Issues in African economies are varied and can be easily recognised just by comparing more developed economies to those in the continent. Just doing this will give you a myriad of business opportunities you could explore. However, there are also gaps in the market faced by everyone in the world. These too are opportunities that can be explored through entrepreneurial thinking and innovative business ideas. Ideas for a new business can stem from:
i) Observing an opportunity. This is the easiest way to come up with business ideas in African markets. Anyone who has travelled out of their geography can observe numerous ways that needs are not met locally and could be if customised for local needs. Obvious opportunities include the provision of affordable essential services: water, energy, education, food and clothing.
ii) Copying successful businesses: Wholesale copying of a business idea may or may not work. You often do not need to invent the new wheel but adjust the spokes. For example, successful online selling sites in the continent have been able to address the seeing-is-believing-mind-set and identity theft concerns with payment on delivery and mobile payment. Addressing these two concerns through the two payment methods accounts for over 80 per cent of all online sales in some countries.
iii) A Pain with target customers: Anything that causes a negative emotion, or reaction is a source of inspiration for new ideas. For example, if the community spends a lot of time digging their farms, there may be a need for machinery and equipment that will help do this faster at an affordable cost. A tractor service for large portions of land or smaller hand ploughs for smaller ones.
iv) Filling a gap in the market: As new services are provided, cultures change and new tastes develop, there are sometimes gaps formed in the market that hinder the smooth provision of the same products and services. This creates business opportunities that when the implemented result in their smooth provision.
This is what has led to having middlemen in service industries and marketing companies. Examples would be in the entertainment industry where there is a supply of good movies and music and consumers wanting to support their favourite artists at an affordable cost. Pay per download (PPD) and subscription services like irokoTV and Netflix fill this gap.
Coming up with business ideas is not enough. These have to be reviewed to come up with more feasible business Ideas. The process of idea generation involves brainstorming and observation. Knowing that there is a need is different from understanding why there is a need. Idea generation seeks to understand the route cause of the need. Ask questions on why a need is not currently being met or why a gap has been created. This leads to a wholesome assessment of a situation. Your solution is likely to be more feasible if you understand the genesis of the problem.
Often the answer to these questions may seem obvious as African economies are generally underdeveloped and there is a need for almost every product or service. A successful business will want to be amongst the leaders if not the leader in an industry. Workable solutions to a problem may not be as obvious: changes in technology currently and in the past century means African economies can skip a lot of the growth and development stages that other continents went through. Our path to economic prosperity is not defined. For you to succeed in your business and grow, understand your target markets’ and industries’ core really well – both professionally and practically. Not doing this will result in you always following the market and not leading the pack.
Generating a business idea can be a light bulb moment, however, most successful ideas are developed over time and in some cases over a lifetime. This does not mean you can not launch your business but that even after launch the business model will continue being fine-tuned for it to remain relevant over the years. Use the different idea generation methods to improve your business idea and validate it or trash it. If you have launched, know when to get out or change direction.
To do this, involve the target client in the process of generating solutions to problems. This ensures that what you develop is acceptable to your prospective clients. This could be done through market research: do questionnaires, have focus-group sessions, surveys and analyse relevant existing data. Below are some factors to consider when generating new ideas for your business:
i) New technology. New technologies created to serve a need can open up new opportunities to further customise or develop a product to serve a need;
ii) A change in living standards. As people’s living standards improve so does the demand for goods and services. Luxury and more high-quality products become more affordable. If living standards do not change but there is population growth the demand for current products and services may increase and more efficient methods of production and delivery become necessary so as to meet demand;
iii) New research findings. New knowledge will spark changes in products and procedures, examples are in the medical and agricultural fields where continuous research leads to the production of new cures for disease and more sustainable food production methods;
iv) New production process. Reviewing a production process and looking at similar processes in other industries can also help you come up with new ideas that could result in a unique business opportunity or model;
v) New / broadened market opportunities. new trade and regional agreements mean broader markets and new markets;
vi) The possibility of alternative /multiple products. Some products and services can have alternate or multiple uses. Extending the use of a product in a new way provides a new market opportunity and a business idea that can be rolled out in multiple markets depending on culture and its usability. Sometimes this may require slight adjustment of a product or procedure;
These are just but a few ways of generating new business ideas. Remember there is no shortage of ideas and the more you are able to go through the process of generating new ideas, the more likely to come up with ideas that are feasible.
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