Frank Kamau talks about how his software startup found its footing in a highly competitive market
Businesses that incur heavy losses or fail in most cases lack financial support and proper structures. To increase chances of surviving in the market, Frank Kamau had to think smart when starting his IT firm, Spreading Wings Ltd. That is why the company is now incubated with the World Bank Group’s Information for Development Programme, Kenya Kountry Incubator (KeKoBI).
Mr Kamau had attempted to start the company on his own but succumbed to challenges of bad business structure. But here, the firm dealt with that and now represents one of the successfully businesses nurtured at the incubator. “When we joined KeKoBI, we spent the first six months coming up with a proper business structure,” says Mr Kamau.
Now, one of the oldest “incubatees” here, Spreading Wings is penetrating the competitive market of software development. Mr Kamau says marketing using brochures, internet and networking is swinging a meaningful client wave. And two years in existence now, the company has developed customised software packages for a wide range of clients. “We tailor make our products so that they fit our customers needs,” he says. Among them is an integrated multi-company accounting software.
In most cases, software made and developed abroad is not compatible with local operations, he says, thereby forcing businesses to change their operations to accommodate the expensive technology. “We are reversing this trend as we modify technology to suit the users and not the reverse,” says Mr Kamau. This has led to modification of systems that address challenges in the Kenyan market. “We use features such as graphical user interface to make user screens friendly to the eye,” he explained.
However, maintaining good personnel in IT, while a very big requirement in the business, comes at a high price as they are in high demand and to maintain them requires you to pay them well. This has to be matched with products that reach user requirements as technology dictates. It has employed a team of six people — two each in management, technical and marketing. The company is also a reseller of Sybase, a data storage solution.
“We would like to improve on our customer support techniques,” he says. “The more we increase our client base, the more the support services are needed. Solution is not employing more personnel but to have same support staff handling more clients efficiently.” About 80 percent of the business growth is attributed to networking and word of mouth marketing where happy users refer others to test and work with them. When users log into their system, they are required to key in their information, which is then saved. Users are then tracked using this information.
Spreading Wings’ management software is suitable for financial institutions. From its centre of operation, the company can remotely meet customers, and deliver services; besides calling them on phone or responding to other contacts who visit their website with enquiries. “The mode of doing business is technically the same, by giving the user what they need, you overcome competition,” Mr Kamau says.
According to KeKoBI, statistics from both developed and developing economies show that new only 80 percent of startup businesses survive, and the ones started outside an incubator stand 20 percent or lower chances of seeing the light of the market. Spreading Wings has gained tremendously by joining KeKoBI. It is now recognised in the region and their products are becoming more and more familiar to buyers.
The accounting software, their flagship product, is designed based on the concept of Enterprise Resource Planning (ERP) system, where various modules in the system work seamlessly with each other by providing a consistent but controlled interface. The advantages of taking an incubation option are diverse for small businesses. Not only has Spreading Wings acquired an office space at subsidised rates and internet services, but other benefits like training in financial planning, business management and sales and marketing also come along.
Having been incubated for three years now, the software seller, whose primary market is East Africa (Kenya, Uganda and Tanzania) says, the business is set to graduate by yearend into its own office space. The period can range from few months to five years depending on the needs of an incubatee company. Many companies generally take three years but the case where a company chooses to overstay, it pays rent at market value.
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