Must your product, service or project idea solve a problem? This is a question I often get from many African Entrepreneurs. Yes. Please remember how you solve problems or what you offer to solve what differs. So after you ensure that your product or service solves a problem and delivers value, your next step is to master “distribution”. The most successful companies today are distribution companies. Yes, I said it! And if you doubt me, check the core solutions that Amazon, Netflix, or Facebook offer. These platforms distribute services or goods. They have invested resources to strategically build a distribution that reaches millions.
African Entrepreneurs, There Is A Third Element – The Main Thing!
Now that we are on the same page regarding creating products that offer value and mastering distribution, there is a third element: the main thing! This is the make or break of an empire. It is the “Value Chain”. African entrepreneurs, master how to develop your value chain. Creating a value chain is a very complex endeavour but achievable! It begins with producing your solution and having the raw materials available within the continent.
Embrace An Ownership Mindset
For Africans to build equity in the global space, more and more Africans must embrace an ownership mindset. Own the source – the critical raw materials needed to create your end product. To build an empire, if you retail fashion, you must be involved in 1.) producing fashion and 2.), most importantly, growing or cultivating textile fibres as your primary raw material. I know it sounds daunting just imagining it, but we, as African entrepreneurs, have been deprived of this opportunity for decades. Such value chain structures have taken over a hundred years to build, so it might seem daunting, but it is possible. Join us on JoadreTRIBE as we carve out a path to building genuine, valuable equity for Africans.
Key to a Value Chain
To build your value chain, here are 7 questions to ask yourself;
- What raw materials or components are essential to make your product or service?
- What innovation can enhance your production capabilities?
- How can you develop a distribution network?
- What are the needs of our customers?
- What brand perception does your solution require to get customers’ attention?
- What are the future trends and changes coming into your space?
- How can you raise long-term capital?
It’s the beginning of 2024, and we have created another article on top low-capital business ideas. Read more >
You can find more strategies to develop a value chain in the creative industry in our JoadreTRIBE app. Let’s complete this article by highlighting some factors we must address to win our space as African entrepreneurs.
- We must support initiatives that promote entrepreneurial thinking. Our children should be exposed to “out of the box” thinking and methods as early as kindergarten.
- We should leverage new technology to open us up to the global market. This is the time to be informed about the ever-changing education and skills landscape.
- This year is the year to foster collaboration and networking both within Africa and globally. Such networks and links can lead to partnerships, investments, and access to international markets.
- All these efforts listed above will become obsolete if we do not engage in social-political advocacy to ensure that African products and services receive fair value in the global market.
- The government is responsible for prioritising efficient infrastructure to boost economic activities. However, where we entrepreneurs can contribute, let’s not shy away because sometimes we have the worst minds in government and the best minds in the private sector.
- Have you heard the saying, perception is all? Now you have. It is time to promote African culture globally to attract economic growth.
- It is time to empower individuals to participate more actively in the economy by ensuring that a more significant segment of the population has access to financial services. Read Tunde Obadero’s interview with the Zitra Financial investment platform CEO to learn more.
Building a robust value chain is crucial for entrepreneurs looking to create and deliver value to their customers. This is, however, an ongoing process that requires continuous assessment and improvement. We encourage you to stay attuned to market dynamics and be willing to adapt to changing circumstances.
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