The idea of owning a business in Nigeria can be very appealing as it gives one the sense of responsibility and satisfaction to be able to earn money without barriers or restrictions. The sole aim of any business is to make profit from its initial capital and no business owner would want his/her business to fail.
It is common for a business owner to attribute his/her business failure to the failed economy, but most small businesses actually collapse because of the mistakes made by the business owners, which most of them are not cognizance of.
It is very important to note that small businesses are more susceptible to failure when the right measures are not taken by the sole proprietor to ensure its success. As much as small businesses help when it comes to the issue of unemployment and contribute its small quota to the economy of the country, it can be an hassle sometimes to get that optimum value from the business.
Small businesses deal with everything on a small scale, from the structure of the business to the number of employees. If you are a small business owner and your business isn’t performing well then this article is more suitable for you as it is aimed at stating the common mistakes that brings about such poor outcome in the performance of your business.
Here are the common mistakes that small business owners make:
Bad Business Planning
This is a major mistake committed by most small business owners which often results in the early demise of the business. Planning is key when it comes to starting up a business and as such research on the business to run should be duly carried out to ascertain its acceptance to the prospective consumers and its performance in a stipulated duration of time.
Venturing into a business you have no inkling about is bound to fail and this is what many small business owners fail to realize, and often end up complaining incessantly on low patronage.
Every business needs three vital things to help it perform successfully and that includes a good business plan, financial plan and marketing plan.
Another important factor is take into consideration is the location, nature of the business and that is why survey is important.
Poor Financial Management
This is yet another common mistake small business owners tend to make.
Why small business owners miss it completely when it comes to managing their finances is that they spend unceremoniously without caution, which is not wise as money from a growing business is met to be used for the business to increase and generate more returns.
Many small business owners cannot ascertain the profit of the business and end up spending the capital. It is important to have extra money that is not related to the business for spending, while the returns from your business should be left intact.
For a business to gain wide acceptance, it needs proper marketing that will enable consumers know what the business has to offer.
Small business owners fail to utilize marketing platforms to advertise their businesses because of cost and this can affect the business in terms of performance.
Afraid to adopt a new approach
Some small business owners are adamant in sticking to their old business methods and are afraid to adopt a new approach in order to improve their business, like embracing technology to take their businesses to the next level.
Doing everything associated with your business all alone can be very tedious and therefore needs extra hands in order for the business to run smoothly.
Most small business owners are jacks of all trades and are absolute masters of none as they fail woefully in areas where they lack expertise.
Poor Business Decision
Making a wrong business decision can affect the business negatively and when proper scrutiny is not done then the business suffers.
Proper research and consultation on a business idea should be carried out before any decision is taken.
Lack of Commitment
For a business to do well there needs to be dedication and commitment on the part of the sole proprietor.
Most small business owners in Nigeria lack sheer commitment and this shows in the way the business performs.