Over the past few years, Nigeria has seen an increase in entrepreneurs due to unemployment. There are new businesses sprouting across the country each day.
The problem is that some businesses fail within the first year, and their entrepreneurs find themselves starting over. There is a long list of failed enterprises in Nigeria. Considering starting your own business? Here are 10 tips to prevent failure by REVIEW CABLE to help you.
1. Study Before You Venture Into Any Business.
Take time to know the intricacies of the business. You must understand what the business is about, what it needs on a daily basis and what the likely pitfalls are, before you go into the business.
2. Hire The Right Staff
Never skimp on quality when hiring staff for your business. Do not employ someone who is unqualified for a position, because you want to save a few Naira.
It will cost you more in the long run. The business is your idea and members of staff are the executors of your brainchild or your dream.
3. Keep Records Of Every Business Activity
In the beginning of most businesses, entrepreneurs keep financial records. However, as the euphoria wears off, they stop being diligent about their records.
This should not be the case. It is important to document the transactions that occur in the life of a business. Records show the history of a business, progress made, failures encountered, fluctuation in prices and profit or loss recorded.
4. Avoid huge debts or loans
When starting any business or even in the lifespan of a business, it is wise to steer clear of heavy loans which may weigh down the business.
Loans require collateral and have a percentage interest and a fixed time for repayment. Yes, loans are meant to boost a business.
5. Have A Marketing Strategy That Works
Every business requires marketing, no matter how small it may be. The size of the business determines what kind of marketing or advertising is necessary.
An international business or brand would require nationwide marketing and international marketing as well. A small-scale business may require a simpler marketing strategy such as advertising in church brochures and the use of word-of-mouth.
6. Value Your Customers
Have you ever heard this saying –the customer is king-? Well, it is true. The customer determines the profit margin of your business.
A satisfied customer recommends your services to other people who in turn will patronise you. A dissatisfied customer, on the other hand, will dissuade others from buying your goods or employing your services.
7. Plan Ahead For The Unexpected
Things happen and there is only so much one can control. So, always make room for exigencies. Save up for the rainy day.
Keep some money aside for the future, in case the economy crashes, prices sky rocket or you want to expand your business. Make plans for eventualities, be them positive or negative.
8. Study Your Competition
When people hear the word competition, they shrink in fear. Competition should not connote negative meanings to entrepreneurs.
Rather, business people should be spurred on to push beyond their limits and aim for higher goals. Rivalry helps people see what standards have been set and compete with such standards.
9. Do SWOT Analysis Regularly
In any business, it is very important to do a SWOT (strength, weakness, opportunity and threat) analysis. This assessment reveals the strong points of a business, its weaknesses, opportunities that abound in the business and things that pose a threat to the business.
10. Go for training and retraining
Every member of any given business must go for training and retraining often. The business owner and every other staff should be trained on various areas of making a business succeed. Refresher courses should also be given from time to time, to ensure that grey areas are made crystal clear.
Nevertheless, CONSISTENCY PAYS OFF IN BUSINESS TOO.