Simple, Small, Sustainable: Other Factors in the Equation for a Doable Business Model in Africa
Lauri Edwina Elliott
May 02, 2009
Today´s business environment continually changes, nothing is static. The mistake many make is trying to control the environment in which their businesses operate instead of flowing with it. Business models and structures need to be fluid to adapt to these changes while remaining viable. This is true, if not more so, for doing business in Africa. But, how do we create viable, fluid businesses?
When starting a business venture in Africa, we found the best proactive approach along with strategy, is to develop a plan focused on starting "something" now, which will grow and multiply as it evolves. "Now" is relative. Now might mean this week or six months before implementation, but the timeframe is short.
With the focus of starting something now, the key is to have incremental, frequent and progressive successes, and some failures, from which you can learn. We apply this approach to a "Single Product, Single Country" method to start relevant business ventures in Africa. This method is identifying a single product or service that responds to a strong need or desire within a broad market in a single African country. Supplying clean water solutions in an affordable and portable manner in the Democratic Republic of Congo (DRC) is an example.
In this scenario, the factors of simplicity, smallness and sustainability play out this way. Identify one location that will serve as a hub and center of operations within the country, as well as identify local partners with large distribution channels. The factors are achieved by taking a few strengths like location and partners, and leveraging them to address many aspects of your business.
In our example of clean water solutions and the DRC, we have already identified a clean water solution (www.aquaclara.org) that will fit the broad market. Next, we want to identify a major port of call near a high density population area. This reduces transportation time and cost to a major market. The high density population area should also serve as a distribution hub to other parts of the country. For the DRC, Kinshasa is the capital city with a population exceeding 9,000,000. Due to inadequate water systems, there is a large market for clean water solutions in one metropolitan area, and it can serve as a hub to distribute to other parts of the western portion of the country. Kinshasa serves as an excellent leverage of location.
When considering local partners, look for those who can manage the local legal business requirements, manage the business operations and provide large distribution channels in a sustainable fashion. Use trust value chains to manage this aspect of the business venture. Trust value chains are the human actors between you and the consumers, which are held together by the mutual value of the venture and trust. The trust value chains are one tool help keep the start-up business venture simple, small and sustainable.
Before starting the venture of doing business in Africa, prepare so that you can navigate well. Visit www.afribiz.info to discover how you can develop a path for doing business in Africa by viewing, "Setting a Path for Success in Africa: In Business, Investment and Life."
When starting a business venture in Africa, we found the best proactive approach along with strategy, is to develop a plan focused on starting "something" now, which will grow and multiply as it evolves. "Now" is relative. Now might mean this week or six months before implementation, but the timeframe is short.
With the focus of starting something now, the key is to have incremental, frequent and progressive successes, and some failures, from which you can learn. We apply this approach to a "Single Product, Single Country" method to start relevant business ventures in Africa. This method is identifying a single product or service that responds to a strong need or desire within a broad market in a single African country. Supplying clean water solutions in an affordable and portable manner in the Democratic Republic of Congo (DRC) is an example.
In this scenario, the factors of simplicity, smallness and sustainability play out this way. Identify one location that will serve as a hub and center of operations within the country, as well as identify local partners with large distribution channels. The factors are achieved by taking a few strengths like location and partners, and leveraging them to address many aspects of your business.
In our example of clean water solutions and the DRC, we have already identified a clean water solution (www.aquaclara.org) that will fit the broad market. Next, we want to identify a major port of call near a high density population area. This reduces transportation time and cost to a major market. The high density population area should also serve as a distribution hub to other parts of the country. For the DRC, Kinshasa is the capital city with a population exceeding 9,000,000. Due to inadequate water systems, there is a large market for clean water solutions in one metropolitan area, and it can serve as a hub to distribute to other parts of the western portion of the country. Kinshasa serves as an excellent leverage of location.
When considering local partners, look for those who can manage the local legal business requirements, manage the business operations and provide large distribution channels in a sustainable fashion. Use trust value chains to manage this aspect of the business venture. Trust value chains are the human actors between you and the consumers, which are held together by the mutual value of the venture and trust. The trust value chains are one tool help keep the start-up business venture simple, small and sustainable.
Before starting the venture of doing business in Africa, prepare so that you can navigate well. Visit www.afribiz.info to discover how you can develop a path for doing business in Africa by viewing, "Setting a Path for Success in Africa: In Business, Investment and Life."
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