Do you run a startup in Africa? Starting a business can be a roller coaster ride with a mix of exciting and challenging days. While many startups in Africa spring up every day, few can survive the challenges of starting a business. You are likely to face frustrations in your first year as you attempt to turn your business idea into a reality.
Businesses that thrive today never left it to fate. They applied some tips and strategies that have kept their business amidst the apparent challenges and competitions. Before moving ahead, make sure you start your small business on the right foot.
In this article, we will go through 5 tips to help you survive your first year as a startup in Africa.
Create a business plan
Most business owners might consider a business plan only when looking for investors for their small business. But a business plan is a great way for any business to start. It doesn’t just provide the paperwork for investors but gives you the vision to get your first year started on the right note. You will need to answer some vital questions- Why does your business exist? What problem is it trying to solve? Who is it targeting?
Creating a business plan that outlines the vision and sets a realistic time frame for your goals is a great way to start. Outline your business goal and ensure your business plan has a set target market and a workable business model.
Invest back into your company
As a startup in Africa, you must understand that growth must be your goal in the first year. It might be difficult to deal with an unstable income, but you might need to sacrifice some expenses to get your small business started. The first income should be reinvested back into your small business- the development of your product, marketing, sales, employees e.t.c.
Get the right team
Great ideas are executed by the right team. The right team can make or break any business. A successful business is only as successful as the team that sees it through. It is important to get the right employees working on your team. Hire skilled employees, have a passion for the vision and have what it takes to work with you to see that the vision is actualised.
Keep the expenses low
Spend on the things your business needs and not what you think a business needs. Many startups in Africa fail because they run out of money. To succeed in your first year, you must ensure you keep your expenses as low as possible until sales start coming into your business. Only hire employees you need. It would be wise to use freelancers and contractors for the rest. You might also want to forgo an office space if it’s not a necessity at the time. In general, only spend on what your business needs.
Focus on customer services
Customer satisfaction is a great strategy to keep existing customers and attract new ones. One satisfied customer can spread the word about your business and attract new customers. Keep your customer services at an excellent level and ensure you ask for referrals.
Conclusion
As a startup in Africa, surviving your first year in a heavily saturated market takes some tips and strategies. Applying these tips amongst others can supercharge your business even in the first year. Partner with the right people and avoid saying yes to everyone. Only align with people who fit your overall plan and priorities. Don’t be afraid to take that first step today!
Do you have questions or comments on startups in Africa? Kindly drop them in the comments section below!