 

member, producers are ensured of a fair wage bill for every 
piece that they produce. 

[Read more: ​prescraft.cm]​.    

38 
 

Yadaweya - Egypt 

 
(Image: Yadaweya.com) 

All over Egypt, local tribes and Bedouins create the most 
beautiful handmade products, but as is often the case, the 
means through which to reach markets eludes them. Hence 
Yadaweya, and the role they play in connecting them to 
markets that are both profitable and sustainable.   

Yadaweya - which means handmade in Arabic - was founded by 

Usama Ghazali in 2012 and he describes his motivation as the 
desire to “level the playing field of trade through e-commerce. 
“A whole swath of Egypt doesn’t have any access and 
opportunities are lessening due to the lack of technology and 
business skills” he says, adding that “we therefore need to 

39 
 

empower these nontraditional markets and level the playing 

field.” 
To date, the online platform hosts close to 2000 artisans, 
connecting them to consumers worldwide.  

Beyond the market connection that Yadaweya facilitates, a 

more important role is that of ensuring that the cultural 
significance attached to these products​ ​is not lost. “There are a 
lot of different crafts in Egypt; however, no attention is paid to 
them. So, most of the crafts are becoming extinct,” Ghazali says. 
In this regard, Yadaweya also documents the creation process 
and the makers. The documentation is done using video and 
still images and Yadaweya has a Youtube channel displaying 
these videos.  

[Read more: ​yadaweya.com]​.  

   

40 
 

Sirigu Women's Organization for Pottery and Art - Ghana 

 
(image: swopa.com) 

The Sirigu Women’s Organization for Pottery and Art 

(SWOPA)​ was founded in 1997 by Melanie Kasise, with a vision to 
get more women involved in the artisanal sector. The 
organization now boasts a membership of approximately 400 
women, all of whom have been trained for free.  

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SWOPA’s presence in Sirigu village has created a tourist hub, 

where visitors flock to the centre to take a pottery lesson, weave 
a basket or paint a work of art.  

SWOPA has also earned a reputation for their expertise in 

Bomborisi art - highly stylized wall paintings that depict 
everyday community life. These wall decorations are sought 
after by both local dwellers and foreigners alike. Indeed, a trip to 
Ghana is not complete without a visit to Sirigu. It is an 
opportunity to soak in the extraordinary paintwork that is 
Bomborisi. 

[Read more: ​swopa.org]​. 

   

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CHAPTER THREE: 
BUSINESS OPERATIONS 
3.1​ Deciding on Your Product 

3.2​ Raising Capital 

3.3​ Keeping Track of Your Finances 

3.4​ Sales 

​ 3.4.1​ Developing a Sales Strategy 

3.5​ Marketing 

​ 3.5.1​ Marketing Mix 

​ 3.5.2​ Managing Competition 

3.6​ Competition and Your Business 

​ 3.6.1​ Putting Together a Competitive Strategy 

3.7​ Production 

3.7.1​ Types of Production 

​ 3.7.2​ Production Flow Chart 

​ 3.7.3​ Factors of Production 

43 
 

3
​ .7.4​ Production Planning 

3.8​ Distribution 

   

44 
 

3.1 Deciding On Your Product  

This is perhaps one of the most exciting decisions you will 

make during the early stages of your business 

There are several factors that can help you determine your 
product or product range including individual taste, 
socio-cultural influence, geographical location, target group you 
would like to serve….the possibilities are endless.  

However you arrive at your decision, these 15 questions below 

will help concretise your choice: 

● Why​ have I chosen this product? 

● Is there a proven need in the market for it?  
● How many other artisans/designers are making the same 
product? 

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● What will make my product really stand out? What is my 

unique selling proposition (USP)? 
● How long will it cost me to produce a single unit of this 
product? 
● Are the skills necessary in producing this product easily 
replicated?  
● What is the intrinsic value of my product? What i’m I r​ eally 
selling? 
● What is my product development cycle? 
● What pricing strategy will I use? 
● What raw materials are needed for my product? Are they 
readily available?  
● Who is my target market for this product? 
● What packaging material will I need to enhance the look 
and feel of my product? 
● What marketing material do I need to develop? 
● How will this product reach the target market?  
● Do I need any certification before getting this product to 
market? 

Going through these questions will not only give you confidence 
about your product selection, it will infuse your whole 
manufacturing process with a sense of purpose. 

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3.2 Raising Capital 

Cash is the lifeblood of any business. As a business owner, 

you will find that raising the initial funds is a significant part of 
your TOR and, for better or worse, a major challenge. Unless you 
have a clearly defined plan and a path to follow, you are likely to 
run into cash flow challenges sooner or later. 

The good news is, you have a number of options available to you 
as a startup: 
a) Bootstrapping aka self funding 

This is an effective way of financing especially when you are just 

starting out. First-time entrepreneurs often have trouble raising 
funds without first showing some traction and a plan for 
potential success. You can invest from your own savings or from 
family and friends. This method of financing is considered low 
hanging because it has less formalities/compliances, plus it 
comes with little or no administrative cost. 

b) Crowdfunding 

Crowdfunding involves taking a contribution or investment 

from more than one person at the same time. 
It compels a group of people to contribute small amounts of 
money towards a cause they believe in. It is almost always done 
through an online platform; for the simple reason that you are 

47 
 

able to reach a large number of people simultaneously with the 

exact same message. 

How it Works 

The entrepreneur will put up a detailed description of his/her 

business on the platform​ (​gogetfunding​, ​Mchanga​, ​Kiva​). ​He will 
mention the goals of his business, plans for making a profit, how 
much funding he needs and for what purpose. Consumers read 
about the business and loan whatever amount they feel 
comfortable with.  

Once the entrepreneur has raised what he is asking for, s/he 

withdraws the money from the platform and invests it in their 
business. 

The biggest advantage of crowdfunding is that alongside the 

main goal of financing, you get an opportunity to gauge the 
viability of your product or service.  

Keep in mind that crowdfunding is a highly competitive space. 

You need to do thorough research into your business idea and 
present it with authenticity and conviction because you have 
only one shot to make it work.   

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c) Angel Investors 

Also known as ​angel funders, private investors, seed investors or 

business angels, ​these are individuals with surplus cash and a 
keen interest to invest in startups.  

This form of investing generally occurs in a company’s early 

stages of growth, with investors expecting upto 30% equity.  

Angel investors provide more favorable terms compared to 

other lenders, since they usually invest in the entrepreneur 
starting the business rather than the viability of the business. 
They are focused on helping startups take their first steps, 
rather than on the possible profit they may get from the 
business.  

Angel Investment Network​ and V

​ iktoria Ventures​ are just some 
of the firms that connect startups to angel investors. 

d) Venture Capital 
These are professionally managed funds looking to invest in 
companies that have huge potential. ​Contrary to public opinion, 
Venture Capitalists (VC) do not normally fund startups from the 
onset. Rather, they seek to target enterprises that are at the 
stage where they are looking to commercialize their idea. The 
VCs will buy a stake in these firms, nurture their growth and 
look to cash out with a substantial return on investment (ROI). 

49 
 

For that reason, this option is best suited for small businesses 
that are beyond the startup phase and already generating 
revenues.  

e) Incubators and accelerators 

An incubator helps entrepreneurs flesh out business ideas, 

while accelerators expedite growth of existing companies with a 
minimum viable product. 

While incubators and accelerators do not typically inject funds 

into a business, they offer other more valuable resources 
including mentorship, training and networking. The success of 
any incubator or accelerator is directly linked to the success of 
the startups it is providing support to. It is therefore incumbent 
upon them to invest a lot of time, money and energy into the 
growth, success and sustainability of the startup.    

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3.3 Keeping Track Of Your Finances 

Even as you source for funding opportunities, the ability to 

keep track of these finances and grow them will prove to be one 
of the most important skill sets in your business.  

Key considerations: 
● Make the clear decision that you are running a business​: It 
may seem like a no-brainer, but you will be surprised at the 
number of people who aren't really sure if they are running 
a business or a hobby. They are straddling both worlds with 
a wait-and see attitude.  
When you assume such a stance, you lack the motivation 
to put in place the necessary financial structures needed 
to run a business, including bookkeeping and accounting 
systems. 
● Determine what your financial goals are​: What do you want 
your business to do for you in terms of your personal and 
financial goals? Figuring this out will provide clarity in 
where you should be spending and/or investing the money 
you are making. 
● Separate personal and business finances​: This is in fact the 
cardinal rule of any solo run business. Because there is no 
accountability, finances can get mixed up. Taking money 

51 
 

out of the company without a repayment plan can result in 

serious setbacks as far as your operations go. 
● Pay unto Caesar​: It may seem easier and more profitable to 
go without filing your tax returns but ultimately, it will 
catch up with you. As Oprah says, do the necessary 
preparation long before the opportunity presents itself. It is 
the sure proof way to winning. 
● Maintain records​: From the get-go, make sure that you are 
keeping track of where the money is coming from and 
where it is going. There are numerous easy to use 
accounting software programs available online. Find one 
that works for you and use it consistently for peace of 
mind. 
● Budgets​ are an effective tool for monitoring how money is 
moving around the company. A​ budget outlines your 
organization's financial and operational goals, so it may be 
thought of as an action plan that helps you allocate 
resources, evaluate performance and ​formulate plans 
moving forward.    

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Money management tips: 

Pay yourself​: Some people feel guilty paying themselves 
when it seems the money could be allocated elsewhere. 
However it is important to remember that at the end of 
the day, the owner is still an employee and should be 
compensated. 
Define and understand your risks​: Understanding both 
the short and long term risks associated with your 
business is important in enabling you to accurately plan 
for your business’s financial future. Once you have 
mapped out the threats to productivity (seasonal workers, 
a remote geographical location etc) a clearer picture can 
be built around emergency planning, insurance needs, 
etc. 
Overestimate expenses​: For small business owners, failing 
to anticipate an expense or its magnitude could prove 
disastrous and cripple the organization before it has had 
time to grow. To counteract that, it is important that 
business owners overestimate expenses and shield 
themselves. Doing so is a survival tactic that will allow 
owners to hedge against risk or failure. 

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Pay attention to your sales cycle​: Many businesses go 

through busy and slow periods over the course of the 
year. Save during the plentiful months and use the 
downtime to explore creative ways to hold revenue 
steady - either through investing in other instruments or 
strengthening potential income streams that are an 
offshoot of the core business.  

   

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3.4 Sales  
In any enterprise big or small, the sales department plays a 
pivotal role in the success of the business. The unique and 
important role of sales is to bridge the gap between the 
potential customer’s needs and the products/services that the 
company offers.  

Sales play a key role in the building of loyalty and trust between 
customer and business. Trust and loyalty are the main reasons 
why a customer would return, while at the same time 
recommending your company to a friend or family member or 
writing a great review of your product or service online. 

3.4.1 Developing A Sales Strategy 

Although you may have a truly genius product or service, it 

does not take away from the need for sales; for reaching the 
target customer and getting them to pay for it at a mutually 
agreeable price. 
To guide your efforts and use available resources for maximum 
returns, it may be useful to develop a sales strategy or a plan for 
selling your product or service in a way that differentiates it 
from the competition. 

55 
 

1. Identify sales goals​: Articulate and line up the 

ambitions of your enterprise against sales targets. 
What this does is that it creates purpose: you are not 
just selling for the sake of selling, but rather in order to 
achieve a specific goal.  
2. Nail down your market fit​: How does your brand fit in 
its market? If you are unable to articulate your brand’s 
unique selling proposition or USP, it’s unlikely that you 
can persuasively sell your product or service. 

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3. Build customer personas: ​As Dale Carnegie puts it, 

you can close more business in two months by 
becoming interested in other people than you can in 
two years by trying to get people interested in you. 
Make the effort to intimately understand your target 
market by c​reating buyer personas — profiles that 
give a picture of your ideal customer (age, gender, 
race, lifestyle preferences etc) and why they want your 
product or service.​ With this information, you will 
know which customers are the most valuable to 
target, attract and retain.  
4. Identify opportunities for improvement in the 
customer journey​: Look closely at how customers are 
currently moving from being prospects to making a 
purchase. If you understand this journey, you will be 
able to devise more efficient and creative ways of 
making conversions. Some ways to identify 
opportunities for improvements include: 

● Talk with current customers about their interactions with 

your brand and what they appreciated or disliked. 
● Determine what drives (or hampers) purchases. Ask 
current or even prospective customers about obstacles to 

57 
 

purchase. Is budget a common factor? Or is your product 

difficult to understand?  
● Review your competitors’ customer journeys. What 
methods are competitors using to capture their attention? 
What platforms do they use to nurture the customer 
relationship? Research their website content, social media 
platforms, and customer reviews. All of this information will 
help guide your own sales tactics.  

5. Outline an action plan: T​ ​o build this plan, use the 

research you completed in steps 2 through 4 to define the 
tasks reps need to follow to meet the goals you set in step 
1. The tasks that you outline for your reps are going to be 
unique to your team and the research you did prior to this 
step.  
   

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3.5 Marketing 

Marketing refers to activities a company undertakes to 

promote the buying or selling of a product or service. Marketing 
gets the word out about your business. It allows you to connect 
with potential customers and inform them of your products and 
services. It builds brand recognition and fosters healthy 
competition between businesses. And perhaps most 
importantly, it boosts sales.  

3.5.1 Marketing Mix 

The marketing mix is a set of controllable, tactical marketing 

tools that a company uses to influence demand for its product 
and/or service. It is an insightful tool that helps marketing 
planning and execution. 

Although many variations of the marketing mix have appeared 

and disappeared over the years, the seven Ps (Product, Price, 
Promotion, Place, Physical Evidence, People, and Process) 
remains the most popular. 

For your marketing efforts to bear fruit, the 7ps have to work 
simultaneously in a balance that attracts and retains your target 
audience. 

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marketing-skills.blogspot.com 
 

60 
 

Product:​ ​This refers to the goods and/or services you are 

bringing to market. A successful product has to fulfill a specific 
need in the market while performing as promised. It must 
communicate its benefits to the target customer in simple, 
concise language that responds to the perceived need. 
Other factors that will contribute to a successful product 
include variety, quality, design, packaging and brand name.  

Price:​ This is the amount of money that the customer needs to 
pay to attain the product/service you are providing. Your pricing 
should take into account your customer’s ability to pay, market 
conditions, competitor actions, trade margins and input costs, 
amongst others.  

Pricing strategies 
 

Premium pricing​: High price is used as a defining criterion. 

Such pricing strategies work in segments and industries 
where a strong competitive advantage exists for the company. 
Example: Rolex 
Economy pricing​: No-frills price. Margins are wafer thin; 
overheads like marketing and advertising costs are very low. 
Targets the mass market Example: Dollar stores 
Psychological pricing​: ​Marketers use psychological pricing that 
encourages consumers to buy products based on emotions 

61 
 

rather than on common-sense logic. The best example is when 

a company prices its product at shillings 199 instead of 
shillings 200. Even though the difference is small, consumers 
perceive 199 as being substantially cheaper.  
Penetration pricing​:​ P
​ rice is set artificially low to gain market 
share quickly. This is done when a new product is being 
launched. Often, prices are raised once market share 
objectives are achieved. Example: New internet provider 
offering low introductory rates in order to establish market 
share. 
Price skimming strategy​: H
​ igh prices are charged for a 
product till such time as competitors allow after which prices 
can be dropped. The idea is to recover maximum money 
before the product or segment attracts more competitors who 
will lower profits for all concerned. Example: The earliest prices 
for newly launched mobile phones. 
Bundle pricing​:​ ​Businesses use bundle pricing to sell multiple 
products together for a lower price than if they were 
purchased separately. Bundling works well if your intention is 
to move dead stock. Example: A pair of earrings for shillings 
900 each or a multipack of 3 different pairs for shillings 2100. 
Value based pricing​:​ A
​ strategy of setting prices primarily 
based on a consumer's perceived v
​ alue of a product​ or service. 

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Value pricing is customer-focused pricing, meaning 

companies base their pricing on how much the customer 
believes a product is worth. Companies that offer unique or 
highly valuable products and features are best positioned to 
take advantage of this strategy.  
Example: A gown worn by an A list celebrity. 
Promotional pricing​: Involves reducing prices for a limited 
duration, so that item is deemed to be on ‘sale’. This helps 
increase demand for the product, especially from price 
sensitive consumers.  
Example: Buy one get one free (bogof) or discount pricing for a 
limited period. 
Cost based pricing​: This approach adds up the cost of 
manufacturing, distributing and selling the product, as well as 
a reasonable rate of profit to compensate for its risks as well as 
efforts.It is the most common strategy for businesses in 
manufacturing. 

 
Promotion​:​ ​The activities that communicate the product’s 
features and benefits and that persuade consumers to purchase 
the product or service. These include television and print 
advertising, content marketing, scheduled discounts, social 

63 
 

media strategies, collaborations with influencers, pay-per-click 

ads and more. 
All these promotional channels tie the whole marketing mix 
together into an omnichannel strategy, thus creating a unified 
experience for the customer. For example: 

● Customer sees an in-store promotion on a pay per click ad 

on their phone 
● They view the brand's Instagram page, which focuses on a 
unique feature of the product 
● The clients researches more and finds reviews addressing 
that feature on the company’s Google Business page 
● The customer contacts the company via telephone and 
orders the product  
● The product is delivered and company sends a thank you 
message via Instagram direct message 

​ here will you sell your product from? The location you 
Place:​ W
choose will have a direct impact on brand perception and 
therefore revenue. Factors to consider when deciding on a 
location include accessibility (especially for your target group), 
competition, business rates (deposits, rent, utility bills and taxes, 
parking fees etc), skill base in the area (the more remote the less 
likely to find highly qualified human resource), potential for 
growth and security. 

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Process:​ T
​ his refers to the flow of activities or mechanisms that 
take place when there is an interaction between the customer 
and the business. 

An example of a 4 part process would be: 

● Customer decides to sign on to Netflix  
● customer downloads the application  
● customer  registers  his/her  account  using  personal  details 
such as name, telephone number etc  
● customer pays through credit card 
For  this  process  to  be  considered  successful,  it  should  be 
seamless,  transparent,  easily  understandable  and  backed  up  by 
customer  service support in case the customer has an issue that 
needs clarification. 
Companies  with  processes  that  are  user  friendly  are  more  likely 
to have a higher conversion rate than those that don't. 

Physical evidence:​ R
​ efers to everything your customers see 
when interacting with your business. This includes the physical 
environment where you provide the product or service, the 
layout or interior design, signage, your packaging and branding. 
Physical evidence can also refer to your staff, specifically how 
they dress and act. 

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People:​ ​This refers to the staff who work for your business, 
including yourself. Give your business a competitive advantage 
by recruiting the right people​, training your staff​ to develop 
their skills and retaining good staff. 

3.6 Competition and Your Business 

Competition in business is defined as rivalry among 

products and services tussling within the same niche. The 
objective of competition is to increase the business’s revenue by 
increasing sales and market share.  

Although competition is not something you necessarily want as 

a business owner, it can prove to be one of the most important 
aspects of your business if you are able to leverage it to your 
advantage.   

 
 

Additional  resources:  ​Understanding  competition  through 

the context of Red and Blue Ocean strategies.  

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There  are  two  categories  of  competition:  direct  and  indirect. 

Direct  competitors  target  the  same  market  with  a  similar 
product,  while  indirect  competitors  compete  for  the  same 
resources  -  such  as  time  and  money  of  the  same  ​customers  - 
while ​selling​ different products and/or services. 

3.6.1 Putting Together a Competitive Strategy 

Acknowledging competition is the first step towards 

creating a competitive advantage for your business. The second 
step is creatively thinking about how to stand out from the 
crowd aka become the t​ op of mind​ brand in your field of 
practice. When a problem arises that you can solve, you want 
your brand to be the first thing your ideal customer thinks of.  

Harvard professor Michael Porter, identified four major types of 

competitive strategies that businesses often implement. 
Although your business may not use every element of these 
strategies, understanding their core principles can help you 
customize your competitive strategy. 

1. Cost Leadership  
Cost leadership is a tough strategy for small businesses to 
implement because it requires a long-term commitment to 
selling products and services at a cheap price. This in effect 
means producing them at a low cost, in order to maintain a 

67 
 

reasonable profit margin. Large businesses that can make 

products cheaply and sell them at a discount - while still 
generating a profit - can drive competitors out of the market by 
consistently offering the lowest prices. 

2. Differentiation  

This entails identifying and exploiting an attribute or 

characteristic that makes your product or service unique. For 
example, a company that produces leather products can choose 
to focus on a leather type that is uncommon e.g Springbok. If 
your business is able to differentiate its products or services in 
the minds of buyers, it can reap the rewards of higher sales 
volume based on the perceived value. 
 

Additional resources:​ P
​ erceived value​ in marketing 
 

3. Cost Focus  
In this strategy, the business targets a very specific segment of 
the market and offers that market the lowest prices available. 
For example, a company that sells sports accessories could 
target a city that has a high percentage of people that are 
inclined towards health and fitness. They would then sell their 
​ he fact 
products at a much lower price than the competition.​ T
that this segment of the market is much more likely to buy 

68 
 

fitness gear is a major factor in the company deciding that 

lowering its prices would be advantageous. 

4. Differentiation Focus  
Like the cost focus strategy, differentiation focus targets a very 
specific segment of a market, but rather than offering the 
lowest prices, a business offers something unique that the 
competition isn't offering. For example, a designer that makes 
clothes for plus size men or women would be pursuing a 
differentiation focus strategy by catering to a niche segment of 
the clothing market.  

3.7 Production 

At its simplest, production is defined as the making or 

manufacturing of products from raw materials. It is the act of 
creating an output that has demand and that is therefore of 
value to a specific demographic. 

3.7.1 Types of production 

Differentiation  of  production  methods  is  largely  based  on  scale 

or  quantity. There are 4 main scales of production each suited to 
different product applications. In ascending order they are; 
 

● One-off production - single, custom made product 

● Batch production - a set number/quantity of products 
● Mass production - large volume of identical products  

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● Continuous production - large volumes produced 24/7 

For  the  purpose  of  this  book,  we  will  focus  on  one-off 
production,  as  this  is  the  category  under  which  the  artisanal 
sector falls.   
 
Characteristics of one-off production: 
● Labour intensive 
● A skilled workforce is a prerequisite 
● Specialist materials are often in use 
● Depending  on  the  level  of  expertise,  products  can  be  of 
high quality  
● Products  can  be  expensive, due to the level of skill required 
to manufacture them and cost of specialist materials 
● Products  are  manufactured  for  a  specific  target  group  i.e. 
the target is not mass market 
 

3.7.2 Production Flow Chart 

 

Although  one  off  production  has  several  advantages,  one 

of  the  biggest  challenges  comes  in  meeting  wholesale  orders. 
While  no  one  expects  handmade  products  to  be  exact  replicas 
of  each  other,  they  do  need  to  conform  to  certain  standards. 
This  can  be  a  challenge  especially  when  there  are  many  hands 
involved  in  a  production  process  that  is  largely  manual.  Most 

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organizations  address  this  challenge  by  using  a  ​production 

flow  chart​:  a  tool  describing  various  processes  involved  in  the 
creation  of  a  product.  The  flow  chart  can  further  describe  the 
person(s)  responsible  for each aspect, the duration each process 
should ideally take and the standards expected.  
By  making  this  tool  available,  the  business  owner  ensures 
transparency, joint/personal responsibility and accountability.  
The  tool  also ensures that there is efficient use of resources such 
as  manpower  (because  the  right  people  are  assigned  to  carry 
out  the  tasks  most  suited  to  their  skill  sets),  raw  materials  and 
time.  
In  the  illustration  below,  making  this  table  starts  with 
sourcing  and  ends  at  quality  control.  In  between  could  be  as 
many  as  10  steps  to get to a finished product. Depending on the 
workforce,  the  business  owner  assigns  the  tasks  based  on  skill 
sets,  experience  and  personal  attributes.  The  employee  with  an 
eye  for  detail  and patience will most likely be assigned the more 
delicate  tasks  while  the  one  with  longer  work  experience  could 
be assigned to sourcing for the raw materials. 
In  the  event  the  business  owner  is  not  able  to  employ  the 
necessary  manpower  on  a  full  time  basis,  part  time 
employment  and  outsourcing  parts  of  the  process  are  options 
that  are  available  at  a  lower  wage  bill,  although  they  come  with 
their own set of challenges. 

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madehow.com 

   

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3.7.3 Factors of Production 

These are the inputs needed for the creation of a product 

or service. There are 4 factors of production as illustrated below: 

Land:​ ​Includes any natural resource that comes from the land 
such as water, oil, copper, natural gas, coal and forests. These 
resources can be renewable e.g. forests or nonrenewable e.g. oil 

73 
 

or natural gas. The income that resource owners earn in return 

for land resources is referred to as rent. 

Labour: ​ ​The effort that people contribute to the production of 

goods and services. Labor resources include the work done by 
the farmer who grows and harvests the cotton, the textile 
designer who conceptualizes the print for the season’s 
collection, the tailor who stitches it and the model who poses 
with it or walks it down the runway. The income earned by labor 
resources is wages or salary and is the largest source of income 
for most people. 

Capital:​ ​The machinery, tools and buildings we use to produce 

goods and services. Some common examples of capital include 
sewing machines, drills, computers, looms, potters wheels, kilns, 
delivery vans etc. Capital differs based on the worker and the 
type of work being done. The income earned by owners of 
capital resources is interest. 

Enterprise or entrepreneurship:​ A
​ n entrepreneur is a person 
who combines the other factors of production - land, labor and 
capital - to earn a profit. The most successful entrepreneurs are 
innovators who find new ways to produce goods and services or 
who develop new goods and services to bring to market. 
Entrepreneurs thrive in economies where they have the 

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freedom to start businesses and buy resources freely. The 

payment for entrepreneurship is profit. 

Is money a factor of production? 

Money is not a factor of production because it is not directly 
involved in producing a good or service. Instead, it facilitates 
the processes used in production by enabling entrepreneurs 
and company owners to purchase capital goods, land or pay 
wages. 

3.7.4​ P
​ roduction Planning 

Production  planning  is  the  core  of  any  manufacturing 

process.  Its  purpose  is  to  minimise  production  time  and  costs, 
efficiently  organise  the use of resources and maximise efficiency 
in the workplace. 

Production  planning  incorporates  various  production  elements 

-  ranging  from  the  everyday  activities  of  staff  to  the  ability  to 
realise  accurate  delivery  times  for  the  customer.  ​Small 
businesses  need  to plan their production carefully so as to make 
the  best  use  of  what  are  often  limited  resources.  ​With  an 
effective  production  planning  operation  at  its  nucleus, any form 

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of  manufacturing  process  has  the  capability  to  exploit  its  full 
potential. 

There are 6 principles of production planning:  

● Customer  demand:  ​What  is  the  market’s  appetite  for  your 

product  or service? Being able to accurately determine this 
is  an  important  skill  for  every  business  owner,  large  or 
small.  Estimate  too  little  and  your  orders  could  be 
backlogged  or  canceled.  Estimate  too  much  and  you  get 
stuck  with  products  you  cannot  sell.  Learning  how  to 
measure  product  demand  is  a  key  component  of  the 
production process. 

Although  there  are  a  number  of  ways  you  can  use  to 
forecast  customer  demand,  the  most  reliable  is  studying 
past  sales  records.  With  accurately  kept  records,  it 
becomes  possible  to  determine  -  at  a  glance  -  how  many 
units  of  a  product  were  sold  at  a  particular  point  in  time. 
Records  will  help  you  understand  dips  and  spikes  and 
therefore how to better predict customer demands. 
● Materials:  Inorder  to  meet  your  production  target,  you 
must  have  the  materials  needed  to  produce  the  said 
goods.  ​The  most  efficient  production  planning  keeps  the 
minimum  materials  in  inventory​.  Production  planners 

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evaluate  how  much  material  the  company  needs,  the  lead 

times  for  orders,  the  delivery  times  for  suppliers  and  the 
reliability of the supply.  
● Equipment:​ This production principle involves using the 
expected output capacity of equipment to predict current 
and future capabilities. If you foresee a capacity 
requirement beyond the capabilities of the equipment, it is 
time to explore the acquisition or leasing of additional 
equipment or capacity.  
● Manpower:​ This principle plans for the number of workers 
required to fulfill the target and uses overtime and layoffs 
to even out any variations. The capacity of the workforce 
has to match the capacity of the equipment in order to 
achieve highest efficiency.  
● Processes:​ Effective production planning makes sure that 
the processes used for the output operate efficiently and 
safely on a day to day basis. If the company plans to 
introduce a new process, production planning ensures that 
it is tested and ready for operation for the planned 
production. 
● Controls:​ This production planning principle ensures that 
there are controls in place to detect problems within the 
process as early as possible. Authentication of inventory, 
use of qualified personnel and standardization where 

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possible can prevent quality problems and production 

delays.  
   

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3.8 Distribution  

Distribution involves making a product available for 

purchase by dispersing it to the market directly (working 
directly with the consumer) or indirectly (by incorporating 
intermediaries). 

medium.com 

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As a producer, you may choose to go directly to your consumer 

through a brick and mortar store, fairs, social media platforms 
etc. In this case, we may refer to you as a retailer. You may also 
choose to go through any number of distribution partners. In 
this case, we may refer to you as a wholesaler. 

Wholesaling:​ This distribution model offers two main 

advantages to the business owner: 

a. Brand awareness 

Acting as a wholesaler is a great way to build awareness for your 

brand. Instead of consumers having to purchase exclusively 
from a particular shop (be it virtual or brick and mortar), 
consumers can engage with your product through a variety of 
outlets. It can allow a wide range of consumers who might 
otherwise not have been aware of your product to build a 
relationship with it. 

b. Global expansion 

When selling goods via wholesale, it is much faster and easier to 
expand into global markets. Any growth and expansion is 
defined primarily by your relationship with those clients who 
buy goods from you. If they sell globally, then so will you as you 
are just getting the goods to where they need to sell them.    

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Disadvantages of wholesaling 

Wholesale translates to production capacity, which translates 

into capital. If you do not have the requisite amounts to build, 
store and move inventory, it will surely be an uphill task meeting 
orders. 

Furthemore, achieving product standardization in the 

handmade sector - while not impossible- takes years to achieve. 
Although most buyers will not have a problem with a few inches 
off or a crooked line here and there, ultimately, they want 
products that look handmade rather than shoddy; which is 
where standardization becomes key - because it differentiates 
between the two. 

An important consideration in wholesaling is Minimum 

Order Quantities or MOQs. It refers to the smallest quantity that 
can be bought from a supplier at wholesale prices. 
MOQs are based on the total cost of inventory and any other 
expenses you have to pay before reaping any profit – which 
means MOQs help wholesalers stay profitable and maintain a 
healthy cash flow. 
If you want to sell wholesale, then you should reduce your price 
just enough to make it a good deal for the buyer, while allowing 
you to make sufficient profit while quickly r​ educing your 
inventory​.  

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The goal is to service a small number of buyers who purchase 

the largest amount of your stock, thus working within the 
tenets of the ​Pareto Principle​. The principle states that 20% of 
your business will derive from 80% of your consumer base and 
that it therefore makes business sense to allocate more 
resources towards the 20%.  
While there are no hard and fast rules in calculating MOQs, here 
are some suggestions on how to go about it:  
● Raw material costs:​ You probably purchased your raw 
materials from suppliers who have their own MOQ 
requirements. To remain profitable, you will need to 
calculate your total raw material production costs and use 
it to find the minimum number of products you need to 
sell to sufficiently cover these costs. 
● Your average order size vs what you want your quantity to 
be:​ A
​ nother possible way to set your MOQ is to set it just 
above your average order quantity. This is a good starting 
point to test if your customers who are ordering slightly 
below your new MOQ are willing to increase their order 
quantities. This is an effective method to boost order 
volume without putting pressure on customers. After a trial 
period, you can then adjust your moq based on customer 
response. 
● Average profit per item:​ ​You may also approach it from a 

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profit perspective i.e. by figuring out what your target profit 

should (ideally) be. When doing so, take into account 
factors such as additional costs for damaged or unsold 
goods. This should create a more accurate representation 
of the actual profits you could potentially earn. 

Remember, you can have varying MOQs for different items 

within your product range.  

Retailing:​ This method involves selling directly to their 

customers for a profit. This can be achieved through a variety of 
avenues; including craft fairs, online platforms, brick and mortar 
shops and tea parties. The retailer may be the manufacturer of 
the product, or may acquire products from a distributor or a 
wholesaler. 

Advantages of retail 

● Targeted customer base:​ You are in a position to personally 

select the channels that are most likely to reach customers 
who need and want your product.  
● Personal connection:​ Retail allows you to know your 
customer base in great detail. Due to the fact that you are 
dealing directly with them, you get a sense of their 
preferences and their habits, and respond accordingly.  

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● Brand identity:​ As a retailer, you are in control of how, 

where and when your product is seen. As you are in total 
control of marketing, you can ensure that the messages 
being put out to the world are consistent with how you 
want your product to be perceived. 

One of the biggest challenges of retailing is the sizable costs 

that may come with direct distribution. For example, you may 
need to purchase trucks, hire drivers and rent storage space. 
You may also find it harder to reach potential customers 
without the network an established distributor provides. 

   

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CHAPTER FOUR: 
GROWING A SMALL BUSINESS 
4.1​ Growth vs. Fixed Mindset 

4.2​ Fostering a Growth Mindset 

4.3​ Growth Strategies for Your Small Business   

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4.1 Growth vs. Fixed Mindset 

 

Over 30 years ago, psychologist Carol S. Dweck Ph.D, came 

up with a revolutionary approach to educational theory.  
In it, she observed that when it came to inherent talent and 
intelligence, there were generally two types of mindsets at play: 
fixed mindset (which saw people believe talent was something 
they either had or didn't have) and growth mindset (which saw 
people believe that talent was something that could be 
acquired and honed through challenge, learning and 
developing new skills). 
Although most of us would want to think of ourselves as growth 
oriented individuals, Dr Dweck emphasizes that we are a 
product of both: different scenarios bring out different 
mindsets. We might be on a growth mindset in the morning 
and by evening, we have slipped into a fixed mindset.  
 

In business, a growth mindset can play out across a number of 

areas. It can encompass an organisation’s vision and general 
outlook, the approach to staffing and the way the business 
owner leads the enterprise.   

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In general, a growth mindset operates within a context 

● That welcomes challenge while embracing the opportunity 
it presents 
● That seeks to push boundaries 
● That is not afraid to make mistakes, learn and grow from 
them 
● That has a clear vision and mission 

Conversely a fixed mindset  

● Spends plenty of time reminiscing on past achievements 
● Fears competition 
● Is risk averse 
● Gives up easily and is paralysed by set-back or defeat 

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crunchbase​ ​.com 

   

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4.2 Fostering a growth mindset 

As a business owner, it is important to adopt a growth 
mindset because it creates a momentum that allows you to 
power through challenges and seize the opportunities that 
come your way. 

Below are some tips on how to do that on both an individual 

and institutional level: 

● Have a clear mission 

Articulating the who, what, why, how and where of your 
business displays a clear understanding of your existence; 
paving way for an open mindedness that allows you to welcome 
both challenges and opportunities, failures and successes. 
When you have clarity about the essence of what you do, you 
are not afraid of disappointment, because you recognise the 
lesson in it. You are not afraid of criticism because you know 
that as hard as it might be to take in, there is some truth in it. 
And perhaps most important of all, you are not threatened by 
competition and the success of your peers, because you 
recognise it as an opportunity to strengthen your position and 
offering.   

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● Invest in your staff 

One of the most important decisions you'll ever make is to 
invest in your employees. Richard Branson famously said that it 
is employees rather than customers that come first; because 
once they are taken care of, a positive ripple effect is bound to 
occur.  
A great example of a company reaping the benefits of investing 
in their employees is Google. The company offers everything 
from laundry facilities to nap pods. Employees are allowed to 
spend 20% of their time pursuing special projects they feel are 
worth their time. In fact, some of their best products, including 
GMail, Google Maps and Adsense, are products of this policy. 
 

● Put together a growth strategy  

A growth strategy is a plan of how you will get from where you 
are today to where you want to be in the future. Because it 
focuses on how you will grow your business, your growth 
strategy will quickly become the most important reference 
document when making business decisions - allocation of 
resources, hiring of staff, taking on partners etc. In essence, a 
well thought out strategy will not only keep you focused, it will 
also compel you to think long term.   

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4.3 Growth Strategies for Your Small Business 

act.com 

● Market penetration 

This strategy aims to increase market share for an existing 

product. Useful tactics include advertising, bundling products 
into attractive, saleable packages, offering discounts on larger 
orders and lowering prices to beat competitors. 

● Market development 
This involves promotion of existing products or services to new 
customers, or launching them in a new geographical area. If 
your usual market is saturated or you’re struggling to attract 
new customers, this is the strategy for you. 
 

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● Alternative channels 
What other channels could you use to sell your product? If you 
are selling your product online, could you think about selling 
through a pop-up shop or host a sales tea party? You could also 
think of a subscription or membership programme to attract 
new clients.  
 

● Product expansion 
Increasing your product offering or adding new features to your 
existing product is a great way to generate interest within your 
consumer base. You may be experiencing a lull in sales because 
the initial excitement and appeal of your product or service has 
worn off.  
 

● Market segmentation 
If your product or service range is in any way diverse, you can 
benefit from employing market segmentation as a growth 
strategy. This involves dividing your target market along identity 
markers such as the location they are from, age, gender and 
lifestyle choices. This enables you to employ marketing tactics 
that are customer specific. 
 

● Partnerships 
By joining up with a complementary, non-competitive business, 
you can instantly gain access to new customer bases and 
markets. You might choose to do this though mergers, 

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acquisitions or partnerships with other businesses. Provided the 

arrangement is mutually beneficial, partnerships can sustain 
significant growth for the long term. 
 

What is the best strategy for your business? 

An important factor to consider in reaching a decision is what 
growth stage your business is in.  
● Existence stage​: Focus is on whether the business idea is 
viable and expanding to a size that is large enough to 
make it a success. There is unlikely to be a formal 
business structure. 
● Survival stage​: Firms have demonstrated that they are 
workable business entities, but the key question becomes 
whether there is enough money for the firm to break 
even and stay in business. 
● Success stage​ is split into two: The 
success-disengagement​ sub stage which is when the 
company has achieved stability and earns large enough 
profits to survive. The business can last in this stage 
forever, assuming no major disruption happens. 
Success-growth substage​: The company owner has to 
decide if they will leverage on their market position and 
strength to push through to the next level.  
● Take-off:​ The main concern here is rapid growth and the 

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resources needed to make it happen. If a business doesn’t 

succeed at this stage, it may drop back to one of the 
earlier stages of growth or go bust. 
● Resource maturity and possible exit​: A company has 
grown to near its maximum size. It will have the 
advantages of size, financial resources and managerial 
talent and will be a formidable force in the market if they 
maintain their entrepreneurial spirit. M
​ any at this stage 
also look to move on through a partial or full sale.  

It is important to note that not all businesses will experience 

every stage of the business lifecycle, and those that do may 
not necessarily experience them in chronological order. For 
example, some businesses may see massive growth right after 
the survival stage, and the founders may decide to cash out 
right away, jumping straight to the exit stage. 

 
 

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CHAPTER FIVE: 
WINDING DOWN: KNOWING 
WHEN TO CALL IT QUITS 
5.1​ Staying Relevant in Business 

5.2​ How Do You Know When to Close Shop? 

5.3​ The Process of Closing Down 

5.4​ What Next?   

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5.1 Staying Relevant in Business 

The longer you stay in business, the more important the 

question of relevancy becomes. Consumer loyalty can be fickle -  
not because they are ungrateful or because they have a 
personal vendetta - but because now more than ever, the 
options are numerous; changing rapidly and available at the 
touch of a finger. 

It goes without saying: becoming irrelevant is a death knell to 

your business. When your customers neither hate nor love you, 
it means you don't even register on their radar. You don't 
matter. There is nothing that cripples a business as much as 
that. 

The scary part about becoming irrelevant is that it creeps up on 

you. It starts small - when you allow yourself and your 
employees to get away with things you shouldn't be getting 
away with. Complacency, not prioritizing customer experience, 
taking too long to resolve customer issues and resistance to 
change are all issues that will tarnish your reputation quietly 
and with stunning efficiency.    

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How to Stay Relevant 

​ here your customers are, be there 
● W
How could you effectively collect information about the needs, 
wants and expectations of your customers? Where do they 
hang out, what do they read, who do they trust? It is extremely 
important to stay connected to our target consumer because 
the moment we are disconnected, our relevance begins to 
diminish. 
● What can you learn from the competition? 
Study the competition and find out the what/how/when/why 
and where of their existence. Draw up a list of everything that 
you find out; categorizing information as follows:  
What they are doing better than you:​ If you are sure your 
competitors are doing something better than you - customer 
service, pricing, product offering, accessibility - it is time to make 
some changes. But remember, innovate rather than imitate.   
What they are doing worse than you:​ Exploit the gaps you have 
identified. These may be in their product range or service, 
marketing, distribution or the way they recruit and retain 
employees. 
What they are doing that is similar:​ ​Even though on the surface 
it may look like you are doing the same thing, a closer look will 
reveal where you could potentially differentiate yourself. It could 

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be something as small as offering gift wrapping services or 

complimentary delivery of that gift to the recipient.  

● Examine trends and have a strategy to exploit them 

Virtually every industry has trends (defined as ​a pattern of 

gradual change in a process, output or condition). To keep 
abreast of trends, observe what the captains of industry are 
doing, engage with your customers by asking the right 
questions, surround yourself with people who are smarter than 
you and cultivate a growth mindset (discussed in previous 
chapter).  
 

● Embrace cross industry innovation 

All too often, we look for innovation within our own business or 
sector. Yet experience shows that t​ here is huge potential in 
bringing fields that are different from one another yet alike on a 
deep structural level.​ To really utilize this opportunity, we need 
to cultivate an open-mindedness that allows us to be students 
of other industries and innovative communities. 
Whether you're ready for them or not, trends change industries 
every day. Staying open to what is coming around the corner 
and evolving your company alongside those changes can keep 
you relevant. 
   

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5.2 How Do You Know When to Close Shop? 

Quitting a business that you have worked hard on can be 

tough, but it is a reality that many entrepreneurs will be 
confronted with. Majority of businesses in the artisanal sector 
never get an opportunity to scale up. They start small and stay 
small, and many will eventually shut down. When faced with 
this situation, it is important to exit gracefully - with your 
reputation, trust and dignity intact. 

What are some of the reasons that would compel you to bow 
out? 

Economic reasons: 

● Slow national economic growth​ ​due to recession or 

depression directly affects the company’s operations. As an 
example, the COVID 19 pandemic has had a devastating 
effect on the economy, forcing millions of businesses 
around the world to close shop in order to avoid further 
losses.  
​ he inability to generate sufficient business 
● Low Profits:​ T
profits is a common reason to close a company. When your 
overheads are higher than your revenue, you are bound to 
face a situation of perpetual struggle while trying to keep 
the business afloat.  

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● Tough Competition:​ ​This represents any product or service 

competing with you for the same consumer demographic, 
whether directly or indirectly. Business owners may close 
their business if they are unable to sustainably defend their 
market share.  

Personal reasons: 
 

● When you’ve lost the drive:​ If other competitors are 

succeeding in the same business, then there’s usually a 
way to make it work. But if you have lost the drive to 
continue, then it will be hard to put in the work necessary 
to push forward. 
● It is not sufficiently profitable and won’t be getting better 
in the future:​ I​ t is typical for entrepreneurs to dip into their 
pockets to finance the business. However, when you have 
been doing it for too long and the situation doesn't seem 
to be improving, it is time to make some tough decisions.  
● You are presented with a better opportunity:​ ​Sometimes, a 
more fulfilling opportunity can emerge from an existing 
one. Ultimately, it is up to the business owner to decide 
which fork of the road to take. Either way, it is important to 
take the emotions out of the equation and make the right 
choice based on the facts.   

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5.3 The Process of Closing Down 

From the emotional to the administrative, closing down a 

business can be a long and difficult process, more so if not 
managed properly. Below is a checklist of the most important 
aspects to consider. 
1. Be ok with the decision you have made:​ I​ t is the only way to 
cultivate the right mindset: It is important to remember 
that it is the business that has failed, not you! Remember, 
failure doesn't mean the game is over. It means the 
opportunity to try again - but with experience. 
2. Inform your employees:​ Employees have a personal stake 
in the existence of your company. They are therefore 
bound to feel a sense of betrayal if they are to find out 
about the closure from third parties. As soon as you have 
made the decision, they should be the first to be informed. 
Find out what the law says about layoffs and adhere to it. 
3. Collect on outstanding accounts:​ ​Once news of your 
impending closure spreads, it will be difficult to collect on 
debts. Therefore, collect your debts quietly and with 
minimum fuss. It goes without saying that the employee in 
charge of debt collection should be the last person to be 
laid off.  
​ our customers have come to rely 
4. Inform your customers:​ Y
on you; and even though they will find alternatives soon 

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enough, it is important to allow them to express their sense 

of loss. Give them the opportunity to be part of your exit 
strategy by offering an explanation where necessary. 
5. File dissolution documents:  
● For a limited company:​ If you have a board of directors​, 
deregistration of a company will usually begin with a board 
meeting, in which a resolution to dissolve the company is 
passed. The minutes of this meeting are required to be 
submitted together with the resolution form (CR19), an 
application to be struck out of the companies register 
(form CR18), and the company’s statement of annual 
returns. There should also be a statement to the effect that 
the company is cleared from all charges or that it is able to 
do so. The information needed for the CR18 form includes 
the name and registration number of the company, its 
date of incorporation and the names and signatures of the 
directors making the application. Copies of the application 
should be given to all the members and employees of the 
company within seven days.  
● For a business name: ​A BN/6 form should be filled within 
three months of cessation of the business. The 
requirements are the business name, registration number 
and the date of winding up. That form should be signed by 
the business owner(s) who may be a sole proprietor, two or 

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more partners or a corporation. The certificate of 

registration must also be submitted for cancellation. It can, 
however, be returned to the business owner(s) upon 
request.  
● For a limited liability company: T
​ o wind up a limited liability 
company, the manager(s), or in the event that they are 
more than two, a majority of them, must make a 
declaration of solvency of the partnership (form LLP 10). A 
declaration of solvency implies that the company is able to 
pay off its debts within twelve months. After at least 
thirty-five days from the making of this declaration, a 
resolution must be passed by all the partners, and it must 
be lodged with the registrar within seven days, together 
with the declaration mentioned and a statement of the 
company’s assets and liabilities. These documents should 
be hand delivered to the offices of the Registrar of 
Companies. 
Once the applications have been submitted, the registrar 
will strike the business entity from the register and gazette 
a notice to that effect in at least one local newspaper that 
circulates nationally within fourteen days. After this, the 
business is deemed as dissolved, with the only thing 
pending being the settlement of all liabilities.  
With the exception of a limited liability company, 

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dissolution can be done through the e

​ Citizen portal​. 
6. Take care of your tax obligations: T
​ o cancel your VAT 
registration, you need to apply to the K
​ enya Revenue 
Authority​ ​within 30 days of making the decision to close 
shop (the effective date of the cancellation is the date 
specified in the cancellation notice). This notice can be 
served online. Additionally, you will need to submit a final 
VAT return and settle all taxes due within 30 days.   
​ hough it tends to be the 
7. Pay your outstanding debts:​ T
scariest aspect of winding down, prudent debt 
management is possible and requires only one rule of 
engagement: don’t ignore your debtors.  
It may be tempting to ignore the calls and demand letters 
from your debtors in the hope that they will get the 
message and leave you alone. But it doesn't work and what 
started off as a phone call might very well end up as a 
lawsuit. Respond to all of them and be honest about your 
situation. You will be surprised to find that most are 
sympathetic and willing to draw up a​ d
​ ebt management 

plan or DMP (an agreement between a debtor and a 

creditor that addresses the terms of an outstanding debt)​. 
Honor the plan and constantly update them of any 
changes along the way.   

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To accumulate the resources needed to settle your debts, 

you have several options:  
​ our first option could be to sell the 
● Sell the business:​ Y
business. If you have a potentially profitable business with 
assets in excess of liabilities, you should not have a problem 
finding a buyer. However, if you have been on a losing 
streak, have more liabilities than assets or the market 
conditions don't favor the sale, selling can be a long and 
arduous task. Either way, seek legal and accounting advice 
before deciding to go this route. 
Important to note: I​ f you are personally liable for the 
obligations of the business, selling it won't get you off the 
hook unless you pay off the debt or the creditor releases 
you from liability. 
● Liquidate assets: T
​ o liquidate means to convert assets into 
cash by selling them on the open market. A liquidator is 
appointed when a company is placed into liquidation. S/he 
takes control of all the company’s assets, which are sold to 
repay the creditors. Directors are required to help the 
liquidator locate the business records and assets, and to 
answer any questions about the company and it’s business. 
It is an offence for a director to destroy, hide or remove 
property, records or other documents during this process.    

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● Declare bankruptcy​: B
​ ankruptcy is a legal process where 

you are declared unable to pay your debts. T

​ he 
proceedings are instituted by presenting a bankruptcy 
petition which prays for a receiving order to be made in 
respect of the debtor’s properties. The court will grant the 
receiving order or, seeing no merit in the petition, dismiss 
it. Important to note that the receiving order does not 
make one bankrupt; it only places their properties in the 
custody of a Trustee appointed by the court.  
The bankruptcy petition must be served upon the 
creditors, thus giving them time and opportunity to 
oppose such an application if they can prove that the 
debtor is able to pay the debts. 
The first meeting of the creditors is then held in order to 
determine whether the debt management plan submitted 
by the debtor is acceptable or whether an application to 
the court is necessary to adjudicate the debtors’ 
bankruptcy.  
One of the benefits of taking the decision to file for 
bankruptcy early is that doing so triggers an automatic 
stay, preventing creditors from taking action to collect their 
debts (suing you, harassing you or sending demand 
letters). This also puts a stop to evictions, foreclosures and 
utility shutoffs. 

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8. Provide safe storage for important documents: ​Most 

lawyers, accountants and bookkeeping services 
recommend keeping original documents for at least seven 
years as this is considered sufficient time for defending tax 
audits, lawsuits and potential claims. 
Specific documents include 
● Business tax returns and supporting records  
● Payroll tax records, including time sheets, wages, pension 
payments, tax deposits, benefits and tips  
● Current employee files and job application information  
● Ownership records, such as business formation 
documents, all meeting minutes and property deeds 
(should be retained permanently) 
● Accounting services records including financial 
statements, check registers, profit and loss statements, 
budgets, general ledgers, cash books and audit reports  
● Operational records, including bank account statements, 
credit card statements, canceled checks, cash receipts and 
checkbook stubs 
9. TaKe time to mourn the loss: T
​ he process of letting go of 
something you wholeheartedly believed in can have a 
major impact on your sense of identity. Beyond the feeling 
of loss, there is bound to be anger, disappointment, 
resentment and the fear of being considered a failure. 

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It is important to acknowledge and give room to these 

emotions; just so you are able to attain closure and begin a 
healthy transition to your next life chapter. Failure to do so 
leaves one with a chip on the shoulder and a missed 
opportunity to learn the lessons of the season. Don't allow 
the ‘move on’ choir to take away from the healing process. 
Take your time and when you are ready, the opportunities 
to rise again will present themselves. 
 
   

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5.4 What next? 

Difficult as it is, walking away from a failed business can be 
a liberating act of renewal, precisely because it gives you the 
opportunity to start over.  
As you take care of the administrative issues detailed above, it is 
just as important to take care of yourself. 
 

It may seem counterintuitive to speak openly about your failure. 

But it will prove essential to your well being.​ I​ t will sting. And you 
will be averse to speak about it even to your closest friends and 
relatives. Speaking about your failure with candour (when you 
are ready, ofcourse) means acceptance, which is an integral part 
of the healing process . Furthermore, s​ haring your failures 
speaks to the very heart of your authenticity. It says you are 
brave enough to expose your humiliation and laugh at yourself. 
It displays a confidence that only comes from learning the 
lessons.  
 

You have given yourself time to mourn and in the process, 

accepted that things didn't work out. Now it’s time to consider 
in what direction you want to move. ​Do you still want to achieve 
this particular business vision? Or would you prefer to change 
direction? Are you still motivated to be self employed or will you 
seek a paid position as an employee? Whichever choices you 
make, remember that while the aspect of changing course may 

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be scary, you have a golden opportunity to reinvent yourself. It is 

an opportunity few ever r​ eally​ get. As author Phil Wohl so 
beautifully puts it, “don't ever feel like your best days are behind 
you. Reinvention is the purest form of hope. Make today your 
best yet.” 
In order to make impactful decisions about the future, you will 
need the right information. But to get the right information, you 
need to ask the ​right ​questions.​ ​Asking the right questions 
allows us to assess a situation while benefiting from the 
experiences, insights and perspectives of others. Knowledge is 
having the right answer. Intelligence is asking the right 
question.  
 
 

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