WHY SMALL BUSINESSES FAIL IN NIGERIA

 Starting businesses is a dream of every entrepreneur, but many don't know the nitty gritty of establishing a business. No matter how small you need to have a PLAN. If not your business may not even stand the test period of 6 months. I will outline some of the reasons why I feel businesses in Nigeria are failing

                5 Reasons why businesses fail in Nigeria

1. Poor Location; its been said over and over again; location is everything!  Because of the way humans are wired, it’s not always easy for the customers to switch to a new brand, or product. Its always good to go to a location where you can have the first mover advantage, so you won't be in competition with businesses that had grown there over time and which people are now used to. I highly recommend the blue ocean strategy for small businesses about to start up. This book talks about the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand for businesses.  
2. Misalignment with your customers; its imperative to define your customers and to align with them. This means seeing what they see, feeling what they feel, hearing what they hear, smelling what they smell; you need to do unto them as they would want to be done to. But we did the opposite; we did unto them as we would want to be done to.  Businesses that fail to align with their customer’s needs will eventually produce products and services that no one wants.
3. No staying power; its common knowledge that you may not make much money in the first few years in business; but you need to break even nonetheless. That means making enough money to cover your running costs for the period of time. Some businesses fold when they don’t make profit in the first few years.
4. Inappropriate business planning and execution. Some people get a fantastic idea and they rush off into production without any planning whatsoever. Without understanding their landscape. Without knowing if someone in their chosen market already is into similar business. There just seems to be lots of gap. Small businesses need to have a solid business plan. A good business plan not only helps when trying to secure finances for the business but it also aids in understanding different areas of the business and answering lots of question that that the business would need answers to later on. We at obmsgateway.com, can help you package a great business plan for your business. However execution is everything, you may have the best ideas, but when if you fail at execution, the idea amounts to nothing
5. Managerial inefficiencies; to run businesses successfully, the owners need to be actively involved. What you don’t monitor efficiently you lose track of.

      
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