For Owen Muhiu, founder LB Energy, having a business mentor on hand has made a huge difference in the growth of his business.
Despite hard work and plenty of experience in the energy sector, Mr Muhiu’s business for a long time struggled to develop an effective business strategy.
When Muhiu joined the Inoorero University’s Regional Centre for Enterprise Development Business Mentorship Program as a mentee, his business underwent a revolution. His business mentor, Titus Chweya, an organization development consultant advised him to narrow down his business.
So he dropped the many lighting accessories his company was selling to concentrate on energy-saving and soon the business started growing.Today, Mr Muhiu is glad he took the advice.
LB Energy, a company he started in 2009, is transforming homes with its technology that helps households and companies cut on electricity bills hence making him good returns.
“Business mentoring was a turning point for me,” says Mr Muhiu. “It has helped me make right decisions not only for my business but also for myself.”
Muhiu says that his mentor guided him to follow a structured plan, and set very specific targets, and to track performance using regular progress reports.
Chweya is a business mentor trained by RCED, which is professionalizing business mentoring through practical training.
Trainees are required to mentor startups to as part of their coursework. LB Energy, the energy saving solutions provider based in Nairobi, taps into wireless power monitoring systems with a sensor plugged into the mains power supply.
The sensor sends information wirelessly to a display, which when connected to computer with software installed shows a graphical presentation of the power use.
“It is the same way accountants have systems that track use of finance by various users,” says Mr Muhiu. “Knowing what costs you what makes it easier to adjust.”
Small businesses with high power consumption like restaurants, small industries and office buildings have found this technology useful. LB Energy also carries out power audits and advises on the best electronic products to use.
The company has fitted over 30 homes and businesses in Nairobi with the systems.Mr Muhiu says the gadget is saving customers up to 30 percent of their power bills. He borrowed the technology from the UK, where power companies supply it to electricity users.
“For some it is as simple as behaviour change, while for others it is more complex like having to buy new lights, heating systems, refrigeration system among other,” he says.
The company employs three technicians and outsources other functional areas.
“What makes business mentorship relevant is that you discuss with your mentor and learn all areas of the business and how to make them work – from marketing to finance, to management and human resources,” says Mr Muhiu.
Adequate capital, ready market, and the right idea are the pillars of successful businesses. However, many entrepreneurs walk into business with little or no experience or knowledge of the industry. Many struggle, while a few see their third birthday.
This situation is worse among Micro, Small and Medium Enterprises (MSMEs) where statistics indicate that seven out of every 10 new businesses collapse within three years of birth.
Daniel Huba, the Coordinator of RCED, says that formalized business mentorship has been credited with the success of many successful entrepreneurs.
“Professional business mentoring involves coaching a mentee entrepreneur to consolidate his business idea, business systems and growth opportunities. It aims at unlocking an entrepreneur’s potential to maximize performance. It is full of trust, counsel and wisdom,” he argues.
Owen began mentorship four months ago and expects to finish it mid this year. Before mentorship, he had no business strategy and he was selling lighting accessories like bulbs, sockets, and cables in what he naively thought was diversification.
The mentor advised him to focus on one product and go for a niche market and perfect his service. “The program is practical and real,” he says. “You apply the lessons to the business and see the results.
The mentor also has a wealth of information, acts as a teacher and most importantly, as a coach.” Mr Huba says that professional business mentoring is born out of the need for a structured way to offer mentoring; it is out of the frustration of the many initiatives aimed at kick-starting MSMEs to growth.
Even with adequate financial resources, marketing linkages, supportive framework and competent workforce, entrepreneurs are still in need of mentorship to help them maximize the opportunities around them.
“For business mentorship to be effective, the mentor and mentee agree on specific goals and targets. They take time to learn and understand each other, and clearly establish their roles and nurture commitment,” he says.
“LB Energy’s success is a result of an excellent relationship between a mentor and a mentee and that’s how it works with most of our participants in the program. The mentor views his or her role as an adviser, encourager, analyzer, listener and never a decision marker.”
He adds that mentees, especially in the MSME sector, should view business mentorship as a professional service. Despite his busy schedule, Muhiu’s finds time to attend the mentorship sessions because, he says, “it is all worth it.”
His short term business plans are to gain knowledge and experience in the energy saving sector, while in the long run is to reach more people and increase awareness of his products and business.
The domestic kits, which are plug-and-play, cost between Sh 9,000 to Sh 12,000. An online version is also available for people who want to access the data through the internet.
