WHY MOST NIGERIAN BUSINESSES FAIL

WHY MOST NIGERIAN BUSINESSES FAIL

Basola A. Victor

Good day readers, I hope you have been enjoying this column and you are most importantly applying the principles that pertain to your growth and success.
Today we will be looking at a very pressing issue; Why most Nigerian Businesses Fail. Why are most Entrepreneurs and companies folding up, what is it that they are not doing right?
No one actually starts a Business to fail. Successes is just a matter of doing the right thing at the right time and if your Business is not going as well as you probably want, you will want to run through these reasons and make amends where necessary.

1. LACK OF VISION

Most young and aspiring Entrepreneurs do not see beyond their nose. They are probably concerned about the now the profit they are making now. A Vision is your Dream, Goal and Plan for your Business for a span of 10, 20, to 50 years.
Are you building a Business that will outlive you or are you building a Sole Proprietorship. As we all know, sole proprietorships die after the demise of the Proprietor.
A good and exciting Vision for your company will bring you to the drawing board to plan ahead. Like I always tell my Clients, Only a Mud House is Built without a Business Plan. People do not buy neither do they inherit mud houses, they are usually demolished when the owner is no more. I believe we have dealt with How to Write a Business Plan in previous editions of this column but you can contact me if you need help.

2. LOW QUALITY PRODUCTS

The quality of your product or service will speak for you long after the price is forgotten. If you try to compromise the quality of your product or service because of profit r quick cash, you are only succeeding in BURNING THE BRIDGE between you and your customers. If your product is good, your customers will sell them for you, but if is bad your same customers will spread the message and you will be out of business in no time.

3. POOR CUSTOMER SATISFACTION

The customer is the Boss; he can decide to Fire everyone including you by simply taking his Money elsewhere. Without the customer, you are out of business already. Never you get so proud as to think that you are doing your customer a favour by opening for Business. Make it a policy in your firm and hang it everywhere in your workplace that the customer is King. Any of your Staff that compromises this Policy shouldn’t be your Staff in the first place.
Whenever you are designing your product or service, it will do you a lot of good if you can sit down and find out what the customer really wants faster than your competition.
Amazingly, they can even help you provide the answer. Just give them a Survey Slip to fill when they patronize you.
An example is seen above. Pamper and spoil your customer, they are the life lines of any successful Business.

4. POOR MANAGEMENT AND SATFF POLICY

As an Entrepreneur, hire the best hands, though expensive, it pays off on the long run. Do not Hire Wheelbarrows who will need pushing all the time and will not move whenever you are not there.
Another thing you should endeavour to put in your Staff Policy is the Training and Retraining of your Staff to increase their competencies. Trainings on Customer Relations, Relationship management, Public Relations e.t.c must be made compulsory for all your Staff from your management staff to your Driver and even the Factory worker. Always hold Management Retreats with them and constantly SHARE WITH THEM THE VISION of your Company. See your Staff as Investors and Partners not as mere tools for achieving your goals.
As for Salaries, please and please Pay your Staff adequately well as the Budget permits. A wise man once said If you pay peanuts, you get monkeys. Remember, a satisfied Customer is a sign of a happy staff. That means Customer satisfaction begins with Staff satisfaction, how amazing.
Finally, do not use your Business to keep unskilled family members and Relatives busy else they will turn your Business into a Family Meeting.

5. INADEQUATE MARKETING AND ADVERTISING

Nothing happens until a sale takes place says Red Motley. It is the sale that initiates the entire production process. It activates Business and factories, provides jobs for the employees, pays salaries and wages, pays taxes and dividends and determines the entire direction for your business. How then can your products be sold if people do not know about it. Shout it loud, employ every means possible, use every means possible, use cheap Publicity, be in the news always and your products will fly

6. INACCURATE RECORD KEEPING SYSTEM

This is a major flaw of most young Entrepreneurs. Poor record keeping system. I would advice every Entrepreneur to study great firms and see the level of Record Keeping being employed. From staff prospectus to customer inventory, history and most importantly your Financial Records. You must document everything. The faintest pen is sharper than the sharpest Memory. If you are seeking external Financial aid, the first record you are asked is your Financial records. They want to see your profit and loss margin; so document everything.
Again pay yourself Salary also. This helps to separate you from your Business venture and keep your hands off the accounts.
A Chinese proverb once said no matter how far you have gone on the wrong road; once you discover turn back.

Till we meet again, Go be the solution to your World.

About The Author
Basola A. Victor is a Marketing Expert and a Business Consultant. He is the CEO of BASH Concepts International, a Business Solutions Firm dedicated to becoming a one stop source for overall Business Development.
For your Questions and Enquiries Contact;
Phone +234 (0)703521346, 08078957783
Email bashconcepts@yahoo.com