© 2015 terser adamu, . all rights · pdf file© 2015 terser adamu, . all rights...

© 2015 Terser Adamu, MyNaijaNaira.com. All rights reserved in all media.

0


1

Preface I am a native Nigerian who moved to the United Kingdom as a child. Since

then, I have spent most of my life in the UK. I was educated there and

learned a lot about how the world works and how life can be enriched with

whatever little or more that you have.

Returning to Nigeria, after spending most of my life in the UK, showed me

the brutal realities of life. Life in the UK was very different from that in

Africa.

In 2003, I visited Nigeria and extended my stay due to a tragic family

incident. During this period, I immersed myself in the African ways of life

and it was like a new world opening up to me. I realised that when it came

to business, Nigerians and other fellow Africans had very different

experiences than what I had witnessed in the UK.

Soon I discovered that managing a successful business in Africa could be

vastly different from the UK. I realised that Africa possesses tougher

challenges to entrepreneurs and businesses than the UK, but Africa also

provides a deeper untapped potential that may benefit the entrepreneurs

and in turn Africa. It was a gradual discovery, nevertheless, a grueling one.

There was the chance to identify and take advantage of the opportunities

presented by Africa, and this got me involved in providing consultancy and

support to friends and family members in managing their businesses.

Although I returned back to the UK after my extended visit, I continued

providing business consultancy to all my African acquaintances through

Skype, phone, email and one-to-one whenever I visited Nigeria.

It continued for a period of six years until, in 2010, I decided to take it a

step further and divide my time between Nigeria and UK. Since then, I have


2

developed a clientele helping businesses to face the challenges and assisting

them on how to flow with accomplishments in difficult circumstances.

Last year, an idea struck making me document all my experiences with

business in Africa and I started an online blog: MyNaijaNaira.com. I shared

all my personal experiences and encouraged other African and otherwise

entrepreneurs to do the same creating a one-of-its-kind database about

business and entrepreneurship in Africa.

I published first-rate content about business, what-to and how-to guidelines

regarding entrepreneurship and managed a mailing list of more than two

thousand subscribers from around the world. Most of these subscribers

include newbie local entrepreneurs asking for basic business tips to try their

hands at entrepreneurship; undergraduate and postgraduate business

students seeking help with their studies; experienced businesses seeking

practical guidance to expand and establish their businesses in Africa.

A year has passed since I published my first blog and now with more than 50

blogs posts, I felt it is time to move a step ahead. Despite a successful and

inspirational blog, this book is primarily a fulfillment of what my subscribers

asked for. It is an attempt to steer the journey to a level up and reach more

people willing to become entrepreneurs and contribute to growth and

development of Africa. With this book, I intend to provide an all-in-one guide

and achieve greater learning and enlightenment of people regarding

business in African continent.

I have put in countless hours in researching about business in Africa, and

the end result is this book, which has been compiled for my subscribers to

empower them to launch and maintain sustainable enterprises in Africa. It is

a modest initiative from me to offer any form of help required by anyone

intending to set up a business venture, be it an African or International

Entrepreneur. I also extend my offer by providing guidance beyond this

http://www.mynaijanaira.com/


3

book. If you are looking for ways to improve your business processes and

increase your profits, I’m available for consultancy and can be contacted

through the social media links below:

» Email: [email protected]

» At Twitter: https://twitter.com/tadamu29

» At LinkedIn: https://uk.linkedin.com/in/terseradamu

Terser Adamu

www.MyNaijaNaira.com

mailto:[email protected]

https://twitter.com/tadamu29

https://uk.linkedin.com/in/terseradamu

http://www.mynaijanaira.com/


4

Table of Contents Africa ............................................................................................................................................................. 6

Growth Drivers in Africa............................................................................................................................ 8

Political Stability .................................................................................................................................... 8

Urbanisation .......................................................................................................................................... 8

Booming Trade and Lesser Aid .............................................................................................................. 9

Technological Advancement ............................................................................................................... 10

Major Industrial Sectors in Africa ........................................................................................................... 11

Agriculture and Farm Processing ........................................................................................................ 11

Infrastructure ...................................................................................................................................... 12

Service Sector ...................................................................................................................................... 12

Consumer Merchandise Industry ........................................................................................................ 13

African Consumers ...................................................................................................................................... 15

African Consumer Market Trends ........................................................................................................... 16

Exponential Growth in Population ...................................................................................................... 17

Demographic and Psychographic Changes ......................................................................................... 17

Increased Urbanisation ....................................................................................................................... 17

African Consumer Mindset ..................................................................................................................... 18

Quality and Brand Consciousness ....................................................................................................... 18

Value-based Purchase Practices ......................................................................................................... 19

Contemporary Lifestyles ..................................................................................................................... 19

Technological Affiliation...................................................................................................................... 19

Saving-for-Consumption Culture ........................................................................................................ 20

Media Habits ....................................................................................................................................... 22

Entrepreneurship in Africa .......................................................................................................................... 22

Formulating a Strategic Business Plan .................................................................................................... 23

Business Vision and Mission ............................................................................................................... 23

Environmental Scanning and Scenario Analysis.................................................................................. 24

Basic Competitive Strategies ............................................................................................................... 28

Action Planning ................................................................................................................................... 29


5

Business Plan Drafting ......................................................................................................................... 29

Financial Concerns .................................................................................................................................. 31

Borrowing ............................................................................................................................................ 32

Pooling Resources ............................................................................................................................... 32

Crowdfunding and Alternative Financing Sources .............................................................................. 33

Dealing with Debtors .......................................................................................................................... 34

Purchasing and Procurement .............................................................................................................. 35

Marketing Management ......................................................................................................................... 35

Advertising .......................................................................................................................................... 36

Public Relations Activities ................................................................................................................... 37

Online Marketing ................................................................................................................................ 37

Buzz Marketing ................................................................................................................................... 40

Personal Selling ................................................................................................................................... 40

Pricing Strategies................................................................................................................................. 41

Human Resource Management .............................................................................................................. 42

Recruitment ........................................................................................................................................ 43

Training ............................................................................................................................................... 45

Employment Laws ............................................................................................................................... 46

Trade Unions ....................................................................................................................................... 47

Conflict Management ......................................................................................................................... 47

Entrepreneurial Self Development ......................................................................................................... 48

Communication Skills .......................................................................................................................... 48

Presentation Skills ............................................................................................................................... 49

Time Management .............................................................................................................................. 50

Computer Skills ................................................................................................................................... 51

General Self Development .................................................................................................................. 51

Corporate Social Responsibility .............................................................................................................. 52


6

Africa The Economic Battlefield

Africa is the second largest continent in the

world, after Asia, with a population estimated to

be more than 1 billion. It is remarkably rich in all

aspects with innumerable blessings and natural

resources. Though tainted with misconceptions,

the continent holds promising prospects in many

different ways. Africa is postulated to have

several economies reaching the next level of

growth and development as the continental

average of GDP growth rate is stable at 5% per

annum.

The continent – Africa comprises of fifty four independent nations, the

combined population of which is estimated to grow at 2.5% per annum. The

population growth rate in Africa is considered to be the highest among all

the other continents in the world and population pyramid is concentrated

towards the younger age groups as compared to other continents providing

more and better human resource to the continent. The comparatively

younger work force is also considerably literate empowering the probability

of exponential economic growth in coming times.

Nigeria is the largest country in Africa in terms of population with a

headcount of approximately 162.5 million. The next in line is Ethiopia with

approximately 85 million people and followed by Egypt with 82.5 million

people. The average population of most of the larger countries in the

continent is estimated to be about 30 million people.


7

The life expectancy in the continent, on average, is considered to be around

52 years and it is increasing over the period of time with the help of

awareness programs and preventive campaigns launched and regulated by

respective governments of African countries.

Historically, all countries in Africa were once occupied by European nations.

The European colonies contributed to the cultural, social and demographic

diversity of the continent. The colonial Europeans ruled Africa by a divide-

and-rule strategy as they did in Asia. It made the Africans disjointed from

each other creating social differences which got embedded in the foundation

of African society. These differences lead to political instability and civil

insecurity and resulted in sluggish economic growth and development in

Africa.

The bleak picture of Africa is now transforming rapidly into a prospect of

high worth because of the desirable pattern of demographic changes and

economic growth with rising incomes per capita.

Despite the global economic setback in the last decade, Africa has managed

to grow by 2%, according to the Economist Intelligence Unit Report.

Currently, the continent contributes minimal to the global economy, but it is

growing faster than any other continent on the world. Africa is gaining

attention from international investors, which owes to the reduced political

instability, economy-friendly reforms, writing-off of debts and other

economic indicators being relatively favorable than the past. More

international investment means more money flowing in and more

opportunities for the locals. It has been said that the accelerated economic

development is right at the corner and opportunities to gain from the

economic development are widespread.

More than half of the countries in the continent are expected to grow at a

rate of more than 5% in future years. Noticeable mention includes:


8

Sierra Leone – growing at an average rate of 25% for last 5 years.

Ghana – growing at an average rate of 10% due to its commercial oil

production.

Libya, Uganda, Tanzania, Ethiopia, Niger and Liberia – having expected

growth rate in a range of 7.5% to 10% per annum.

In addition to the growth fueled because of natural resource reserves,

development in consumer markets has also been observed in last decade

reflecting that the policies, regulations and reforms have been improving for

better.

Growth Drivers in Africa

Political Stability

Political unrest has existed in Africa for several decades. The continent still

holds the highest risk of political instability. According to African Economic

Outlook 2014 political tension and instability is the most important

contributor to investors’ interest wavering to other continents.

Despite political tensions, according to the Bloomberg Business News Report

in 2014, Eastern, Western and Central Africa will have the highest rate of

economic growth. Several countries like Angola, South Sudan, and Mali etc.

have moved on from tensed transition to relative stability revealing

remarkable potential contributing to economic growth and development.

Urbanisation

The demographic profile of Africa is transforming rapidly and one of the

major roles is played by urbanization. As mentioned earlier, African

population is relatively younger than the rest of the world and it provides a

treasure of opportunities if educated and regulated in the best possible


9

ways. During 1990s, about 250 million people lived in cities and the number

increased during 2000s to more than 270 million city-dwellers. More than 50

cities in the African continent have a population of more than 1 million

dwellers and several among these cities are markets larger than notable

cities in Europe and America.

Increased urbanization has increased market size for several business

segments. It has created opportunities for not just international businesses

to grab a share of rising growth, but also created favorable circumstances

for local entrepreneurs to make it big.

Booming Trade and Lesser Aid

The net value of trade in Africa has risen

significantly over the last decade. The most

important of exports still include minerals and

oils and several economies are dependent on

imports. During the colonial period in Africa,

Europe was the largest trade partner of Africa

and it still is. However, value of African trade

with China is multiplying exponentially since last

few years.

Almost a decade ago, China only contributed to

3% of African imports and 5% of the exports.

Today, China is the biggest trade partner of Africa from Asia. Chinese

investors became interested in Africa because of the cheaper and better

quality natural resources available here. They moved their manufacturing

and other business operations from China to Africa to avail the remarkable

opportunities existing here. Increased inwards investment has resulted in


10

more and better employment opportunities, technological advancement,

more tax revenues for governments and better consumer lifestyle in Africa.

According to the Bloomberg Business News Report in 2014, foreign

investment in Africa attracted $186 billion in 2013 and more than $200

billion in 2014. The net value of African trade, now, is three times of what it

was ten years ago, which has decreased dependency on financial and other

forms of aid.

Technological Advancement

Advancement in technology is another

major economic growth driver in Africa.

Availability of internet and usage of cell

phones is increasing, but it is still not

as common as in other parts of the

world. This industry holds great

potential to be unfolded. Since 2010,

there are more than half a billion

mobile phone subscribers registered

and the number is still rising. There has

been an increase in the fiber optic cable laid across the continent, in addition

to the telecoms operating.

The introduction and widespread availability of consumer technology is

playing a key role in countries being connected and operating more

effectively utilizing the resources in the most efficient ways. This has dug up

a deep treasure of opportunities for business sector allowing businesses to

reduce their operational costs through online marketing and e-commerce.

All the drivers of growth mentioned above enable us to make sure that

African nations are definitely on the road to growth and success. There may


11

be a few occasional troubles and setbacks, but the estimated growth rates

are definitely going to be realised in the upcoming years. This will transform

the entire landscape of Africa.

Major Industrial Sectors in Africa

Agriculture and Farm Processing

Africa contains 40% of the global

cultivable land. Owing to the

highest percentage of global fertile

land in Africa, it should be the

largest producer and seller of crops

in the world. However, one of the

major African imports includes food

and it is not surprising because the

continent only has 10% of the global fertile land cultivated. The major

reasons of agricultural under-development include lack of investment, lack of

appropriate reforms and regulations, inefficiently operated distribution

networks and supply chains and insufficient fertilisation.

Despite these discrepancies, agriculture is the most important industrial

sector in Africa providing the largest share in Gross Domestic Product and

employing the largest number of people in most African countries. Based on

the industrial importance and unused land available to build a strong

agricultural foundation, many governments in Africa have this sector on

priority and regulatory actions will take place in coming years. This will open

up huge opportunities for businesses and entrepreneurs in the respective

countries.


12

Infrastructure

Infrastructure is another sector holding potential

and opportunities for growth and success.

Decades of civil wars, poor development due to

lack of investment and poor management of

resources in the past have destroyed a large part

of the infrastructure. Many sectors including

transport, communication, and power and energy

are still not performing as they should. According

to the Economist Intelligence Unit, an investment

of $100 billion per year is required in the power

sector just in Africa.

A considerably large amount of developmental work has been done with the

help of investments coming from China. Now roads, ports and airports are

being built and railway and the power sector is being upgraded;

nevertheless, much is yet to be done which is creating entrepreneurial and

investment opportunities and strengthening existing business and trade

ventures.

Service Sector

Development of consumer markets is also providing fuel for service industry.

Commercial services and retail industry are booming. It has been estimated

that 90% of the African population has no concern with banking services. As

the countries grow economically, consumers will require bank accounts and

other services, and businesses selling to those modern consumers will

require larger business banking services. Thus, banking sector holds great

potential in coming years in terms of investment and business opportunities.


13

As the banks and other financial institutions continue growing, exchange of

business equity and securities is expected to grow. Similarly, appropriate

government reforms and increased demand of skilled labor has brought

education and healthcare industry into the limelight. As mentioned earlier,

telecommunication is exponentially growing and providing a new arena of

opportunities. Altogether, developmental investments in banking, education,

healthcare, hospitality, tourism and telecommunication are making the

growth prospects as bright as never before for new and existing

entrepreneurs.

Consumer Merchandise Industry

Consumption patterns in Africa are similar to that in South East Asia and the

rate of consumption in African population is growing fast. This increasing

consumption also gives an opportunity for businesses to earn higher

revenues. Previously, there was:

unavailability of borrowing and credit facilities for consumers

scarce availability of shopping facilities

Nevertheless, the urban expansion and increasing incomes per capita has

initiated development of shopping malls and provided opportunities in retail

and intermediaries for consumer goods.

Despite the increasing demand of consumerism, manufacturing sector is still

weaker and much is dependent on imports. This problem is being taken care

of with the help of Chinese investors. Manufacturing setups and factories are

being built up creating a wider variety of goods than before. It is also

contributing towards the consumerism spiral by providing employment

opportunities, heavier pockets, improved lifestyle and in turn again

increased consumption. It is also strengthening the export industry in

addition to improving the inland lifestyle.


14

Conclusively, there are innumerable opportunities for entrepreneurs. If

enterprise and entrepreneurial skills are propagated and aligned with the

suitable government reforms, Africa can be a golden bird lying golden eggs

under the umbrella of the above mentioned growth drivers.


15

African Consumers Understanding the African Society

The key to success lies in understanding your target market and target

audience. If you are an entrepreneur from an African country, you might

somewhat understand people from your country, however, little would you

know about other Africans because, as mentioned in the previous chapter,

Africa is diverse in great many ways. As an entrepreneur your scope is not

confined within your own city or country and it would be limiting your

business growth if a pan-Africa approach is not adopted.

The same goes for

entrepreneurs and

businesses from other parts

of the world. As mentioned

earlier, business potential in

African countries is on the

rise providing opportunities

to not just the local but

international businesses too.

The world is catching up to

the untapped potential in Africa and one of the major countries to do so

include China. Many organisations from China and other countries are

relatively new to this region for business and investment and little do they

know about the consumers in this continent.

For large scale businesses, it may be easier to undergo extensive market

and consumer research before implementing their business models in Africa.

However, this may not be true for local entrepreneurs or small scale


16

businesses to have consumer insights through expensive market and

consumer research. Ensuring successful development and execution of a

business plan requires an understanding of the consumers to be served and

the new reality of the evolving Africa market. These factors are key to the

success of any business in Africa.

African Consumer Market Trends

The basic macroeconomic indicators

show favourable trends and evolution

of consumers with increasing

consumption patterns. This has

become the driving force for

remarkable economic growth and

development.

It is surprising for many that, during 2000s, consumer goods and service

industry contributed to more than 45% of the total GDP in the continent

instead of natural resources. The most important African countries with

rapidly maturing consumer markets include:

Algeria

Angola

Egypt

Ghana

Kenya

Morocco

Nigeria

South Africa

Sudan

Tunisia


17

Exponential Growth in Population

According to United Nations, Africa

will constitute more than 40% of the

global population by 2030. This

could have been a problem if

dependent population is forecasted

to be on the rise. It is estimated

that the highest rate of population

growth would be observed in

working age population bringing a decline in dependency ratio of the

continent. This would increase income per capita in upcoming decades

creating wider opportunities for businesses in consumer markets.

Demographic and Psychographic Changes

As mentioned earlier, The African population is relatively younger than other

parts of the world, due to lower life expectancy and higher birth rates. It is

estimated that more than 50% of the income is generated by people of 16 to

34 years of age. The younger generation has a different consumption

pattern than the elderly. For instance, young people are more tech savvy

and image conscious. They are more trendy and experimental in having new

experiences. They are also more literate and seek better education. This

demographic and psychographic shift in African societies is opening up

several opportunities for businesses and entrepreneurs.

Increased Urbanisation

Opportunities generated by increased city dwellings are discussed in the

previous chapter. It is estimated that spending rate in urban areas is


18

increasing double-fold than in rural areas. This is due to better productivity

of urban labor which produces more income to be spent.

African Consumer Mindset

Quality and Brand Consciousness

Most of the businesses operating in Africa are known to produce low-priced,

low-quality products and branding activities are only in its nascent stages.

Business perspective is now changing because the market is transforming

rapidly. It is said that businesses operating in this way won’t last for very

long. This is because the consumers – younger in age and more trendy than

before – associate quality and brand image along with the product features

and benefits during their purchase decisions.

Quality has become one of the

most important factors in bringing

a product to the consideration set

of the consumers. Similarly,

branding is also playing a

significant role now. It is

estimated that more than 75% of

African consumers consider

recognizable brands to be of high quality and put their trust more in the

known names. Moreover, brand consciousness has also propagated a

willingness to pay premium prices and consumers are easing up on parting

with higher proportions of their income for better quality.

Consumers in many countries are patriotic and feel pride in being African.

This has led towards a wider acceptability of local and intercontinental

brands as compared to international names. It is a positive factor for local


19

entrepreneurs as it can be a competitive advantage for local business and

helps entrepreneurs to build their brand against their international

counterparts.

Value-based Purchase Practices

African consumers want value for money. Products with superior quality and

high brand image are in demand, but price sensitivity goes hand in hand.

Rising incomes and increasing literacy rates have made Africans more

cautious with their choices.

Consumer behavior varies in different African countries. For instance, people

in rich countries like South Africa are less sensitive about prices and show a

relatively poor response to consumer promotions. However, consumers in

Nigeria and Ethiopia exhibit complex buying behavior and spend significant

amount of time searching for cheaper alternatives.

Contemporary Lifestyles

Consumers in Africa are, now, well connected with the world and believe in

staying up-to-date. They follow the latest trends and enjoy contemporary

shopping experiences. Urban Africans have evolved to be sophisticated

consumers like urban consumers in any other continent. This is true even for

those countries where urban development is relatively poor and slow. For

instance, consumers in Nigeria, Algeria, Kenya and Angola are also known to

place importance to shopping store ambiance and presentation of products

in addition to brand and quality in purchase process.

Technological Affiliation

Urban population in Africa has become accustomed to regular internet use.

It is usually observed that higher the income per capita, higher is the usage


20

of internet. More than 60% of the people in urban Africa use internet and

own internet-interfaced-cell-phones.

Most common uses of internet include:

information search,

social networking,

videos and music streaming and

news reading

Most consumers find poor internet service to be a primary limiting factor

instead of cost in using internet regularly. Africa is estimated to be a

growing market for mobile phones with latest features and apps. Increasing

penetration of technology in consumer lifestyle is an important element in

communicating marketing offers with the consumers. It can be a cost

effective way to promote the product and increases market coverage,

especially for small scale entrepreneurs.

Saving-for-Consumption Culture

Savings culture in Africa is similar to that in Asia and other eastern parts of

the world. More than 80% of the population in Africa habitually saves

regardless of a bank account. Bank accounts are prevalent in urban Africa

and a trend of monthly savings can be seen among city dwellers. The

primary intention behind savings is found to be financing future expensive

expenditures. Urban people in Africa understand repercussions of borrowing

and consider it irresponsible. This African mindset can be an important

contributor towards the growth of consumer banking, and investment in

promoting consumption through hire purchase can build a loyal customer

base for many businesses.


21

Media Habits

Television and print media are

considered to be the most

important source of information in

Africa. More than 80% of the

population still relies on these

media, however, other sources of

information have also gained

acceptance in recent times.

Buzz marketing and recommendation from opinion leaders and family and

friends plays a vital role in purchase decisions. Moreover, mobile phones and

internet, as mentioned above, have gained acceptability.

Impulse buying is extensive in Africa. Therefore, point-of-purchase

promotions have become significant and emphasis on enhancing shopping

experience and in-store marketing has risen.

While devising business models and marketing plans, consumer lifestyle in

Africa should be taken into account. This will affect the capability of your

business operations and increase acceptability of new products and services.


22

Entrepreneurship in

Africa Tips and Tricks for Starting Your Own Business

Anyone can do business in Africa! But anyone cannot do just any business in

Africa.

This is one of the most important things

to be identified right at the beginning:

Which business is appropriate for me to

put my money into? There is no wrong

answer to this question and there is no

right answer to the question too. The

answer to the question can vary from

person to person. Every individual has a

different set of capabilities, skills, ideas,

aspirations, resources, contacts and commitment. The most suitable type of

business varies accordingly and depends on the person aspiring to be the

entrepreneur.

As an entrepreneur, you must take a good look at yourself and find out what

you can do, what you have been doing in the past, and what kind of

business makes sense to you. Selection of an appropriate business and

investing in a suitable stream of ideas depends upon internal factors like

your own being, personality and external factors like available opportunities,

market growth, favorability of economic indicators, lifestyle, wants of

consumers and your prospective customers etc.


23

We have discussed several external factors including economic indicators,

industries, consumer lifestyles etc. in the previous chapters and it can give

you an idea about what type of business would be most appropriate. In this

chapter we will highlight internal factors like what it takes to be an

entrepreneur, and what you are supposed to do while beginning your

entrepreneurial.

Formulating a Strategic Business Plan

Remember that all businesses

should begin with planning and this

is the case with your

entrepreneurial venture too. It is

usually said: if you fail to plan, you

are actually planning to fail. Before

you pick up your phone to contact

prospective suppliers, banks, or

some prospective partner, you should have figured out what you are

supposed to do and the alternate course of action if something doesn’t go to

plan.

The planning requires devising a business strategy, which should help you

organise your thoughts and ideas and bring various possibilities and

alternatives to your consideration. It will also help you to connect your

passion and aspiration with practicality and finally, it would be the most

important tool to generate the required support.

Business Vision and Mission

Every entrepreneur has a big picture of what they want to achieve and so

should you. Business vision is an infectious dream to be fulfilled. The vision


24

gives you a clear indication of your long-term direction, and transmits your

passion and company values.

Your vision, translated into a mission through a mission statement tells you

about what is to be done to achieve that greater good. A mission statement

is a statement of purpose. It describes: the nature of your business, and

who are your beneficiaries – the customers and what your business should

be in future?

It can be a difficult task for anyone to answer these simple questions. A

worthwhile mission statement guides almost every activity you are doing or

required to be done for the business.

Environmental Scanning and Scenario Analysis

Your business cannot exist isolated from its environment. The environment

influences business activities and in turn business activity influences the

environment. In order to understand the environment and scenario in which

business decisions have to be made, thorough scanning and analysis is

required to identify the best of business strategy that will support your

business. There are several ways to scan your business environment and

analyse the business landscape. The most common of these include SWOT

analysis and PEST analysis.


25

SWOT Analysis SWOT is an acronym and it refers to: Strengths, Weaknesses, Opportunities

and Threats.

Strengths include internal aspects of what is good about you as an

entrepreneur and your business. It may include your access to capital, better

human resource, you skills and reputation etc.

Weaknesses are the internal aspects of your areas of improvement. It may

include problems like poor cash-flow, inappropriate location, high costs, high

labor turnover etc. Strengths and weaknesses are internal matters and in

your control. You can utilize your strengths to make a difference for your

business and customers and work out weaknesses that may harm your

performance and profits.

Opportunities and Threats, on the other hand, are external and not in your

control. Opportunities may arise on their own due to factors out of your hand

and include things you could do to fulfill you mission.

Threats include all the hurdles that may stop you or slow down the

achievement of success. It may include taxation, industry regulations, and

activities of your competitors, shrinking markets or any other external

environmental factor that may create problem.

SWOT analysis can give you insights on how to capitalize on the

opportunities with the help of your strengths and avoid threats to hamper

your accomplishments. You can also use the opportunities to work in a way

where you can overcome your weaknesses and turn them into strengths in

future.


26

Following grid can be utilised to devise strategies with the help of SWOT:

Strengths Weaknesses

Op

po

rtu

nit

ies

Th

reats

PEST Analysis PEST is also an acronym and refers to: Political factors, Economic concerns,

Social issues and Technological aspects.

Assessing your business environment, and identifying opportunities and

problems that might arise from changes in these areas is how a PEST

analysis is conducted.

Favorable or unfavorable concerns originating from changing political,

economic, social and technological profile would significantly affect your

business strategy and action plan. The problems and prospects developed

from this analysis have to be prioritised according to the importance and


27

Political Environment

•legislation regulating businesses

•labor laws

•tax policies

•investment policies

•copyright laws

Economical Environment

•industrial growth

•income per capita

•market size and growth

•purchase power and employment rates

•investment opportunities

•balance of trade in economy

Social Environment

•demographics

•psychographics and culture

•human development index

•consumer behavior

•social security and benefits

Technological Environment

•technological advnacement

•innovation

•research and development

•communication and information channels

•acceotacne of techology

urgency with which they may affect your business. The action plan

generated through PEST analysis has to be implemented at the right time to

make the most of the prospects and avoid any problems.

Changing aforementioned forces in the business environment should be

dealt with flexible strategies and action plan. There has to be room for

contingencies to be placed in because Africa is a continent that is changing

radically and bringing drastic effects on its inhabitants and landscape.

In earlier chapters I mentioned, how Africa is improving politically, growing

economic, augmenting socially and advancing technologically. The continent

is bent to generate more opportunities than problems. However, a keen eye

has to be kept on any probabilities that may force you to take undesirable

decisions as an entrepreneur.


28

Basic Competitive Strategies Africa is known to have businesses copying each other’s strategies to

establish themselves in the market. This approach usually fills up the market

with companies offering similar types of marketing offers – goods, services

and none of the businesses turn out to benefit from it. It hinders businesses

and stagnates the market.

Differentiation is where the secret to business success lies. You should focus

on making your business and your goods and services different from your

competitors and above all to stand out. Make your customers know that you

are different and make them love your differentiation. The basic question

you should ask yourself: why would customers buy from me?

A model proposed by Michael E. Porter is most widely used by business to

define a clear market and competitive strategy. This model includes creating

a strategy based on price or quality in a broad or narrow focused market.

A Business may choose to serve wide customer segment on the basis of low

price/low quality product or high price/high quality product. Similarly, a

business may choose to serve a very clearly defined narrow market segment

with a low price/low quality product or a high price/high quality product.

Porter has also mentioned about middle-of-the-road businesses which do not

have a clear strategy out of the possible four choices. These businesses

usually copy the strategy from some competitor in the market which does

not have suitable alignment with their mission, objectives, capabilities and

resources.


29

Action Planning

Entrepreneurs usually tend to fill their drawers with documents containing

plans and strategies, which are never substantially implemented to actually

see the sun of success.

Implementation is the most important part of being a successful

entrepreneur who not just dreams but knows how to turn their dreams into

reality.

Once you have developed a strategic business plan, it is time to devise a

stream of actions to be performed. This includes particular activities required

to achieve the objectives and milestones set. The activities designed should

include a step by step guide for:

What is to be done? And how?

Who would be responsible for certain tasks and activates?

What would be the timeline for task completion?

It is important to note that developing a strategy means long term planning;

however, the action plan includes the long term plan divided into short term

activities that lead you towards the accomplishment of your mission with

each step. For instance, a strategy may be devised for a 3 or 5 year period,

whereas the action plan may be annual or biannual set of activities to be

completed within the designated time period.

Business Plan Drafting

Explicitly writing the entire strategic business plan in the most convincing

way is critical for many reasons. The drafted business plan will be the

benchmark for you to check your performance and improve upon it if

required. The purpose of a business plan is to set the direction of your

business.


30

Your business plan objectives should be to provide a document that clarifies

your ideas, and provides a reference point in times of difficulty or change.

Your plan is your business bible, and can help you avoid costly mistakes and

ensure long-term success.

Business plan includes issues like required capital, human resources,

process, techniques and products utilized to serve customers. Most

importantly it includes the forecasts and budgeting required to run the

business operations smoothly. Important component of a business plan

includes:

Business Name and Description: consists of business concept,

description of company, products, locations etc.

Ownership Details: includes names, positions, responsibilities of

owners, legal structure of the organizations and details of shareholders

if any.

Environmental Analysis: includes factors influencing business

activities, as mentioned above.

Marketing Strategy: consists of description of market segments,

target markets, competitive analysis and strategies, marketing mix –

product decisions, pricing, placement and promotion.

Operations Management: includes details about management,

human resource, administrative activities, production, procurement

and other supply chain partners.

Financial Management: includes projected forecasts about sales,

profits, costs, cash flows, debts and sources of finance.

Risk Management: includes categories of risk involved, cost-benefit

analysis, and contingency plans.

Action Plan: includes projected timelines, milestones etc.


31

Business Plan Checklist

Business Description

Vision & Mission

Business Objectives

Environmental Analysis

Marketing Management

Operations Management

Financial Management & Budgeting

Risk Management

Action Plan

Control Measures

Contingency Plan

It is important to note that Africa is a continent with diverse cultures, as

mentioned in earlier chapters. Therefore, a standardised business plan for all

African countries will not work. Each country has a unique macroeconomic

and microeconomic profile, and will require custom tailoring of the business

plan. As an entrepreneur and business owner, you should look into each

country distinctively and devise a respective approach that should include a

separate set of customised objectives and ways of achieving those

objectives.

Financial Concerns

Financial markets in Africa are improving with increased inflow of foreign

investment over the last decade. Despite financial growth, banks are the

only feasible source of institutional finance for new entrepreneurs. Financial

advisory societies and other financial institutions do exist, but many are still

in their early stages.

Legal authorities regulate the Banking industry appropriately and the banks

service new entrepreneurs adequately, but not as readily as is often


32

required. The regulations are laid to ensure the circulation of money in the

economy with efficient allocation and utilisation to generate more returns.

For any entrepreneur, a close relationship with their bank manager is critical

and may do wonders in times of need.

Borrowing

Borrowing requires collateral guarantees and interest rates in Africa range

from 5% to 20%. Borrowing from outside your own country is considered to

be easier and comes with lower interest than in your own country. It

provides other countries with an opportunity to have a stake in the country

of your operation, but turns out positive for the entrepreneurs in most cases.

Capital borrowed this way requires low interest payments, which can

contribute to relieving the financial burden on the business.

Moreover, as mentioned above, connections in banking sectors can also

provide an opportunity to receive lower interest rates and easier borrowing

conditions. This is because lack of electronic data availability usually devoid

banks from credit history and then borrowing can become dependent on

your personal relationships with bank personnel.

Pooling Resources

In addition to banks for generating required finance and resources, new

entrepreneurs also have an option of formulating or joining co-operatives.

Cooperatives are a “jointly owned and democratically controlled enterprise”

that bring producers and other small businesses together to create resource

pools. Joining forces with others in this way also increases buying and

bargaining power, which should reduce costs and increase profit margins.

Benefits of pooling resources and creating a shared platform include:


33

Increased collective buying and spending power of businesses

Easy financing of revenue generating ventures

Easy access to required auxiliary business services

Shared ownership resulting in shared business risk

Reduced operational expenditures leading to higher profitability

Diminished need of borrowing for financing, which reduces interest and

collateral

Crowdfunding and Alternative Financing Sources

Crowdfunding is another unique way of generating funds for financing your

business venture. It refers to a crowd of people including friends, family,

supporters or anyone interested in your cause to donate funds for the

venture. Small amounts of money funded by large body of crowd can add up

to be a significant source of finance. The key to this financing source is

convincing or inspiring people to donate funds.

In Africa, a traditional and offline form of crowdfunding has existed for

centuries, and many modern entrepreneurs have used this method to launch

their businesses. However, the advent of technology has enabled online

crowdfunding, which can attract a larger global crowd for donations and

generate even larger sums of money. Successful crowdfunding and getting

people to fund your cause require either or both of the following:

A personal or emotional connection to make donating appealing for

people.

o Personal connection includes friends and family who would

donate funds because they believe in you and your passion to

make a difference.


34

o Emotional connection includes supporters or even strangers who

may find it easy to connect to your venture, in addition to friends

and family.

A benefit that you can offer the people for donating.

Successful crowdfunding also requires the ability to effectively market the

venture to potential donors of funders. It is somewhat like presenting your

ideas to potential investors showing them the returns (benefit you can offer

in this case).

Dealing with Debtors

Turning receivables into cash may become a nuisance if not dealt with

smartly. Poor debt ethics is an attitude developed over decades of

dependency on aids and debt being frequently written off in the past.

Common business practice includes a credit period of 30 days across Africa.

In order to avoid bad debts, a business is recommended to:

Promote cash sales by creating win-win campaigns for the customers

and clients.

Delay payables to suppliers reducing cash outflows.

Increased inflows and reduced outflows raises working capital and business

operation can run smoothly.

There may be some trouble in the beginning with such practice until your

business generates a reputation. Customers might be reluctant to pay

upfront in cash and suppliers might be reluctant to supply. It becomes

critical in this case to be innovative and convincing enough for both the

parties to oblige. Once your business has established a reputation and has a

track record, negotiating feasible credit terms with your suppliers shouldn’t

be as difficult. The same applies with customers. When customers are


35

convinced with the quality of your product and benefit of being associated

with your business, they won’t show the same hesitation as in the beginning.

This requires time and a great deal of patience, but no one said that

entrepreneurship would be quick and easy.

Purchasing and Procurement

As mentioned in earlier chapters, African culture relies heavily on personal

relationships and referrals than taking risks with strangers. This is the

reason why long term relationships with suppliers work well for businesses

and shifting from one supplier to another for trivial matters and insignificant

sums of money and payments is sometime not a great idea.

From personal experience, I would advise that you devise a clear

procurement process with transparent payment schedules. Ask your

suppliers for quotations and re-quotations to make sure both parties are on

the same page. New quotation requests may also allow you to enjoy cost

reductions due to favorable changes in certain external environmental

factors.

Marketing Management The main concern while marketing your business and products should be the

availability of new channels of communication to enable connections and

interactions with potential customers. It is an advantage to the

entrepreneurs and businesses that Africa is a close knitted society with

strong bonds in their families, relatives and among friends. This overcomes

the problem of inadequacy of media to connect to the customers.

Approaches like buzz marketing, viral marketing streams and customer

recommendations and testimonials can do wonders for businesses.


36

Usually the businesses follow traditional media for marketing purposes.

Though, the incidences of consumers moving to new channels of

communication is increasing, businesses can access a wide range of

customers through traditional media and marketing efforts.

Media activities are predominantly controlled by state. However, freedom of

expression is growing and restrictive regulations are loosening up. This has

opened up a new arena of opportunities for businesses to communicate

themselves and their practices with the consumer markets.

Advertising

Broadcast media is the most commonly utilized way to communicate with

customers. It includes:

Television – is used by more than 80% of the African population for

browsing information. There is a wide variety of state-governed and private

channels which can be used for advertising. It is cheaper and covers a large

target market.

Radio – having wider market coverage than TV, is more affordable and now

usually available in mobile phone free of cost. It is also more efficient

because of the FM stations targeting specific cultures and subcultures. Radio

offers a more focused targeting; however, businesses are not known to

prefer radio over television. Usually a combination of both is utilized for

advertising.

Print media – through newspapers is also widely used. Print advertising is

relatively expensive and print quality varies from country to country. Nigeria

and Kenya are known to have been strongest in terms of print media.

Outdoor media – a relatively new way of marketing, has taken urban Africa

by storm. There has been an exponential increase in number of billboards


37

around the cities. Being expensive, only large businesses and organizations

use this media commonly.

Public Relations Activities Public relations is in its growing stages and provides a cheaper alternative

for corporate image building. The advent of corporate social responsibility

has strengthened this approach of marketing. Press releases and

announcements, social awareness programs, charity and donations,

sponsorships and event presence etc. are considered to be the game of large

organizations and rarely utilized by small business.

Investor relations and lobbying is virtually non-existent in most of the

countries. If certain government officials are targeted for any reason, they

expect to be part of profit and bulky slices of the cakes are to be shared.

Being low profile and an indirect approach to change thinking and

perceptions is usually well suited.

Online Marketing

The penetration of internet has grown in the last decade opening new

avenues for entrepreneurs and business. Internet was not widely used for

selling and marketing previously in Africa. However, the consumers of new

era have become more tech savvy and rely more on internet for information

and credibility.

Marketing through websites increases market coverage and improves brand

image to be more trendy and updated. Innumerable web skills are available

for local entrepreneurs for development of their websites and online

operations.

Email is also a developing marketing device. Surprisingly direct mail

marketing works well in Africa as compared to other parts of the world.


38

However, spam is absolutely not acceptable and interruption during online

hours is highly not appreciated because internet facility is relatively

expensive in Africa for consumers.

Social Media Marketing:

As social media grows to

influence most aspects of

business, so is the case with

Africa. Increasing penetration

of internet in African society

has also transformed the way

people socialize and this has

generated another

opportunity for entrepreneurs

and businesses to market their businesses and products locally and globally.

Social media is a place where people share their personal space with the world and

now marketers can offer their products and services to people inside and outside of

their personal space. It is now considered the most cost-effective and most

targeted form of marketing in current times.

In order to incorporate the usage of social media in your marketing strategy, there

are a few things that need to be understood:

Keep in mind the objective of your social media strategy.

Understand your target market.

You need to have interesting content that will be interesting for your

audience

Content has to be written or presented in an appealing or pleasant way.

Establish your goals early on, and target metrics must be set.

Establish realistic expectations for your campaigns


39

Social media is not a magical place like ‘Harry Potter’s World’; therefore a magic

meteoric rise in your sales figure and the popularity of your business will not occur

in a sweep of a wand.

Social media is a platform to connect with your customers on a personal level and it

will allow you to communicate, and hopefully influence conversations with your

customers. This is something that was unimaginable not so long ago. Your social

media channels will keep you updated, intimate and connected with your

customers.

You can start with any of the popular social media platforms as they all provide you

with almost similar features and benefits to be utilized for marketing and promoting

your business. In general, there are a few standard steps that you must complete

in order to open a social media account. These include:

Sign up and create your business page.

Select a profile picture. It is important to note that your profile picture

reflects your image, quality of your work and your products and services.

Keep updating your picture frequently enough to appear up-to-date.

Write an ‘About Us’ story. This piece of writing is a great promotional tool

and marketing message for your customers. It will generate an entire aura

about your business. Do not forget to use a ‘you attitude’ while mentioning

about your business in order to avoid alienating your customers. Your

customers must feel their objectives, needs, wants and preferences are being

met and that your business is the best match for them.

The secret to a successful social media campaign is to stay active, current and to

connect with your customers on several levels. Keep on publishing relevant and

quality content. A static social media profile reflects a static business, and your

profile will be lost among the millions of other businesses.

Remember that continuous customer connection is what social media is for.


40

Buzz Marketing

Africans tend to rely more on friends and family while making purchasing

decisions; therefore, buzz marketing is the most efficient and cost effective

tool for small scale entrepreneurs.

Generating personal recommendations requires a lot of effort and follow-up

from customers. Word-of-mouth marketing is difficult to initiate and control.

Even the slightest of errors while dealing with customers may lead to

negative word-of-mouth.

The secret to successful marketing based on personal recommendation of

customers lies within being a known and respectable name. Consistency in

product and service quality and delivery excellence is the secret ingredient.

As an entrepreneur, you should be more visible and directly connected with

your customers.

Personal Selling

Personal selling has the same underlying philosophy as buzz marketing.

Customers trust you more if you are connected with them directly. Formal

demonstration of product performance during personal selling is difficult

because:

It is expensive.

There is a lack of customer database.

Customer turnaround ratio may be less.

Informal door-to-door marketing may work well and significantly depends on

the sales representative. Sales representatives with wide social circles can

be significant for deeper market penetration, and can often position products

in areas where conventional marketing may not work.


41

Personal selling requires well-trained and competent sales staff. Training and

development of sales staff would be needed and it may incur expenses in the

short run

Well-trained and motivated sales staff can easily cover up the cost by

converting sales. However, managing sales staff requires you to be vigilant

to avoid underhand practices and miscommunication that may result in

customer dissatisfaction.

Pricing Strategies In previous chapters I mentioned

that African consumers are value

oriented. It means that quality

products offered at suitable prices

will be widely accepted. Though,

the purchase power is rising,

people are unlikely to pay inflated

prices for products that are

perceived to be of low quality. Therefore, when determining prices for

products and services, the customer’s perception of value has to be taken

into account.

Pricing is also important while competing in the African market. Price

competition is more prevalent than non-price competition because of lack of

differentiation. Therefore, businesses should develop product profiles with

high quality/high price variants and low end/low price options too.

Culturally customers in some African countries habitually haggle over prices

and do not agree to any purchase deal without a discount. Therefore, it is

common practice to raise the prices preciously and provide a price cut at the


42

time of purchase. It is important to avoid undesirable losses in revenue and

keep the customers coming back.

A few pricing strategies that can be used include:

1. Cost-plus pricing – addition of fixed profit markup on cost

2. Price skimming – high prices to develop prestige and image

3. Penetration pricing – low prices to establish and penetrate markets

4. Psychological pricing – pricing according to consumers’ perception of

product

5. Promotional pricing – reducing prices to achieve short term sales

objectives

Human Resource Management An able and motivated labor force is a

power house for any business. In

Africa, the economic indicators have

shown that people willing and able to

be employed are available in far more

numbers than in any other continent.

However, a business should be

careful while employing people. Workers and managers should not be

employed based on a degree or certificate of education, rather competency

should be tested before employing people. Qualifications should only be used

as a means to begin looking into people for employment.

In Africa people place great emphasis on education and it should be.

However, there must not be a compromise on the required levels of

experience and expertise with regards to certain job posts.


43

The right blend of qualification and experience should be sought. Fresh

candidates moving on from academics to the real world pose the greatest

challenge for entrepreneurs. They are less productive and need training. On

the contrary they are more energetic and tend to have less personal

commitments and restrictions, so are ideal for any startup that requires staff

to work long or unsociable hours.

Recruitment

During my time in business, I’ve quickly learned a very important lesson –

the best way to ensure your business strategy is implemented is to hire the

right people into your company. A great recruitment process should typically

include:

Job Analysis

It refers to studying the tasks to be performed by the new worker. Job

analysis is easy for an existing job post where another employee is currently

or has previously occupied the position, so the roles and responsibilities for

such a position would already exist and require only temporal modification.

However, recruitment for a post that didn’t previously exist would require

some thought in designing the job profile.

Job Description

It is a drafted summary of the job analysis where all the roles and

responsibilities to be performed, performance standards, code of conduct

and management expectations from the employee are listed. It helps in

generating a person specification and tells the employee and management

how the work will be carried out.


44

Person Specification

This can also be called a Job Specification and lists the requirements for a

job. It is a description of the kind of person required to fill the position. It

enlists the required qualifications, experience, skills, aptitude and personal

characteristics of the worker. It is highly important to shortlist the best

candidate from the pool of applicants.

Job Advertisement

To find the best candidates, it is essential that the job is promoted through

suitable channels of communication. In most of the African countries,

advertising jobs in newspapers and websites have become common. It

allows for a larger pool of candidates to apply for the job and increases your

chances of finding great people.

Conducting Interviews

In response to your job advertisement, several written application will arrive.

As an employer, you are required to study all the applications carefully and

call the shortlisted few candidates for an interview. The interview meeting is

one of the most crucial steps in the recruitment process. It is vital for the

candidate as he may get a source of income, but it is equally vital for you as

selection of a poor candidate can be costly.

Conducting interviews allows you to take a look at the physical appearance,

mannerism, attitude and abilities of the candidates. It also presents the

opportunity to cross-reference any elaborate claims that might have been

written in the application. Ultimately, during the process you are also able

be able to find out if the candidate is the right fit for the job and your

company.


45

Interviews also have their limitations as they only provide you with a

preview of the candidates’ past, and you might not be able to determine how

they will perform in the future. To avoid this issue, many businesses

outsource their recruitment process to professional recruiters, who, with

their personality profiling, predict the suitability of the candidate. As this is

a costly exercise it is often an option that can only be considered by larger

companies or higher-level positions.

Training

In Africa, the willingness of employees to learn and grow is generally higher

than what you would find in other parts of the world. It is previously

mentioned that Africans value education and believe in moving ahead with

time despite whatever setback they have faced in the past.

Job Analysis Job Description Job Specification

Job Advertisement

Application Shortlisting

Interview & Selection

Vacancy Filling Training


46

It is often observed in most African countries that school graduates regularly

save for personal development, learn new languages, practice computer

operating and take control of their personal development for the job market.

In recent times, trained and able people are not hard to find. It is an

advantage of being an entrepreneur in Africa to have a wide pool of willing

people. You can custom-train people according to the requirements of your

business. This technique will motivate and boost the morale of your staff,

and the bonus is that in-house is fairly low cost. However, there are also

options for external training. A wide range of training services, facilities and

institutions are available for getting your workers trained. Governments in

many countries are also supportive in this regard and provide subsidies to

businesses organising training for professional development of their

workforce.

A few benefits of training your workforce include:

Increased motivation and productivity

Reduced overall costs and increased profitability

Better customer service and increased revenues

Reduced employee turnover

Increased acceptability of new technologies

Employment Laws Regulations for employment vary significantly in African countries. Countries

like Tanzania, Mozambique and Ethiopia have very strict employment laws

which are favorable to workers. Namibia and Zimbabwe have carefully

designed judicial system to deal with employment issues. Countries like

Uganda and Kenya have relatively relaxed employment laws but do provide

basic labor protection. Other countries have a fairly advancing legal system


47

for human resources. As a rule of thumb in almost all countries, it is the

responsibility of the employer to take care of the workers’ rights.

If employment issues are dealt fairly and transparently, it can be positive for

the business itself. More able workers become willing to join your

organization. Motivated labor force increases productivity to greater lengths

and market reputation of the business attracts more customers and revenue.

This creates a win-win situation for both the business and workers. On the

contrary, if your organisation is stuck in and employment disagreement,

workers and their representatives can makes it very difficult for your

business to run smoothly and could impact your profitably through bad

publicity via trade unions.

Trade Unions

Most African countries have operational trade unions. Their power varies

greatly from country to country. For instance, Tanzania has severely strong

trade unions with sufficient political power to bring the organisation to a halt

in case of a disagreement. On the other hand, Kenyan trade unions are

merely existent for the sake of it.

It is important to have good relationships with union representatives.

Conflict Management

An important function in Human Resource Management includes dealing with

disputes. Grievances always spring while managing conflicts because no one

likes to compromise and conflicts can’t be resolved without both parties

being flexible during negotiations. You should be vigilant about the

grievances propagating, especially in terminating a worker’s services, no

matter how justified it is.


48

The Local labor agency is

usually the first place where an

aggrieved worker would land for

support. Please be aware that

a lot of these agencies work on

a commission basis, so it can be

in their interest to escalate

trivial cases.

You can protect your business from the troubles of local labor agencies by:

keeping an up-to-date knowledge about local labor regulations

having a transparent and well-communicated labor policy

getting the agreements signed at the time of providing employment

Most businesses usually avoid the involvement of law agencies and police

even in case of theft or fraud. This is done to protect the business from any

possible negative publicity. As an entrepreneur, it is in your best interest to

know the law and regulations required when dealing with human resource

issues and carrying out conflict management accordingly. This will allow you

to be safe from undesirable consequences.

Entrepreneurial Self Development

Communication Skills

It is important for any entrepreneur to understand or have the services of

someone who is fluent in the major languages of the country you are

operating in. Language is a great tool that brings people closer to each other

and in a society where most matters can be dealt with through relationships

and communication - language can be an essential tool.


49

For business purposes, English and French are widely used and acceptable in

most African countries. However, accents and levels of understanding vary in

every country. There are always chances of misunderstanding; therefore, it

is very important to follow a few basic rules:

Use clear and comprehensible words.

Avoid complex sentence structures.

Avoid using passive voice.

Directly address people and don’t be impersonal.

Adopt a conversational way of communication.

Collect required information before communicating with people.

Presentation Skills

The ability to deliver information in

the easiest and most attractive way

takes you far ahead in the business

world. It also applies to

entrepreneurship in Africa. If you

can present your business plan to a

bank in a convincing way, it

significantly increases your chances

of securing the capital you need. It is important to explain your objectives

and projects in an inspirational way. Presenting your ideas is an art and it

can and should be practiced and learnt.

Most people are intimidated and stressed when conducting presentations in

front of an audience. However, presenting your ideas with confidence and

justification can fuel the success of your business.


50

A good presentation requires preparation. Organising the content and

delivering it in a sequential way, where easily understood ideas come first

moving on to the complex ones later can make a big difference.

Time and hard work is required for preparation of presentations. The more

you prepare, the more confident you will be during the presentation.

Do not attempt to address an audience extemporaneously. Use visual aids

and show people what you mean. Be precise and to-the-point. Use

technology if you can. Computers can provide you with the ideal user

friendly interface where making presentations is very easy and more

attention grabbing. Be ready for all eventualities and don’t depend on

chances. It would take a few presentations for you to get comfortable with

facing audiences. Once you get a hold of your content, there is no looking

back.

Time Management

As an entrepreneur, you will find every passing day to be shorter than

previous. Pressure will increase as the business takes off and you are

expected to do more in less time.

Entrepreneurs tend to spend a lot

of time planning and not doing or

testing. Meetings are another

place where a lot of time is

spent. Managers spend their

days fighting with unforeseeable

tasks arising out of the blue.

Entire days are spent tackling

such issues instead of spending time efficiently and effectively.


51

In order to be time efficient, first, determine the objectives to be achieved

and actions to be taken. Generate a priority list of what is to be done first

based on urgency vs. importance of tasks. Urgent tasks require to be taken

care of sooner because it is about deadlines. However, important tasks

contribute more towards achievement of your goals; therefore you should

not be far behind in completing those tasks right after completion of the

most urgent tasks.

Computer Skills

Technology eases up the tasks to

be done and saves a lot of time

too. It increases productivity and

efficiency. Improving your

computer skills require a

considerably good typing speed

and familiarity with as many

softwares as possible. You should

also develop an understanding of connectivity and networking. There are

professional services available in this regard; however, it would require

expenditure increasing cost.

To save costs, I would advise using YouTube as there are some fantastic

video tutorials that I’ve successfully utilized to learn new skills.

General Self Development

Being an entrepreneur is a courageous career option. You will learn new

things every day. Improvement is what makes you different from others.

The faster you learn, the quicker you can gain an advantage over your

competitors. Keeping your mind open for learning and new experiences and

having this attitudinal change is difficult to achieve, but it is not impossible.


52

You cannot achieve success and grow your business without improving your

own abilities and personality. Here are a few general guidelines for

continuous self-development:

Pay attention to yourself – your appearance, things you enjoy doing

and have fun. It will keep you fresh and focused.

Reading is the input for your mind to produce output. Equip yourself

with the latest information and stay connected.

Open up yourself for experiences you’ve never had before.

Be tech savvy, learn about gadgets and try to use them whenever

required.

Take care of your health – eat healthy and do some exercises.

Stay inspired.

Corporate Social Responsibility Corporate Social Responsibility is an idea relatively new to Africans. In the

past, a lack of appropriate regulations spread several unethical practices,

resulting in corruption seeping into the business world and infrastructure.

This scenario is changing now. Improvement in regulatory framework is

forcing businesses to be more ethical and transparent with their practices.

Taking care of corporate social responsibility makes business operations a lot

more disciplined; it also attracts a wider base of customers due to their

increased trust in the business. It improves your corporate image and can

make your dealings with suppliers, distributors, other trade partners and

customers easier and more profitable.

Corporate social responsibility requires a business to be socially active in

addition to the ethical practices. It positions the business towards

community service and makes them realise the real needs of the community

they operating in.


53

Being involved in community service, environmental conservation, labor

health and welfare, sponsorships to the deserving and needy bring the

business under a new light. It enables the business to capitalise on the

power of community relations – a distinguishing feature of traditional Africa.

It can generate desired support from community for the business opening up

new horizons of opportunities without having to slip cash filled envelopes

under the table.

However, some entrepreneurs feel their obligations more intensely towards

their business partners and shareholders. Some business owners may

belong to the opposite school of thought and desire to use their funds to

make more profits for the stakeholders. Whatever perspective you follow,

you will have to pay attention to corporate social responsibility at some point

in time.

54

http://facebook.com/mynaijanaira

http://twitter.com/mynaijanaira

http://linkedin.com/in/terseradamu

© 2015 terser adamu, . all rights · pdf file© 2015 terser adamu, . all rights...

Documents