Regardless of the Nation’s Economy, failure of small businesses is a result of Inadequate and the lack of management skills and also lack of proper capitalization of all Above., As a business owner, you must remember these Quote By – Boune T. Pickens. Jr.
“There are no disasters in business that you can’t avoid if you see them coming and make the adjustments,
In this article, I share my thoughts on this ugly trend with 4 of the biggest reasons why most Small business fails in Nigeria.
1. Zero Managerial Skill
One of the most important aspects of succeeding in a small business is the managerial skill. This is why it is one the reasons why many small businesses fail.
When an entrepreneur lacks the ability to manage human and material resources at his disposal, then failure becomes inevitable.
An entrepreneur must be able to manage the employees, cash flow, production line and other aspects of the business. In the event that he can’t handle all of this, he should hire a good manager to do that for him.
2. Wrong Business Decisions
“Before making an important decision, get as much as you can of the best information available and review it carefully, analyze it and draw up worst case scenarios.
Add up the plus or minus factors, discuss it with your team and do what your guts tell you to do.”
Many small businesses in Nigeria fail because of the very many wrong decisions made by their owners. Be careful and tactical with your decisions.
Wrong decisions lead to wrong investment, wrong loan collection, wrong employees and so many other wrong things.
3. Uncertain Government Policies
Unfortunately, this cannot be avoided. The government will always make policies that will affect you positively or negatively.
You have to be ready for emergency situations. Your exit strategy has to be tight. It is not usually easy but don’t let it be the end as many people do.
Your corporate reflexes are measured by how fast and well you respond to emergency situations.
Insufficient capital is another reason why many small businesses fail. It is the duty of the business owner to always provide the capital needed for the small business.
In a case where you have insufficient capital and the business is finding it difficult to access funds from bank and investors; it is the entrepreneur who must resolve to bootstrap financing, which is working with the limited cash, eliminating unnecessary expenses, establishing a credit line from suppliers and producing only on demand to avoid tying up resources.
Are you facing any small business setback? Don’t worry anymore, You can drop a comment here and I will respond or Contact me privately via Instagram