Whether you are starting a business that is 100% online or you are running certain parts of the business online, you need to have a clear plan. According to DataReportal, a total of 38.6 million cellular mobile connections were active in Uganda in early 2025, with this figure equivalent to 76.2 per cent of the total population.
Moving a business online presents significant growth opportunities. It expands reach beyond local borders, enabling access to a global customer base. Operating digitally reduces costs associated with physical location, like physical rent, utility bills, waste management bills, and in-person staffing, while improving profit margins.
KEY CONSIDERATIONS
Business model and niche: You cannot be an online business that trends in everything. What will you sell? Are they fresh vegetables, fashion, gadgets, crafts, digital products, or Services (consulting, freelancing, coaching)
Digital presence plan: Digital marketing is non-negotiable. Have a critical social media presence and a dedicated Website that is frequently maintained. These are now the alternative to a physical location. The money you are saving on rent can then be channelled to online ads on websites or social media platforms to drive sales. Decide whether you need a new website with a domain. The other option is that you can sell services and goods on existing websites like Jumia, Market by MTN Momo and so forth. You need to consider a Customer Relationship Management (CRM), a system to track, manage, and analyse customer interactions to improve sales, marketing, and customer service.
A well-maintained, functional, user-friendly website acts as a 24/7 showroom or office. Ensure it includes contact details, product listings, and secure payment options. At least boost with UG30K/day on platforms like Facebook and Instagram for wider reach. Supplement this by leveraging Influencers.
Working hours can mean profitability or loss-making. An online store or service can operate 24/7 for 365 days. This taps sales opportunities even outside traditional business hours.
Plan your operating time. Do you work Monday to Saturday? Are there days with no delivery services? Are you providing services or products online at any time of the day?
Establishing an online presence also strengthens brand authority, giving businesses a competitive edge over offline competitors.
Stable internet and power solution. You need to plan to have reliable internet services and a power source to ensure that no minute or day goes with the system being off. Bad weather or fires can disrupt power, internet, or the server room. Think of an online betting service. You need to have a server room, electricity, and internet access.
On top of that, you have to create or run backups for each of their services.
Subscribe to more than one internet provider, and connect to more than one power grid. Have inverters or generators as plan B when power goes out. Don’t just set up in an area with a poor internet connection. Don’t let power or connectivity issues disrupt your operations.
Payment solutions. For any online business, especially in markets like Uganda, developing a strategic payment plan is fundamental to success. The first consideration should be payment flexibility – will you accommodate cash on delivery (COD) for customers who prefer cash transactions, or will your business operate on a strictly digital payment model? This decision significantly impacts customer accessibility and operational logistics.
In the Ugandan context, mobile money solutions like MTN Mobile Money and Airtel Money should form the backbone of your payment infrastructure. These platforms enjoy widespread adoption, unlike bank cards, which remain less accessible to much of the population.
Secondly, these mobile money accounts now offer clients Visa card payment solutions. Consider the risks of cash-on-delivery scams and implement security measures.
Digital payments offer clearer financial records and streamline accounting processes, while COD options may help attract customers hesitant about online transactions. Payment strategy should reflect your target market’s needs. A well-designed payment system should balance customer convenience with business practicality.
Logistics and delivery systems. Since clients don’t come to your premises directly. Partner with reliable courier services like SafeBoda, Glovo, or develop in-house delivery networks for efficiency. You could buy electric bicycles for easy delivery, too. Transparent return/refund policies are essential for building trust and managing customer expectations.
Invest in communication and Customer experience to build trust.
Develop communication and customer experience strategies for the online business to ensure it builds trust and credibility. No one will place an online order if they find the business not credible.
Legal compliance. Have a compliance checklist for legal requirements for your business you are taking online. Even online casinos or sports betting businesses require a license to operate. Register your online business with URSB and comply with tax obligations and necessary industry licenses. Even money lending apps require a license from UMRA. Uganda Microfinance Regulatory Authority (UMRA) is a Government Regulatory Agency established by the Tier IV Microfinance Institutions and Moneylenders Act, 2016.
Online business is no longer optional; it’s essential for survival and growth. Online businesses can quickly test new markets, adapt strategies, and grow without physical limitations. Whether through e-commerce, digital marketing, or remote services, going online future-proofs a business in an increasingly digital economy.
With prolonged lockdowns and arcade closures, many businesses faced devastating losses- unsold stock perished, rent and tax arrears piled up, and countless enterprises shut down permanently. However, this crisis also birthed a new culture of resilience, as entrepreneurs turned to remote work and online business models to ensure continuity. Notably, mall owners who adapted by managing stock from home and leveraging digital platforms were among the few who sustained operations.
The COVID-19 pandemic served as a critical wake-up call for Ugandan businesses, exposing vulnerabilities in traditional models while accelerating the shift to digital solutions. 40% of Ugandan SMEs adopted digital tools during COVID (UNCDF 2021)
