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Achieving success as an entrepreneur is a challenging endeavour, regardless of age, location, or status. However, the hurdles faced in Africa are often more pronounced due to a lack of mentorship, financing options, resources, and support services. Nevertheless, amidst these unique challenges, numerous young entrepreneurs are thriving and making a global impact.
Thembi Shilenge, founder of CryptoDimensions, a thriving cryptocurrency and blockchain company, Shilenge has dedicated her time to fostering a new generation of digital pioneers, while also driving economic growth and financial inclusion across the continent, offers 10 invaluable tips.
Here are ten valuable tips for aspiring entrepreneurs:
- Prioritize Customer Feedback: Simply because you would buy your product or service does not guarantee others would do the same. To establish a successful venture, you must cultivate a sustainable customer base who genuinely believes they need, want, and deserve what you offer. Understand your audience’s needs, their preferences, and the reasons behind their purchasing decisions.
- Be Resourceful with Funding: Ernst & Young’s 2018 Millennial Economy report revealed that 38% of millennials cited a lack of funds as the main obstacle preventing them from starting a business. It is crucial to explore funding alternatives beyond traditional bank loans and consider convenient and flexible options.
- Embrace Social Impact: Differentiate yourself by building a business that positively impacts the environment and drives socio-economic well-being. Sustainable and responsible ventures tend to perform better in the long run. A 2014 analysis of S&P 500 companies showed that corporations with sustainability strategies enjoyed an 18% higher return on investment.
- Dedicate Sufficient Time: Starting, running, and growing a business requires dedication and perseverance. Don’t expect instant miracles or overnight success. Your business won’t develop on its own. Put in the hard work, exceed expectations, fulfill promises, promote your company through various channels (not just social media), and develop a comprehensive marketing campaign before launching.
- Strategize Your Funding Approach: Raising funds should be a deliberate strategy, involving meticulous planning. Prepare for investor meetings by anticipating potential questions and continuously analyze and revise your business plan as you progress.
- Embrace Disruption: The 2019 GEMS report emphasizes the importance of introducing innovative products and services that disrupt the market. To stay ahead, you must constantly remain at the top of your game. Resting on your laurels after being the first in your field may expose you to the risk of someone else disrupting your business model and pushing you out of the market while you remain unaware.
- Practice Patience: There is a misconception that scaling your business as quickly as possible is always beneficial. While growth is positive, explosive expansion without the ability to keep up with the momentum can become a threat. A study by Startup Genome revealed that 74% of high-growth start-ups fail due to premature scaling. Exercise patience and focus on sustainable growth.
- Master Budgeting: Cash-flow issues can arise when you overspend, struggle to collect payments from debtors, or fail to generate sufficient revenue. Develop a meticulous budget and adhere to it rigorously. Keep track of all expenses and income, and spend your funds wisely to avoid these challenges.
- Learn from Mistakes: Mistakes are inevitable, and that’s perfectly normal. The key is to learn from them and use that knowledge to refine your plans. This will help you build a stronger, more resilient, and financially stable business that can achieve the impact you desire.
- Embrace the Entrepreneurial Mindset: Entrepreneurship is not just a means to earn a living; it is a way of life. 90% of millennial business owners surveyed believed that treating their business as their purpose made their journey to success significantly easier. Cultivate a mindset that aligns your business with your passion and purpose.
By implementing these tips, aspiring entrepreneurs can navigate the challenges they face and increase their chances of building successful.