Some things may look like a good idea, but really they are not, if you are aware of the negative effects.
A random example: As a teenager, I regularly used to go to a popular perfumery shop when I was out shopping. It seemed like a good idea, because I could get a nice birthday gift for a friend and engage directly in what seemed ‘cool’. The problem was each time I got out, I felt nauseous and suffered from headaches because of all the odors and all the sniffing one had to do.
It took a while until I confessed defeat. Why should I put up with the nausea and headaches? So, in the end, I stayed out of perfume paradise.
During my direct correspondence with many of you I have noticed that some of you are heading for some pitfalls with your Africa startup plans. How to avoid the headache? Know what causes it and simply stay out of it.
I thought it would be of value to put a small list together, here it is:
Pitfall 1: You want to sell or partner with government
A considerable umber of startups or aspiring entrepreneurs aim for that. But: Unless you are an already established company that bids for a million Dollar public procurement tenders, selling or partnering with government is a bad startup plan.
Anywhere in Africa? Probably yes.
Look, they may sound like a powerful clientele or partner to have, but here is why it is such a bad idea:
1) They are extremely bureaucratic and have a slow response level
2) You will usually quickly hit your ceiling with government as your client in terms of expanding your sales
Yes, let’s say it as it is: despite the overall positive direction many governments are now taking, they are overall a rather sluggish entity. The real dynamics in Africa are today driven by Africa’s private and consumer sector. Doing business with those two will be much more dynamic, self-determined, and rewarding.
TIP: An official endorsement by government departments however can be of value in some undertakings, for example if you organize industry conferences or build social enterprises for example. When your company meets some of government’s key agendas, they are often ready to endorse your undertaking, even if you are a startup. Such an official endorsement can increase the trust others put into your new venture; it may also help with exposure.
Although it will depend from case to case, selling new ICT solutions within government funded projects is another area that seems to allow you to keep the necessary flexibility and to remain in charge.
Pitfall 2: You need a big amount of seed capital to make a first step
Here is the trend: Many African start up companies have received huge amounts of investments after they proved what they were able to deliver. There are iRoko, jumia.com, Wild Fusion, Mama Fresh Injera Plc….the list really goes on and on across Africa…and all started their great idea with small steps and no funding. These are new successful Africa businesses with a story of humble beginnings. Most of them received huge capital injections by investors within the first two years, and only after they could demonstrate they have a concept that works. If you have a great concept and you deliver you will get noticed and funders are coming to you.
Looking for seed funding is a major challenge, in particular in Africa, and more often than not, the best choice to get started is in a way that does not require raising major capital for an idea that for now looks only good on paper.
Pitfall 3: You simply assume people get you
Oh yes, we have this great concept and it all makes wonderfully sense….right?…..in our heads, good people!
One thing I learned when setting up my own business blog is the importance of CLARITY and how exactly you are solving someone’s problem. I am glad I had mentors who challenged and lead me. Can you see the ‘overcome the obstacles’ and ‘identify the opportunities’ section on my home page? I was challenged to do that after I learned that people use the first few seconds to make their mind up about you and what you have to offer. If they don’t get you, they move away (even if you have a great product).
(Hmmm I still got an e-mail from someone the other day asking me where to sign up on my site….so there is always space for more learning and improvement as we go along, that’s for sure).
But the bottom line is: many of us struggle with clarity. I have read Africa business concepts and was unable to say this guy is trying to solve x by applying y, z. I could kind of understand the aim and drive behind it, but could not clearly summarize the concept or how he would monetize. If someone else does not get you quickly, you have a problem.
Now this is even more so the case when operating in Africa on the ground. Many solutions that are clear to you may not be clear to the African consumer. Or they may have worries you are simply not aware of. Your product may not be the problem, but the way you build the context around it is.
Clarity is key, but so is the ability to adjust your language depending on your audience. The way you explain your Africa business to an investor, a partner, or a local consumer on the ground can never look the same. Especially in a region where you have such huge discrepancies in cultural and educational background.
So these were me quick tips against unnecessary headaches.
You want other methods that work wonders against headaches and unnecessary fatigue?
Let me think….
Drink enough water throughout the day, so you can be highly productive. 🙂
Right, particularly when operating in the heat of Africa!
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And still. Let’s be defined what dosage in this case approaches most of all. There can be it cialis 20mg or something another. To me I think it isn’t necessary to choose for you necessary. Think. Perhaps suits you cialis 20 mg It is much better.
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I would like to thank you for this interesting short but sweet lesson for business start ups in Africa. Take from me I have learned the hard way Coming from the UK and living in Africa is a big Cultural Shock to the system
Yes Africa is and will be in my eyes a wonderful place to live and do business but it take’s time… and what you are doing is a great way for anybody from outside of the country to Read and also learn quickly
Thank You