Topic: Running a successful business in most developing countries (Read 525 times)

Budgeting and financial planning is very important on every businesses, they must also adjust that budget as we are facing higher inflation and probably, a new recession. New businesses will struggle at first but if they are able to manage it correctly, good days will come to them. Doing business needs your total effort, it’s good if you have a team to help you with this but if you are doing this alone, you have do better.

You know when you start a business, things always look like it the end of the world because you will have to be patient and ask questions at the same time persevering from your mistake if at all. Nothing is easy to start but with time everything is going to be better if one keep moving and pushing forward without relenting.

yes it should be considered as well, we having inflation and the price for each goods really matter. I am also cresting my own team and this is always one of the concern of my friends, the budget they are willing to use, in every thing we need to take a dish especially if we are just starting, business is hard when starting but soon it will be easier for us.

I think that not only investment in technology is needed by developing countries, but other things such as a lot of knowledge, including knowledge on how to use technology, are also needed by developing countries. This means that qualified human resources are the main thing that must exist in developing countries so that the economy in that country can run smoothly and also become faster.

I think it's just a matter of business mismatch that they build there so that it can cause failure in their own business. Because the failure of a business does not lie in developed or developing countries, but the main thing lies in how to run a business and also in the consistency of the businessman himself in dealing with every problem that occurs in his business. Due to the progress or development of a country, it is only measured in general in the economic sector in that country.

A good opportunity to develop businesses in developing countries because developing countries really need investment to improve welfare and economy, and in my opinion that many developing countries are needed are investment in the field of technology.

Regardless if you own it solely or plan to have a business partner in the future, maybe the best thing to do is to give your best efforts to your business and as much as possible, never stop learning and keep on applying constant improvements in your business for its future growth. Although lot of struggles may arise in the process, but if you have passion and determination to grow your business, you will always do things that won’t make it fail.

I would agree to most of your tips except for the one that says your products should be "pocket-friendly". I mean for the most part cheap products do sell fast compared to the more expensive variants and could cater to a wider array of customer but then again, price shouldn't be the biggest of your concern in such a way that delivery, creation, marketing and all other matters should. Price could easily be computed and taken into account for. Furthermore, hampering your product's quality for the sake of customer affordability is also gonna cost you your business.

I use several references from various sources to guide me in running a business or the like, so it is very likely to be able to provide guidance in exploring business science in various situations and conditions, but there are many challenges that may arise to carry out the process. The policies of some elements such as local government and several other factors may want to kill the business, but with passion, hard work, and keeping things that should and should not be done, maybe that way we can maintain the new business that we just built consistently.

These are not the 2 main factors, in my opinion all the factors OP listed are equally important and even more so. Your customer service is good and you advertise well, your business is well known, but what do you do if your product is not good or does not fit the consumer's pocket?
Today, any field is facing extremely fierce competition, so in order for a business to survive and develop, it is necessary to have all the relevant factors. There is no such thing as the most important that ignores other factors, depending on the circumstances of the business, we can adjust everything accordingly.

This should be applied to every businesses you have/owned and having just a single business doesn't mean it will give you a decent profit. Just do everything what the OP said as a reference to your startup business then add another one if you think the other one is stable either way you have the choice to make the same business in another place as a branch or have another type of business because let's just be honest, not every businesses you have will work the way you think it is.

Well it actually depends on the business and how the owners run it, quite a lot of citizens of developing and underdeveloped countries are closing their businesses and packing up because of complete failure to maintain a steady profit in relation to their capital that was put into it (that wouldn't be happening if they are finding success easy to come by).

What influences production cost imo is mainly inflation and it is currently a serious menace today, especially in developing countries, with some of them already in hyperinflation/recession, thus it is kinda difficult to keep up with production cost and still make profit which is undoubtedly the goal of every business. Having said that, i for one haven't noticed the influx of 'rulers' from developed countries into developing ones to run their businesses, except i myself is missing something.

This is exactly what happens in developing countries. Like in this country, people will prefer to choose cheaper prices although the quality may be decreased. However, people still like to bid on our merchandise or ask for a discount even though the net price is listed there. because it has become a habit. So, only upper-level people like to use branded or expensive goods. Meanwhile, specifically the lower middle class, they are more concerned with low prices. And most of the people in developing countries are middle-to-lower class. This is real enough and I am also experiencing it.

This is like a must. People will like to choose a price with a discount label although we know that the initial price has been raised, with the discount label, this will be more attracting people to come and buy. Let's say that the initial price is $10, some people may not buy it because the price is too expensive for them. But, it will be different if we write the price as $20 and get a discount of up to 50% for today's sale. The final price will be the same $10 right? But, people will come to it because of the discount label. 

Customer service and a good Advertisement

I believe these to be the main elements to a successful business.
It's important for businesses to maintain a high level of customer relationships as these tells a lot as to how you value them and not just being out there to make money off them. No one likes to be milked like you do cattles and having your customer at heart ensures there safety and your patronage.

Advertisement helps to elaborate to your customers on what they already know as well as what they don't. It not only pushes the product to distant corners but it does help in business growth.

Maybe they have invested in agriculture but there is not much news to tell because this year, technological developments seem more felt than the food sector. So there will be more news about investment in automotive, garment and other production. Once there is news about food shortages in many places, it will provide an opportunity to invest in the food sector.

And what @OP conveyed are ways or methods a businessman can apply to develop his business, especially if it involves agriculture. And it's also good for @OP if he could pay more attention to his business because we may have a food shortage in the next few years so he can prepare it from now.

Agriculture are the least option for the investors, they are indeed focused in other sector especially with Automotive and Technology which we cannot blame them since there's a strong demand for that sector and that is still a good investment for a developing countries. Doing business might not be easy as well especially if the market are dominated by the big companies, if you want to succeed you must offer a good service and a quality project, developing countries are still a good place for foreign investors.

Developed countries deliberately make investments to developing countries through automotive, garment and other production lines. Because they of course have done research first before deciding on the steps for investment and other production, it can also be in the form of the agricultural sector such as fertilizers, seeds and also agricultural tools that run out when used. So it is actually very appropriate because in developing countries there are usually not too many factories or large companies engaged in these fields, such as in the example of automotive and the like.

Developing countries have 2 good features for private business development.
1. A large number of consumers. But inexpensive and not very high-quality products, with a very low cost. Let me explain - in the same countries it is difficult to sell, for example, a microscope, but it is very easy to sell a huge amount of nails of not the highest quality, and get a big profit in percentage and in kind.
2. In such countries, there always appears a layer of "nouveau riche", who have a lot of "bad money", and on whom you can make very good money, on their vanity and desire to elevate themselves above everyone else.

Running a business of your own as long as it’s highly in demand will give you guaranteed profits more than what your previous job can offer to you. The profits is unlimited so you have to take every opportunity to win and gain profits with the help of the continued patronage from your clients. Otherwise, having a business that sees no growth and development, most likely sustaining it will be very hard and impossible to achieved success.

Good to hear that this advice came straight to you and not just copied from some sites outside because you know, we have lots of those threads already and the sharer of those threads didn't even applied it out but I think their only motive on why they create such thread is to get a merit but still, most of them aren't being awarded by a merit.

A small restaurant is a business but can you share the things that you do on why your business has failed? I guess there are things on the op's list which you didn't followed. I believe not all business owners knows those tips automatically especially if it was their first time and then they also rush. They will mostly fail. It is better to plan first and get tips online to help you became more successful.

It may not be easy to transit from a small scale business to a bigger in a developing country due some factors like Government policies, insecurities, bad road, inadequate power supply and many more. This made me remember when a friend's farm is being destroy by herds men years ago and this lead to the end of his farm business. But if some of this factors can be managed to minimal and the one now follows most of this guide, it may help to build one business to a more better level.

One thing missing is "work in your field" and that's very important. If you want to start a business then you have to work in a company in that field before, that way you would learn about how that business is run from first hand. If you go into a field and start a business without having absolutely no experience in it before, you are going to fail.

I really do not like starting a new business, I have nearly a dozen business ideas in crypto and I have been in crypto for a decade and can really make these work. However, I love my current job so much that adding more work to my daily life is very very difficult, one day I will do it, but you also need to have hype about it too, if you are not desiring it enough, you won't have the courage to do it neither.

What do you mean by unconventional means to run a business? Do you mean by having other people to run the business ? If this is what you mean , well this method has also been successfully because some people don't have one business, they open more than one business and hand over some to others for controlling them while they have a record of account or agreement on how to run it. There is franchise running with this pattern.

You made good points but I would like and I guess these days 'Advertise Your Business is the most important thing because we all see by developing social media amount people and using social media on many platforms everything is changed compared to the last years and advertising is the key for many businesses when whenever they start, especially if they are in a country where they have access to other advertising platforms this can be a key to have a successful business. On another hand even if you have all the other factors but don't do advertising none knows your business.

While your guide book to a successful business is generally true, you should know that there is no handbook or a definite way to run a business successfully.  We’re all unique individuals and as such would do things differently.
Each business owner would have a unique different method on how to run a successful business. Some people would use unconventional means and still have a thriving successful business

It is good to have a business of your own but not everyone can do it believe that. Some people have capital but they can't venture into it for so many reasons like:

1. No passion : This is because some people can not manage anything given to them . If you have no passion for to do a thing you can't have magic done on that for it to succeed. Starting a business need passion because the beginning stage to higher people is not solution, you need your personal effort for it.

2. Capital : This is important area for business. Many business go away very fast because of no money to continue. It is challenge to grow business now with the high inflation.

With the word you mentioned Running a successful business in developing countries I want to talk about the reality, with the developing nations you can only be successful when the business is on a small scale even if you are doing everything at your best that is why people who wants to run business are moving out of their country to a place where there is better system for them.

As for the small scale I agree with those points but due to the corruption and monopoly the transition of small business into big happens rarely.

My printing services didn't offer the cheapest out there but people back then choose us over our competition. We offered fast and high-quality prints that other shops cannot replicate. We only had 4 computers and 4 printers running 12 hours a day, with regular maintenance every other day to make sure that the ink level on the printers, plus the dust build-up on the units is well taken cared for. I didn't spend a fortune opening up that business, but it gave me a lot of experience (and money) for 2 years straight, before we had to close shop due to the pandemic. If that shop is still up today, I'm pretty sure it will do well because we just did everything well, even if our prices our quite higher than the competition. Why waste a lot in promotion if your product/service couldn't live up to its claimed standard anyway?

You can know how to swim and its advantages and disadvantages by reading books but it won't make you a swimmer. Reading about establishment of business won't make you a successful entrepreneur. All these points can be invalid in different country and different circumstance.

Though you make some efforts to write this post but all this can be found in internet already. So try to add something new that you have already experienced and not talk about often.

One thing I should add to the dos of running a business in a developing country is - Be friends with top government officials but be non-partisan because when the chips are down you and your business may be the scapegoat taken to the slaughter. One of the advantages of being close with these type of people is that you can easily lobby them to enact favourable business laws that could shape the economic landscape for the country and other businesses too.

You missed some points. Always learn from the mistakes. The more mistakes you make, the better you will be running the business in the future. There are people that ends up quitting because of some small errors they made. Instead of learning from those and trying to fix it, the end up leaving everything which results in waste of money and time. Another thing, if you think a business model you are trying to run isn't sustainable, then different different models. If those fail too, then yes, you should quit and try doing a different business.

That’s far complicated when you “practically” enter into the market. There are dozens of challenges up above these assumptions. Practically it could challenge you way differently and some gets better experience while some gets horrifying experiences. You have to start with proper fundings and skeleton of the whole project. Many times you may not have proper backings from banks, you may not get good schemes to kick start your business. These things are important in the initial stages because that’s the weakest point where you can loose your patience before one can even get into the market penetrations. It’s big topic to discuss really and everyone could have versatile experiences really.

I definitely agree.

There's no expensive product to the right customer, if they say it's expensive, it is because it doesn't have any value to them or they don't see the worth of the product. But it varies I think, like if it's in a food industry, as much as possible you need to make it affordable since food is one of our needs, but if it's in the technology industry like laptops, smartphones, of course the higher the price the high quality you could get.

Don't forget about business competition among business owners because nowadays, when all business owners have difficulty getting back up, they tend to use all means to get their customers back, including attacking their business rivals. Working hard and always innovating will help a business venture grow rapidly and even beat its competitors. In terms of taste or quality, let the users decide and if they like our product, they will look for it.

If you can make your business grow better now, you've done well and need to move on to the next plan while seeing what the market needs. By seeing what the market needs and you can fulfill it, even if you can provide quality goods, your users will definitely like it and will always use your products. It is not easy to grow a business that we start but it is a challenge for every business owner, including you.

I'm a businessman and I also use some of this as a guide to run my business. I'm a vegetative farmer. Most of this tip are useful in running my business and that is why I always try to post them here to guide others who can't easily search for them online.

I'm not only copy- paste there but I use this as a guide for my business and it has been helpful.

These are useful tips for those who are planning to open a business or are the owner of a business but you are right, these tips are very general and we can find them on the internet nowadays a lot. This is not advice or a confidant of an experienced person. I have never run a business but once opened a small restaurant and failed. Honestly, these tips don't stand out to me, I believe anyone can know about them once they decide to open a business.

A lot of advice, but I would like to ask the OP, are these the guides that you took out of running your business, or is this a collection of someone's successful or not quite successful people? The link you linked to doesn't lead me anywhere. 
But speaking on the topic, you can find a bunch of such guides on the Internet, but another point is important: everyone who opens their own business will have a unique experience. It's hard to fit it into one pattern. We all have different countries, different laws, different taxation, and different financial opportunities. That is why I would like to hear advice from the business owner and not copy-paste or paraphrase other people's advice.

Not always the bookish knowledge works - there are many factors which are also important like how precisely the problem has been addressed - there are a few ideas in my mind and that too are very effective but I am not been able to find how to do it. My small business failed and I am unable to start the new venture

I'd like to address this idea that having a business is generally better than having a job because with a business you're the boss. It is true, of course, but it doesn't end there. I've known a lot of people who failed or burnt out or simply didn't survive in their business ventures even if they really don't want to work for somebody else.

Having your own business means a lot of commitment, determinations, passion, responsibilities, and so on. If you're really not into it, don't even start it. If you're not willing to make sacrifices, I don't think you'd last. If you didn't last even for a year with your dream job, you really need to seriously ponder on having a business of your own. You know, if you didn't survive with the kind of job that you thought would make you happy and you thought you could live with for the rest of your life, you need to really discover that ideal business.

For this type of info, I like content published by podcasts, youtubers and blogs in the "side hustle" or "side job" genre.

There are people who own small chains of vending machines and ATMs who don't mind sharing business details of how their operations run. There are people who start a small business cleaning parking lots or cutting lawns. Who go on to become millionaires.

When most think of starting a business they think of being a CEO. Making a big business loan with a bank. Incorporating. Buying expensive and impressive equipment.

But really I think the roots of a successful business begin and end with identifying essential needs of consumers and filling them. The more efficiently and effectively this can be done translates to better overall value and profit.

In the case of developing nations, I think a good business option for most would be retrospective things. One example is evaporation based coolers which can keep food cool using water in the absence of electricity. Archimedes screws as low tech water pumps. Things people need and use might always be a sound foundation for a business plan.

Most of these are true for businesses in any country, not just developing countries. Choosing the right market for your product is also essential because in the current age it is possible to sell via third parties and target all sorts of countries, even if you're just doing it on something like an affiliate commission basis. Knowing how to "play the game" is also rather crucial and will be much more apparently to locals who have grown up in those circumstances, whether that is paying "commission" to the right person, to being able to navigate restrictive customs import rules to being able to hold on to your business after it is established and a local politicians wants your success - these are much more common in developing markets.

No matter how small the business I have, then I am the boss, but no matter how big the position I get in other people's companies, then I am their subordinate.

I know that it is not easy to be the boss of our own business without being equipped with the skills, knowledge and capital. It is difficult to get success in a small business without maximum effort and other things that support its progress. Partners are another way to make this business grow, I think it should be in the development plan.

With all the saids been acceptable as an advise, it must not be forgotten that every business that is just starting need time to grow up and during this period you're not expected to be eager for more profits it at all and not until it got established, you're expected to have a continuous flow of money into it so as to help maintain the business for long until it starts generating it's own consistent profits, these are part of the requirements needed as well but most business entrepreneurs don't have a financial backup for incase of emergencies and expect the business to boom at the start, and this is why many ended up into closedown because they went either bankrupt or can't maintain handling the business because of low income or profits realize from the start.

What do you mean by pocket friendly? If you are making any product that will be used in mass then it will be low in price but the main points here will be in how low you can deliver your product to your customers. This should be equal to or lower than your competitor companies.

If your product will be used for some specific purpose then the price will not matter if you can maintain a high-quality product. There is some product that we use occasionally. For those products, people typically try to find a better quality product at the lowest price available. If your product is far better than your competitors but high in price people will still buy your product.

To be a successful businessman or woman, there is a need for you to equip yourself with the dos and don’ts of running a business. Judging from the rate of unemployment in most developing countries using Nigeria as an example, a lot of people venture into entrepreneurship and business. Every business has its challenges and of course the sweet and smooth running flow. So, you need to work on the following dos and don’ts that can guide you for the success of the business.

Dos of Running a Business
👉Do an In-depth Research
Doing in-depth research is the first thing you should do before starting any form of business. One of the numerous mistakes many people make is starting a business without adequate research. Good research will expose you to the strength, weaknesses, opportunities, and threats (SWOT) of the business.You would know what it requires for you to run it successfully without having to pack up or run into depth.

👉Let your Product Be Pocket Friendly
I understand the end goal for every business is profit, but you should avoid prices that tend to chase your customers away. As a start-up, your first assignment is to drive traffic to your business and store. And to achieve this, you might have to sideline making so much profit at the start of the business. After gaining your customers’ trust and loyalty, you might consider adding up to the price that won’t look outrageous to your clients or customers.

👉Give Discount Prices
Giving discounts during festive periods or at intervals is a good marketing strategy to retain and regain your customers’ loyalty. Everyone wants at least a reduction in price for whatever goods or services they want. So giving a discount price may help in winning and attracting new customers.

👉Have a Good Customer Relationship and Service
The way you relate and interact with customers can help boost your business. Have you ever considered why most companies or businesses employ beautiful and attractive employers to serve as the sales representative or marketer? The aim is to capture the attention of the customers and have them come back for more. A kind and welcoming gesture to customers can make your customers loyal to you.

👉Avoid Sale of Fake Goods
One of the reasons why most Nigerians will go to stores with names is because of the mindset that whatever they buy is original. Well, I won’t say they are not but that doesn’t mean start-up businesses don’t sell quality products. One harm you would cause yourself is to sell fake goods. Once a customer realizes your goods or products are fake and of less quality, you stand the chance of having a bad review. And if you agree with me, bad reviews are quick ways to lose customers and run at a loss.

👉Have a Record of Your Business
Keeping record of your business helps you in giving accurate accounts on how well the business is doing. You have the knowledge of how much is coming in and how much you are spending. It gives you an insight of the goods in high demand and areas that need improvement. Poor record is one of the reasons why most businesses in Nigeria fold up.

👉Advertise Your Business
One cannot neglect the power of Advertisement to publicize your business and make it known to a large audience. Advertising your business is a good way to let your customers know what you have for them. Good advertisement can help in improving your sells in double fold.

👉Plan Ahead
We all know the economy is not stable. So, don’t be caught unaware. Always make plans for unforeseen circumstances or events that might likely happen. Consider having some money aside for the future. Perhaps you want to expand your business or in the case of an economic crash. This will help reduce the effect on your business.

Don’ts of Running a Business
👉Avoid Debt
Running into debt will end your business. Instead of saving your profits and taking out your capital to restock, you will end up paying for debt. To avoid debt, you must avoid taking huge loans to start a business. Especially loan where payment made every week.
Undoubtedly, it is almost natural to ask for financial assistance for the growth of your business but avoid taking a huge loan that could choke you.

👉Don’t Underestimate Professional Advice
You can be a finger in every pie but you can’t know it all. Do yourself the favor by getting a professional business analyst and hands to help your business grow and be on top of your game.

👉Avoid taking Long Break
Taking a business break can either help or distrust the business. Some business owners take a break to re-strategies to get better. But on the contrary, it is a journey to end the business if not well done. One of the disadvantages of taking a long break is, you would lose your customers and it might be difficult getting them back.

👉Don’t Entertain Unhealthy Competition
In business, competition cannot be overridden. This can be in two ways: healthy and unhealthy competition.
Healthy competition: This is a form of disagreement that doesn’t disrespect or disregard the other person’s opinion. It might even be an opinion or discussion from your customers. You should always welcome healthy competition.
Unhealthy competition: This often destroys the business and may cause conflict. Trying to talk down another person’s business down to gain more customers to yourself is a good example of this. Trust me you won’t like the outcome.

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Conclusion
Establishing a business will make you the boss of yourself and will also save you from the risk of unemployment but this doesn't come easy as alot of challenges may surface doing the process. Government policies and some other factors may want to kill the business but with passion, hardworking and keeping the above dos and don’ts can help you in sustaining on your new business.