BusinessEntrepreneurship Tools and advice

How To Reduce Trouble Will Choosing Your Investment Niche

Before you start looking for the market that matches your wishes and your skills, you must answer two questions:

Image result for investing in kenya business

Is the target market in a growth situation? If so, when did this growth start and how long will it last?
Which segments of this market have the greatest potential for growth?

The answers to these two questions will allow you to better identify “the good niche” but also and especially “the good franchisor”.

To better guide you in your choices, we offer you a concrete example of the methodological approach to follow.


For example, if you want to become a franchisee and open a franchise in a niche in the automotive sector, you have to look at it in three main areas, from general to individual:

The automotive market in general
The Automotive Segment
The niche of car steam cleaning

At this stage of the reflection, you have surely understood that the choice of a buoyant market is based on many criteria. Some of these criteria are of paramount importance. These include:

of the sector of activity
of the business segment
of the niche
of the target clientele.

In addition to these basic criteria,

the geographical location
available customer service
the prices
communication means
the decoration of places

Depending on the activity, the choice of location will have a significant impact on the profitability and sustainability of your creation. In your opinion, is it more appropriate to open a concept of steam car wash in the city center, on the outskirts or at home?

Supporting markets in Kenya

There are many markets in Kenya, but there are about 10 of them:

1.Food trade: it is the second market in the world. It is the one of the largest employers in Kenya and contributes strongly to the national economy.

2. Tourism:The particularity of this market is that it includes multiple niches, especially in franchised tour operator networks.
3.Automotive is a sector that has evolved over the last few years. It benefits mainly from the development of services related to the car.
More and more car franchises are experiencing great success in the car market.
4.Beauty / health and pharmacy: Kenya  has significant niches in this sector and many beauty franchise networks.
6. Fashion and luxury: Kenya is also among the Africa leaders


  1. Freehold real estate and the building industry: with more than 1.5 million employees, this sector is continuing to grow. Numerous niches are called to be born thanks to the inflation of the new standards (ecological, security, thermal insulation …)
    8. Defense and aerospace: this is a sector that does not know the crisis. The defense and aerospace industry generates numerous specialized niches, particularly in services.

    How to detect the most interesting segments of a growing market?

    A promising segment is characterized by:

    An increase in investors
    Significant recruitment of staff
    A clear increase in national turnover for 3 or even 5 years
    An increasing trend in the customer curve
    A growing presence in the media.

    Some known examples are the water bike, or the electronic cigarette, which for a few years has enjoyed legal uncertainty as to the sale of cigarettes and refills.

    After careful analysis of each market and segment, you will easily identify those that offer the best opportunities for growth. You will then have no trouble determining your niche activity!


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