Investors,

I have two friends who have been running a pest control and fumigation business for the past 4 years and though it hasn't been profitable,it has managed to survive by keeping expenses low and high profit margins from the small clientele that they have.

I have been invited to join the business by providing capital injection and managerial expertise and basically turning around the business.

The main argument being they don't have capital to pursue big ticket customers and lack of skills when it comes to managing the business.

Question is,is it viable? Is there competition in this kind of business ?

Is it prudent to target small businesses and households in middle income estates like Lang'ata, South B, Nairobi West, Parklands,etc and charge a flat fee of about 500/= ?

Your thoughts are appreciated.

Hedges

@Hedges, in addition to @E2D sentiments...

1. Going by what you say, the issue may not be whether the business is viable (its going on after 4 years) but if it will grow? Growing a business often needs cuddling by the owners.

2. When I was young, a teacher once told me business were about niches. Is there a niche in the big ticket customers OR is the unpursued area the small businesses and households? Looking at the existing customer base, you should already be able to see where the niche lies.

3. Assuming for arguments sake the niche is the small guys, marketing becomes very important; just as important as finding a clever creative way of distinguishing your business. Peter Drucker says "Business has only two basic functions - marketing and innovation"


You will need grit and gut - business is war - and in the end you'll succeed.