Have you thought about building an African business? Wonderful! It is not a secret anymore that Africa's emerging markets are offering unrespresented opportunity both for established businesses and for novices. And Africa is literally waiting for you to take them up. What is more of a secret to many is just exactly how to go about the whole thing!
I mean where do you get started and what is important on that journey? As an Africa Business Coach and Consultant I have devoted my career to an entire step-by-step strategy, but in today's post I just want to give you some random (never the less essentiell) bite-sized tips. Here we go:
1. Be inspired by those who have walked the talk
Many are building enormously successful businesses in Africa and an increasing number of Africans in the Diaspora are leaving lucrative jobs behind in the West to embark on a special life and business journey on the beautiful and now fast emerging continent. And you will be amazed how many of them started on a shoestring budgets and have grown their businesses fast. Follow their stories (instead of watching your favourite TV series or reading random posts on Facebook) and soon, you will want to do the same to build the life you crave.
TIP: Watch CNN African Start Up Series to access start-up success stories on video or visit howwemadeitinafrica.com to read their stories.
2. Get the map before you enter the woods!
Don’t look at Africa as a homogenous market place and don’t start doing business there without knowing the dynamics. Africa has 54 market and among them there are distinct growth countries and sectors that have a much higher success potential than others. You don't want an 'African market' – what you want is an 'emerging African market' with very exciting dynamics. Tap into those.
3. Don’t choose ‘home’ – choose the right market for the business
Your African country of origin (if you have one) may or may not be a current growth country or it may or may not be a good market for the industry of your choice. Make sure you go where the music plays in tune. We need to make less emotional decisions in the Diaspora and make sound business decisions instead.
4. Take a demand driven approach
When you study hugely successful African entrepreneurs as I have you will notice that there is an important attribute to their success they have in common. And that is that almost with no exception they have taken a demand-driven approach. This means they came across a certain challenge, problem, or need and decided to provide a new solution or a solution better than the one already out there. No need to come up with fancy ideas or to cross mountains to make a unique concept work.
5. Think big
This is essential! Africa is this huge regional market with so much space. Don’t set out to start a small business or another 'corner shop' in Africa. This is your chance to become a visionary, a leader in your field, to leave a legacy behind, create wealth and the lifetsyle to crave – all while positively impacting on the continent. So this one is important: Start something big in Africa – and start it with small steps.
TIP: For Africa business ideas and tips on how to start small, but think big, visit: smallstarter.com
6. Grow the right mindset
Everyone can have a business idea. But only some walk the talk and see it through. Only some will do what it takes and not let set backs get into their way. Only a few are able to execute it and build a truly successful business. Success is all about the mindset. Use your evenings to read books, online articles, and watch YouTube videos about the traits you need to develop to become more successful. This is very much a conscious and long-term exercise to become the preson you want to be – it is absolutely vital. And no busness will succeed if you give that personal development not equally your time, energy, and full devotion.
TIP: Fow inspiration watch: It is not over until you win! by the one and only Les Brown
7. Replicate African business ideas
This is not about stealing the ideas of others. But when you hear that an entrepreneur has been hugely successful with mushroom farming, mobile ticket payments, or a baby skin care range – see if such ideas could be replicated in other similarly dynamic markets. You do not need to re-invent the wheel or be highly creative.
TIP: Read my book: 101 Ways To Make Money In Africa
8. Choose an Africa business niche that you can own
Right now, there is so much demand out there and so many needs in Africa’s growth economies that need to be met that your success a rate heavily depends on how well you can do just that. But here is an important hint for you as a newcomer: Don’t choose a product or service that is already widely out there or where you are up against big competitors. Instead choose an Africa business niche that has been overlooked. Master it. Own it. And the market will move quickly towards you. You will be amazed how quickly African can trun you into a business leader in your field even if you have come out of nowhere.
TIP: To get the picture of a niche read: Extreme African Business Niches The Unconventional Way To Get You Started
9. Go for low risk/high opportunity markets
Here is an important aspect I teach: Someone who is newly navigating in Africa's business sphere should go for a low risk / high opportunity market. These markets do exist and are in my view your very best entry point to mitigate risk and increase your success potential significantly. You can even successfully get started in a low risk/low opportunity market. Leave Africa’s high risk / high opportunity market for those with experience, time, and larger budgets. Stay away altogether from the last category high risk/ low opportunity markets – why choose the worst category if you have dozens of other markets working in your favour?
TIP: Watch my YouTube lessons: Doing business in Africa? How to select the right market
10. Use the power of scalability
Yes, you can chose to sell high quality laser products to private hospitals, but your scalability will be very limited. Your success rate will be accelerated if you tap into highly scalable products and services, driven by a special force: Africa’s exploding middle class and consumer market (including businesses). This will be one of your best strategy. Choose a product or service where scalability is high and where it can easily work across borders – because there, they immediately understand your product, too.
11. Don’t fear the risks, embrace them!
We are talking about an emerging market, and they are very volatile and less secure. But exactly these are the circumstances that allow you to become potentially faster and more successful than elsewhere! You can cut down risk by getting started in lower risk markets on the continent, other than that get the right attitude and see a new business opportunity in each challenge!
TIP: Read my post: Fearing the Challenges Doing Business in Africa? But that's your gold mine!
12. Think ‘Africa’, but not when you get started
If you are targeting the entire continent of Africa or you are plannig to get this started in 'West Africa' from the get go your business strategy is flawed and you will be unable to apply the much needed focus to start successfully. Be very precise about the country you want to start in and who exactly your target customers are in that market. Don’t try to be everything for everyone. This is a common mistakes many start-ups make. Instead, be ultra precise and then continue to grow once you master that very first level.
13. Don't worry about how to raise capital
One approach I see again and again is the plan or effort to raise capital too early. Investors or banks rarely invest in a good idea. You will need to have proven your concept have shown resilience progress and proof that the market wants what you offer – then you have a case. Everything else is often a waste of your time and energy. Instead, think about how you can adjust your business model in a way that it can get started on a small budget and then grow organically. In fact there is a lot of benefit in that, as you grow with the market dynamic instead of making assumptions.
14. Get a local partner
Absolutely crucial to expand, network, navigate, and mitigate risk in Africa! But, don't just jump to the next contact or a family member – this can often end in huge disappointments. Make sure you choose someone who is a reliable and professional player in your industry already!
15. If you want easy regional expansion choose East Africa
Africa has 8 trade regions. Among them the smallest, the East African Community (EAC) is the most advanced trade region on the entire continent with a market of around 150 million people. Trade barriers are being taken down which includes check points at borders, customs, visas, bank transfers, and there are even talks about introducing cheap regional phone calls and air travel. This make cross-border expansion and business the easiest on the continent!
16. Consider intra-African trade
Intra-African trade is currently growing by a staggering 40%. It is the new trend and one to use to your advantage when working on your growth strategy.
17. Go for ‘value addition’ to win in the African market
Africa still has one huge problem: It produces and sells mainly raw produce and material. Much of it is then exported, only to be imported back after it has gone through a manufacturing process abroad. This has even been mentioned as one of the main gaps in Africa during the World Economic Forum on Africa 2014. You don’t need to invest millions in a manufacturing company to get started, instead, think of simple ways or machines that allow you to add value by processing something locally that is not available in this form. It is a winning strategy!
18. Master business skills and learn how to sell
If we are honest, many people run a business, but their success is compromised by their lack of business management, marketing, and sales skills. One trait of successful people is that they are prepared to learn the skills they do not have, and to master the attributes they need to become successful. Mastering sales is at the very heart of that. Successful people are not satisfied with mediocrity, they want to become one of the best and put consistent effort in to get there. Do you know that there are businesses with a good product that make millions and others with an even greater product that struggle. Have you asked yourself why? There is one major distinction: the first one has become a master in marketing itself and approaching the right people.
TIP: Watch online training series and emerge in a new learning curve: How To Sell Your Products or Services
19. Give your business and your brand an Africa development context
According to a US study in 2009 by the Marketing Leadership Council, 64 percent of consumers who said that they had a strong relationship with a particular brand cited shared values as the primary reason (recession proof!). In Africa ‘standing for something’ takes on a whole new meaning: Many of Africa’s emerging business owners who have managed to actively communicate how their business helps Africa have now become business leaders who participate on major platforms in the shaping of the continent. Integrating a development context (job creation, value addition, food security, social responsibility & safety net, youth engagement, environmental & climate protection etc.) will have a positive ripple effect on your business. Integrate it and be clear about it.
20. WhatsApp? Build mobile phone compatibility for your Africa business
Millions of Africans use mobile phones to communicate or do business and today 8 out of 10 Africans own a mobile phone – Africa is the fastest growing mobile phone market. A mobile phone is a life and business line in so many ways and a fast increasing number of Africans use it to be, buy, and do business online. Your online presence, your communication, your marketing strategy need to be compatible with mobile phone.
21. Think African exports not imports!
I get approached by many sharing ideas about products they want to import into Africa and asking me for feedback. My asnwer is mostly the same: if you are thinking to start a serious impor-export business think African exports not imports! African governments are keen to cut down on imports and to increase their exports to increase economic growth. This means that we see a lot of imports becoming suddenly more expensive, difficult, and some products are banned all together (like second hand clothing imports in the East African Community member states for example). This puts your operations at risk. However, exports see incentives, improved polocies, and you get general support from African staekholders, because you are helping them to meet their development agenda. It's a better business model with feature!
22. Network, network, network….with people who can bring you forward.
Africa business groups and Africa industry or business events are one of the best way to connect to the right people both online and offline and there are also Africa networks one can join. These are platforms where you can build valuable connection that will help you to start and grow your business, possibly for years to come.
TIP: Join the new round of enrolment for my online Africa Business Academy to get access to my guidance and build your business network
23. Use the little services and business hubs Africa has to offer to the maximum
Africa is lacking support services, but there are some entities that do provide valuable information, support, and platforms and they are widely under-utilized. Here is what you need to look out for in the country you are doing business in – simply visit or call to ask what they can concretely offer to assist your business endeavors:
- Business or technology hubs
- Local investment promotion centers (usually government owned or co-owned)
- Embassy business services (if you are from the Diaspora or non-African)
- Industry associations
- Business councils
- Chamber of Commerce
24. Be visible in Africa and beyond!
Don’t hide – step out ! Be present online, market your products and services on social media, write a business blog, connect with business leaders in your industry, meet stakeholders on the ground, organize and market your own Africa business event (even if you are in the garment or solar industry!), be creative, be a thought leader, engage in Africa and industry debates, participate in business events….all that action will quickly accumulate and increase your visibility and presence. And before you know it, people and the market will start looking out for you. But if you are hiding, you cannot step into your greatness
25. GET STARTED!
Finally, I encourage you to take action if you asre still at the idea or 'contemplating' stage, because without action – even tiny steps – there will be no progress at your end. I have put together a few ways how you can get started with my help – depending on what stage you are. Visit your options here and take action!
Be part of Africa’s renaissance.
Build a grand lifestyle for yourself.
And make a positive impact on the lives of others. Today.
Now it’s your turn. Please add your advice below on how Africa entrepreneurs can increase their success rate! It would be great to hear from you!
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Very interesting and helpful post. Thanks so much for your insights