Start with low-hanging fruit before expanding the search

In business there is a rarely used strategy called low-hanging fruit. It is a metaphor for the common sense of picking what is near and easily accessible first before reaching out to what is far and apparently hard to get.

Think of a situation where you have a mango tree. What is the point of borrowing a ladder from your neighbour to pick the fruit far up when several of them are hanging low?

This is a question I could not answer when a friend asked me what inspired Uchumi Supermarkets, once a very strong and well grounded brand in Kenya, to open several branches in Uganda and Tanzania before exploiting huge potential of retail market in Kenya.

Apparently, in the last decade or so, the retail business in Kenya has been growing rapidly, as evidenced by the growth of homegrown players such as Naivas, Tuskys, Nakumatt, and Eastmatt.

While there are several theories on what went wrong with Uchumi, one lesson from its woes is the wisdom of applying the low-hanging fruit strategy in business.

It simply means exploiting the opportunities near where you are, with the resources you have and spreading out slowly and systematically in a cost-effective manner.

For example, if you are a salesperson based in Nairobi, there is no point of travelling all the way to Naivasha or Nakuru to look for customers before exhausting Nairobi.

The fruits on top may look better and sweeter than the ones hanging low. However, picking the one that are easy first gives you morale and strength to reach the others if you are resource-constrained.

Expanding your horizons is a good strategy but first establish yourself to avoid spreading too thin.

Experience tells me that when start-up businesses expand too fast without establishing themselves locally they suffer hiccups that stifle growth.

First, they experience cash flow problems. They spend a lot chasing new markets or sustaining new branches. Cash is king in every business. Regardless of whether profit is made or not, if there is no cash for running operations, the entire firm suffers.

Secondly, they experience operational problems, making it hard to implement good strategies, especially if coupled with cash flow crunch.

Thirdly, there are perennial customer service failures. Due to spreading resources too thin poor customer service becomes normal rather than exception. Poor customer service in a firm that is struggling to grow is like drawing water with a leaking bucket.

Fourthly, it slips deep into debts. In an attempt to grow sales to meet the need for cash, the management almost always borrows heavy in the name of modernising fleet, hiring more sales people, marketing, and opening new outlets or introducing new products.

If this is coupled with poor organisation and lack of experience at that level of operations, the end result is disastrous.

Fifthly, it hinders smooth and accurate decision making. The greatest competitive advantage of a start-up manager is being close to the customer. Spending more time in the office than in the field disconnects the start-up from what the customer wants.

Finally, it becomes hard to retain key talent due to rapid changes that may make them feel insecure. No employee wants to stay in a company that is struggling. Experienced employees are the best companion.

Mr Kiunga is a business trainer and the author of ‘The Art of Entrepreneurship: Strategies to Succeed in a Competitive Market’.