Important Steps in Starting a Business in Africa

Before you start a business venture in Africa, the important things that you must consider are the following:

Self Analysis

you must assess your motivation and interest as well as your personal capability.

Thinking of a Business Idea

After your self assessment, the next thing to do is to think of the type of business venture to start. You need to ask some questions like: What do people want? 

• Introducing existing products and services in a different market
• Introducing new products and services or 
• Modifying existing products and services.

Research Your Market

After the choice of your business idea, you must find out a market for your products and services. This prompt for a Market Research, which will assure you that you will be able to make enough income through sales to make the project viable and sustainable. 

Giving an Identity to your Business

Give a business name, which  is easy for everybody to remember. It must sound right and fit for the venture, and legally acceptable.

Register the Business

You need to register your business in order to protect and outsource funds to support it.

• Sole Proprietorship: The Business is owned and operated by you as a person, and you as the owner has full authority and responsibility for all decisions.
• Partnership:  A Business relationship between you and other people who carry out the venture together as the owners. Legal assistance is very important in drawing up a partnership. Partners may invest in diverse ways like technical know-how, land, equipment and funds.
• Limited Liability Company: It is a group of people who have separate legal entity. The company operates on its own name and it is a stable form of business. Legal advise is necessary. Shareholders are not personally liable for debts owed by the business.

Business Plan Preparation

Business Plan is a document that stipulates in words and figures the proposed venture. Its objectives is to:

• Put your thoughts onto paper
• Raise funds for the venture
• Monitor the evolution of the business

Raised Funds

You have to ask yourself; "how much money do you need?" You must know how much you need for Start Up Capital and for Working Capital. You must seek a professional advice on which source to approach for financing.

Business Premises 

The choice is yours whether you rent , build or buy your own business premises.

Getting Started

You have to operate according to your business plan. You need to employ people, to set up a record keeping system and then communicate your plan and vision to the staff to get their commitment. You need to locate your clients, promote your business and start business operations.