According to statistics from the US bureau of labor statistics it is known that up to 20% of startup businesses mostly fail 2 years of operation and not just that it also has been found out that most businesses don’t survive for up to five years.
So the question is how do you really skill pass through these challenges and run your startup without no problem?
Just to avoid these challenges and problems you have to look at what the problems are to know how to avoid them and reading this article will keep you prepared in order to tackle these issues that may arise in the future against your business.
We have collected the list of the biggest mistakes made by several financial advisors, growth strategists, small business owners, legal experts, and consultants, who have been involved in several startups so you’d launch your business successfully and most importantly stay in business.
When upcoming entrepreneurs may find it very easy in their heads to start a business because of their dreams and fantasies it is a different ball game when you start up the business and business owners will tell you how difficult it is to run a business.
As a business owner, you have to make sure you create a viable service or product that the market will purchase easily. The next thing you should do is to scale your business carefully and also make important decisions that will drive the vision of your company in the future.
People that start a business without a business plan about to make mistakes and errors but you will learn over time that is if the business survives. which is more reason we are giving you this post to enable you to be fortified against some of these challenges that come to entrepreneurs on a daily basis.
Things you should know is that mistakes are common and inevitable because they will make you wiser and more cautious about future occurrences.
There are mistakes and bad decisions which you can easily fix while some others will cost you money and your precious time.
There are several factors which might cause your business to fail here in Nigeria and this includes
this has been a major factor that leads to the decrease of productivity in Nigeria because companies fold due to the high cost of running and servicing their power supply. This wouldn’t have been there if Nigeria is the power supply is stable.
Also, security has been a major problem especially in the northern part of Nigeria, and several investors that live in the country because the security of their assets and companies are not guaranteed. Even for small business owners they get manipulated raided or attacked sometimes which puts their business at a huge risk. The condition of the economy in Nigeria is very bad which makes it more difficult for businesses to thrive here.
I have prepared the steps in this post especially for you to help you avoid some of the mistakes which are common among entrepreneurs that they make while starting their business.
- Don’t be afraid of failure
one of the biggest mistakes entrepreneurs make is getting really scared and afraid of failure but the thing is how can you learn when you don’t fail and stand up again? Failure is said to be the key to success and according to Audrey Darrow it is the way you recover from failure and the lessons learned from your mistake is the key to success.
- Make business plan
most entrepreneurs are in a hurry to start up without knowing that if you take me to plan, you plan to fail. A business must not be lacking in the basic business plan which is crucial to the success of the company. You should make a business plan for your company which would include your operational costs, the anticipated sales and target market.
- Be organized
The organization is the key to business. when you run a small business it is similar to a circus ringmaster meaning that you’re going to have several loads of things happening at the same time. So what you should do is have a daily task list drafted out according to priority then this will help you to be more productive than usual.
- Know your market
One of the costliest mistakes that entrepreneurs make is that they don’t understand their target audience. for you to avoid this you have to take time to understand the kind of customers you are building your business for. one thing you should know is that having a great product does not translate into running a successful business. most companies make the mistake of focusing only on their product without watching their market. some of the market you build your product for change with time so you have to keep up with trends if you are watching the markets closely.
- Get registered
another major area that business owners make is that they are not registered properly. Some people start up a company without registering the intellectual property of a business entity and that puts a whole project at risk because some opportunity seekers will really go and register the business that you worked so hard to build then it will have to cost you precious time and money to fix.
- Don’t do everything yourself
For you to make a great business you have to have the best team. Major mistake entrepreneurs make is that they try to run everything their self independently.
- Avoid wrong partnerships
Entrepreneurs make a mistake because they need the money and go for a partnership with the wrong people who try to take every opportunity they see. a piece of very important advice is that the first set of investors in the company will make or break it.
- Go for contracts
contracts should be used in every form of business so make sure you implement them in case of any failure. To avoid your business crumbling down you should put an end to any contract that is not going as it should.
- Don’t hire more than your capacity
A company should wait till they know their capability to cover the cost of salaries and expenses and wear them with their profits before hiring a lot of employees. Instead of hiring a full-time worker, you can go for part-time, and instead of hiring an employee, you can go for a subcontractor.
- Don’t waste money
your cash flow is what keeps your business investment going and you should make sure you don’t live with your money responsibly. Most businesses have limited access to business capital and you should watch your expenditure at every point in time in order to scale through.