There are some major reasons why a lot of Nigerian businesses fail and if you understand this reasons, you won't have to be scared of business failure.
In this article we'll be explaining 5 major reasons why some businesses fail in Nigeria:
• Not studying the market very well before entering
Why did you start that business? Did you just need a second source of income for supporting your salary job or want an additional source of income for supporting your needs? If yes, it's very nice but to success in any business, you must be ready to solve a need.Before venturing into any business, try studying the market to understand the nitty-gritty of the business to avoid failing in the later run.
• Poor financing
Inadequate capital and subsequent financing is also another major factor that contributes to business loss in Nigeria. A new business tends to lose balance as it stretches to meet its customers' demands and if care it's not taken. it might lead to folding.Running a successful business is capital intensive and virtually everything counting from paying of salaries to purchasing of raw materials and tool and advertising all count on the available funds. To successfully run your business in Nigeria, you need to secure adequate capital.
• Unrealistic business plan
Your business plan is a written map on how your business will be managed and should be as detailed as possible. A business plan should serve as a manual or map that will guide you on how to run your business and all factors like the target market, consumers and more should be put into consideration.Finances are also important ans shouldn't be ignored in the business plan to avoid your business crumbling in the later run.
• Not being able to identify your target market
I'll be using the Facebook ads as an example in this case. In setting up a campaign you'll be told to choose a target audience based on factors like age, gender, interest, countries and more. This is because very product has a target audience and Facebook understands that too.They'll tell you to choose the people that you want to be reached because thy know the contribution towards conversions. Let's say you sell a seasoning powder, you'll have to target the mothers because fathers in this part of the country barely enter the kitchens.
• Expansion problems
Every business is run in stages and for you to grow, you'll have to expand. Expanding your business involves a lot of things like hiring new employees, renting new offices or acquiring new assets and more.Expanding of your business is very nice and should be the dream of every entrepreneur but the process can fail if proper care is not taken.
In conclusion, for you to excel in any business, you need to follow the above guidelines. Also try your best to be flexible in terms of trends. Remember you'r not the only person selling the products and your competitors as well are looking for ways of beating you.
Thanks for reading along, don't forget to drop us a comment and share with your friends. You can check out our next article on 10+ amazing places to advertise your products online in Nigeria.
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