The African Development Bank (ADB) estimates that 22% of the continent’s working-age population is establishing and launching a business, making Africa the world’s number one place for new business ventures. This data also makes Africa have the world’s highest rate of entrepreneurship.
However, starting a business in Africa, where more than half of the population lives in poverty, is not a walk in the park. All you need is how to navigate through the African economy. Though difficult, it is not impossible.
Here are valuable tips to help you launch your business successfully in Africa this year.
Pattern your business after the African market
African countries have their narrative when it comes to business and market trends. People in African countries have distinct issues, wants, and requirements, determined mainly by their geographic location.
Therefore, if you are considering launching a business in Africa, find a unique business concept that will assist the general public to overcome their issues and living a better life.
To launch a business that proffers a solution to a significant problem would guarantee a return on investment. That’s because there is a ready-made market. Several African entrepreneurs have built multibillion-dollar businesses by bringing power and Wi-Fi to rural and underprivileged communities.
These entrepreneurs have perfected answers to some of the continent’s most pressing issues. As a result, they have achieved astronomically high sales, tremendous profit margins, and a slew of international funding.
Plan and carry out a market research study
When you identify the business you want to launch in Africa, you need to plan and research. When there is no proper planning, failure is inevitable. Research by Harvard Business Review revealed that one of the numerous factors that can cause a product launch to fail is the lack of preparation. Hence, preparation is integral to the success of your product.
In conducting the research, you need to answer some of these questions: is there a market need for it in the African country, the current trends in the chosen industry, who are the African audience, what is the market projection, the economy of the country, government policies and regulation of the business, the currency and taxes, among others.
Executing your business in Africa, or anywhere for that matter, funds are needed. Hence, serious consideration should be given to launching your business because this is all you need to turn your idea into a reality.
There are different ways to source funding. Apart from your capital, you can get it from friends and family. There are also business grants, funding rounds, business loans, among others that you can apply for. Approximately 3000 new entrepreneurs have gotten financial help
and mentoring for their Africa-based enterprise in the past years. However, getting the funds depends on the uniqueness and profitability of your business idea.
Start with a soft launch
Before launching a business, it is better to have a group of individuals test your product before releasing it to the general public. These individuals might be part of your product management team or anyone else. You can get reviews and feedback on making your product better and more profitable through them.