IT is always a dream of every business owner to think big, act fast and go outside to expand their business.
However, it is always an easy thought, easier said than done activity but the process involved in establishing a successful business is cumbersome.
Today’s article focuses on the ideas of exploiting local markets before expanding and externalising your business, especially when you are just establishing a new business.
Perhaps the most interesting aspect in business is making a quick profitable deal but such deals often come occasionally.
Consistent businesses go through a process and on the way they encounter hurdles until they get established.
This establishment undergoes a process in which most entrepreneurs gain experience from and get to know the pros and cons of the business in question.
While we may say that achieving consistency in quick deals is rare, there are some that start with a bang and leap from the blues, but statistics reveal that few get successful within a short space of time.
Most small and medium sized businesses endure before becoming successful enough to compete with the larger markets.
As an adage says there is no sweet without sweat!
It is inevitable for local traders to establish and exploit their local markets before deciding to expand outside because of various factors.
Local businesses are best suited to operate in their environments because of the knowledge that they have in regard to the demographics, trends such as taste, market needs, pocket size, climatic, political and economic environment of the country.
For example, in the hospitality industry, if you are a restaurant owner, a Zambian dish must always be included in the menu to attract local and foreign clients to have high chances of a performing business, especially if your target market is that of Zambians.
Local restaurants in Zambia popularly known as matebeto ensure that they include local meals such as nshima, vimbombo,village chicken, ifisashi and delele.
Local businesses must be maintained to support job creation among local people.
Today, it is a common practice for companies or institutions to give priority to local suppliers to empower them to thrive.
It is highly recommended to maintain local businesses within their territories until there is maturity and satisfaction to go outside and compete.
It becomes more complex to rush into expanding outside when your business is still in its infancy stage.
One of the good examples of companies that have fared well is Trade Kings whose products suit different levels of customers from low to high class in terms of pricing, size, quality and packaging.
The company is exploiting the country’s population be it in urban or rural areas.
It has diversified the supply of its products from foodstuffs, beverages to detergents.
It has managed it in such a way that no one is left behind.
Another important aspect is acquiring knowledge and retaining the culture when you decide to operate in these regions.
When you decide to enter certain jurisdictions, you need to be mindful about the culture because certain foods or dress codes are not acceptable or not permitted.
For instance, in Zambia, maize remains a staple food, therefore replacing it with pasta may not be taken well by indigenous Zambians and it may also affect milling companies adversely.
When deciding to penetrate a particular market, ensure that the character of culture is identified and retained for a lifetime.
These factors carry a significant weight in any business.
While expanding in foreign markets is good initiative, it requires local knowledge of that country and fast-informed decisions to thrive in a competitive environment.
As the business expands, it requires more and bigger complex bets with on the ground experience and judgment.
Additionally, being global means that you must think globally and formulate decisions elsewhere to align your business to the environment you are operating in.
Sometimes such arrangements can become disjointed and uncoordinated and may lead to failure if not properly managed.
In as much as we appreciate that opportunities and talents can be sourced even in outside borders, maturity and readiness to operate outside is cardinal.
In short, local experience can be a door opener for future global opportunities.
However, a step-by-step approach in business is advisable.
I will end with a quote by Eckhart Tolie which says; get the inside right, the outside will fall into place.
For comments contact: call: 0966751626 or 0976132835 or email: jeanmushala@gmail.com