How to Start a Motorcycle (Boda Boda) Spare Parts Business

Motorcycles, or boda bodas as they are popularly known in Kenya, are one of the most common and convenient modes of transport in the country. They are fast, flexible, and affordable, especially for short distances and in areas with poor road infrastructure.

According to the Kenya Economic Survey 2023, there were over 1.5 million motorcycles registered in Kenya in 2023, with the majority being used for commercial passenger transport. This means that there is a huge and growing demand for motorcycle spare parts and accessories in the market.

If you are looking for a lucrative business opportunity in Kenya, then you should consider venturing into the motorcycle spare parts business.

If you ask me, this business is profitable and it can generate steady income and profits, as well as create employment opportunities for yourself and others.

However, like any other business, it requires proper planning, research, and execution to succeed.

In this article, we will guide you on how to start a motorcycle spare parts business in Kenya in 2024, covering the following aspects:

• Market analysis
• Business plan
• Capital and costs
• Location and premises
• Stock and suppliers
• Licenses and permits
• Marketing and promotion
• Challenges and risks

1). Market Analysis

Before you start your motorcycle spare parts business, you need to conduct a thorough market analysis to understand the industry trends, customer needs, competitors, and opportunities.

Some of the questions you need to answer before you invest your hard-earned money in the spare parts business are:

• What are the most popular motorcycle models and brands in your target area?
• What are the most common spare parts and accessories that customers need or demand?
• How much are customers willing to pay for these spare parts and accessories?
• Who are your main competitors and what are their strengths and weaknesses?
• What are the gaps or niches that you can fill or exploit in the market?

If you can answer all these questions either negatively or positively, then you are good to go.

You can gather this information by conducting surveys, interviews, or observations of potential customers and existing businesses.

You can also use online sources such as websites, blogs, social media, or forums that deal with motorcycles and spare parts.

And if you do not have the time, hire a professional market research firm to analyze you.

2). Business Plan

After conducting your market analysis, you need to write a detailed business plan that outlines your goals, strategies, and action plans for your motorcycle spare parts business.

A business plan is important because it helps you to organize your thoughts, identify your resources, allocate your budget, measure your progress, and attract investors or lenders if you need external funding.

Your business plan should include the following sections:

• Executive summary: This is a brief overview of your business idea, vision, mission, objectives, products or services, target market, competitive advantage, and financial projections.
• Company description: This is where you provide more information about your business name, legal structure, ownership, location, history, and plans.
• Market analysis: This is where you present the findings of your market research and show how you fit into the industry landscape.
• Products or services: This is where you describe the spare parts and accessories that you will sell, their features, benefits, prices, suppliers, and warranties.
• Marketing and sales: This is where you explain how you will promote your products or services to your target customers, what channels or platforms you will use, what messages or offers you will communicate, how you will distribute your products or services, and how you will handle customer service and feedback.
• Management and organization: This is where you outline your organizational structure, roles and responsibilities, qualifications, and salaries of your staff members.
• Financial plan: This is where you provide your income statement, balance sheet, cash flow statement, break-even analysis, and financial projections for at least three years.

You should also indicate your sources and uses of funds and any assumptions or risks that may affect your financial performance.

You can use online tools such as Business Plan Template or Bplans to help you write your business plan.

3). Capital and Costs

The amount of capital and costs that you will need to start and run your motorcycle spare parts business will depend on various factors such as:

• The size and location of your premises
• The type and quantity of stock that you will purchase
• All or some of the equipment and tools that you will need at the start
• Licenses and permits that you will obtain
• The marketing and advertising that you will do
• Salaries and wages that you will pay
• The taxes and utilities that you will incur

As a rough estimate, you may need between Ksh 500,000 to Ksh 1 million to start a small to medium-sized motorcycle spare parts business in Kenya in 2024. However, this figure may vary depending on your specific circumstances and preferences.

4). Location and Premises

The location and premises of your motorcycle spare parts business are crucial for its success.

You need to choose a place that is easily accessible, visible, secure, and has high traffic of potential customers.

You also need to consider the availability of parking space, electricity, water, and sanitation facilities. Some of the best locations for a motorcycle spare parts business in Kenya are:

• Near major roads or highways
• Near motorcycle repair shops or garages
• Close to motorcycle dealers or distributors
• Near bus or matatu stages or terminals
• Anywhere near markets or shopping centers

The size and design of your premises will depend on the amount of stock that you will store and display, the number of customers that you will serve, and the level of comfort and convenience that you will offer.

If you have the budget, consider renting or buying a suitable space, or convert an existing structure into a shop.

You will need to equip your premises with shelves, racks, counters, cabinets, cash registers, computers, printers, scanners, security systems, fire extinguishers, and other necessary items.

5). Stock and Suppliers

The stock and suppliers of your motorcycle spare parts business are the core of your operations.

You need to ensure that you have enough quality spare parts and accessories to meet the demands and expectations of your customers.

You also need to ensure that you have reliable and reputable suppliers who can deliver your orders on time and at reasonable prices.

Some of the factors that you need to consider when choosing your stock and suppliers are:

• The popularity and demand for spare parts and accessories
• The compatibility and durability of the spare parts and accessories
• Warranty and after-sales service of the spare parts and accessories
• The price and profit margin of the spare parts and accessories
• The availability and delivery time of the spare parts and accessories
• Reputation and credibility of the suppliers

The most common spare parts and accessories that you will need to stock in your motorcycle spare parts business are:

• Tires and tubes
• Rims and spokes
• Brakes and pads
• Chains and sprockets
• Clutches and cables
• Batteries and spark plugs
• Lights and indicators
• Mirrors and horns
• Helmets and jackets
• Gloves and boots

The most popular motorcycle models and brands in Kenya are:

• Boxer Bajaj
• TVS Star HLX 125/150
• Honda Ace CB 125/150
• Hero Dawn 125/150
• Yamaha Crux 110/125

Some of the leading motorcycle spare parts dealers and distributors in Kenya are:

• Shineray Motorcycle Co Ltd
• Maxali Kenya
• Royal Motor Dealer
• MotoADV Kenya
• Lifan Kenya

6). Licenses and Permits

The licenses and permits that you will need to obtain for your motorcycle spare parts business will depend on the county in which you will operate.

However, some of the common licenses and permits that you will need are:

• Single Business Permit

This is a license that allows you to conduct any type of business within a specific county.

You can apply for it at the county revenue office or online through eCitizen. The cost varies depending on the size and location of your business, but it ranges from Ksh 5,000 to Ksh 50,000 per year.

• Trade License

This is a license that allows you to sell specific goods or services within a specific county.

You can apply for it at the county trade office or online through eCitizen.

The cost varies depending on the type and quantity of goods or services that you sell, but it ranges from Ksh 1,000 to Ksh 10,000 per year.

• Fire Safety Certificate

This is a certificate that confirms that your premises comply with the fire safety standards set by the county fire department.

You can apply for it at the county fire office. The cost varies depending on the size and location of your premises, but it ranges from Ksh 2,000 to Ksh 10,000 per year.

• NEMA Certificate

This is a certificate that confirms that your business complies with the environmental regulations set by the National Environment Management Authority (NEMA).

You can apply for it at the NEMA office or online through the NEMA Portal.

The cost varies depending on the nature and impact of your business on the environment, but it ranges from Ksh 3,000 to Ksh 100,000 per year.

• KRA PIN

This is a personal identification number that identifies you as a taxpayer in Kenya. You can apply for it online through the KRA Portal. It is free of charge.