Last Updated on: 26th April 2020, 04:58 pm
So, why should you be reading this kind of post when it clearly states ‘‘10 Ways to kill your business in Nigeria’’? Chances are that you want to avoid killing your business or you’ve decided you’re done and just want to cool off.
Nigeria is a nation filled with great minded entrepreneurs. Nevertheless, most of them make awkward mistakes along the way and end up folding up their small businesses.
If you are in the category of people that want to amass great success in your business, this post will be very insightful. After all, identifying a problem makes it easy to fix it in most cases.
Also, if you are tired and want to quit, you’ll learn substantial lessons from this post. Read on!
10 WAYS TO KILL YOUR BUSINESS IN NIGERIA
1. Don’t Advertise
Keep on pretending that everybody already knows about your business. Assume that customers will automatically flock to you since you’ve been in business for so long. Neglect the fact that there are lots of people that would love to do business with you, if only they were urged to. Forget that there are competitors out there who will steal your customers and suck your customer base dry.
You should advertise (smartly) as much as possible. Advertisement is one of the most important investments any business could make. It does two major things. It exposes your business to potential clients and customers. It also breeds consistency, and this keeps your business afresh in the minds and memories of your customers. You should read this post on why you should advertise your business and how to do so smartly.
2. Get in So Much Debt
This is one of the easiest ways to kill your business. A lot of start-ups get into so much debt while establishing and running their business. So, if you want to kill your business, borrow, borrow, and just borrow. Borrow without having a plan on how to pay back. Borrow and buy unnecessary equipment. Borrow and live large, after all, this world belongs to entrepreneurs.
It is fine to borrow. However, be smart about it. Make sure that when you borrow money to run your business, you should already have a plan on how to pay back ASAP. You should also resist the urge to spend the money on unnecessary equipment. I’d prefer that you get a grant or get a loan with a low-interest rate. In a nutshell, avoid borrowing and if it’s the last option, better get smart at it.
3. Choose Wrong Business Partner(s)
Don’t do a thorough research when choosing your business partner(s). All humans are very understanding and share the same temperament as you. Rush into starting a business with people because you just won a lottery and there’s no time to waste. The workload is much; you need a partner immediately.
If siblings raised in the same home could still have disputes, how much more someone you’ve never known from Adam. When choosing business partners, be very cautious. Nobody is perfect, nonetheless, care and proper research could streamline wrong business partners away from you.
4. Be Over-dependent on One or Few Customers
You have ten loyal customers, and that’s enough. Don’t go through the stress of looking for other customers. Those customers will cling to your business forever even if they find a better offer elsewhere. Relax! You are the brook and they are a herd of deer, panting after your business.
Over-dependence on one or a few customers is a dumb way to kill your business in Nigeria. Over here, customers have their own interest at heart. If they find another business that meets their demand in a way they prefer, they’ll simply ditch you for that business. Strive to have a diversified customer base so that no one customer makes up over 15% of your revenue. This will ensure that even if you lose that customer, you won’t fall into a harp loss.
5. Be Over-Dependent on One or Few Suppliers
It’s your money after all. Theirs is to stock you with raw materials for production and other supplies. These suppliers are amazing. They’ll never cheat you and they’ll always be available round the clock even if there’s a spike in demand for your products or services. They’ll know that you are buying in bulk and they’ll give you a discount without asking. Don’t have another alternative cos they’ll never disappoint you.
Seek to have a variety of sources for your raw materials. If you’re forced to buy from one supplier, their negotiating leverage over you can drag down your business value. Also, when you have more than one supplier, you choose at will. To crown it, if one supplier cannot meet up with your demand, you could resort to others.
6. The Business Should Be Solely Dependent On You
You are the hitman of the business and so, all attention should be on you. Don’t train your employees to adapt without you. Fall sick always. Get unending vacations. Assume that the workers can manage even if you didn’t teach them how to.
Many businesses sink because the owner is sick, injured or on vacation. Strive to ensure that your company runs well when you’re sick or on vacation. After all, for a business to be valuable to someone else, it needs to survive when you’re gone for good. Train your employees, eat sensibly, exercise and stay fit, get an insurance plan for your business in case of enforced absence.
7. Don’t Do Proper Accounting
Keep your business records shabby. If it’s too stressful, record nothing. It’s your business and you can do whatever you wish. Make the account books inaccurate. Fill it at your own slow pace and omit important transactions.
How would you ever measure the progress of your business if you don’t do proper book-keeping? For your business to be successful, you should do proper accounting. You should record every reasonable detail.
8. Get into Price War with Your Competitors
Undertake suicidal contests with business rivals. You have the power and resources to beat them at their game. Don’t stop until you’ve exhausted all your resources. Let your ego and/or desperation overwhelm you.
Avoid price wars with competitors. During price wars, it’s the customers that benefit, leaving the operators with the least cash broke. As a business owner, try to leverage other differentials like quality, customer service, etc. to gain and retain customers.
9. Give Your Customers a Horrible Experience
Treat your customers like trash and congrats! You’ll be sure to kill your business in less than no time. When they complain, put it under the rug. Don’t show any concern about their wellbeing. Just get their money and they can complain all they like. You don’t care. It’s your world, and no one gets to pressurize you with complaints.
It is very natural that if a business treats you badly, you’ll wouldn’t love to purchase from them again, let alone refer your friends to the business. As a business owner, you must please your customers and you must give them the best experience. Ensure that most of your customers are willing to recommend your business.
10. Don’t Evolve
Refuse to embrace innovations that come along. Pretend that your business doesn’t require them. Get complacent and allow your rivals to eat all the cake. Refuse to acknowledge and observe trends. Assume that the same sales methods that worked in 1997 will work in 2023. Relax! Don’t evolve. In this digital age, refuse to take your businesses online and yes! You’ll be sure to ruin that business.
If you don’t evolve as a business, you’ll surely meet your waterloo. If you want to remain in the game of succeeding with your business, you should embrace innovations. The world isn’t stagnant. People come and go, technologies come and fade, and strategies surface and diminish. The methods that work are coined from observations from recent trends and technologies. Smart businesses are always willing to take their businesses online. They are willing to improve, question and adapt. Remember! No commercial formula lasts forever.
I couldn’t help stopping here. There might be more ways to kill the fire of a business. However, I wouldn’t encourage anyone to hurt a business, let alone run it aground. Running a business is far more than just making money. It is actually your contribution to the world. It is an avenue where you get to serve other humans. After all, what is merrier than having a sense of fulfillment that you assisted another human?
Do you know of any other way(s) to kill a business?
Are you having a hard time scaling your business?
Do you have any contribution to this post?
Kindly comment below and let’s light an unquenchable fire of success in the business world.
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