Any business that grows to a certain stage is bound to undergo tough times as a result of turbulent macroeconomic conditions such as inflation, changing the regulatory landscape, and other factors affecting supply and demand or internal crises. One trait several entrepreneurs have in common though is resilience. We sat down with four entrepreneurs from Kenya who are leading businesses that have either survived those tough times or are still undergoing them to hear their journey on it. They are all Africa’s Business Heroes from previous years Chebet Lesan (Grand Prize Winner 2020); Charlot Magayi (Top 10 2021); Tesh Mbaabu (Top 10 2022); and Tonee Ndungu (Top 20 2021).
This is how they advise other entrepreneurs to armor themselves for the inevitable tough times.
BUILD FOR WHAT THE MARKET NEEDS
Charlot Magayi of Mukuru Clean Stoves shares that one of the aspects that has helped her business survive is building a product that the market needs and not a nice to have. People will always need to cook. As a company they are always looking for more efficient ways to produce stoves and fuels so that they meet their customers where they are. Even though solving health problems and preserving the environment is part of Mukuru’s ethos, these are not values that clients with limited purchasing power prioritize. Her advice is to find a way to keep the product relevant to the consumer even though as an entrepreneur you might be tempted to lead with aspects of the product that you think your customer might value. If your goal is to meet people’s needs, you will always have a market.
SEPARATE YOUR IDENTITY AS AN ENTREPRENEUR FROM THE BUSINESS:
Tesh Mbaabu of MarketForce, a unified digital commerce marketplace for Africa’s neighborhood merchants, has been undergoing turbulent times with his business. In 2022, MarketForce went through a successful fundraising round of 40 million USD, speaking to Tesh’s ability to raise funds and the company’s traction at the time. Despite this success however, Marketforce faced challenges with their underlying business model as they scaled up. In the midst of closing businesses in three major markets, Nigeria, Rwanda, and Tanzania, and laying people off, Tesh as an entrepreneur has been experiencing a ton of stress, an emotion several other entrepreneurs can relate to.
One of the tips Tesh shared that has helped him navigate this season of his life is to do his best to treat the business as a separate entity from himself. This gives him the personal resolve and objectivity to deal with problems at hand without driving himself in an irrecoverable place. The same words were echoed by Chebet from BrightGreen who shared that one of the differences she has observed between African Entrepreneurs or Silicon Valley entrepreneurs is that separation between the entrepreneur and their product. When there is a healthy separation between where you end and where the business begins, it allows the entrepreneur to make tough decisions sooner and minimize damage that might be caused by prolonged indecision. It also helps to protect the entrepreneur's mental health and give them the fortitude and willingness to try different ventures.
CHOOSE YOUR INVESTORS WISELY
Chebet Lesan is the CEO and Founder of BrightGreen, and a 2020 Grand Prize Winner of the Africa’s Business Heroes’ competition. She shared how inexperienced entrepreneurs can be lured by the idea of external funding and end up willing to take on any investor. Chebet stressed that the relationship with an investor is based on shared values; built on understanding, good intentions, and radical honesty. She advises choosing investors who will give more than money. Investors that are willing to give their time, expertise and network are the best fit. She cautions entrepreneurs against painting a perfect picture to impress investors. This scenario could result in missing out on the support and solutions that could come with openly sharing one's challenges. She emphasizes that with a clear and accurate picture, investors can align, support and manage their expectations.
PRIORITIZE RELATIONSHIPS
Serial entrepreneur Tonnee Ndungu shared that one the best things an entrepreneur can do for himself is to surround himself with people that they can rely on and people who can tell them the truth. Given that the life of an entrepreneur is demanding, it is not unsurprising that maintaining relationships can take the backseat. It is very common for an entrepreneur to face challenging times and realize that they did not invest in a circle that can carry them through that period. Tonnee explained that he realized he was very good at starting relationships, but not always maintaining them. However, he urges entrepreneurs to focus on building and maintaining relationships because the investment you make in building strong relationships is what makes you antifragile in the long run. Chebet echoed this with a punchy insight: “anything money can buy relationships can also buy. You can buy a car or you can be given one.” Don’t chase money, build relationships and the money will follow.
