Africa is practically an economic goldmine, with thousands upon thousands of business owners, both big and small, revolutionizing various industries in the continent. Countless countries have taken advantage of Africa’s flourishing economy and grew their start-ups into similarly flourishing enterprises. Whether in the East, the West, the North, or the South, running a business can be hard work, and you’re liable to face certain struggles. To mitigate these struggles, we have gathered several top tips from successful African business owners that ensure your business not only survives but thrives.
What They Don’t Want You to Know: Top Tips from Successful African Business Owners
1. Understanding the Market
To first become an entrepreneur, you must understand Africa’s market, consumer trends, and niches. Now, that doesn’t mean that you have to dedicate several hours to scrolling endless web pages. No one likes agonizing over whether or not their next revolutionary idea will fit in a neat little box. Instead, look to your local sources, like your neighborhood, for example.
However, if you really are stuck on ideas, it wouldn’t hurt to check out market research in Africa and the surrounding area. SIS International Research has several reports on the subject.
It is no secret that the African continent is home to a plethora of natural resources. With that comes growing consumer markets or, potentially, untapped ones. As such, certain companies taking notice with a discerning eye for competitive advantages and opportunities for growth. Housing the second largest population globally, Africa’s economy largely depends on natural resources for its agriculture and mining sectors to function.
Regardless of whatever business you decide to go into, make sure that the market for it is neither too narrow nor too broad. Try to tap into a market that is stable all year round rather than seasonal. Google Trends could show you how stable these markets are.
Case study: This much is the case with Hephzibah Ijeje, a 19-year-old economics student, humanitarian, business enthusiast, and co-founder of Recyclift. With Africa being the most susceptible to environmental challenges, including deforestation, land degradation, and extreme vulnerability to climate change, Recyclift hopes to bring about sustainable development to her community.
2. Start Small
One of the most ubiquitous examples of starting small is the foundation of Amazon. Amazon started as a humble bookstore in Bellevue, Washington. Once the profits were stable, the bookstore slowly expanded into a different market: toys. As time went on, Amazon continued to break into different markets, ensure its stability, and continue until it became the powerhouse it is are today.
It is far easier to start a business with a narrow scope than a broad one. However, it isn’t enough to branch out into any other market once you have the scope. Instead, it would be best if you branched into relevant markets. Otherwise, you risk being unable to capture that market.
Aliko Dangote of the Dangote Group in Nigeria stresses this to young and budding entrepreneurs, in fact.”To build a successful business, you must start small and dream big.” He says, “In the journey of entrepreneurship, tenacity of purpose is supreme.”
3. Developing Your Brand
A successful business owner, African or not, must always focus on their brand. It is often the first thing that potential customers notice, and it pays off to make a good first impression. Furthermore, a good brand will help set you apart from your contemporaries. It will also promote recognition and tells potential customers about the kind of company you helm. A strong brand can even help your company connect with your customers emotionally. This is especially correct if your brand and your customers hold similar values.
Tom Osborn, an African entrepreneur and community mobilizer, co-founded GreenChar, a social enterprise that provided clean energy for rural Kenyan communities and urban slums. In addition, he was named on the Forbes’ 30 Under 30 list in Social Entrepreneurship, among other awards.
Osborn emphasizes that young entrepreneurs do their best to develop their business and personal brand. In fact, he considers it half the battle.
“I think in Africa there are a lot of young entrepreneurs who have great ideas but never get noticed or past the small-scale level,” He remarks. “I think one reason is that they poorly position themselves and the organisation. They don’t know how to tell their story. They don’t know how to create their brand. And I think that is also very important. Entrepreneurs should spend a lot of time not only on their products, but also on working out how they are going to sell them.”
4. Choosing the Right Business Partner
Something that many successful African business owners have is a business partner. Having a business partner is critical when your business expands. In fact, it is even preferable when your business is just starting. As the old saying goes, “Two heads are better than one.”
Whether through networking, job postings, or personal connections, finding a partner whose skills complement your own can help you and your business in all ways. It can help plan, grow and run your business and help mitigate the stress of running that business. In addition, a partner that shares your values, your spirit and your vision are guaranteed to help you. You will have an easier time communicating with this person, making decisions, setting goals, and overall ensuring the health and survival of your business together.
An example of this would be Thato Kgalhayne and her co-founder, Rea Ngwane. Friends since childhood, the duo have developed a rewarding partnership by ensuring their personal friendship does not get in the way of business.
“When you form a business partnership with your friend, act as though you met that person that day. You can’t say because you’ve known your friend since grade four, you’ll work well together in business.” Kgatlhanye suggests, “No – you have known them since you decided to start a company together. So get to know your business partner as a business partner, not a friend, because business and friendship is a different ball game. And I think that’s the best advice. Get a business coach, be honest, leave the ego at the door and hustle.”
5. Building and Managing Your Team
Building a productive team is often more important than you think. With a good team working with you, you’ll find that a lot of your success will equate with your team’s. After all, it is much more efficient to work with a team in entrepreneurship than to work alone. You will find that your ability to lead and inspire is critical to your future just as much as your business’s. Perhaps most importantly, you’ll also find that once your team shows growth, your business will inevitably follow suit.
Many successful African business owners realize this, choosing members of their team after scrutiny. Some partners are childhood friends while others are hand-picked, but one lesson remains: they made sure that their team was confident and skilled.
Togolese entrepreneur Sam Kodo, founder of Infinite Loop, also acknowledges the importance of a flourishing team. Explaining that he and his team have complementary skills to make decisions, Kodo is a prime example of why building and managing your team is useful for an effective business.
“Bill Gates or Mark Zuckerberg might not have particularly been good businessmen or good administrators or even good at marketing, but what they did was surround themselves with people who have the competencies and skills to turn their [innovations and computer skills] into a company. When you choose a business partner, choose someone who complements you – not someone with the same skills.”
6. Motivation, Failure, and Perseverance
A business owner must always keep in mind that if you fail, it doesn’t hurt to try again. Entrepreneurship is difficult. In fact, perhaps the easiest thing about entrepreneurial success is how easy it is to get discouraged.
However, there are countless stories of entrepreneurs whose businesses have ended in disaster, and instead of giving up, they go on with their next idea. Whether there weren’t enough interested investors, or a lack of capital or funding, or an inadequate management team, a faulty business model, or unsuccessful marketing campaigns, it is important, if anything else, to treat these failures as the lessons that they are. Take notes on the precarious pitfalls that made you fail, and be sure to work better at them. Use those discouraging situations as learning experiences, and take the opinions of those who doubt you with a grain of salt. Lastly, but perhaps most importantly, you must be brave to take that risk.
Chris Kirubi, founder of Centum Investment in Kenya, imparted a meaningful quote that has always rung true in the world of business: “Business is always a struggle. There are always obstacles and competitors. There is never an open road, except the wide road that leads to failure. Every great success has always been achieved by fight, every winner has scars. The men who succeed are the efficient few –they are the few who have the ambition and willpower to develop themselves. So choose to be among the few today.”
Are you interested in starting your own African business, or even just growing it? Contact PivotPath today to schedule a free consultation to improve your marketing strategy!
