Ronald Bwosi: I had to carve out my niche away from big firms

Ten years ago, Ronald Bwosi had to make a choice; go back to employment or start another business. He had had to walk away from his first business after some internal squabbles with his partner.

Employment had been grueling for him, but accounting and finance were the only things he knew how to do really well. So he did a Hail Mary.

He took all the money he had and sunk it into Ronalds LLP; an auditing and advisory firm. The field was already dominated by four big firms with great muscle in the region, and he had to figure out how to carve out his niche.

Today, Ronald LLP has a presence in three countries; Kenya, Uganda and Rwanda, and serves continental and international clients. The business also creates employment to over 100 employees.

What were the beginnings of Ronalds LLP?

Prior to setting up Ronalds LLP, I was employed for five years before setting up a consultancy firm with a friend.

I was involved in the business for two years then chose to walk out and sell the shares to my partner because at the time I felt our visions were not aligned. It was at this point that I decided to set up Ronalds LLP because I saw a gap in the market.

I felt that SMEs needed more support and I could step in as they were being underserved. We focus on providing audit and advisory services to small and medium enterprises. I was determined to make this work having learned some useful lessons from my first business and my stint in employment.

What lessons?

That I needed to value and treat with care all the relationships I created in my path. I also had to make sure that as the business owner, I was on top of the finances. Also, you can’t afford to ignore your clients. I had learnt how to be quite meticulous in running a business because every detail does count.

What did setting up the firm entail?

I had Sh1 million as capital. I had raised it from some savings over the years and the sale of my shares in my previous company. I used the sum to set up my office and cater for a few months’ rent to give myself some breathing space.

I also bought some office furniture and set up the website and domain. The rest I used for marketing and setting up the business essentials. Then I reached out to my networks and secured a client in my first month. Within the third month, I secured a major client and that contributed to major growth of the company.

What are the things that you think contributed to your success?

I had a target clientele, and it was clear to the team who we were seeking. Also, from my previous business experience, one of the areas I had thrived in was marketing, and that meant I had created lots of relationships. These networks helped when it came to getting clients. I also knew that clients will only give a business money if they feel that you are reliable. We made sure to deliver more than we promised. We also engaged in pro bono services at the beginning and this helped market the company. Going in, we knew that for every signed five clients, we must have talked to around 50.

You are an industry dominated by the Big four; PricewaterhouseCoopers, Ernst & Young, KPMG and Deloitte. How do you compete?

I do not compete with the Big Four. My target clientele is different. I offer alternatives and cater to a market that cannot afford their services.

We also offer personalised attention to the firms and this helps us win. Additionally, our operations break down the bureaucracy that the Big Four have and we have the flexibility of dealing with clients.

Auditors are known to work crazy long hours, how was it for you?

I paid my dues. In my early years, I put in the work and would work up to 16 hours a day to ensure that I delivered to my clients.

I had quite a lean team at the time hence I used to do a significant portion of work. I was a few years into the trade at the time and putting in the hours was significant in learning the trade and gaining the experience as well in effective management. Now, I can afford some work-life balance.

You have audited and consulted for numerous firms, what is the one mistake you have observed in the running of many firms?

There are many good entrepreneurs who are capable of setting up great businesses. But one thing gets them; a management gap. This is why many businesses neither scale or transit to the next generation. Many businesses are built on sand.

I have also noticed that many professional firms forget that they are running a business, not just exercising their profession. Many of them do not have systems, structures and processes to effectively run a business.

Running a business during the pandemic is quite a task. How should one decide whether to close down or hold on?

Before shutting down a business, one should consider whether the time for that idea has come to an end. If the business idea is not feasible within the current or future context of the industry, then the business should close down.

Also of consideration is the mounting debt in the business in comparison to revenue. If the revenue is insignificant and the debts keep growing, then the business should be shut down for a re-strategy.

[email protected]