An average business in Nigeria kicks off without making arrangements for possible storms. Failure in business is not something to be dreaded. It is in fact a necessary phenomenon for achieving a sustainable success in business.
” An average small business owner does not factor in failure when starting up his or her venture. But findings have revealed that many small businesses fail in a couple of years as a result of various reasons that are often neglected by entrepreneurs. ” – Punch
No business likes to fail, and yet, most do. As a matter of fact, businesses fail quite often. Failure isn’t always a negative part of business, there’s a positive side of failure. Failure is an undeniable part of success in business.
Also Read: Startups: Free Business Plan Template
“The sweetest victory is the one that’s most difficult. The one that requires you to reach down deep inside, to fight with everything you’ve got, to be willing to leave everything out there on the battlefield—without knowing, until that do-or-die moment, if your heroic effort will be enough. Society doesn’t reward defeat, and you won’t find many failures documented in history books. ” – Success.com
Whether you are about to start a new business or you have tried couple of businesses before and failed, or you have never experienced failure in business before, this post will undoubtedly be of benefit to you as long as you are in business.
Why Do Small Businesses Fail in Nigeria?
The following are some underlying causes of business failure in Nigeria (as opined by experts):
Building the Wrong Product
For most startups, it is almost impossible to build a perfect product from the start. This is why you have to adopt the Lean Startup Methodology that says Build ~ Measure ~ Learn. First, build a Minimum Viable Product (MVP), push this product out to a few users and measure how they interact with the product. From your learnings, you are able to determine what the user really wants and prevent your startup from burning excess cash building a sophisticated product that nobody wants.
You May Also Like to Read: Five Ways Social Media is Ruining Your Business
Lack of Focus
Abbakin.com also opines that “lack of focus” is a major reason Why Nigerian Businesses Fail among other things. Most young entrepreneurs can easily be distracted
A good entrepreneur or business person should never lose focus on what is important and where his/her priorities are. Trying to do it all or being everything for everybody is the worst mistake you would make in business; one that will cost you resources in terms of time and money.
Another weakness is when you got caught up in trivial diligence in the tasks which can and should ordinarily be left to others. Entrepreneurs should therefore learn to delegate tasks and focus on those things they know how to do best – managing and marketing their products
Not Seeking Professional Advice
TheTotalEntrepreneurs.com thinks that “Not Seeking Professional Advice” is one of the main causes of business failure. No matter how informed you feel you are, once you want to start
It is good you have a mentor that will always put you through to avoid silly mistakes. Another advantage of seeking professional advice is that, you are meeting people that have already done the business and they have made the mistakes and known the best way of doing it.
Unrealistic Business Plan
Informationhive.com opines that unrealistic business plan is one of the reasons why small businesses fail in Nigeria. A Business plan is a written form of how your business will function. Business plans serve as a manual to business owners, once the business plan is faulty the company will crumble. So before writing a business
Poor customer services
Yokebay.com is of the opinion that “poor customer services is one of the reasons why businesses fail in Nigeria. From time to time, we do encounter some rude receptionist, clerk or even a telephone customer service assistant who acts as if your inquiries are not important. Do you have such in your organisation? If you do, just one can have a negative impact on your business.
Generally speaking, these
In fact, poor customer services has been identified a an influencing factor to “causes of business failure in Nigeria”.
Lack of Managerial Skill
Entrepreneur Platform believes that lack of “managerial skill is also one of the reasons why small businesses fail in Nigeria.
An entrepreneur must be able to manage the employees, cash flow, production line and other aspects of the business. In the event that he can’t handle all of this, he should hire a good manager to do that for him.