WHY BUSINESSES FAIL IN NIGERIA
Psa. 1:3; Eccl. 10: 15
UNIDO (The United Nations Industrial Development Organisation’s Investment and Technology Promotion in Nigeria) states that 80% of small business dies in Nigeria.
Some Reasons Why Businesses Die:
STARTING A BUSINESS FOR A WRONG REASON – Some of the reasons are for financial gains, to make more money. You do not start a business to make money; if you do that, you are playing yourself.
STARTING BIG – You should not put all your investments in a business that you have not tried out before. Do not start a business for the “show”.
HAVING SENTIMENTS – for families (you do not start a business to employ your family and friends); for location (you do not pick your business location based on sentiments; the location might not be good for your products or services).
“Sentiments can kill vision and direction”
LACK OF PROPER PLANNING – The popular says it all, “he who fails to plan, plans to fail.” Organisations don’t plan themselves, if proper planning is not put in place, the business might fail.
How much are you putting into your business plan? Are you thinking about staffing? You have to be selective with your staff – Jesus laid a good example, He prayed all night just to pick His 12, and even out of them there was one Judas.
INABILITY TO MOVE WITH TREND AND CHANGING TECHNOLOGY – In any business you plan to venture on, you need to check the trends, the tools, the techniques and technology involved – if it takes going back to get some form of education, get it!
LACK OF KNOWLEDGE AND EXPERIENCE IN THE CHOSEN FIELD – There are books written about your chosen field and career, how many have you read?
INADEQUATE CONSULTATION – It is lack of wisdom to think sharing your ideas with a mentor will “expose” your ideas; the Bible said in multitude of counselors there is victory (Prov. 11: 14).
Caveat: Mind who you consult with; be sensitive about the people you talk to and their characters.
“Some mentors are tormentors.”
LACK OF GOOD FEEDBACK – In whatever business you are running, be willing to listen and receive feedback from your clients – this will help you identify your strengths and weaknesses.
INSUFFICIENT FUNDING – This is a general problem, but if you think wise there is always a way. A lot of people face this problem because they are bad with funds management and have a reputation for owing – people will not borrow you if you are reputed to be a waster.
“Be a person of integrity so that people can help you.”
POOR MANAGEMENT – This is also a general “disease” even among governments of nations. If you do not use what you have well, you will mostly not get a chance or access to another one.
This point is at the top of the list with entrepreneurs, because most people are bad managers of money, time, people, resources, machinery.
Under poor management is also acquiring bad debts, having bad managerial skills, involvement in internal fraudulent activities (which add to the moral decadence of the society).
LACK OF BUSINESS VISIBILITY – If you set up your business in the wrong location, it will die. Business visibility is very important – either online or offline – if your business cannot be found, people will go elsewhere.
Under visibility also is promotion. Advertising your business is a must!
POOR CUSTOMER SERVICES – Poor marketing, incompetent staff and overdependence on a single customer. It is important to invest in customer care and proper staffing. Cheap staff will deliver cheap work, which will in turn attract cheap stuff.
The strength of the staff is the strength of the organization.
UNSEPARATED BUSINESS ENTITY – Separate your person from your business. A good example of a reason why is a situation where people are discouraged from doing business with you because you use your personal bank details for business transactions.
QUITTING TOO EARLY – Many entrepreneurs are not patient enough to see a business venture through. To build a strong brand name, you must stay focused and steadfast.
HARSH GOVERNMENTAL, ECONOMICAL AND MONETARY POLICIES – These are laws the government put in place that hinder businesses from growing well.
Infrastructure problems like poor power situation, terrible road networks etc. hinder entrepreneurs from reaching heights that they should.
BREAKING YOUR COVENANT RESPONSIBILITIES – If you disconnect from the Source in terms of your covenant practices (tithing, first fruits, giving, etc.), you are disconnecting your business.
I pray for the impartation of wisdom, favour and direction for your business in Jesus’ name!
God bless you for reading!
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