African Startups
With so many African Startups experiencing financial inflow of varying proportions, Africa is beginning to fulfill its dream of becoming a launch pad for innovative high-tech companies. From 2015 through 2020, the number of African tech startups receiving funding grew at a 46% annually; six times faster than the global average (Partech Partners).
It is however not rosy as it seems, as just three Startups are classified “unicorns”—privately held tech companies valued at more than $1 billion—the most recent being Nigerian fintech Flutter Wave. By contrast, there are more than 50 unicorns in the EU, 100 in China, and 200 in the US. African startups rarely survive beyond the Series B funding stage.
Owning a startup is challenging. Having the monetary capacity and knowledge to get a business off the ground is one thing; surviving the fierce competition, volatile economy, as well as the oftentimes changing and unpredictable marketplace is another.
Hence for Startups to remain viable and sustainable in the foreseeable future, there are some actionable principles that they need to adhere to:
1) Minimize Cost
It is practical that you rethink expensive choices to get prospective customers to notice your services or products because your business is just beginning its way to making good money. Do not ruin your odds of getting the return on investment (ROI) because you spent more than you ought to for that advertisement or sponsorship. Maximizing the benefits of social media will expose your brand to a broad section of your marketplace without having to go beyond your budget.
2) Your Business Offering Must Remain Relevant
If your service or product is deemed less of a necessity or has disappeared from the list of today’s trends, it will be difficult to get your business back on the radar. Your product or service must remain on top of what others want and need. Provide something fresh on top of any existing services, or develop a new service altogether. Either way, pay close attention to how relevant you ought to be.
3) Human Capital is very Important
With serious expansion will come serious job opportunities. One important business growth strategy is not to hire those you need desperately for only today, yet neglect to employ those you need for tomorrow. Take all of the resources and time needed to discover the ideal match for each role.
4) Do Not Compromise on Your Customer Service Delivery
Since it takes quite a long time for your customers to trust your business offerings, try to avoid costly errors as it may make your business lose them all. Irrespective of your reinvention, expansion, or growth, high quality customer service needs to be permanent. Your people ought to have the ability to do their job. Be certain they’re highly trained to offer your customers appropriate service and build relationship that will engender loyalty.
5) Embrace Technology
Startups today are actively pursuing innovations and technologies which assist in easing many of the operational activities. From automated finance management tools to phone systems, learn how and when to take advantage of these innovations.
Sustainability of a start-up is crucial. It requires the application of tested business practices ranging from good financial management, relationship building, good product/service management, brand building, excellent human capital management to continuous improvement of processes etc.
