In Africa start up entrepreneurs encounter a lot of problems that impede their growth. Despite setbacks entrepreneurs encounter, some have had a share of success.
An entrepreneur is a charismatic person who take risks and exercise initiative, taking advantage of the market opportunities by planning, organizing, and employing resources, often by innovating new or improving existing products. How can young entrepreneurs grow to own multi-corporations? Below we have a number of aspects that can help entrepreneurs grow.
- Change and innovation
Businesses should always adapt and evolve for it to grow. Professor of Entrepreneurship Practice at Babson Global, Daniel Isenberg, believes that innovative ideas can make a splash, but entrepreneurs are more likely to create value, change the world, and make profits. Conformity is difficult for many entrepreneurs because they have strong opinions, and that makes them resistant to existing offerings. A well-known product might not be the best product for the market. Entrepreneurs should come up with the change. Steve Jobs, for example, changed the face of smartphones by introducing the iPhone. Successful entrepreneurs have been successful because they created a need and satisfied it.
- Cost management
A testimony most successful African entrepreneurs will give as a key factor to growth is managing costs.
Joseph Benoit, a small business banking executive discussed about entrepreneurship budgeting in his business article.
“Create reports every week to examine both your expenses and revenue. By taking steps to manage your expenses today, you can instill positive habits that can serve your business well into the future,” he noted.
Areas important to your business’s revenue, such as production-related expenses and marketing, should be among the last items cut. How can you do that as an entrepreneur? You should minimize expenses and maximize profits. The more a business is involved in a certain aspect of business, for example, the more they hire services for less and get quality service for less. Less the production costs mean more profits and more growth opportunities. Inventory costs, operational costs and over heads should be minimized without compromising quality.
- Advocate for favourable policies
Africa is a continent that is characterized by territorial trade barriers. Restriction to importing of certain products and heft taxes on imports are some of the territorial regulations African entrepreneurs face. In this instance small business are largely affected. Young entrepreneurs should join both local and continental business boards which administer their business and advocate for change. Young business people should be heard.
Business writer at the The Institute for Policy Innovation in USA, Naomi Lopez wrote about African policies. She said, “There is broad consensus among labour analysts that the vast majority of job creation occurs in small business. Removing obstacles and reducing the regulatory trade and tax burdens on small business could have a substantial, positive impact on the ability of small business to facilitate job creation and economic growth.”
The market’s perception on a business makes it grow or die. In short, clients and customers will buy products or benefit services based on a combination of the company’s reputation, user experience and quality of products. The Father of Advertising, the late David Ogilvy left a popular quote that says, “The pursuit of excellence is less profitable than the pursuit of business, but it can be more satisfying.” Reputation helps entrepreneurs grow with their markets. How can you grow your reputation? Entrepreneurs should offer products that are either new or an upgrade of competition. You should earn a reputation of offering exclusive and superior products in order to grow.
Most entrepreneurs focus mainly on profit other than growth. You should expand lines of products and services because business perspectives should be wide and dynamic. So many business founders come up with a good idea, yet they are unable to scale their companies for growth. Most entrepreneurs do not grow because they are people who want to control their dream without other people’s help. A number of reputable entrepreneurs who gave entrepreneurship advice to Makamba Online’s audience highlighted key factors to expansion as the correct timing of a product in the market place and creation of brands that create memories. When the market expands the business operations grow and returns rise.
Profits and growth are hard to come by for starting businesses. Cross-selling can help entrepreneurs introduce new products that are related to the existing line of business. When a business is selling shoes, for example, it can add shoe polish to its products. Budding entrepreneurs in Africa should do that to boost income and to expand their markets.
Up-selling goes with an established market. Entrepreneurs produce similar products to the ones they offer adding new features so that they are priced higher. This strategy increase the profits of the small business owner. Startup entrepreneurs should produce exceptional products or new products for an existing market so that they earn huge profits and invest in business growth.
Author: Gesture Chidhanguro