Today, I want to share additional insights with you how you can increase your success rate doing business in Africa in any sector. Most people still follow the old ways of doing business. They have a good idea, write a business plan, get a license, and prepare for start up.
Nothing wrong with that, but as you know by now I want to challenge you to become entrepreneurial ! Add an edge to your African business concept and the way you do things, step out of your comfort zone and get noticed by other stakeholders in your industry and decision makers who can propel your business even further.
Looking at the many entrepreneurs who have become really successful in Africa in a relatively short time it can be said that the majority of them have added something unique to their concept, something that was new to the African market at large. As a result, they received both great revenue and wider exposure.
First things first and just a quick reminder: The most important and basic strategies that will increase your success rate in Africa were covered in one of my guest posts, which I wrote for the renowned online site HowwemadeitinAfrica.com. These strategies apply to any sort of business and you should be aware of them if you want to operate in the African market. Here is another chance to read Five Business Strategies To Increase Your Success in Africa
But back to making your business – hey, and you ! – stand out.
I get e-mails and messages where people share their ideas with me and their business plans, and I thank you for the trust. But there is one issue that I repeatedly notice:
It is conformity.
A reasonable idea that simply blends into the market.
No! We don’t want to blend in, we want to shine!
And this is not just pure life enthusiasm but also makes sense in Africa’s market if you want to increase your success potential.
In short: Yes, there is huge room in the market, but don’t fill it with more of what is already out there, fill it with something that will allow you to stand out of the masses of start ups and African business owners.
Here are some real examples how to turn conventional business concepts into hot opportunities! I’ll share my favorite in the end.
1) Skip the traditional restaurant….if Africa has something, it’s restaurants
How many people have the idea to open a restaurant? I mean really, I think it’s one of the favorite traditional business ideas across the globe, among both men and women. And for that very reason, you will find a huge range of restaurants in Africa regardless of economic growth. Now, great interior design and yummy food may be just enough to make you stand out in the market, but more often than not will you still somehow blend in and so will your success.
So, how can you turn this into something that steps right into Africa’s growth dynamics allowing you to use the energy for your business success and stand out?
Africa’s middle class is rising, it is increasingly adopting Western lifestyles, and more women are seeking employment or are becoming entrepreneurs. This means that there is more money and less time.
As a result, fast food is a growing industry in Africa and one where you will overall find little competition to this date. Use this momentum and just open a chain of small mid-day kitchens or food trucks that open for 4 hours during lunch break in busy market or business districts.
Serve the workers of the thousand of Africa’s construction sites, introduce Chinese takeaways in paper boxes American style, or try the same concept with a traditional dish that people love. Not only will this cut the costs for your start up immensely, but you are also tapping into growing dynamics, and you will be able to own a unique niche and build that up fast.
2) From solar products to national campaign
Selling and installing solar products is a business with future and huge potential, so nothing traditional about it at all. Our guest writer here on Africa Business Jumpstart, Christopher, has just received his first shipment and now his products are selling fast in Nigeria…..and even in the US where he still resides! I regularly read his newsletters, and smiled when a family was able to continue watching TV when neighbors struggled with power cuts or the dangerous fumes of the generators. I never knew this whole generator issue was such a huge concern in Nigeria as it produces both noise and hazardous fumes.
I guess it is coupled with the relatively good spending power of Nigerians, because in most African countries where I have been, we would simply sit in the dark and start chatting over candle light. Gosh, I remember how many times I tried to find my way into the bedroom when lights would not come back until the next morning.
But reading Christopher’s newsletter, it suddenly occurred to me what a huge public health hazard these generators are. If you are operating in the solar sector at household level, you could link up with the Ministry of Health or the Ministry of Energy and suggest joint national campaigns. You could even partner with the Chamber of Commerce or certain embassies and invite companies to solar power demonstrations and a cost-benefit analysis for their businesses if they decided to switch to solar. Or simply call your local UNDP or UNEP offices and see if there is scope for cooperation. You will be amazed about just how receptive they may be – after all, they want to write good action and progress reports to their head offices. Such partnerships would give your business massive exposure and raise awareness at the same time – both could propel your business to new heights.
Here is the link again to Christopher’s company, Atlantic Waste Power. You can follow his progress there or if you happen to live in Nigeria and you are interested in solar power get in touch with him – you will receive excellent service and advice.
The partnership strategy with public entities, of course, can also work for other businesses.
3) Carrots or lavender?
How to use land effectively in an agribusiness context is a question I receive very often and people usually share their own ideas with me. Again, most of that usually shows a traditional approach. Don’t think about planting carrots or potatoes– sure, there may be a market, but fact is that these markets are not exponentially growing at the moment and you will face great competition! (Unless you do it like our guest writer Tunde, who produced green house tomatoes of exquisite quality- that suddenly sold fast to the high end fast food chains in Nigeria).
But what about planting and selling lavender to serve Africa’s skin care and beauty industry? Well, be sure you are going to be one of the first. Or open a tree nursery and sell shrubs for fencing – a South African entrepreneur is fast expanding her business in this regard, there is so much demand for her garden shrubs. De Fynne Nursery started in 2001 when Jacky Goliath and Elton Jefthas saw a gap in the market. The business started in Jefthas backyard and has since grown into a several hectare large business. And it makes sense, because the property sector is one of the fastest rising in Africa, so you are stepping right into the growth dynamics.
Or take rice. It is a very popular staple food, but it is largely imported all over Africa – that’s where you find a huge gap that you can help to fill locally.
Skip the traditional ways, thousands and millions of Africans are getting ready to fill those while you read this. Instead, aim for unique crops or agricultural niches that will exponentially grow in the near future.
4) The training firm that did things differently
And here comes my favorite: I recently read about a Nigerian entrepreneur who started a management training company. She had recognized the huge need for skilled management personnel and decided to train Nigerians in management skills through her intensive courses. She could have just left it there, but that would have meant to blend in with many other management training companies. Instead, this smart lady added something unique: she made sure to become a major player in the job market at the same time, by trying to get her newly trained staff straight from her training into management positions. Wow, I think this is fantastic. Surely, people would want to train at her company and even pay her more for the course if they know they are likely to get a job at the end of it! On top of that, she also makes additional profit from commission she gets when she manages to place candidates for job positions. And recruitment firms or major companies may soon view her management training firm as a valuable contact and even partner up with her.
A win-win-win situation for you and all the other African stakeholders! This is what it means to think out of the box.
And I have an additional tip to add to your management training firm: You could sell your popular management courses also online. People pay a fee of – let’s say – $37 Dollar to get access. Now if you just sell 225 of these courses across Africa each month – you make an extra $100,000 per year….yep, in fact, in your sleep or while relaxing on the beach, because people simply pay and download the material online without your direct input. This is called passive income – you got to love it!
Now it’s your turn. The above four examples were just meant as guides. It is time that you think about how you can add the edge to your African business and stand out!
Please feel free to share your thoughts and suggestions in the comment box below!
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Thanks so much for this article, has been of helping hand just as i thought to some of ideas such as food chain supply although you have open my eyes on the rest.