Focusing on resilience and resourcefulness is a powerful way to tell the story of African business owners.
As a business-centric platform, we often ask business owners what challenges they encounter and how they overcome them. Understanding these challenges is crucial to providing insights into the specific issues affecting business operations across Africa, allowing for targeted solutions by policymakers. Secondly, their answers help other businesses learn how to tackle similar challenges. Addressing these challenges can lead to improved products or services, fostering innovation and competitiveness.
However, this question is often followed by difficult answers rich in nuance. This is because as a continent with many developing countries, it tends to have unique challenges. In 2023, Africa was a testament to this duality. Although the continent witnessed significant strides, economic downturns presented unique business hurdles.
In Nigeria, over 2000 small businesses closed due to a cash crisis in February. Yet many found ways to weather the storm. This harsh reality forced entrepreneurs to adapt and innovate. Unfortunately in 2024, some of these challenges persist. The World Bank recently projected that production will decrease in 2024 for several African economies.
We spoke to Kolade Mayowa, Founder, of Hookedbylade, and Edna Frimpong, P.R., Ahofade, two business owners on how they survived two of Africa’s biggest economies last year to understand how small businesses can survive in a challenging climate and this was what they had to say.
Focus on customer retention
Edna: Be a customer-centric brand. Customers are the key people for your business. We make sure we are building a strong and good relationship because one customer alone can bring millions of other deals. with our Customers are not static. They evolve. Evolve with them. It also helps with your marketing strategies and decisions.
Kolade: Unfortunately, our reality is that inflation is biting hard. One strategy I have had to adopt was retaining my customers. For one, it is easier to retain. Old customers are also who help you get new customers. You have to understand that people are the breakthroughs of any business. When you retain a customer and build trust with the customer no matter how much you sell to them, they will keep buying. And that trust is most likely going to get you new customers.
Catalyze tech trends and remain adaptable
Edna: Leverage data analytics. When it comes to decision-making, it would help you tally your resources to your time and those who need your attention. Our generation is blessed. We have these resources at our disposal. Capitalize on trends like AI. Keep up with these trends. What are people saying about these trends? What is in the Twitter trends? how can you leverage them? For example, working in the fashion industry, we can use AI to explore new and exciting designs.
Lolade: When you are into products that are not necessities, it is necessary to be creative, especially in a challenging economy. With the internet, there is almost no excuse if you want to make your business work. Of course, you have to put in the work and innovate with your brand. But when it comes to marketing, you have to move with the trend. One thing that has helped hooked Lade is nonstop digital marketing. It involves selling without selling. We have leveraged social media to retain customers and attract customers from other economies that are doing much better.
There is a Yoruba adage that says if you want to catch a monkey, you have to behave like a monkey. I’ve had to leverage existing trends and create new ones. Trends change and if you are stuck in it, you will be left behind. It is like throwing spaghetti on the wall and trying to figure out what sticks. Sometimes it means having to create your own trend. At the end of the day, I’m of the school of thought that trends have to be studied. If you can’t do it on your own, get someone to do it.
Leverage partnerships
Edna: I’ve learned you can’t do it alone. I always refer to the Bible with the story of Abraham. God called Abraham and not his cousin Lot. But when you read the story of Abraham, you may think god called Lot too. Abraham had the vision but Lot was always in his corner and was part of the blessing. So if you’re Abraham, find your Lot. Sometimes, you might be Lot and not Abraham. With your business, you may have the vision and not the finances, and vice versa. In those cases, find your Abraham. The partnership is important.
Kolade: You are going to need a concrete support system. It doesn’t have to be family. People always get this mixed up. They go, my family isn’t supporting me or buying from me. But a support system is having people around you who regardless of what the economy says, make you understand that it is not enough for you to throw in the towel. As an entrepreneur, you have to be willing to open up and come to the point where you realize that, you need people to put you in check, whether it’s a board of directors or it is family. Sometimes you have a challenge and you realize that the solution is just to consult with someone who has been in the business longer than you.
Always be prepared to face challenges
Kolade: Do not go into a business with a mindset of not having a problem. You’re not going to enjoy the business. The thing with challenges is that when you have a pressing challenge, it is so worrying, that you have a headache all the time. But immediately the challenge is over, you almost forget you had a problem because a new challenge arises. And you have to move to the next one. When you expect them, you’re able to tackle them better. It’s almost like when you overcome one challenge you’re waiting for the next big challenge. Because different policies will come up, but that is the whole thing about being dogged. No matter what happens, I’m going to try not to sink with my team. We are going to float and reach the sky.
Passion is not enough
Kolade: Passion is not enough to sustain a business. No matter how passionate you are about your business, you need a working model. You have to be able to look into the future to create a legacy out of your business.