I started out this blog post knowing absolutely nothing about what I was going to talk about (cause like I said earlier on, I’m still very new to this), but then it hit me; the outrageous number of tech startups springing up these days, one would only wonder if its because it’s the “in thing” now or because they actually want to solve genuine problems, and it often looks like they “crash and burn” almost as fast as they are conceived.
|Most Startups often crash and burn as fast as they are conceived|
WHY NEW BUSINESSES FAIL
A deep look into what’s responsible for this while communicating with various tech startup founders over time has revealed that; most founders are often distracted and only interested in creating “an app” or an “online platform” to do “so so so” forgetting the structure and tons of background work and research required to build a business (because tech startup or not, its actually a business), and just like every other business, there has to be structures in place, a very good delivery channel, a good business model, identification and marketing strategy etc. The app or online platform is only basically a leverage in my own opinion (leveraging on the power of technology) to access a wider market.
In Africa this is even more difficult, though there are many surveys about the behavior of internet users pointing towards a positive pedestal, it’s nothing but a hoax.
We still have a very looooooong way to go when it comes to internet usage, the patronage and loyalty of customers and that’s why I’ll advise in my own unholistic opinion that even though you’re starting that tech startup for online customers (which of-course you’ll get but not enough to make you profitable at this time), ensure to have a diversified means of generating revenue (which should be less dependent on your internet users) whilst we wait on customers to fully adopt internet/eCommerce patronage.
A quick peek into certain tech companies adopting this A + B model will reveal companies such as Jobberman for instance, even though characterized as a tech company, they in addition to this carryout offline recruitment, partnerships and training programs.
Irokotv recently deployed kiosks around the city of Lagos to help drive the sales and encourage users to get contents easier; still an offline approach to engage customers (cause obviously these kiosks are not on the internet).
My own startup iFixng.com; has an offline division called iFix corporate where we recruit handymen for engineering outfits, facility management companies, corporate firms, etc.
I can go on and on, but these further goes to drive the nail on my point, which is first off; identify the BUSINESS around that TECH STARTUP you have or want to create and then go on to create alternative and diversified means of generating revenue, depending less on internet users till Nigeria and Africa fully adopts internet / eCommerce patronage.
Thank you for reading this post, I hope its educative and mind blowing for you. Don’t forget to subscribe to my newsletters to get fresh contents right in your mail box and also leave your much appreciated comments below.
God be with you till we meet again.