Estimated Cost : 0 TZS

Time Needed : 30 days

Below is a detailed overview of the steps.

1. Step 1: Review available business opportunities

   The first in list of steps to start business in Tanzania is to review available business opportunities. Tanzania has vast of business opportunities. The opportunities are found in the following sectors:A: Opportunities in the Agriculture & Livestock Sector in Tanzania(i) Farming of high profit crops (cash and food crops)Tanzania has a vast land for growing various crops. The crops with most potential of a ready market are maize, wheat, millet, sunflowers, soybeans, coffee, cocoa, tomato, citrus fruits, avocados, macadamia, cashew nuts, peanuts, potatoes, cassava, sweet potatoes,(ii) Trading of high margin crops (cash and food crops)This involves buying and selling of cash and food crops in bulk. You collect from the regions with highest harvests and sell in large market regions like Dar es Salaam. You can also do hedging of the crops whereby you buy and keep in godowns until when there is demand and price increase.(iii) Exporting most valuable commodities (cash and food crops)Exporting of crops (commodities) is a great opportunity to pursue. You can export cashews, peanuts, coffee, etc. Get in touch with us to see how we may help you get into the ground make this work.(iv) Raising of livestock for meat, eggs, milk and leather=> Tanzania has a huge population of livestock.=> Complaints about quality are boiling up.=> So there is need of establishing livestock ranches for raising good breeds and fattening.(v) Trading livestock products like meat, eggs, milk and leatherThe large cities like Dar es Salaam depend much on livestock products from upcountry regions. You can buy live animals from upcountry regions and sell them live in Dar es Salaam or slaughter and sell meat. Same opportunity exist for eggs, milk, and other livestock products.(vi) Exporting livestock products like meat, eggs, milk and leatherTanzania is exporting various livestock products abroad. We have one post that details the procedure of exporting livestock products. Click here to read the full post.B: Opportunities in the Manufacturing Sector in Tanzania(i) Processing of agricultural productsSugar factory, grains milling factory, juice and beverages manufacturing factory, meat processing factory, dairy factory, edible and non-edible oil factory,(ii) Manufacturing of Industrial productsManufacturing of textile products, manufacturing of cement, manufacturing of ceramic products, manufacturing of electrical products,C: Opportunities in the Mining Sector in TanzaniaOpportunities in the mining sector include mineral exploration, support services to the mining exploration companies, mineral extraction, mineral trading and mineral processing (jewelry).D: Opportunities in the Oil and Gas Sector in TanzaniaOpportunities in the oil and gas sector include exploration of oil and gas, provision of support services to the exploration companies of oil and gas, extraction of oil and gas, trading of oil and gas, processing of oil and gas.E: Opportunities in the Tourism Sector in TanzaniaOpportunities in the tourism sector include accommodation services, travel agency services, tour guiding and operation services, charter flights services, car hire services.

2. Step 2: Filter them and pick the one that works the best

   The second in list of steps to start business in Tanzania is to filter the various opportunities listed in step one and come up with the one(s) that works the best.The filtering process shall be based on the following factors:(a) Market SizeMost of the opportunities we have listed above have a ready market. But even with this knowledge in hand, you still need to do a small research to establish the approximation of the market size.(b) RelationshipsDo you have relationship with stakeholders in the sector you choose? Do you have relationship with some of the potential customers? Such relationships are a good start to a successful venture.(c) Ability to Manage Cash FlowSourcing and allocating cash is a key aspect of a business success. If the idea calls for huge cash and you are not sure of your ability to manage such huge cashflows then its better to rethink if you want to pursue such an idea.(d) Management SkillsetsIf the idea demands high skills and you have nothing special to bring to the table, then its not a good move to chip into such business adventure.(e) Passion and PersistenceEven if there is a bit of a talent deficit, it’s possible, in some cases, to make up for that with passion and persistence. Can you find people who will get the job done?

3. Step 3: Do market research, survey and compile potential leads

   The third in list of steps to start business in Tanzania is to do market research, survey and to compile potential leads.

4. Step 4: Prepare a lean business plan to be your guide

   The fourth in list of steps to start business in Tanzania is to prepare a lean business plan.

5. Step 5: Choose structure and register the business

   The fifth in list of steps to start business in Tanzania is to choose ownership structure and register the business.Any of the following ownership structures can be used in Tanzania:1. Sole proprietorship (business name)Sole proprietorship is a registered business owned by one natural person. The business has no shares nor shareholders.Click here to open and read our article that provides details on how to register a sole proprietorship (business name) in Tanzania.2. Partnership (business name)3. Private companyUnder the Tanzania Laws, a private company is a company is an incorporated body of two or more natural persons with mutual vision and direction.Click here to open and read our article that provides details on how to register a private company in Tanzania.

6. Step 6: Inject a small chunk of capital and test the idea

   The sixth in list of steps to start business in Tanzania is to inject a small chunk of capital and test the idea.You can not test your idea without injecting money. But don’t put in everything you have. Go with a small chunk of capital and get some insights.Steps to testing your business idea(a) Give it some time to ageDo you still have the same idea sometimes later? Is it still burning that you need to pursue the idea? If this is the case then proceed to next step.If you loose interest on the idea, then it might be a sign that things will not work out well.(b) Build a prototype or test serviceBuild some few products or try to offer service to some few people to see how does it work. Get feedback and get real world experience.(c) Give it to a group of criticizersThere are people that will always criticize you no matter what. Give sample of your products to this group of people. With their curiosity to find mistakes in others, it’s more likely to uncover potential gaps that need your attention.(d) Tweak it to suit test marketListen to criticism and tweak the product to suit the desires and expectations of your test market.(e) Create digital platforms (web, social media)Create a website, social media accounts, social media profiles, social media handles and whatsapp business profiles.(f) Create a marketing plan and use itDetail the free and less expensive ways to promote and market the product in a marketing plan and implement the plan.(g) Adopt an experimentation mindsetWith experimentation mindset, the mind will be more willing to test and experiment without the fear of making mistakes.(h) Implement design thinkingDesign thinking makes more use of the cognitive, strategic and practical processes of developing new ideas and products/services. It helps innovators redefine problems and create better, more creative solutions.

7. Step 7: Evaluate results and fine tune the business idea

   The seventh in list of steps to start business in Tanzania is to evaluate the results of the idea testing and validation process and fine tuning the idea.Idea testing involves weighing the risks and returns of the prospective business. The results of the weighing need to be evaluated.The evaluation is done by comparing future risks and returns. Returns should be enough to compensate for the risks that you are going to take.In finetuning the business idea, pay attention to the following risks:(a) Product riskAs a startup founder, you need to be sure what your product is, the problem(s) it solve(s), and why it’s worth investing in. You need to ensure the product addresses a big enough market, and the right opportunity within that market, at the right time.(b) Market riskYou need to make sure that you know your potential customers, buying decision, the right channel to promote and distribute your product, etc.(c) Financial riskWill you be able to fund the business? What is the maximum capital that will be required and what is the maximum you can source?(d) Team riskHow easy it is to get the right team? Do you expect to get the right mix of people? Do you have a mentor? Can you find a startup incubator?(e) Execution riskWill you have the required time to execute the lean business plan? Do you have other life commitments? Is your family and friends supportive in executing your plans?NB: Some risks you can control, and others you can’t. To be a successful entrepreneur, you need to take counsel from others on how to mitigate risks. But never allow one person to have 100 percent influence in the decision-making process. Participate, evaluate the risks and don’t be afraid to pivot.

8. Step 8: Inject more fund, scale up and grow the business

   The eighth in list of steps to start business in Tanzania is to inject more money, scaling up and growing the business.Once the idea is tested and validated, next step is injecting more fund to grow the business. We have dozens of articles that discuss various ways to manage business. Click here to read them.Summing upTanzania has got vast of opportunities and vast of challenges. Starting a business in Tanzania might prove to be extremely challenging and bureaucratic.But once you are set, you will never regret. Just be sure to pick the best opportunity for your case. Be ware that an opportunity to Mr. X can be applicable or not applicable to Mr. Y. So choose carefully and seek advice accordingly.