Startups have seen a rise in Uganda in recent years. This is evident as Uganda was ranked as the world’s most entrepreneurial country in 2016. Sadly, few Ugandan Startups hit the big time. Most of them die off even before they see the light of day. It really hurts seeing your dream go down the drain, it’s a heart breaking moment. However, some Startups have gone on to make huge returns and grow bigger than their owners first estimated. It’s not that the founders have mastered any secret formula to building a successful Startup in Uganda, they just know when to play which card from the deck. Playing the right cards can turn a dream into a multi million venture. So how do you build a successful Startup in Uganda?
Identify the gap in the market.
The market may look over crowded with every need seemingly covered when you take a look from a far. But on close examination, you’ll realise that there are needs that are unmet or not fully satisfied. A particular problem may already be solved, but there is a gap if your Startup is bringing a better way of solving that particular problem. Consider that a gap in the market.
Is there a market in the gap?
Startups are made with profit making at the back of the mind. Identifying the gap in the market is one thing, and knowing if you can actually make money filling that gap is another. Because its still a Startup, even a small market that cannot be profitable to big firms could become a super efficient money spinner for you.
It’s already been done?
The first thing many entrepreneurs do when considering a new idea or startup is combing the market to see if it has already been done. Most commonly, the result is the realisation that someone thought of it, and even built it, way before we did. This may lead us to make the rookie error of looking for a fresh idea. But wait, if it’s been done and we didn’t know about it, has it really been done? If they did it and it didn’t work, is it because the idea is crap, or did they do a crap version of it? The only way to answer these questions is to ignore the fact that it has already been done, and do our version of it anyway. Remember, there were over 300 video sharing channels when YouTube launched. YouTube just made a better, more user friendly interface, and the rest is history.
Build the ‘ultimate smart’ team.
You’ve identified the gap in the market, and ascertained that you can make money filling that gap. It’s already been done maybe, but you don’t care if it was. So it’s time to build a team because it’s dangerous treading solo. A great technology based startup team comprises of the 3H, the 3 core skill sets you need in a team. They include a Hacker, a Hipster and a Hustler. You may already know these, but let me shine more light on each. The Hacker is the code monkey. The development guys who knows how build to construct the actual thing. The Hipster is your design guru, the UI guy, this person has a sense of style to them and knows how to make ‘it’ beautiful, desirable and usable. The last guy, the Hustler is the deal maker, the dream seller and the phone call maker. It’s a rare scenario to find a person doing it all. Even if you can do it all, it’s probably impossible to have the time to do it all.
Dream big. Act small.
Startups mostly focus on emerging markets with untested business models. It’s very vital to keep the costs as near zero as you possibly can. The overhead costs must be close to zero to give your Startup something others don’t get —time. You don’t have to rent an expensive office in Kampala, or hire expensive industry leading technicians when you are just starting. Your ultimate smart team should comprise of fellow dreamers, people who are passionate about the Startup and could work for little or no pay until the Startup is up and running. Every injected shilling should be to expand the business, not pay off costs.
The trade off!
Entrepreneurship is more about exploration and freedom than money. But because we need to make money out of our Startup, we should decide what our finance source for the Startup should be. And the logical option is having to personally finance it. After most people conceptualize and build a Startup, they set our looking for Venture Capital (VC) funds. This money comes bundled in complex terms and conditions that may even see you offering a section of shares to the party that provides the money. You end up being answerable to someone other than your customers in your own business. It’s a rare event indeed when the deal terms favour the founder. Real entrepreneurs find ways to make money independently. So unless the VC comes knocking on your door with you setting your own terms, find ways to personally finance your Startup.
Learn from mistakes.
We now have a team, and personally financing the Startup. So every shilling matters. Mistakes are made, but learn fast from them before they begin to cost you a fortune to fix. Mistakes can be a real source of success if you learn and bounce from them. So don’t repeat the same mistakes because each mistake will cost you.
Be flexible.
The business world is dynamic, and so should anyone looking to build a successful Startup in Uganda. You shouldn’t necessarily stick to old models of marketing and managing the business as these change by the day. Staying flexible allows you to be dynamic and adapt with emerging market trends.
Start networking.
Hanging with the right crowd is important to your business. These people can be advisors, friends and mentors. Hang with people who have realised success in their lives to teach you a few basics of building success. Surround yourself with positive minded people with great diverse experience and skill sets so that you can learn a thing or two.
Get a closer relationship with your customers.
Customer loyalty and happiness can propel your Startup to unprecedented heights in short a time. Getting new customers could require loads of expensive persuasive advertising. So follow up on your existing customers and create functional touchpoints. Listen to your customers and adjust, but not far from your original idea.
Aim higher.
Getting comfortable will hinder further growth of your Startup. Make realistic big goals for you and your team to accomplish in certain time frames. For example, you could try growing your market by 4% each week and making sure you follow this up to know how you progress.
Play an active role.
As a founder, you may find yourself pulled to a million directions with partnerships, funding, recruitments, strategising, among others, but keeping your hands on will definitely help the Startup to succeed. No one knows this business than yourself. Learn to manage your team and everything will roll.
Patience pays.
Yes, you have a really great idea, but success doesn’t come overnight. Even those companies that seem like overnight success hitters flew under the radar for several years before they made it to the top. Apple Inc was started in 1976, but it first made a break in 1984 with the Macintosh computer.
Startups are great because you are trying to solve something you are passionate about. You have to be ultra committed, willing and able to work for long hours to set your dream in motion. Most times Startups don’t fail, their founders just give up so soon. Understanding the above steps and principles can be the difference between a failed and a successful Startup in Uganda, and everywhere else.
