Tag: make money in Ghana

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This is How Rewarding the Streets of Accra Can Be

Make money in Ghana

You won’t find money lying in the middle of every street in Accra. Even after the 100th try, probably. However, there are many ways the busy streets of Ghana’s capital can reward you. The street is putting hundreds of thousands of cedis in the hands, pockets and purses of those who ply it diligently. Well, if you’re lucky you would come across a 1 cedi note lying on the floor of one of the many busy lorry stations in the city, but that’s not the focus of this article. For those who are still looking for an opportunity to make money in Ghana, here’s one of them.

On every stretch of Accra’s streets, tarred or untarred, you will find brisk business activities taking place. Thousands of people engage in buying and selling via small roadside kiosks, hawkers, food vendors and major shops along the streets. Now here lies the money.

Read: Start a roadside business today and you’ll be amazed at the profits

Businesses that have relied on the power of the streets have been duly rewarded. Rush energy drink, adinkra pie, nkatie burger, newspapers, fanmilk products, and quite recently A1 bread are among the many products which have enjoyed tremendous brand awareness and acceptance on the streets. They have become household names to the dwellers of Ghana’s capital city, Accra. A sure route to make money in Ghana, as a small retailer.

Business activities along the streets are quite enormous if you observe the zeal with which hawkers run along and across the major streets in the mornings and at evening rush-hour periods. Money is exchanged for goods at every second, enriching the owners of these businesses and the retailers who risk everything on the streets as well. Without taking a dive into the numbers, you would agree that this should have a positive relationship with revenue growth.

Read: The most profitable business in Ghana requires the least capital and skill

Contrary to the opinion of a minority section of Accra’s population, the products sold in or along the streets are not inferior. It’s often the same products you find in many supermarkets. You’ll have noticed that strong brands like Malta Guinness have in the past few years also invaded the streets of Accra. It is where the money is. To put this in perspective, consider a Nielsen survey, which found that majority of Ghanaians shop at general stores or from road side kiosks that sell almost everything from beverages to mobile recharge vouchers.

As entrepreneurs, new or seasoned, there are many lessons to pick from Accra’s street business. It does not seem like business in the street is coming to a close any time soon. Even though law enforcement agencies have at some points taken steps to drive hawkers –the main drivers of street business, away from the streets, the model keeps flourishing. Where there is traffic, there is money because it is where the buying and selling takes place. For those who find this retail model very dangerous (which it is), you can site your small shop by the road (having obtained the necessary permits), and this also, can be very rewarding. It is one of many ways to make money in Ghana.

Read: Majority of Ghanaians shop at General stores and road side kiosks

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Entrepreneur featured

The Most Profitable Business in Ghana also Requires the Least Skill And Capital

profitable business in Ghana

According to a Nielsen survey, majority of Ghanaians do most of their shopping at general stores or from road side kiosks that sell almost everything from beverages to mobile recharge vouchers. The survey also found that only 11 percent of respondents use supermarkets or hypermarkets as their primary channel for groceries.

Retail shops are often the channel from which many Ghanaians buy the products they consume. For first time business owners, the retail business is one that I advise people to consider. It is easier to set up and comparatively easier to manage as well.

Read: Majority of Ghanaians shop at General stores and road side kiosks

What to Sell

The next question is what products exactly to retail for maximum return on your investment. To answer this question, I always tell people to take a look at the products they consume (or make use of) almost every day or at least once every week. From the time you wake up to the time you sleep, from Sunday to Saturday. Toothpaste, toothbrush, cups, plates and bowls, bread, sugar, coffee, tea, clothes, the saloon or barbershop, transportation, food staples, groceries, recharge cards (or the electronic form), and the list goes on. These are the areas where cash is exchanged on daily basis and your job is to place your business somewhere in that never-ending cycle.

Read: Fast moving businesses in Ghana that require small capital

Rewards

Let’s look at the numbers. Retailers of fast moving consumer goods often earn at least 5% markups on their products and this can go as high as 50% on products such as imported clothes, confectionery, agricultural produce (food crops, meat etc). At the lowest profit, 5% that is, given that you turnover stock once every week, your profit at the end of the year well exceeds 200% on initial amount invested in stocks. The operational costs associated with these businesses are not so high for small and medium-scale set ups. However, for bigger setups such as supermarkets located in major malls, the operational expenses (electricity, rent, insurance, salaries, etc) can be high.

Risks

Major risks associated with these businesses include perishability of products (those with short shelve life), theft and pilferage by shop attendants and consumers in limited cases.

Read: Profitable businesses in Ghana that require small capital

With as little as GHS1,000 you can start a retail business on a small scale, and grow it steadily. You may need a basic understanding of inventory management. I advise retailers to often stick to cash sales and avoid selling on credit as much as possible. Bad debts at this stage of your business, can spell the end of your small businesses if you are unable to replenish stock, because your money is locked in debts.

Other areas where we spend daily are communication, electricity, water and fuel but these setups require bigger capital, and so you may consider them when your pockets grow deeper. However, these seemingly big businesses also have smaller sections that you can consider investing in.

Read: 10 Low cost businesses you can start in Ghana

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Business

10 Low Cost Businesses You Can Do in Ghana

profitable businesses in Ghana

What are the best small business opportunities in Ghana? What are the best business ideas and investment opportunities in Ghana for entrepreneurs and investors? Well, i advice you read on to find out.

Ghana is one of the countries with the fastest growing economy in Africa. Now you may want to know the potentials and fundamentals of doing business in Ghana. With a strong mineral resources sector, cocoa industry, consistent government policy, recent oil discoveries, steady power supply, friendly business environment and a free trade zone for foreign companies; Ghana is definitely a country to beat in the future.

But despite the rapid growth and reformation that the country is enjoying, the country is still falling short in many aspects. And this has opened the door of opportunities to entrepreneurs who are smart enough to identify these loopholes and deal with them. If you are an entrepreneur planning to start a business in Ghana, below are the 10 lucrative business opportunities you should explore:

Top 10 Small Business Investment Opportunities in Ghana

  1. Waste management

Although there are a number of waste management companies in Ghana as of present, the country is still battling with more burden of filth than these companies can handle. To worsen matters, many Ghanaians are still in the habit of throwing refuse into drainages. You can make cool money in Ghana if you start a waste management business that offers to help people handle their wastes and refuse.

  1. Herbal medicine

Ghanaians are now realizing the fact that not only orthodox medicine is effective in combating various ailments. There is increasing demand for herbal medications, and this has made herbal medicine more popular in Ghana. The good news is that almost all the medicinal plants that are used to handle various ailments can be found in Ghana.

So, Ghana is a fertile ground for flagging off a business that sells herbal medicine. If you go into this business, you will most likely get quick returns because herbal medicine is cheaper than orthodox medicine.

  1. Agriculture and farming

Food is one of the basic needs of man and anyone that ventures into food production is sure of a never ending demand. The steady growth of Ghana’s population due to influx of investors, students, tourist, etc will only help explode the demand for food.

Ghana has soils that can support a vast variety of food crops. And yet, the agricultural sector is one of the most underutilized in the country. The Ghanaian government hasn’t done enough to explore the sector, which comprises only a few private companies. One can liken the agricultural industry in Ghana to a gold mine, as there’s always a high demand for agricultural produce.

  1. Oil and gas

Following the discovery of oil in Ghana, the country is set to join the list of petroleum exporting countries. This oil sector, still very young in Ghana, is presently begging to be explored extensively. And there’s almost no limit to the profit that players in this sector can make. Though starting an oil and gas business could be very expensive, you can venture into it if you have what it takes.

  1. ICT

Internet access in Ghana is still very scarce and the few internet facilities available are far below average. Ghanaians are presently craving high quality internet services in their homes and offices. And they have no problems paying for such — provided the quality is kept consistent. So, the ICT sector in Ghana is still underexplored, and you can make huge profits by launching a business that provides quality internet services.

  1. Food production

Because Ghana is home to many agricultural food products, it offers the much-needed raw materials for food processing companies. And due to the fact that food is always in high demand, starting a food processing business in Ghana is a smart and lucrative move. Better yet, you can start on a smaller scale by launching a small business or restaurant that sells foods and snacks. This business is one of the easiest to start, and it’s very profitable, too.

  1. Transport services

Aside food, transport from one place to another is another necessity. And the reality in Ghana agrees with this. So, if you are planning to start a business in Ghana, but you are yet to find a promising opportunity, the transport sector is an option. You can start a business that renders transport services, either on a small scale with few vehicles that ply short routes or on a large scale with many large vehicles that ply long routes.

  1. Real estate

Though an expensive sector to break into, the real estate business in Ghana is, as is the case in most countries, very lucrative. Following the discovery of oil in the Western part of Ghana, the nucleus of development and industrialization is gradually shifting towards the region. So, you will probably make more money as a real estate investor if you focus on the oil-rich region. Learn how to start a real estate business in Ghana.

Related: Should you invest in real estate or transport? 5 things you need to know

  1. Microfinance

There are many business opportunities in Ghana, and more people are getting to realize this with each passing day. This has led many business-minded Ghanaians (and foreigners, too) into various small businesses.

However, many small businesses are yet to launch and many existing ones are yet to expand — both due to lack of funds. Therefore, there is high demand for microfinance services. If you have a background in banking, especially microfinance banking, you’ll make money and at the same time help develop many small businesses.

Related: Should you invest your money with a microfinance institution

Related: Why microfinance institutions are failing and how to avoid it

  1. Tourism

This is another big industry in Ghana. Every year, the country plays host to many foreigners who come to behold the various tourist attractions in the country. The tourism industry in Ghana is another sector you can start a business in if you want huge gains in the long term. One glad fact about this business opportunity is that even foreigners can launch it easily.

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Business

3 Essential Skills You Need to Grow Your Business in Ghana

How to grow businesses in Ghana

Businesses in Ghana, whether foreign-owned or local, have encountered challenges and continue to face challenges in different forms. Some of them have surmounted and become household names, whilst others have fallen off. What exactly do the successful ones have in common that the failed businesses lacked.

Marketing

Very few businesses in Ghana have seen a small shade of success without marketing their products or services. Many businesses that go under often did not have marketing budget from the beginning and never set aside funds for marketing even when they started making money from their early years of sales.

Related: Sales is everything – never stop selling

Assuming your product or service is a supernormal one is often a big mistake. To succeed you must market your business and your products, even if it is a life-saver. Ghanaians, like other nationals, are gradually becoming used to products being brought to them rather than searching for them. You need to get your name out there and make it the first to come to mind when consumers think of getting an item in your product category.

Leadership and Innovation

Leadership is what drives a business towards the ‘promised land’. It’s quite simple. It is the vision and abilities of the leader that lead everyone else and ultimately the business to where it’s envisioned to be. Businesses have crumpled in Ghana for many reasons, and often, poor or weak leadership is one of them. To survive the vagaries of Ghana’s business landscape, you need experienced and proactive leaders.

Related: The life-changing habits of progressive leaders

In addition to strong and proactive leadership, innovation is also essential to business success in Ghana, no matter how small-scaled.

Networking

Connections! Perhaps not the exactly the right word but in this context it means one’s ability to tap into friendships (personal, political or business) and family ties for the benefit of his business in circumstances where you would not have gotten that favour or not gotten help within the time frame that you got it.

Knowing people and being able to leverage on your network for the benefit of your business is very important in Ghana and my guess is that it is so in many African countries and even beyond the African continent.

Ghana however presents a conducive environment for business. This is evidenced by the billions that have been invested in the country by foreigners. Local businessmen also have certain business areas reserved for them in addition to all other businesses in which foreigners are allowed to engage in.

See also: 25 Common characteristics of successful entrepreneurs