Doing business in Nigeria is dramatic in itself. A lot of experience that brings both sorrow and joy to you, depending on the choices you make. One of the palpable things we see in the Nigerian business space is the rapid closure of many businesses, and interestingly, these business owners often seemed to be shocked at the death of their business as though they never expected it.
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With years of experience in studying business either as a market observer, businessperson or a student, I have identified 4 red flags that signify that your business is headed for the mortuary.
Decline In Sales
Sales are basically the fuel that runs a business; it’s where the capital is sustained, the income and profits are accrued. When there’s is a shortfall in sales, especially when the percentage is high within a period of time, it’s a source of worry for any businessperson. It’s time to understand your products, your sales team, your market share and your competitors. The best way to go about this is to ask for customers’ feedback, rebrand your products and carry out campaigns.
Lack Of Innovation
Whether you run a giant corporation or a small business, or you’re a content creator, once innovation begins to lack, you’re headed for the mortuary. Several giant tech firms have been thrown under the railway due to their failure to follow trends. A huge example is the Nokia story and how it lost its place to newer tech firms like Samsung and Techno in the African market. Little wonder, companies like Apple, Facebook, Google remain above waters, simply because of their innovative drive.
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Recurring Conflict Between Partners, Employers And Employees
A house divided against itself will certainly not stand. There are various reasons for internal crises in a company. They include problems associated with leadership, financial misappropriation, salary, misinterpreted roles, and so on. Most often, companies who battle over succession when the founder dies often hit the rocks, and eventually die off. The constant crisis between employers and employees can affect operations in the sense that the business operations could shut down which can lead to huge financial losses.
Loss Of Passion
When you notice that your passion is dying, it’s a pointer that your business is on the verge of death. Passion is the fuel that keeps a business running regardless. Most times, founders could find a new passion, which can kill old passions. There are cases whereby poor business proceeds which lead to discouragement can kill the passion for a particular business. When passion is absent, the zeal to constantly innovate dies off. Loss of passion has led to the death of many businesses.
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Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.