A lot of Start-ups spring up on a daily basis in Nigeria. Some of these businesses die shortly after set up. What are the possible reasons for such failure?
Here are 10 reasons why businesses fail and what you must do to succeed in business
1. Lack of clarity about the objective of the business:
Don’t just start a business because other people are starting. You must be clear about the objective of your business; the problem which your product or service is going to solve.
2. Lack of planning.
It is often said that he who fails to plan, plans to fail. This applies so much in business. You need to have a business plan. Your business plan can help you determine the long-term milestones that can make your business successful. Having a business plan helps to minimize your risk. A business plan allows you to communicate your vision to others and persuade them to work with you to achieve your goals.
3. Wrong Business Decisions
A lot of businesses fail because the owners make bad decisions. Some of these wrong decisions could be in terms of investment, employment or business collaborations. You need to be careful when making your business decisions.
4. Poor customer service
Poor Customer service is a business killer. A satisfied customer can bring other customers to your business while unsatisfied customers can take away potential customers from your business. Your staff needs to be trained to have the right attitude in their relationship with customers.
5. Wrong Business Location
The location of your business is a very important consideration in your business. If you site your business in a wrong location it can affect your sales. You need to site your business where your ideal clients can locate you and buy your products and services.
6. Lack of knowledge and Experience
If you do not have the requisite knowledge and experience about your business, you cannot make a headway. You need to acquire the necessary skills in order to run a successful business. Research about the business you want to venture into and also about existing businesses in that industry.
7. Poor Management
You need to have a proper management in place as poor management can ruin your business. There is a need to have proper standard and system in your business. You need to have good management and leadership skills and build synergy in your organization.
8. Lack of Focus
Without focus, your business cannot stand. Your business is your “baby” and deserves appropriate attention. Focus is very important in business as it helps you to think and reason well and helps you become more effective and productive.
9. Lack of Market differentiation
Applying market differentiation techniques can help you differentiate your products and services from those of your competitors. What comparative advantage does your business have over others in the same industry? You must create a positive image about your business.
10. Not having a legal advisor for business
A lot of Entrepreneurs fail in their businesses because they failed to get it right from the start. A lot of businesses fail because they did not pay attention to the legal aspects of business. Every business needs a legal advisor. Businesses should build a relationship with a good business Lawyer early enough in the lifecycle of the business. Your Legal Advisor will get to know the intricacies of your business and give legal advice when necessary. Be wise, seek legal counsel and protect your business from liabilities.
Building a successful business requires hard work and does not come by chance. Are you committed to building a successful business?