The goal of every business venture is never to encounter losses, or be washed down the drain in no distant time.
Sadly, over 60% of businesses started never outlive their founders, at some point in time there would spring up some cancerous and deadly factors that could be internal or external factors, which eventually choke up the growth of the business, and soon the once busy and profit-maximizing business soon becomes a shadow of itself.
Sadly, many never come to learn as they keep repeating mistakes made by others before them over and over again, and soon their own business tells the same sad woes of others that have tolled the same path.
But the good news is this,
failure in business can be avoided, folding up and relinquishing of progress attained in just a little while can also be avoided if business owners can pay attention and fight these deadly factors waging war against their means of livelihood.
I guess that is why we are here, right? So let’s get started;
Deadly Reasons Why Many Businesses Fail In Nigeria
Broadly speaking, there are quite a number of them, ranging from high-profile business killers to slow pace killers, they include:
1. Jumping Into a Business With No Plan:
This is where it all starts, If I’m to say this is the bedrock of the majority of the problems we see in businesses today.
So many people enter into business because everyone else is jumping in, so why would they be left out?
It isn’t surprising then, to see their chicken out in a few years or even months coming because there wasn’t a plan to fall back to.
2. Lackadaisical Attitude Towards The Business:
Shockingly, so many people just have a business for having sake, at least let there be somewhere to go every morning, so as not to be termed lazy bone by neighbours.
They have got no willingness to work, no zeal, no drive, and no motivating force to keep pushing, how on earth can such a business thrive?
3. Poor / Arrogant Customer Treatment:
The way customers are treated decides how well and frequently they return, Period. As simple as that!
Personally, I won’t think twice about choosing between a jovial attention-giving seller and a rude always frowning dude. Aside from what you are offering to buyers, the attitude with which the exchange occurs compliments the deal.
A smiling face, a warm welcome, professional attention and a heartwarming thank you, to wrap it up, can make your business outlet the talk of the town. Reduction in sales can be traced majorly to this buyer/seller relationship.
4. Lack of Finances:
Understandably this is one leading cause of businesses folding up in no distant time, there seems to be a shortage of funds to go on, so in such circumstances, the only available option is this 4 lettered word! QUIT
5. Un-Delayed Gratification:
There is just no way a business that started in a short while, would go on to provide for every need of the owners.
Some things must be delayed in the mean time, if not the business may crash under the weight of unnecessary lifestyles it has no capacity to fund.
When business owners don’t understand this, they try to mount their whole weight on a business in its earlier stages, which makes Failure imminent.
6. Unfavorable and Unbearable Governmental Policies:
When government policies take a downturn, it affects greatly the businesses thriving under them.
In Nigeria, businesses have known quite a rough ride over the years, as many policies don’t favour their mode of operation.
As I said earlier, there are many other contributing factors that increase the chances of failure in businesses, but if these few issues are addressed, the chances of failure in business will be reduced.