Campbell Lumbila March 19th, 2010
Early this month on our facebook group for Young Zambia Leaders we asked people doing business in Africa to give us some of the challenges that they’ve faced and how they’ve overcome them. Mr. Kangwa Musole Nkonde running an engineering solutions company-The Munelo Group gave us this response:
My wife and I run an engineering solutions company that we started 9 months ago. Prior to commencement of operations we engaged in rigorous electronic, print and in-person marketing, whilst still in formal employment. Pessimistic as this may sound, it really takes a long time to develop customers’ interests in your services. However, what eventually leads to building strong relationships with your clients is positive persistence. This must also be supported by objective and pragmatic parameters that you must have drawn in your business plan.
From the outset, our busisness objective has not been profit centred, but customer base development. And so, with this said, our key business approach has been one that focusses on ensuring we price our services at rates that are no where near comparative market rates. Obviously this practise is not long term, and additionally, this does not adversely affect the business because as a new business, overheads are not as high as established businesses. Pricing your services at similar rates as fully established businesses will throw you out of the market rather sooner than you would expect. Nonetheless, this in no way means that you should price your services unfeasibly. Every project must be self funded, implying, your rates must meet expenses of a “whole project” albeit, at a very minimal profit percentage, which increases progressively to within market rates as your customer base grows.
Your “current” project is a point of reference for future prostective customers, therefore, you must deliver it in full compliance of the client requirements, or better.
As a new enterprenuer, you must not be over-ambitious or expectant, because, sound as your business plan and competition aspirations may be, you are throwing yourself into a sea that is overwhelmed with both ethical and unethical business practitioners. You always have to render services that set you different from other market players.
We have also learned to appreciate that a business plan must always be treated as a live document, because the business environment evolves constantly, therefore frequent revision of your business plan in adaptation of current market trends is essential.
In todays economy(s), it is extremely difficult, if not impossible in some instances for a “start-up” business to obtain loan capital from financial institutions. Qualifying requirements are onerous, the reason it is necessary not to wholly device your business plan around finance institution funded capital, but on private or personal funding.
You may visit our website at www.munelogroup.com for an overview of our business services.