If you are an African in the diaspora, you might have considered starting a business in your home country or in any country in Africa just because you are being compelled to ‘go make a difference’, ‘give back’ or invest in your country’s economy.
But there are a lot of factors to consider.
Have you just met someone random that shared a business idea with you or are you under pressure from home to send money and get something going?
How do you avoid making severe mistakes that can cost you time and money and even damage your relationships with friends and family at home?
1. Not doing enough research: Like we already stated, many business ideas and financial decisions might come through sheer emotional connection or external influence– usually from your friends and family members at home.
To build any successful business (or better still, to make any profitable investment), you must make informed decisions based on proper market research. You must carefully assess the opportunity and manage resources like you mean business.
2. Not properly assessing risk: Every business has its own risks. If you own a real estate business, for example, you might have to deal with changing government policies on property ownership or unexpected currency devaluation.
Even though the market in Africa is large and full of opportunities, not preparing for risky situations can cause serious problems in the future.
3. Doing too many businesses: If you’re just starting out on your investment journey, it’d be better to take on one (or a few) projects at most. Starting a business might not be as difficult as actually maintaining and running multiple businesses simultaneously.
So when you get your hands on a prospective venture, try it out for some time and balance your grip on the market before you launch something else. This will help you secure your hold in that industry. Then you can apply the lessons learned and the influence you now have in new areas.
4. Poor management: Have you ever heard of businesses breaking family ties or destroying friendships? It starts with trust issues and selfish interests on any side of the business.
It might be hard getting on the same page with the regulators you have appointed. Things may even go wrong simply because you are not around, instructions are not being properly explained or you are expecting too much.
5. Investing too much: Even if you have a lot of money to put in the market, you don’t want to get any surprises and lose your investments unnecessarily, or because of mistakes that can be avoided.
So you need to know when to stop. Or better still, start small with a leaner version of the available funds.
If you have no0t really tested the market before, it’d be better to make smaller investments with fewer loss risks. This way you already know what to expect after getting feedback and testing your management processes.
6. Producing low-quality products/ services: The best way to set yourself apart in the market is to go for the higher end of the stick and go for the premium, high-end market. This way you can target users that appreciate and will pay for better products.\
So what can you do to give your business a chance of survival even when you’re running it from abroad?
Do this instead:
-Target specific market needs
Because of scarcity, inflation, inequality and other social issues in Africa, you could provide real value with a business model that meets these needs among different sets of people.
Do your research and find out what you can offer where there is a real demand.
-Find out what the legal requirements are
The government might have put certain laws in place for employment regulations and business practices. Don’t forget to register your business and put everything in order with those who will work for or represent you.
-Maximise your social media presence
For any business these days, social media plays a huge role in growing publicity and directing customers to make purchases.
Use Twitter, Instagram, Facebook, TikTok etc. to support your project with the right marketing campaigns so you can reach your audience as fast as possible.
Have you ever considered starting a business in your home country? What was your experience like?
