How To Reduce Africa Business Startup Costs?

Recent times have been uncertain, to say the least. So, businesses in Africa, like their counterparts elsewhere, are taking steps to reduce costs. However, while cost-cutting is done in good faith, they are not often not enough or simply do the opposite. This is most often a strenuous task for business start-ups who already have less man-power and limited capital.

Recent times have been uncertain, to say the least. So, businesses in Africa, like their counterparts elsewhere, are taking steps to reduce costs. However, while cost-cutting is done in good faith, they are not often not enough or simply do the opposite. This is most often a strenuous task for business start-ups who already have less man-power and limited capital.

So, Africa Business Ventures offers six tips to reduce business startup costs in Africa:

 

1. Technology is the One True savior

For a big business, landline phones may not be much of a problem but for a budding business it is still a lot.

Switch to online calling, mailing and messaging services such as Skype, Zoom and Google hangouts. They are usually free with only premium features being chargeable.

 

2. Stay-Up To Date With the Paperwork

African countries, like any other, have their own laws. For instance, the authorities in Nigeria regulated regulate banking transactions in the country by introducing the new Banks and Other Financial Institutions Act (BOFIA 2020). The Ghanaian government shut down 72% microfinance institutions more regulations for the banks.

But these are examples in the banking sector. There are tons of other formalities, such as business registrations, permits, renewals, taxes, customs and more. There can be hefty fines and fees too. So, why not stay-up-to-date with them and avoid penalties in the future.

Another key point is that more often than not, many regulations tend to become a hindrance and delay work, setting back business goals and costing money as a result.

If you want to avoid the red tape, then get in touch at Africa Business ventures whose specialists for Market Entry in Africa offer you a single-window solution. 

 

3. Save Your Greenies And Go Green

As per Harvard Business Review, there is 15-20% of spending on average that hasn’t been managed appropriately. In one of its reviews, the organization observed that a company was allowing all its departments to spend up to $10,000 a year on stationery and such without direct approval from the top.

So, while you may not have that big a budget for your stationary and supplies, you will still save the greenies by actually going green. Go paperless and reduce costs incurred on ink, paper, mailing supplies, and postage and other such miscellaneous items.

 

4. Outsourcing Unimportant Operations

Outsource operations that are not part of your core business. This would free your in-house resources and help them taking up more important tasks.

 

5. Smart Marketing Works Faster and Cheaper

Nothing beats marketing to grow your business. However, why make it hard when it can be smart? Online marketing is a cheaper alternative to increase the visibility of your business and the services and products it provides social media marketing/advertising and SEO keywords in blogs are just some of the tools to help promote your business online. Local know-how and keeping track of trends are a plus too. Get in touch with Africa Business Ventures for Market-Entry Solutions in the continent.

 

6. Cut Distractions and All The Frills

According to a University of North Carolina report by Steven Rogelberg, surveying 182 senior managers from various sectors, 65% admitted that meetings were a hindrance in their work with 71% agreeing that they found meetings were unproductive and inefficient. These meetings are clearly a distraction. So, more than cutting costs, it’s cutting distractions and focusing on quality.

So, hear from the horse’s mouth.

If you value quality, work on minimizing distractions such as unnecessary meetings, work emails, and maybe even social media during work hours.

But there are more innovative ways to manage your business in Africa and make it thrive instead of just surviving. Speak to the business developers and marketing specialists at Africa Business ventures at www.africabv.com

Related Posts