Notes

On-line Classifieds Portal within Uganda? Who Wants to Certainly be a Millionaire?
Outside Looking Within

I was minding my own enterprise as always on Myspace (liking every arbitrary comment and reading through every link) and then I saw the advert on my side bar with regard to an online free classified sites portal called dealfish. co. ug. I actually clicked on typically the link also it required me to typically the site which stated I can post some sort of free advert. We immediately created a good advert for this kind of website. I acquired an error information: "Sorry www site addresses are not allowed. " I actually was very annoyed and sent an email to all of them querying this plus they told me these people don't accept the classified adverts to add a web address reference. Well less than fortunate for these people, I learned Kampala mart. possuindo It's while i realized that finally the internet revolution will be taking place inside Uganda. Online grouped portals like amazon. com and gumtree. com, the greatest in the UK identified for a few time. In Uganda, these are starting to remove big time because regarding two very important things:

1) The african continent is starting to lastly get connected to the rest of the entire world via huge fiber optic cables being laid under the sea throughout Cameras.
2) Mobile telecommunications companies still offer cheap internet in order to their customers prove mobile phones like using 3G technologies.

Internet and the particular opportunities open to an internet entrepreneur are so serious that it is being projected that based on the article I read at wired. co. uk ("get abundant move to Africa")] Africa may soon have its first internet billionaire, Certainly and immediately tell you why to invest in this specific sector in Uganda but first;

THE PARTICULAR CONS(of course)

1. Internet stability in addition to usage in Uganda

Usage and computer system illiteracy

Whilst this is well and good our web usage is growing increasingly by the day time, there still remain thousands of people who will be below the poverty line, are computer illiterate and/or cannot afford to have web. A sizable portion involving people still access internet from business office rather than house which can slow down the ease aspect.

Inside the UK one example is internet usage is now over 82% of the particular population. Almost everyone has internet within their home. In contrast in Uganda, it truly is about 10%, nonetheless it is growing significantly since as per ITU statistics, internet penetration in Uganda provides grown in jumps in bounds. In 2000 only 0. 1% with the population had access to internet. It was even now low in 2007 where only 2. 5% of the population had world wide web but this has due to the fact then significantly improved to over 9. 6% in the year 2010!

Stability and expense of internet

World wide web stability in Uganda is very difficult. Frequently internet is slow and wherever it is far from slow it is expensive. This of course is changing but till then, this remains the main challenge for potential consumers. I however count on that with growing internet on phones particularly with the telecom companies running out 3G, then this shouldn't get an issue especially if the online classified listings portal invests intensely in a cellular version, that is, one that is very easy to look at on cell phones in addition to not just the particular smart phones. This specific is critical mainly because mobile phone utilization including internet is probably going to be the subsequent revolution in Cameras and Uganda throughout particular. It previously is under method anyway.

2. The small fish will get coming after you....

I actually down the line set away the cost associated with start up for a new serious online free classified sites operation nevertheless the truth is that this particular sort of business may be done coming from a laptop in they've bedroom. This is a typical "briefcase" type of business.

Low cost These kinds of days a lot of website hosting companies supply free website and even allow you in order to host your web site intended for free say intended for 6 months. That they will moreover offer you with a free domain. The particular cost of this kind of all? �8. 99 for 6 a few months. 1and1. co. uk for example offer just such a package.

Therefore along with a little the help of a programming buddy if you include no IT information, you can set up your website plus have it published for free!

As for advertising the internet site to reach Ugandans, easy! There is an advertising trend happening and it is no shock that Capital FM, the main Ugandan FM station is burning off advertising revenue [if you are to believe some sort of 14 September last year Redpepper article about the same. ]

I can not comment on the accuracy and reliability of the figures in the Redpepper content but they will be certainly right in the sense that will worldwide advertisers are shifting from conventional advertising of radio, TV and newspaper publishers. The reason is simple; with on-line advertising, you could measure how a lot of people are "seeing" your advert. An individual therefore can set an advertising finances in support of pay with regard to people who are enthusiastic about your ad if they will be they will simply click it, hence "pay per click". If you happen to didn't know this specific, you are many years late to the particular party! This is how Search engines has been producing its money plus its likewise how Fb makes its cash.

Now how will certainly you promote your site to Ugandans? Effectively Facebook includes a "clever" computer. It understands where an customer originates from so when you select to advertise together, they will explain to you the amount of "Ugandans" you will reach with the greatest advertising budget. They also give you a new rough estimate regarding a good bare minimum advertising budget you are able to set. You can however choose precisely what you can pay for.

In the basis involving the above, you could therefore set your advertising budget in Facebook at actually $2 (they will simply show your advert to less people). If you set your advert to run for 30 days and nights, which is $60 which in turn in an exchange rate of $1 = Shs 2, 605 calculates at Shs one hundred and fifty six, 300 a month.

You are able to therefore formally start this enterprise with your outdated laptop and only Shs 156, 310!

This is a good point right? Yes, nevertheless so is that for everyone different. You may therefore expect there will end up being many of these in no time and My partner and i mean SEVERAL ARE REALLY COMING SOON, YOU'RE NOT THE ONLY ONE WHO WANTS TO BE ABLE TO GET RICH (OR DIE TRYING).

Why don't observe how many on the internet classifieds portal I actually can find together with Google search:

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

Today the catch It indicates therefore that for the investor, you include to ensure the site stands away from the masses so as to attract both advertisers and visitors.

An individual will therefore possess to employ various marketing strategies therefore that your web site has sufficient customers coming there and then you can entice within the advertisers (where did you believe you were will make money from duh? ). Gumtree the primary online classified website in the UK for example has got clear statistics on their website to show their customer reach. This information ought to be satisfactory to convince the advertiser.

Alternatively an individual will need to consider developing a niche. autotrader. co. ug for example any such site. They may have focused solely in cars.

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

Unlike a traditional business model say farming or cab business, online organization are not area dependent and for that reason whilst the customers and sellers could possibly be in Uganda, the company owners may end up being foreign. After almost all, hosting an internet site doesn't need the Ugandan presence plus neither does "pay per click" advertising. As an buyer with this sector, an individual can therefore assume that when you begin, you will end up being competing with the really big fish who in their international expansion will many certainly look to utilize this market. Can you such as compete with Your local craigslist ads or eBay ought to they elect to focus on Uganda? What about Schibsted? Not heard of them? Well you should know them because in this particular business, they are not slumbering, they are expanding.

Even dealfish. co. ug for example is the "Ugandan" branch of typically the Dealfish brand which usually now count will be in 9 countries.

I will not get surprised if even local newspaper titans like The Fresh Vision(with Government's strong pockets) and The Monitor (which is backed by typically the mighty Nation Multimedia Group) soon venture into this sector. Brand new Vision for instance provides the enteruganda. contendo portal (under building as at particular date of this article) which usually can easily end up being spun into the online classifieds internet site and the Monitor has an on-line business directory which can easily have the classifieds section.

As a result the business is usually expected to become tight but could it be the real McCoy?

And after this the POSITIVES

1. Excellent productivity and return upon capital in less than one year

And today you are about to find out why most people are looking to get into this sector. I define listed below my projections regarding the estimated productivity, start up expense and return about capital that can easily be achieved just for this sector.

I experience used the Kampalamart. com website since a model. Their very own model is this particular; Customers can publish ads for cost-free. Some can even so choose to boost the visibility of their particular ad to 3 locations on the website: The particular top most banner The side banner ad or A featured advertising banner on essential pages

These 3 prominent places contrary to the other ads in the myriad of adverts in the groups cost money. These types of are the methods financing the company and it is this model We use to exhibit the profitability of this kind of sector.

You have to of course know that there are additional models of getting revenue:

You may such as charge intended for certain categories. Regarding example on bubble gum tree. com exactly where rentals and career postings(by employers) are usually charged. You can easily use a pay per click strategy whereby certain "adverts" are targeted to specific customers depending on their on the internet behaviour (behavioural advertising).

I therefore placed my analysis like below. In the model below My partner and i present two counts columns. The provide position along with the estimated position.

I project that there might be a 60% growth inside of revenue and a 25% increase on costs. The expansion in revenue is founded on world wide web usage growth throughout Uganda between 2008 and 2010 seeing that per ITU data.

Analysis 1: Earnings information

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

Total income:

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

(based on 6 top rated banners, 6 side banners, 16 showcased ads each incurred at $200, $465.21 and $20 per month, respectively)

Expenses

one Rent and service charge: Current: 1, 237, 375. Forecasted: 1, 237, 375.

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

two. Website hosting: Current: thirty eight, 859. Projected: Not any change

3. Income: Current: Shs. just one, 800, 000. Projected: 2, 250, 500

(3 staff composed of of manager/IT personnel and office administrator)

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

(including Facebook advertising plus other marketing techniques)

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

(Estimated)

Total Expenses. Current: 4, 530, 534. Projected: some, 969, 609

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

Total Annual Earnings. Current: 11, 904, 792. Projected: 34, 398, 612

Examination 2: Start way up capital information

1. Web development: 3, 907, five hundred

(estimated with $1, 500 intended for a good website to support on the web classifieds and e-commerce)

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

3. Workplace equipment: Shs. eight, 495, 000

(computers, office desks, UPS, internet installation, variable purpose machine, lawful costs, signage) 4.

4. Miscellaneous: 849, 500

Total: Shs. 19, 894, 750

Return on money (Total start upward capital/profit): Current: 1. 67 years. Forecasted: 0. 57 yrs

2 . Gain upon eventual sale

Some sort of savvy investor will tell you that if you would like to obtain wealthy quick, start off a business with all the end in thoughts. Basically, prepare regarding when you may eventually sale this. When you sooner or later sale the business you have effectively built, you will certainly make money from the acquirer that will most likely be one of those huge boys like Schibsted? Not heard of all of them? I alerted you, an individual need to discover out about these people!

3. Low set up costs

I do mention as a single of the benefits the low start upward cost having the ability to effect in a lot of competition. In the event that you are one particular serious investor, this specific however shouldn't stop you. It need to only spur you into action. The particular low costs is usually to your advantage.

A person therefore don't actually have to start with the Shs 20m in accordance with the info above. You can start just like I mentioned with as little because Shs 156, 310 and go on to become successful so go about, what are you waiting for, do we all not all wish to be billionaires so freakin' bad?

SUMMARISING PLUS THE FINAL WORD

First of all the numbers.

On the basis of my analysis:

Money investment(A): Shs 19, 894, 750

Profit per year (revenue excluding all expenses) (B): Shs 11, 904, 792

Returning on capital(years to get capital back or A/B) is definitely 1. 67 years

If you look at 60% development, you can on the other hand look to restore the investment throughout 0. 57 yrs!

Now the basics you must get right before trading.

Excellent website design and style. You need to be able to invest in a good internet site that will assist it quick for users. An individual need to remember that very few Ugandans have internet with home and therefore probably will be browsing in office, within an internet cafe or on the phone and so an easy design which can easily support mobile cell phone browsing is probably

Ideal aggressive marketing. An individual will need to move fast or smart to get the market with different marketing strategies otherwise your site will certainly get drowned inside the crowd. I was not really saying sprinkle out on huge newspapers adverts(which we understand cannot necessarily get measured for success). There are many options for example a free press account, interviews, article promotion, Facebook or myspace advertising et approach. A clear target audience. Who do an individual want to achieve? You need in order to know who a person are targeting in addition to then go in to formulate your services with that client in mind. A good example We gave is car trader. co. ug.

FINAL WORD

In spite of the threat from the big competitors coming, this is really among those sectors where even the little man can win and even continue to get the next Yahoo and google, the next Fb. You should not capture a new huge percentage of the market to always be successful. Kampalamart. possuindo for example in the date of this kind of article had concerning 388 Facebook enthusiasts. If this presents their market share of an estimated 304, 000 Facebook users in Uganda[early 2011] in that case this represents simply 0. 13% associated with the market BUT from the evaluation above, they would likely already be profitable! Need I point out more, go about GET RICH (OR DIE TRYING).

And now the please note: While I possess taken steps to exploration this information and also based on my personal experience, you have to not rely on the info given in this article to base the investment decisions. An individual should seek business advice from a specialist knowledgeable of the certain circumstances. I should therefore not get placed responsible for any kind of loss you may incur when acting on this info.

For over 8 yrs There are worked with several clients offering audit, accounts, tax and advisory within sectors which range from cultivation, mining, entertainment, financial services and technologies. My client stock portfolio in Uganda, Typically the Bahamas and The particular Channel Islands, Combined Kingdom has both equally been diverse and this experience provides given me the "well rounded" watch of business.

Within addition I have been included in advisory jobs as well as general management. I actually is able to therefore take some sort of commercial view of business and not just audio like an "academic who doesn't understand business".

You could read more about myself and my writing experiences on investing/doing business in Uganda
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