Part 2: Reasons Why Your Business Will Probably Fail in Nigeria

This is a continuation of the last article I wrote on 'Reasons why your business may properly fail in Nigeria.' Please take your time and fo through this other 5 reasons.

6. All you have is an idea of what the business entails
I can’t understand why you have chosen to delve into something you don’t know all that is required, the unfortunate thing about Nigeria is, there is no useful data on the internet you can research on to make up your knowledge on the business

7. You think being an entrepreneur will afford you more leisure time
Most start up owners have this misconception that owning a business will afford you more leisure time, well you are in for a surprise. Your start up business will require 24 hours of your time and brain space.

8. All you have is one grand strategy for success
The danger about having just one strategy for success is you are not prepared for the worst, risk are synonymous with businesses, if you don’t have several strategies, including existing strategies, you will drive your business off the cliff

8. Poor networks
You don’t have connections (knowing the right people) and most painfully you don’t have the paraphernalia of office to attract these networks, truth is, you will have to do 10 times more to get any connection.

9. Insufficient Knowledge of your Industry

You probably got your business idea from a friend or you read it from an article that the industry is viable. You do not have any knowledge or experience whatsoever in that sector, then you decided to put your money into such venture. That’s business suicide and one main reason why small businesses fail in Nigeria

10. Lack of Entrepreneurial Skills

When asked most entrepreneurs will accredit their lack of success in business to insufficient capital, bad infrastructure or even the devil for the religious folks but we don’t seems to realize that running a successful business requires you to have skills that are different from your expertise. Even professionals, like medical doctors and Lawyers whom might want to run a private practice also need these entrepreneurial skills also.

Please take time to review all the 10 reason stated in both part1 and 2.

To your success!

Felix Smith Aigbonohan.

A Business Development Consultant & Facilitator

The CEO, Xterics Resources® | Razor Edge Coaching

Part 1: Reasons Why Your Business Will Probably Fail in Nigeria

1. You are not passionate about anything
You will need genuine passion and commitment when the business is not performing, if you are going in for quick cash, prepare to rush out the same door you have entered through. 

2. Your business model is not appropriate for the Nigerian market
Most of the books that teach how to write business plans are developed for the western world. You need a good understanding of the Nigerian business climate for you to have any chance of success

3. You believe your product is good enough to attract your target market
As an entrepreneur, it is important to believe in the value that your product will offer, but please note, if this value is not well packaged, your potential customers will not be attracted to it. Everyone knows perception sells in Nigeria.

4. You think marketing is all about printing fliers and creating a website
Most people who start up businesses are skilled in a field, but lack the in-depth knowledge of marketing, remember this, if you the owner of the business cannot sell the product, your marketers who are less passionate won’t close those sales.

5. You have start-up capital, but don’t have running cost
Most times, people have capital to startup businesses and develop a plan that once clients start paying, the money will be used as running cost. Well, research has shown that SME’s in Nigeria fold up because they run out of cash

To your success!

Felix Smith Aigbonohan.

A Business Development Consultant & Facilitator

The CEO, Xterics Resources® | Razor Edge Coaching

Financial Management for Entrepreneurs

 

Introduction

One of the most important parts of running a business is record keeping. A high proportion of small businesses fail, and frequently it is caused by poor record keeping. You need to learn to keep good records and as your business grows, hire someone to do it for you. This training module focuses on the basic records that you need to keep in order to be able to generate proper books of accounts. This is not meant to make you an accounting expert, but to help you

·         Keep all your accounting records easily and effectively

·         Understand financial statements

·         Price your products and services appropriately

·         Manage your cash flow effectively

What you need in your business are documents called financial statements, which will tell you so much about how you're doing that it will amaze and excite you. Your goal is accurate financial statements.  Properly kept books will help you make sound financial decisions... rather than waiting for the bank statement to see if you have any money... or having "surprises" at the end of the year when your accountant prepares your books.

Why keep good records?

·         Price your product accurately.

·         Know if you're making or losing money - in general and on specific products

·         Know your cash flow - short and long term.

·         To make business decisions

·         Work with bankers and investors

·         Tax Purposes

·         Basic Record Keeping

Record Keeping

Proper record keeping is difficult and almost impossible without these three (3) Key Success Factors:

·         Open a bank account for your business

·    Place yourself on a salary. You are different from your business. Business sales is company money, no business owner’s money

·         Be committed to doing your books  and your business right

Look out for the next article of practical case studies of how do to a proper book keeping.

To your success!

Felix Smith Aigbonohan.

A Business Development Consultant & Facilitaor

The CEO, Xterics Resources® | Razor Edge Coaching