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by Impact Hub
An entrepreneur looking at the current economic situation in Nigeria may not feel very hopeful. The country is expected to face the worst economic recession since the 1980s, according to the latest Nigeria Development Update from the World Bank. While this sounds like bad news for businesses, there is definitely hope!
The key to your business prospering even in this situation is innovation. Businesses need to find creative ways to deliver value to their consumers, communicate clearly with current and potential customers, partner with other businesses to grow, and find new sources of funding.
The current economic situation has significantly lowered the average purchasing power of Nigerians, especially as the collapse in oil prices has led to inflation. The same amount of money now buys fewer goods. This situation is worse when you consider the millions who lost their jobs or received pay cuts. As a result, people focus on spending on needs and things that are perceived as real value.
The first step to making sure your business succeeds after COVID is making sure your business remains relevant to customers. This may require a significant change in your business model or just a small change or addition. Take Flying Doctors Nigeria, a company working to provide emergency evacuation services across the country, for example. In response to the pandemic, FDN switched to mobile testing labs that increased the safety, efficiency, and sustainability of COVID-19 testing.
Businesses must also find creative ways to market their goods / services and expand their customer base. Once you have clearly outlined your new and / or improved value proposition, you need to communicate this to current and potential customers. While a decent marketing plan will require some expense, you don’t need to break the bank. Think of creative ways to grab your audience’s attention, such as creating an attractive name or tagline for your new offering.
A brilliant example is a recent brochure from Price Pointe, a wholesale store. The steering wheel, which was left in cars, had the following words printed on it to make them appear to be handwritten: ‘Sorry about your car. Call me now!’. People who saw the messages assumed someone had hit their car, only to open them and see news about a pop-up from Lekki. Price Pointe didn’t spend more money on advertising than it already would have. They simply came up with a creative way to successfully use an available advertising option.
As companies look to innovate, strategic partnerships can not only help this happen faster, but they can also increase the reach of both brands and ultimately help drive sales. Complementary companies can partner to create new packages and market each other’s demographics. Kewa’s Kitchen, a popular food company, struggled to make a profit at the start of the pandemic due to reduced catering orders. So the company had to be creative to increase sales from other avenues.
They had many fun initiatives, including a partnership with Anoela Cards, a small greeting card company. Customers could send food to their loved ones on special days, since they couldn’t meet in person, and include a card with a personal message. Both parties teamed up to creatively add value to customers, while increasing their visibility among each other’s consumer base. The result was a win-win situation.
Finally, entrepreneurs should allocate more resources to access finance. It could be helpful to have a dedicated team member who puts more time and energy into this. Finding financing can be very stressful if you run an SME. However, the pandemic has increased the amount of funds available to businesses as NGOs, governments and other funding bodies seek to support the post-COVID recovery. Figuring out how to make all of these changes can be overwhelming to do on your own.
If you find you need help, consider applying for Impact Hub Lagos’ New Economy Booster program. The show launched on August 28. However, the deadline for submitting applications ends on September 17.
The New Economy Booster offers participants access to resources worth more than $ 300,000, including business training, platform development support, partnerships, meetings with potential investors, and expert advisory services. The focus of the program is on companies, startups and non-profit organizations that try to create impact in the industries of Commerce, Agriculture, Health, Education and Creativity and Culture. Visit www.impacthublagos.com for more information.
The pandemic and the events of recent months have made entrepreneurship more difficult than ever. However, even now there are opportunities for companies that recognize them. Businesses that survive this period, and even grow, will be the ones to do the work to ensure that your business continues to find fresh new ways to add value to customers, partner with other businesses, clearly communicate your value proposition, and pursue aggressively funds. The New Economy Booster program can help with all of these.
