With the rate of unemployment on the rise, graduates see an uncertain future for themselves. While some lack capital to start their own businesses, others have inadequate skills to manage their business, while others dread the uncertainties that characterize startup businesses. Joining Students in Free Enterprise while at the University of Nairobi was a turning point for George Njoroge. After his graduation, Njoroge resorted to face the challenges of unemployment by maximizing on available resources. Late last year, he founded Real Estate Guide. This week The African Executive caught up with him and he shared his experiences.

A.E. What is Real Estate Guide?

Njoroge: It is a business that advertises real estate on the internet. We target Kenyans and expatriates.

A.E. What was your motivation behind a website on real estate?

Njoroge: It was as a result of the challenges my cousin faced while looking for a house. We realized that the adverts provided in the newspaper on real estates are not detailed, so one cannot make any decision based on that. He had to get an agent who could help him identify one. This involves viewing so many houses, a task that is difficult for someone who works till 5pm. To avoid all this hustle, I thought that a website on real estates was a good idea. People would have an opportunity to view houses from the internet and later do it on site. By visiting the website, one can choose which house to visit and which one not to. Secondly, I realized the industry (internet) was growing fast. 

A.E. What has been your experience? 

Njoroge: It has been tough but I have managed. I have had to do several free trials so as to attract customers. For people to visit the website it must have variety and I have been working on building a huge base of houses clients can choose from. The growth has been slower than I expected because I had overestimated the number of Kenyans who actively use the internet. Many Kenyans just check their mail and due to slow internet speeds and the associated cost, they don’t have time to explore more on the web.  

A.E. Who are your target audience?

Njoroge: Most of the adverts are from reputable real estate agents. Mostly Kenyans both at home and abroad visit the site.

A.E. How much property do you have currently? 

Njoroge: 250 

A.E. What is the number of visits currently?

Njoroge: I have 1,000 visits on weekly basis. About half of them are from Kenya.

A.E. How much do you charge? 

Njoroge: Ksh. 100 per page per week for a whole page with five color photos, property details and the owner’s/agent’s contact. This is much cheaper compared to what Kenyan newspapers offer; about Ksh.200 per line for a day.  

A.E. What challenges do you face? 

Njoroge: Competition is stiff. Secondly, since this is a new website, it is not easy convincing clients to advertise. I do many free trials to convince clients that they can sell their products through me. Lastly, the internet in Kenya is slow. This limits the people surfing from discovering new things. 

A.E. How do you out-do your competitors? 

Njoroge: Simplicity. I sacrifice fancy graphics and multiple functionalities in order to make it as simple as possible for customers to find what they are looking for. There are no flash animations or chat rooms on the site. It takes even non-regular web users less than 90 seconds to find what they are looking for. From my research, I realized that the most important thing for a house buyer is the size of the house and the cost. The search is based on the two. Everything is straightforward.  

A.E. How do you market the website?

Njoroge: I do reciprocal advertising. This is where I approach companies that target the same demographics and I ask them to place an advert of my site on theirs and vice versa. I also place paid for adverts on sites like mashada.com.  

A.E. How much did you incur to start it?

Njoroge: Approximately Ksh. 50,000. I designed the website myself. Web companies are cheap to start as there are few requirements needed. The tricky part is getting visitors to the site once it’s up.

A.E. Do you have any employees?

Njoroge: Yes. I employ on contract basis. This can range from a week to three months.

A.E. Has SIFE contributed to all this in any way? 

Njoroge: Yes. Quite a lot. Through SIFE I realized if I can advise an entrepreneur on how to go about his business, that means I too have the skills to start my own 

A.E. What are your future plans? 

Njoroge: To have the most visited property site with over half of all the real estates in my website. I also hope to have a monthly newsletter or magazine featuring property. 

A.E. What is the future of IT? 

Njoroge: Very bright. New players are coming in the market and this will reduce the cost. This means people will look out for new things in the market. Moreso, the internet provides detail and variety, whereas in other media, one either gets one or the other. Television and print adverts are all directing people to websites.

A.E. What advice would you give upcoming entrepreneurs? 

Njoroge: Be careful in choosing what you want. Conduct research and know more about the field you want to venture in and be sure you can pursue it. Be ready to stick with it even if results take long. Don’t divide your efforts into too many things as you might not bring out the best in all of them.