Business development is undeniably one of the practices every business needs, whether it’s the size of Apple or the local bakery everyone loves to buy from. And Africa, being a developing and dynamic environment, makes it even more important for businesses on the continent to focus on continuous development.
The process of developing a business involves identifying, planning, and implementing effective strategies that compel it to continually experience growth. While most of these strategies focus on increasing sales and exploring innovative ways to gain a large market share, they also involve strengthening all the departments of a company that directly play a role in bringing in more customers.
In this blog post, we’ll explore 21 business development tips that entrepreneurs in Africa can utilize to develop and sustain their businesses effectively.
What is business development?
Business development is the process of growing a business by identifying and developing new opportunities. It includes activities such as market research, business idea validation, competitor analysis, product development, and sales and marketing. Although the process mostly involves strategies that help get more and retain existing customers, it also encompasses various strategies and tactics that enhance its overall performance, build partnerships, and create value for stakeholders.
Business development strategies in Africa can vary from human resources initiatives like creating a diverse team to expanding into new markets across the continent and beyond.
Why is business development important for businesses?
Any business that focuses on business development is more likely to see growth. That is because not only does the process focus on sales and marketing, but it also focuses on implementing strategies that drive employee satisfaction and push them to do more.
With continuous business development, businesses grow their bottom line and position themselves as a place where employees are happy to retain their positions and help the business achieve its goals.
21 Business Development Tips for African Businesses
Here are 21 ways you can pursue business development to grow your successful business in Africa:
1. Understand the local market
Africa has a dynamic market, hence, one of the keys to business development is knowing the local market dynamics. Whether you are a resident or a foreign investor, it’s best not to base your business on assumptions but rather on facts and real-life experiences from customers. Getting to understand consumer preferences and cultural nuances is the only way to tailor your products/services and marketing strategies effectively. To understand the market better, conduct thorough market research, engage with potential customers, and adapt your offerings to meet specific market demands based on consumer preferences.
2. Develop a strategy
A clear business strategy provides direction, sets objectives, and outlines the steps needed to achieve them, which is why you will need one in the process of developing your business.
First, define your business goals and identify areas in your business that are directly connected to those goals. Whether it’s to foster a more inclusive working environment or break into new markets, assess your strengths and weaknesses and develop a comprehensive strategy with actionable steps that will help you achieve those goals.
3. Use the right business development methods
With a strategy comes implementation. How you will achieve your development goals depends on your area of focus and goals. If you plan to increase sales, then you need to find new methods of attracting customers. Consider the current methods being used and the possible channels that can be added. Are you running social media or traditional ads? Utilising content marketing to reach more customers? You can also evaluate different business development strategies, such as forming partnerships, making acquisitions, or introducing new products.
Think of how you can get your staff to align their skills with your goals to help you achieve them.
4. Understand your sales audience
Getting to know your target market not only helps you tailor products that meet their needs but it also helps with your brand messaging. Being able to connect with your customers is how you get them to buy from you so instead of being generic in your marketing, pick a specific target audience and focus your marketing and sales strategies around potential customers who have those traits.
Understand your potential customers’ needs, pain points, and buying behaviour. What are their spending habits? Find out where they like to shop and get your products there too. Also analyse your competitors, their pricing, and how they reach their customers.
5. Invest in team development
A skilled and motivated team is essential for driving innovation and delivering exceptional customer experiences. Therefore, developing your team is a great approach to business development. You can start by training your staff in areas they may lack. Provide career development opportunities and foster an inclusive culture where employees relate with each other and can freely communicate their ideas.
6. Diversify revenue streams
Putting all your eggs in one basket is a risky move in business. You can either lose everything or delay your growth process tremendously. By diversifying your revenue streams, you spread risk and create multiple income streams that can help you grow at a faster pace. Explore new product lines, target different customer segments, or expand into adjacent markets in the same country or another country.
7. Offer great products/services
The thing is, no matter how effective your marketing strategies are, you will lose customers if your products/services aren’t up to the standard of your potential customers. Providing high-quality products/services enhances customer satisfaction, builds loyalty, and generates positive word-of-mouth referrals that help you sell more. When developing a new product/service, put in more effort for the product to come out great. One way you can do this is to invest in quality assurance to test every batch before it’s released on the market and continuously seek feedback to improve offerings.
8. Form local partnerships
Form local partnerships with local businesses to expand your reach, access resources, and unlock new opportunities. Finding suppliers and businesses with complementary products/services to yours can be a way of smoothing operations and reaching more customers. Identify potential partners, establish mutually beneficial relationships, and explore joint ventures or co-marketing initiatives.
9. Foster connections with your potential and existing customers
New customers bring in more revenue, which makes them central to business development. And existing customers, if treated right, remain loyal and bring in referrals, which are also crucial to business development. Hence, focusing on creative opportunities to connect with them is a great way to develop a business. Consider engaging with customers through personalized communication and attracting new ones with product demos or other incentives like promotions.
10. Focus on process optimization
Streamlining internal processes and workflows improves efficiency, reduces costs, and enhances overall productivity, which will in turn ensure your business is ready to take on added responsibilities like creating new products or increasing production. Identify bottlenecks that delay production processes and continuously optimize processes to eliminate waste and maximize resources.
11. Focus on lead generation strategies
Leads are a great way to generate new customers, bring in more revenue and grow your business. Effective lead generation strategies attract potential customers interested in your product/service so you can turn them into actual customers. You can generate leads by implementing digital marketing campaigns like social media ads and website signups. You can also get leads from networking events and referral programs to nurture them through your sales funnel.
12. Set realistic goals and expectations
Setting goals provides direction and motivates teams to work towards common objectives. But if the goals are unrealistic, it will leave you and your team feeling you are doing very little or nothing at all, which will cause burnout or even stop you from pursuing bigger goals. This makes SMART goal-setting important to the business development process. This process often takes years of initiatives and growth plans to yield the expected results. Consider the unplanned setbacks and changes to strategy and keep your expectations realistic to keep up the positive energy.
13. Set realistic budgets for business development
Allocating resources effectively ensures that business development initiatives are adequately funded and executed. However, while allocating resources to your business development plans, ensure your projected returns outweigh your budget to avoid unfruitful initiatives or overspending.
14. Invest in building a strong brand image
A strong brand image helps differentiate your business from competitors, builds trust and credibility with customers, and fosters brand loyalty. Your brand image goes beyond your logo or colours. It also entails your brand messaging and how customers and potential customers perceive your business. Your company can establish a personal connection with consumers by projecting a positive brand image and message. Develop a cohesive brand identity, including a memorable logo and consistent messaging across all platforms. Invest in brand-building activities such as advertising or sponsorships to enhance brand visibility and awareness.
15. Leverage digital marketing strategies
Although digital marketing strategies haven’t been used very often in the past across the African continent, the narrative is changing, and both businesses and consumers are embracing it. Utilising digital marketing strategies can help broaden your reach and bring in more sales. It is also more cost-effective compared to traditional advertising. Consider channels such as social media, email marketing, content marketing, and search engine optimization (SEO) to promote your business.
16. Embrace technology to automate processes
Automation helps streamline business operations, increases efficiency, and frees up time for focusing on other strategic initiatives. Today, technological advancement on the continent makes it possible to do things without having to do them yourself every single time. Identify repetitive tasks and processes that can be automated using technological solutions. Customer relationship management (CRM) software like Salesforce helps businesses easily track and follow up on all communications with customers and potential customers. This ensures you always get your message right, which makes converting them into long-term customers easy. Project management tools and workflow automation platforms also make communication among team members easier and more efficient.
17. Adapt diverse payment methods
Offering payment options that cater to local preferences and needs enhances customer convenience and satisfaction. While cash on delivery has been the most commonly used payment method in Africa, a variety of payment methods are also emerging. POS, mobile money, and digital wallets are also becoming predominant means of payment. Fintech companies like Flutterwave are some of the ways you can have diverse payment methods for your business.
18. Build resilient supply chains
If your business relies heavily on having a continuous operation, then building a resilient supply should be one of your many focuses in business development. You need to ensure you have a consistent supply of raw materials to avoid disruptions and mitigate risks associated with supply chain volatility. To ensure a resilient supply chain, diversify suppliers, maintain contingency stocks of critical inventory, and establish alternative transportation routes to mitigate risks such as roadblocks due to floods.
19. Adopt a long-term perspective
As we stated earlier under setting realistic expectations, business development is a process that takes years of purposeful initiatives to yield the desired results. So your approach to the process should take a long-term view. This helps to foster sustainability, resilience, and enduring success amidst business challenges and uncertainties. Develop your strategic plans and initiatives with long-term objectives in mind. Consider investments and decisions that create lasting value and contribute to the sustainable growth and development of your business.
20. Stay adaptive and flexible
There is nothing constant in life or business, which means at some point you need to change certain things or processes in your business. Being agile and flexible enables you to respond effectively to changing market conditions, customer preferences, and competitive pressures.
Implementation: Stay abreast of market trends, monitor competitor activities, and solicit feedback from customers to identify growth opportunities. When it becomes necessary to adapt your strategies, products, and operations, do it to stay ahead of the growth curve.
21. Hire the right business development consultant or manager
If you intend to keep up with your business development goals, then hiring a business development consultant or manager will be of great help. Working with experienced business development consultants can provide valuable insights, expertise, and guidance to navigate challenges and setbacks as and when they pop up. It will also help you capitalize on growth opportunities that you didn’t even know existed or have the expertise to pursue.
You can find the right consultant by looking for someone or a team with a proven track record of success, industry expertise, and a collaborative approach to problem-solving. A firm like Global-SIBE Consult can help you capitalise on a wealth of industry knowledge. Give us a call today!
