Naivas Boss Reveals Mistakes That Ruin Family Businesses & How They Avoided Them

Naivas Supermarket's Chief of Operations, Peter Mukuha, has attributed the success of the retail chain to the professional running of the company.

Speaking during an interview on July 15, the executive, who is a member of the founding family, expressed that many family businesses fail because they are run as family businesses instead of a professional business.

Mukuha explained that in most instances, those who set up a family business hire their relatives for various positions. This move may prove costly as the family members can be ineffective in helping make the company better.

Conversely, companies that seek the services of professional people grow as professionals can shape and better the vision created by the founders.

Fact: Naivas is a shortened word for Naivasha - a town in Nakuru County where the retail chain was started. The family business has been in operation for 35 years.

"It was started in a small town called Rongai in Nakuru and was started by siblings who came together. The idea was self-improvement. After some time, they realised there was an opportunity to improve other people's lives, and that is how the idea of expansion came through.

"One mistake many family businesses make is thinking that family members must always work in the business. You need to bring in a professional. People who have different ideas and those who can tell you no when you are wrong. That is what we did from the beginning," he stated.

The retail line originated in July 1990. The late Joram Kamau, founder of Tuskys, entrusted a business premises in Rongai, Nakuru, to his nephews, David Kimani and the late Simon Mukuha. They had previously worked for their uncle.

The initial establishment was known as Gitwe General Stores, located in Rongai, Nakuru County. Their father, the late Peter Mukuha, later joined them, becoming a founding family member. Over time, the business evolved, rebranding from Rongai Self-Service Stores and Naivasha Self-Service Stores before settling on Naivas in 2006.

‍Strategies Naivas Has Used to Grow

Naivas top management has used 4 main strategies to grow their brand.

1. Understanding the customer

As detailed by the CO, customers are usually at the center of the decisions made by the company. Therefore, through the use of data, they are able to understand the trends among their customers.

In turn, through the use of data, they are able to decide on what products go to their shelves. Currently, Naivas serves close to 2 million customers per week.

2. Quality of service and products

In ensuring customer satisfaction, the company ensures that the quality of products sold at the supermarket meets the expectations of the customers.

As part of the strategies, they guide various suppliers on the customers' likes and preferences to ensure that the quality is up to standard.

‍3. Good Treatment of Staff

For successful family businesses, the treatment of staff is key as they are the driving force in the daily running of the company.

Therefore, to ensure that their over 12,000 staff are well catered for and motivated, they are given discounts on top of a Ksh10,000 shopping voucher at the end of their year.

Most of the in-house jobs are also offered to the employees so that they can create a career pathway for them to grow.

4. Strategic Expansion Plans

Before opening a branch, the CO indicated that they would undertake feasibility studies. These studies help them understand their market where they want to establish themselves.

Currently, they have 110 branches across the country. However, Mukuha detailed that some branches were closed after they did not gain momentum.