If you’re an entrepreneur in Africa looking to build your business plan, there is sure to be the usual questions on your mind. How much capital should I raise? What type of overhead will I have? Is my product market-ready? The good news is that you’re not off base. However, as is the case with many startups in Africa, you might be looking at launching in multiple countries/markets. In which case, are these questions still the most important pieces of the puzzle to focus upon? The answer – surprisingly enough – is no.

Of course you need to be savvy about the basic needs of the business, but if branching into two or more locations (especially if they’re in different countries or continents) applies to you, there’s a real make or break element to consider. Local (human) resources. Here are some tactical tips that will help you understand how to create genuine local relationships and ultimately leverage these valuable assets.

Lack of Local Resources makes for Risky Business

Too much or too little. That’s often the balance when it comes to relationships and local partners in Africa. If you’re too close to the current power brokers or market leaders who are the ones who can get things done, where does that leave you at the next change of government? But if you’re not close enough and keep your distance, how do you get anything done?

Building relationships off of genuine, transparent value creation is the best way to build a sustainable partnership and reputation in a new market. How can you bridge the gap between your ways of operating a business and those of the community and market you’re entering? A local resource is someone intimately familiar with the local laws, culture, language, and business nuances. These are the people with whom you can forge a relationship, and build a trusting understanding regardless of divergent viewpoints.

If you opt to trust yourself and not the wise input of someone who is intimately familiar with the area, you’re opening yourself up to potential damage of misidentified or unseen risks. Local resources can often recognize opportunities you might miss, or risks of which you may not be aware. If you find the right people, they’ll know how to open channels and know how to get things done. So how do you find these individuals? Keep reading.

How to get Feet on the Ground

You’ll invest money in that new piece of faster equipment, or that new office, or that Beta-version product run, or even the advertising campaign that will launch your business. But how much will you invest, monetarily, in building local relationships and local connections? It’s often surprising to see companies looking to enter or expand in a market, but without wanting to spend the money to actually go to that market, get on the ground, smell the air, and ‘’press the flesh.”

Get your feet on the ground by doing literally that. Go there. Get out and meet people. You can do it on the cheap by couch surfing with friends or staying at the latest, happening hotel in town. Either way, being in the country is critical. Meet with local trade associations relevant to your company or product. Spend time with other entrepreneurs, business leaders, and government officials in order to get referrals and introductions. Embassies and associations are standard go-to organizations that are happy to help make connections or share insight. One great aspect of being an entrepreneur in Africa is that many business communities across the continent are still small enough, that it doesn’t take long to meet the power brokers, and those in the know. It just takes that first step.

Establishing and Utilizing Relationships

The last thing you want to be is that person we all have known at some point – the user. The type of person who acts friendly, but only with one goal in mind: using you for his or her own gain and with little to no regard for yours. Identify those partners and individuals who have an incentive to gain from your success. Make sure any relationships are a two way street. This leads to a key point: due diligence, due diligence, due diligence. There was a business owner who thought he had the best local partner, but it turned out the partner hadn’t been truthful. Seven years, and a lot of court fees later, the company still isn’t off the ground in that market and it was all to do with insufficient due diligence. In that case, the local partner didn’t see the deal as a two way street and was in it completely for himself.

So, be sure your local partner can deliver. Just because he might be the president’s cousin, or she is the minister of energy’s niece, or has some multi-line title, doesn’t mean they’ll be able to deliver real value to your company or product. At the end of the day, actions always speak louder than words. More often than not, unfortunately, those who present themselves the most as being able to “get anything done” end up being more show than substance.

While you may think you know all there is to know about the area you’re choosing to enter, just remember that there’s always someone who’s lived there longer and called it home long before you made your debut. And while you are the heartbeat of your business, they might just understand the soul of the culture and be a priceless complement to your operations. Invest in your due diligence, and open your mind to trusting local resources and partners through solid, structured, and mutually beneficial relationships. You’ll be surprised by the results.

Nothing ventured, nothing gained.

 

 

Written by Josh Becker, CEO Impele Consulting Group

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