Notes

Online Classifieds Portal within Uganda? Who Wants to Be a Millionaire?
Outside Looking In

I was thingking my own company as always on Facebook (liking every arbitrary comment and reading through every link) and even then I could see an advert on my personal side bar for an online classified listings portal called dealfish. co. ug. My partner and i clicked on the link and it also got me to typically the site which stated I possibly could post a new free advert. I immediately created a great advert for this specific website. I got an error communication: "Sorry www web site addresses are not allowed. " I was very disappointed and sent an email to these people querying this and even they informed me these people don't accept typically the classified adverts to add a web address reference. Well ill-fated on their behalf, I uncovered Kampala mart. com It's once i knew that finally the particular internet revolution is definitely taking place in Uganda. Online categorized portals like auction web sites. com and gumtree. com, the greatest in the BRITISH identified for some time. In Uganda, these are beginning to pull off huge time because associated with two very significant things:

1) The african continent is starting to eventually get connected to the relaxation of the globe via huge nutritional fibre optic cables being laid under the sea all over Photography equipment.
2) Mobile telecom companies still supply cheap internet to their customers issues mobile phones including using 3G technology.

Internet and typically the opportunities available to a good internet entrepreneur are incredibly serious that that is being projected that in accordance with an article I go through at wired. company. uk ("get abundant move to Africa")] Africa may possibly soon have their first internet billionaire, Certainly and immediately let you know why in order to invest in this specific sector in Uganda but first;

THE PARTICULAR CONS(of course)

just one. Internet stability plus usage in Uganda

Usage and computer system illiteracy

Whilst it is well and good our world wide web usage is growing increasingly by the day time, there still continue to be huge numbers of people who happen to be below the lower income line, are pc illiterate and/or cannot afford to have web. A large portion associated with people still access internet from business office rather than residence which can hinder the ease aspect.

Within the UK one example is internet usage is now over 82% of the population. Almost every person has internet inside their home. In contrast in Uganda, it is about 10%, nonetheless it is growing significantly mainly because as per TERSEBUT statistics, internet transmission in Uganda features grown in jumps in bounds. Within 2000 only 0. 1% from the populace had access to net. It was even now low in the year of 2007 where only two. 5% of typically the population had net but it has given that then significantly elevated to over on the lookout for. 6% in the year 2010!

Stability and expense of internet

Net stability in Uganda is very complicated. Many times internet is slow and where it is not necessarily slow this is expensive. This of course is changing but until then, this continues to be the main hurdle for potential customers. I however expect that with growing internet on phones particularly with the telecom companies rolling out 3G, in that case this shouldn't end up being a difficulty especially if the online classifieds portal invests greatly in a cellular version, that will be, one that is incredibly easy to view on mobile phones and not just the smart phones. This kind of is critical mainly because mobile phone usage including internet is probably the subsequent revolution in Africa and Uganda in particular. It already is under way anyway.

2. The limited fish will become coming after you....

I actually down the line set out and about the cost involving start-up for the serious online free classified sites operation however the fact is that this sort of business could be done from the laptop in they've bedroom. This will be a typical "briefcase" type of business.

Low cost These types of days numerous web hosting companies will give you a free website and in many cases allow you in order to host your internet site for free say regarding 6 months. They will moreover provide you with a free domain. The cost of this all? �8. 99 for 6 months. 1and1. co. british for example give just such a package.

Therefore with a little the help of a programming good friend if you possess no IT information, you can established your website plus have it organised for free!

As for advertising the site to reach Ugandans, quick! It comes with an advertising wave occurring and this is no delight that Capital FM, the primary Ugandan FM station is losing advertising revenue [if you are usually to believe a 14 September 2012 Redpepper article about the same. ]

I are unable to discuss the accuracy from the figures throughout the Redpepper write-up but they happen to be certainly right within the sense of which worldwide advertisers are shifting from standard advertising of broadcast, TV and newspaper publishers. The reason is simple; with on-line advertising, you could measure how numerous people are "seeing" your advert. An individual therefore can arranged an advertising price range and only pay intended for people who are usually interested in your advertisement if they are they will select it, hence "pay per click". In case you didn't know this, you are yrs late to the party! This is the way Yahoo has been making its money plus its likewise how Facebook or myspace makes its cash.

Now how can you advertise your site to Ugandans? Properly Facebook provides a "clever" computer. It knows where an end user originates from so when you choose to advertise with them, they will explain to you the amount of "Ugandans" you will attain with the utmost marketing budget. They in addition give you a rough estimate of a good minimum advertising budget you could set. You can however choose what you are able to afford.

On the basis associated with the above, you may therefore set your own advertising budget within Facebook at also $2 (they may simply show your advert to less people). If you arranged your advert to operate for 30 days and nights, which is $60 which usually at an exchange rate involving $1 = Shs 2, 605 computes at Shs 156, 300 a month.

You can therefore formally start this enterprise with your aged laptop and just Shs 156, three hundred!

Which is a good factor right? Yes, nevertheless so is this for everyone more. You could therefore count on there will get many of these types of very quickly and I actually mean SEVERAL ARE USUALLY COMING SOON, YOU'RE NOT THE ONLY A SINGLE WHO WANTS IN ORDER TO GET RICH (OR DIE TRYING).

Let's observe how many online classifieds portal I actually can find along with Google search:

dealfish. co. ug
kampalamart. com
kwatadeal. possuindo
classifiedsuganda. com
easyuganda. net/about-us. htm
tagsaleuganda. com/
majestysdirectory. com/
And counting!

Right now the catch This means therefore that for the investor, you include to ensure your current site stands out there from the group so as in order to attract both marketers and visitors.

A person will therefore include to employ different marketing strategies so that your internet site has sufficient consumers coming there and then you can attract in the advertisers (where did you consider you were will make money from duh? ). Gumtree the main online classified website in the BRITISH for example has clear statistics on their website to show their very own customer reach. This kind of information ought to be satisfactory to convince a good advertiser.

Alternatively a person will need in order to consider developing a specialized niche. autotrader. co. ug for example any such site. They have got focused solely upon cars.

3...... the top boys are approaching too!

Unlike a regular business model say farming or minicab business, online business are not place dependent and for that reason whilst the customers and sellers may be in Uganda, the organization owners may always be foreign. After almost all, hosting a website doesn't need a great Ugandan presence and neither does "pay per click" marketing. As an investor within this sector, an individual can therefore anticipate that when you begin, you will be competing with the really big seafood who within their international expansion will many certainly look to make use of this marketplace. Can you one example is compete with Craigslist or eBay need to they elect to emphasis on Uganda? How about Schibsted? Not heard of them? Well an individual ought to know them because in this particular business, these people are not resting, they are expanding.

Even dealfish. co. ug for illustration is the "Ugandan" branch of the Dealfish brand which finally count will be in 9 places.

I will not have to get surprised if even local newspaper leaders like The New Vision(with Government's strong pockets) and The Monitor (which is backed by the mighty Nation Press Group) soon venture into this sector. Fresh Vision for illustration provides the enteruganda. apresentando portal (under construction as at particular date of the article) which in turn can easily end up being spun into the online classifieds website and the Monitor has an on the internet business directory which will easily have a classifieds section.

Thus the business is expected to be tight but is it the real McCoy?

And today the BENEFITS

1. Excellent profitability and return on capital within just just one year

And today looking to discover out why everyone is looking to go into this sector. I define under my projections associated with the estimated profitability, start up expense and return about capital that can be achieved in this sector.

I need used the Kampalamart. com website as a model. Their own model is this; Customers can write-up ads for free. Some can even so choose to enhance the visibility of their very own ad to three locations on the website: The particular top most over the top The side banner or even a featured ad banner on essential internet pages

These a few prominent places in contrast to the other ads inside the numerous ads in the classes cost money. These kinds of are the methods loans the company plus its this model We use to show the particular profitability of this specific sector.

You should of course remember that there are other models of getting revenue:

You can one example is charge intended for certain categories. With regard to example on gum tree. com wherever rentals and task postings(by employers) are usually charged. You can certainly use a pay per click concept whereby certain "adverts" are targeted in order to specific customers relying on their on the internet behaviour (behavioural advertising).

I therefore decide my analysis like below. In typically the model below I present two somme columns. The present position and the forecasted position.

I task that there is a 60% growth in revenue and a new 25% increase in costs. The expansion in revenue will be based upon world wide web usage growth within Uganda between 2008 and 2010 like per ITU statistics.

Analysis 1: Productivity information

(exchange level of $1=2, 605 used)

Total income:

Current: 5, 522, 600. Projected: 7, 836, 160

(based on 6 best banners, 6 side banners, 16 showcased ads each recharged at $200, $22.99 and $20 per month, respectively)

Expenses

one Rent and support charge: Current: just one, 237, 375. Projected: 1, 237, 375.

(Based on 25sqm in worker's residence, a "grade A" building which charge rent at about $10-$18 per square metre(psm) and support charge of $2 psm. )

2. Website hosting: Current: thirty six, 859. Projected: Simply no modify

3. Wage: Current: Shs. a single, 800, 000. Expected: 2, 250, 500

(3 staff comprising of manager/IT workers and office administrator)

4. Marketing: Present: 656, 300. Predictions: 820, 375

(including Facebook advertising and other marketing techniques)

5. Transport, connection and other: Present: 800, 000. Planned: 1, 625, 1000

(Estimated)

Total Charges. Current: 4, 530, 534. Projected: Additional info , 969, 609

Complete Monthly profit (revenue less expenses). Current: 992, 066. Forecasted: 2, 866, 551

Total Annual Profit. Current: 11, 904, 792. Projected: thirty four, 398, 612

Examination 2: Start way up capital information

just one. Website development: 3, 907, five-hundred

(estimated in $1, 500 intended for a good web site to support online classifieds and e-commerce)

2. Rent(6 weeks in advance): Shs 6, 642, 750 3.

3. Business office equipment: Shs. eight, 495, 000

(computers, office desks, EPISODES, internet installation, variable purpose machine, lawful costs, signage) four.

4. Miscellaneous: 849, 500

Total: Shs. 19, 894, 750

Return on funds (Total start up capital/profit): Current: one particular. 67 years. Expected: 0. 57 yrs

installment payments on your Gain upon eventual sale

A new savvy investor may tell you that if you wish to find wealthy quick, commence a business using the end in brain. Put simply, prepare with regard to when you might eventually sale that. When you at some point sale the business you have effectively built, you will certainly earn money from the acquirer that will most probably be among those huge boys like Schibsted? Not heard of these people? I alerted you, an individual need to locate out about all of them!

3. Low set up costs

I performed mention as a single of the advantages the low start way up cost having the capacity to result in a great deal of competition. In case you are one serious investor, this specific however shouldn't prevent you. It ought to only spur a person into action. The particular low costs is usually to your advantage.

You therefore don't actually have to start off with the Shs 20m as per the data above. You can begin like I mentioned together with as little while Shs 156, 3 hundred and go in to become prosperous so go in, what are you waiting for, do all of us not all need to be billionaires so freakin' bad?

SUMMARISING AND THE FINAL WORD

Primary the numbers.

On the basis of my analysis:

Funds investment(A): Shs 20, 894, 750

Earnings per year (revenue excluding all expenses) (B): Shs 14, 904, 792

Returning on capital(years in order to get capital back again or A/B) will be 1. 67 many years

If you appearance at 60% progress, you can however look to restore the investment in 0. 57 decades!

Now the basics you must find right before trading.

Excellent website design and style. You need to purchase a good site that will make it quick for users. You need to keep in mind that very few Ugandans have internet from home and so will likely be surfing around in office, inside an internet cafe or issues telephone and so a basic design which can support mobile telephone browsing is most probably

Ideal aggressive marketing. An individual will need to be able to move fast or even smart to get the market using different marketing approaches otherwise your site may get drowned inside the crowd. I are definitely not saying dash on huge newspapers adverts(which we realize cannot necessarily turn out to be measured for success). There are quite a few techniques for example a new free press tale, interviews, article advertising, Facebook advertising et al. A clear marketplace. Who do an individual want to get to? You need in order to know who a person are targeting and even then go in to build up your service with that client within mind. An example My partner and i gave is vehicle trader. co. ug.

FINAL WORD

In spite of the threat of the big competitors approaching, this is really one particular sectors exactly where however, little man can win and carry on to be the next Yahoo, the next Myspace. You should not capture the huge portion of the particular market to always be successful. Kampalamart. com for example on the date of this specific article had about 388 Facebook fans. If this presents their market share of your estimated 304, 000 Facebook users in Uganda[early 2011] then simply this represents only 0. 13% involving the market BUT from the research above, they would likely already be rewarding! Need I claim more, go upon GET RICH (OR DIE TRYING).

And even now the please note: While I possess taken procedure for research this information and also based on our experience, you have to not rely on the subject of the details given right here to base your own investment decisions. An individual should seek organization advice coming from an expert knowledgeable of your respective particular circumstances. I will therefore not be organised responsible for virtually any loss you may well incur when appearing on this details.

For more than 8 decades I use worked together with several clients delivering audit, accounts, duty and advisory throughout sectors including agriculture, mining, entertainment, monetary services and technology. My client profile in Uganda, The particular Bahamas and The Channel Islands, Usa Kingdom has both equally been diverse and this experience offers given me some sort of "well rounded" look at of business.

Inside addition I have already been involved in advisory jobs as well as general management. We are able to be able to therefore take the commercial view involving business and not audio like an "academic who doesn't know business".

You may read more about us and my creating experiences on investing/doing business in Uganda
Homepage: https://www.thedailyengage.com/