The fact is that business are shutting down within five and more years because of challenges
that they do not have control over. What about the ones they do have control
over? How did they manage? These
are important questions which do not really
concern teething businesses and SMEs. The import here is to ensure that your
business does not tumbledown and join the long list of failed businesses or that
has been acquired.We from Hendon College Abuja list out common mistakes to avoid as an entrepreneur.
Success won't come overnight
It takes years to build successful companies. You must
invest all required hard work and perseverance. While an entrepreneur might
have a great vision and quality products consumers want, there can’t be an
expectation of a huge payday immediately upon launching a business. It is a
slow and steady build. Instead, be realistic and set a timeline that measures
small attainable goals and successes. Focus and commitment, executed on an
enduring level, will ultimately deliver success.
Overspending
Starting a business doesn't have to require a large
investment, but some new business owners feel that they need to spend a lot to
purchase the best of everything from marketing help to equipment, to software.
There are usually other, less expensive but equally viable options available if
you're willing to do the research. Creating and sticking to a business budget
to curb overspending is always an excellent idea.
Focusing on too many different things at once
The easiest way to lose focus is to do too many different
things at the same time especially as an SME. Someday your business will be
overwhelmed, you will have so many disgruntled customers. This is not good for
your business. When Jumia kicked
off in Nigeria in 2012, it started as an eCommerce company offering a platform
to order appliances, gadgets and household items. As Jumia grew, so did its
offering grew. It enhanced logistics with Jumia Services, created its own
payment platform with Jumia Pay and you can order food, book flight and hotels.
This is in a space of 6 years. So, as an SME, focus on one specific goal from
the onset and expand as your market share expands.
Not delegating tasks
Similarly, many small business owners feel the need to take
care of everything themselves. Remember, there’s a reason why companies hire
employees: they have a job to do. So don’t be afraid to delegate appropriate
tasks to appropriate people. Otherwise, there is a risk of becoming unable to
direct the proper level of attention on the task at hand, rendering a business
incapable of reaching its full potential.
Employing the wrong kind of people
It’s nearly impossible to have a flawless track record when
it comes to hiring, so it’s inevitable that at least some of the people you
hire simply won’t work out. Having the right people in place is critical for
the success of any company, and it’s even more critical for small businesses.
So, hiring the wrong person for a business can be just as important and can set
your company up for failure.
Not defining your market
An entrepreneur might think a particular product or service
is the best idea. But without knowing the target audience and which other
companies are also focusing on them, it will be significantly harder to sell
the idea. If a business’s market isn’t clearly defined, it is nearly impossible
to decide on how to best position the product or service in a way that is
compelling. Comprehensive market research is imperative in identifying robust
customer personas prior to launching a business. By knowing whom to target and
how to effectively communicate with them, a business will be strongly poised to
successfully thrive and grow.
Avoiding new technology
As a small business, technology can provide new
opportunities, help you do our work more efficiently and even help you save
money. New technology may be intimidating and require time to learn and understand,
but an unwillingness to adapt to technological advances can hurt your business
in both the sho
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