Expanding to the rural heartlands
Chapter 9: Expanding to the Rural Heartlands
At 18, Chanda had proven his ability to thrive in the competitive markets of Lusaka. His school supply business was steady, his team was growing, and he had gained the respect of peers and competitors alike. But Chanda, ever ambitious, wasn't content with success in the city alone. He began setting his sights on Zambia's rural areas, where resources were scarce, and opportunities for business were untapped.
He understood that rural communities had different needs from urban ones. While school supplies were still essential, food stalls and basic goods were in higher demand. It was a bold move, but Chanda was confident he could bring both profit and value to these underserved areas.
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A Realistic Look at Finances
Before expanding, Chanda reassessed his finances to ensure his goals were achievable. Over three years, his business had grown steadily, but he wasn't making the astronomical profits he had once imagined. His monthly revenue hovered between 30,000–40,000 ZMW, with profits of about 10,000–12,000 ZMW after deducting expenses for inventory, employee salaries, transport, and rent.
At the end of each year, Chanda managed to save 100,000 ZMW, which he reinvested into his business. By now, his total savings had reached 300,000 ZMW—enough to expand carefully but not recklessly.
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Setting Up Rural Stalls
Chanda identified three rural towns for his first expansion:
1. Monze in the Southern Province, where schools were in dire need of affordable supplies.
2. Kapiri Mposhi in the Central Province, a key transport hub for goods and travelers.
3. Mumbwa, near Kaoma, allowing him to reconnect with his roots.
He divided his resources accordingly:
Initial Investment for Each Stall: 25,000 ZMW, covering inventory, basic stall setup, and transport.
Goods Offered:
Food Stalls: Mealie meal, cooking oil, sugar, dried fish, and beans.
School Stalls: Notebooks, pencils, erasers, and chalk.
To keep costs low, he used simple wooden stalls with durable tarpaulin covers and relied on local suppliers for food items.
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Hiring Locally
Chanda understood that hiring local workers was critical to gaining trust in rural communities. For each stall, he hired two workers: one to handle food sales and another to manage school supplies.
He focused on hiring young people eager to learn and offered a fair wage of 1,000 ZMW per month, along with small bonuses for meeting sales targets. This cost him 6,000 ZMW monthly across the three stalls.
To ensure quality and consistency, Chanda trained his employees personally, teaching them basic accounting, inventory management, and customer service.
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Challenges in Rural Areas
Chanda quickly discovered that rural business posed unique challenges:
1. Transport Costs: Delivering goods from Lusaka to Monze, Kapiri Mposhi, and Mumbwa was expensive, adding 2,000 ZMW per month to his budget.
2. Seasonal Demand: Sales of school supplies peaked during the start of the school term but slowed down during holidays.
3. Community Skepticism: Some locals were wary of Chanda's intentions, seeing him as an outsider profiting from their needs.
Rather than be discouraged, Chanda tackled these challenges head-on. He partnered with local transporters to reduce delivery costs and introduced small promotions, like giving free pencils with bulk purchases. He also engaged with community leaders, explaining his goal to provide affordable goods while creating local jobs.
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Early Success
Despite the hurdles, Chanda's rural expansion showed promise. Within three months, the stalls were generating steady revenue:
Monthly Revenue per Stall: 8,000–10,000 ZMW, depending on location.
Total Revenue: 25,000–30,000 ZMW from the three stalls.
Net Profit (after expenses): 10,000 ZMW monthly.
Chanda reinvested most of this profit into stocking larger inventories and expanding his offerings. For instance, he added basic toiletries like soap and toothpaste to the food stalls, which quickly became popular.
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A Visit to Kaoma
Setting up a stall in Mumbwa gave Chanda an excuse to visit Kaoma for the first time since he had left for Lusaka. When he arrived, he was greeted like a hero. Word of his success had reached the town, and his parents beamed with pride as neighbors praised their son.
Chanda spent a week in Kaoma, reconnecting with old friends and reflecting on how far he had come. One evening, as he sat by the fire with his father, Mutale spoke words that stayed with him.
"You've done well, my son," he said. "But remember, wealth is not just what you earn. It's what you give back."
Chanda nodded, inspired to do more for rural communities. Before leaving, he promised to donate school supplies to Kaoma's primary schools, ensuring no child would go without basic tools for learning.
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Scaling the Rural Model
Encouraged by the success of his first three rural stalls, Chanda planned to replicate the model in other areas. He identified five more towns for expansion, including Chipata in the Eastern Province and Chililabombwe near the Copperbelt.
To fund this growth, Chanda set aside 100,000 ZMW, carefully balancing his rural investments with the ongoing operations in Lusaka.
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A Humble Vision
Though his business had grown significantly, Chanda remained grounded. He knew he wasn't yet the richest man in Zambia, but his journey was far from over. Each stall he opened, each job he created, and each child who received school supplies brought him closer to his ultimate dream.
As he stood in the bustling market of Mumbwa one afternoon, watching customers flock to his stalls, Chanda felt a deep sense of fulfillment. The boy from Kaoma had come a long way—but his story was only beginning.