FEBRUARY 2021 - MADE IN AFRICA ISSUE

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@SME360nigeria 8 SME360 Magazine www.sme360.ng CREATING MULTIPLE REVENUE CHANNELS FOR BUSINESS SURVIVAL LAWRETTA EGBA he survival of any business revolves around a combination of events. These events may be as a result of external factors like the state of the economy or internal factors like the ability of the company to deliver on its services. Considering the way COVID-19 threatened many business lines, there is a belief that having only one revenue line is tantamount to putting all your eggs in one basket – anything can have it all crashing down. Creating multiple revenue streams is a dream for just about any business owner as it shifts the focus from just battling with recurring expenses and now gives room for building long term solutions, while also leveraging growth and revenue opportunities. Every growth-minded entrepreneur should be on the quest to discover additional revenue sources for their small businesses because every business venture not making money cannot thrive or grow. There is no point limiting oneself to only one source of income when there is an opportunity to have several channels to drive growth simultaneously. Some of the ways a business can create multiple revenue channels to ensure its survival include the following: INCREASE THE VISIBILITY OF YOUR BUSINESS. Having multiple channels of income means getting paid from different angles. Sometimes, it isn’t about having multiple products but getting paid from one product from a diverse range of sources. Increasing business visibility is the best way a business can promote its growth and survival. Where a business relies on only one traditional way of connecting and interfacing with its customers, it limits its growth by failing to harness additional growth opportunities which could have been added to its conventional mechanisms. The more your clients or customers can reach you, the more money you can get. REPOSITIONING THE BRAND FOR WIDER MARKETS Every business owner can transform their small business from being a local brand to nationally recognised or a global brand. Business models can be revamped, and brands can be repositioned to enter new markets, new collaborations and partnerships that can create outstanding opportunities for growth and success. Operating a brand at a national level will generate more revenue than selling locally, likewise selling at a global level will generate more revenue than selling nationally. Today’s technology and its possibilities create e-commerce and e-business solutions, and many local brands have experienced tremendous transformation and growth across the globe from locally known and celebrated brands to nationally accepted brands and globally competitive brands. DEVELOP TRAINING OFFERS An interesting source of revenue a business can explore is training others for a fee. A business that sells products and services that will require considerable time for achieving operational knowledge for the customers could create training courses for its customer base in addition to the primary products and services that they already sell. Such businesses can create two options for their customers, providing them with physical training or affordable virtual training. INCREASING CUSTOMER BASE Growth in a company’s customers’ base will always positively impact the revenue of a business. In many cases, small businesses have already achieved the highest revenue limits from the existing customer base, and this is the sign that they will need more customers if they want to continue to grow and thrive. The best solution is to focus all efforts on getting new customers that will increase the current customer base. Improving the ongoing marketing efforts to reach more of the target customers for their products and services will create new revenue streams for such businesses. EMBRACE AUTOMATION The effective management of revenue streams is just as important as their creation. If systems are not in place to manage the influx of customer interaction with the business, sales and services, then the business will inevitably struggle to achieve the expected goals. Multiple sources of income are a brilliant source of income if business processes are effectively automated. Businesses can blossom by creating good connect points, setting up online marketing systems, revenue collection and automated bookkeeping, so a business can run while the owner or employees are asleep and the business doors are closed. Creating multiple streams of income is an important way for a business owner to both ensure the continued growth of their businesses. Also raise the necessary funds for their next business venture, which may demand more of their time, energy and active involvement.
@SME360nigeria 9 SME360 Magazine www.sme360.ng CHALLENGES ASSOCIATED WITH MANUFACTURING IN AFRICA ALARA CHARIS s a continent, Africa has indeed witnessed rapid growth and brought wealth to several countries as a result of its gross domestic product (GDP) increase. One would think access to so many natural resources will significantly improve the African economy, but that is not the case. Some African countries, despite this growth, have not moved past the subsistence level. The manufacturing sector is a crucial one in Africa to both emerging and already existing markets. This sector is bound to experience growth over the years and boost the African economy. However, this growth cannot occur without first addressing the underlying issues standing as a stumbling block. Manufacturing companies have battled various challenges in the past years, and there are bound to be more challenges in the future. However, recognising and tackling these challenges head-on is a great way to bring about a positive change in the manufacturing sector. Here are some of the most common challenges associated with manufacturing in Africa. INADEQUATE INFRASTRUCTURE One major setback associated with manufacturing in Africa is inadequate basic infrastructure. Although Africa has a vast pool of affordable labour, the efforts will be futile without the necessary infrastructure in place. With a shortage of infrastructure, there's bound to be a rise in business costs. Manufacturing requires a massive quantity of water and power, which some African countries don't have access to as required. This inconsistent and unreliable power and water supply is a major stumbling block to manufacturing in Africa. This problem places a huge responsibility on the potential investors as they have to set up their infrastructure completely outside what is available. Apart from water and power shortage, there is also the problem of logistics and market connectivity. If a potential investor realises how expensive it is to carry out business in Africa, such an investor might be discouraged to back off. Low connectivity can affect the time taken for manufactured goods to arrive at the final destination. SHORTAGE OF SKILLED LABOR African has a large labour pool; however, it takes more than this to run a manufacturing industry. Beyond the availability of labour, manufacturing requires a fair amount of both skilled and educated labour. While this didn't matter so much in the past, technology has taken over in our present world. Manufacturing industries are now automated, and it takes skilled and educated workers to maintain and operate the machines effectively. Although specific manufacturing tasks have been automated, companies still require workers who possess relevant tech skill sets. As a result of a lack of know-how and skills, potential investors may have to employ expensive expatriates' services. In addition to the cost of paying these experts, investors might also have to build up training centres to equip their future workforce. Carrying out all of these requires a lot of time and money, which, if not provided, poses a massive problem to the manufacturing industry in Africa. POLITICAL INSTABILITY Domestic and foreign investors have pointed out political instability as a reason for calling off major investments in Africa's manufacturing
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FEBRUARY 2021 - MADE IN AFRICA ISSUE

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