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10 Golden Rules for Successful African Businesses

Most people do not really believe in Africa as a serious investment haven simply because of the high poverty level of the local people. Therefore, the continent is despised, left behind in technological breakthroughs and made a virgin economy which is the strength of African business. The truth is this: Africa is the easiest place to make money provided you understand the people, environment and also follow these golden rules that will soon be unfolded to you here.

1. BUSINESS LOCATION

The location of your business and method of doing your business makes all the difference. Recognize where the people want your products and the packaging desired. Most businesses set-up their offices in city centers far away from the rural dwellers that are their main targets. Re-location might work, if things are taking a different turn. Adapting and packaging a product to the people’s need and way of life could make a huge success for a failing product. Lastly, acceptance of products should be seen as a cultural change, therefore,  the people’s norms and values should be factored in when entering the African market. It is also a known fact, that most African investors do better outside their own domains. After all, a prophet is not honored in his own homeland!

2. TIME MANAGEMENT

The concept of time in African businesses is very different. You have to be proactive and avoid excessive waste of time on festivities, frivolities, complacency and a wrong idea of “African Time” mentality. Create a good work culture and insist on “no work no pay” rule. Be a good time manager and always equate time to money. No day must be wasted to realize your dream of success, even in African business climate.

3. PROCRASTINATION SEED

This is a terrible seed to avoid being planted in any business. Hire only staff with the right attitude and mindset about your business growth and positive developments. Instill leadership qualities in your work force and reward creative efforts. Use a leadership by example approach and take charge. Encourage your staff to be proactive and quit procrastinating projects implementation. Recognizing people’s demand and quickly adapting to meet this, will make a huge success of any African business before a negative bandwagon effect sets in.

4. THINK BIG; BUT START SMALL

Adapt any business to the people’s way of life. Businesses that have great potentials elsewhere might fail in African environment, if not appropriately adapted and packaged to suit the people’s culture! It has been found after personal years of research that most African investors want to make quick turnover in the short-term, without investing on the work force and allowing time to grow acceptance for their products. For this reason, think big but start small. Experiment with little beginnings and grow with time. This is the safest way to sail in “African Market Sea”.

5. AVOID THE BANDWAGON EFFECT

Many business owners always compromise their standards for African Markets. Do not join them. Move with a positive determination and purpose of what you want to achieve and be people centered. Avoid the corruption game or the “get-rich-quick-syndrome”. There are no short-cuts to business success than hard work, even, in Africa. Be straight, honest and principled.

6. CULTURAL PROBLEMS

It is a known fact that many people are lazy; want unearned money and waste valuable time in the name of culture. Promote good work ethics and reward creative efforts and diligence! Train your work force regularly and frown on gossips, lateness to work, absenteeism, care free attitude to work and other vices. Set targets and create competitiveness among your work-force to meeting your goals and customer expectations.

7. REWARD YOUR EMPLOYEES

While some employers make so much money from their poor communities, their work force and immediate surroundings are left uncared for; this is the cause of most community backlash! Reward your employees in order to avoid negative reactions from the local communities and employees in the form of sabotages, poor services, thefts, looting, racial hatred, xenophobic attitudes and the likes. Give local school sponsorships or scholarships to the communities as a social responsibility to create trust and win the favors of your locals.

8. GIVING & SHARING

This is the spirit of Africans! Learn to give and share out, especially in times of distress. Sink aMultiple Streams of Income Ideas water borehole and give free water to your local communities. Make special bonanzas for staff and customers at festive times or religious meetings. Employ some less privilege staff, and empower disable people in creative ways or make them your “marketing ambassadors”. Giving and sharing love is the true African way for your sustainable growth and acceptance with the people!

9. GENERATE CREATIVE IDEAS

Solve people’s problems in your choice of product packaging or marketing. Generate creative ideas that will meet the need of the people. There is a need to constantly research on different ways to make your brand popular with the people. Also create different choices for the people along the social strata lines and create unique income earning opportunities for the people as marketers.

10. CREATE MULTIPLE STREAMS OF INCOME

Plant a “money tree” in your African Business. It is not wise to enter the African market with a single source of income. To avoid loss of income due to price increment or changes in government policies, it is recommended that you create multiple streams of income for your business to cushion such effects.

Now the choice is yours to take advantage of these vast opportunities available in The African market.