The Hidden Cost of Running an SME in Kenya (And Why It Doesn't Have to Be This Way)

Ask a cake maker, caterer, shopkeeper, or small business owner in Kenya what makes running a business difficult, and you'll often hear about challenges that happen after a sale: tracking payments, managing expenses, and knowing how much money the business has actually earned.

1. "Who Owes Me What?"

For many small businesses, customer orders and payments are recorded in notebooks, WhatsApp conversations, spreadsheets, or simply remembered.

Imagine a cake maker who receives a deposit for a wedding cake. The customer promises to pay the balance before collection. Meanwhile, several other customers are placing orders and paying different amounts.

Without a clear record, it becomes difficult to remember who has paid in full, who has made a deposit, and who still owes money.

2. Chasing Payments Feels Uncomfortable

Following up on unpaid balances can be one of the most uncomfortable parts of running a small business. Business owners want to maintain good relationships with customers, so they sometimes delay sending reminders.

But delayed follow-ups can affect the money available to buy supplies, pay workers, and fulfill new orders.

A simple payment tracking process helps business owners know exactly which balances are outstanding and when to follow up professionally.

3. Sales Are Not the Same as Profit

Making KSh 50,000 in sales does not mean a business has earned KSh 50,000 in profit.

The business must first account for the costs of producing or delivering its products and services, along with other operating expenses.

When business owners track both income and expenses, they can make better decisions about pricing, spending, and future growth.

4. Poor Cash Flow Creates Unexpected Problems

A business can appear profitable on paper while still struggling to pay its immediate bills.

This can happen when customers owe money, stock purchases are due, or business funds are mixed with personal spending.

Knowing when money is expected to come in and when expenses must be paid helps business owners plan ahead.

5. Scattered Records Waste Valuable Time

When customer details, orders, payments, and expenses are stored in different places, even simple questions become difficult to answer.

• How much did the business sell this week?
• Which customers still owe money?
• How much was spent on supplies?
• Which products or services are most profitable?
• How much money is available for the next order?

A consistent record-keeping system can reduce the time spent searching through messages and notebooks.

6. Small Changes Can Make a Big Difference

Improving business management doesn't always require expensive software or complicated accounting knowledge.

Start with a few simple habits:

• Record every sale when it happens.
• Track deposits and outstanding customer balances.
• Record business expenses consistently.
• Review sales, expenses, and profit every week.
• Keep business and personal money separate where possible.

Building a Better Way for African SMEs

At Biashivo, we believe small business owners deserve simple tools that help them understand their numbers without adding unnecessary complexity.

That's why we're building Biashivo: a business management platform designed to bring sales, expenses, customers, orders, and profit information together in one place.

We're starting in Kenya, with a vision to support entrepreneurs across Africa.