As a Nigerian entrepreneur, struggling to adapt the economic environment and government policies with the intent to grow businesses needs to know these common mistakes entrepreneurs make in Nigeria
The reasons most other Nigerian entrepreneurs fail in business is not about the financial shortage their business is facing but it starts from wrong business model to scattered organizational structure. Some entrepreneurs that I managed to have conversation with can’t define a good mission statement for their business. They lack the idea to form a good team among their employers and often know nothing concerning numbers and legal matters that relates to their business.
At most times, they put their blame on someone or the government but that does not make their business to come back to life. It only justifies their inability to turn things around. Below are the major reasons or mistakes Nigerian entrepreneurs make in business.
8 Common Mistakes Nigerian Entrepreneurs Make in Business and How to Avoid Them
1. Mission Mistake
Every business both small and big have a mission and vision and while those statements changes from time to time, Nigerian entrepreneurs must define clearly the mission of their businesses. Defining a mission statement and carefully communicating it with all employees will enable them understand why the company is in business and what they are expected to achieve within some time frame.
Mission statement in necessary and should not be taken for granted among Nigerian entrepreneurs.
2. Leadership Mistake
Leadership is a common problem among startups businesses in Nigeria as most times the entrepreneur doesn’t have leadership qualities. He will have the knowledge of the business and structure of how to get it done but lacks the will to lead his employees to achieve the organizational aims. Employees need to be inspired regardless of their experience and level. They need a leader that will inspire them to do creative things, they need someone that will observe their work and congratulate them where needed.
3. Team Building Mistake
Nigerian entrepreneurs make the mistakes of not forming a strong team among their employees. A team are group of people who work together to achieve a common purpose but in some Nigerian companies it is like an individual race where employees only focus on their individual task without seeking assistance or advices from other people. This often is not from the top managers or supervisors but the entrepreneur. It is your rights to form a good team and place credible people to take charge of team that will in line educate and inspire others to follow suit and achieve an organizational goals.
4. Product/Service Mistake
Poor knowledge of the product or service a company offers hurt every business. As a Nigerian entrepreneur, please do avoid this mistake. Have a clear knowledge about the product and process it undergoes, where raw materials are being sourced, who are the suppliers, how it is gotten, and the process of making it usable to final consumer etc.
If your company is offering a service, you must not understand what the services meant for the end consumer and how best to deliver it.
5. Legal Knowledge Mistake
Poor understanding of the legal matters that relates to a business industry in Nigeria is often a common thing among Nigeria entrepreneurs. Every entrepreneur must understand the important things in business such as trade mark infringement, employment laws, minimum wage as directed by law, business registration value, violations of trust etc. Having no knowledge about the rules may put you or your company in a huge problem where sometimes it will result to going to high courts and spending unnecessary money on lawyers court charges.
6. Business Systems Mistake
Poor executing and monitoring of business systems hurts most businesses in Nigeria. As a Nigerian entrepreneur, you need to understand about the numbers. Everything in your business has to do with numbers, whether it is the number of your inventories, or the number of products you produce daily or number of employees or how much you make a month. A good knowledge about numbers will help leverage your business and also exposing yourself to other business systems that will grow your business is important. Such as, features, software’s, technologies, etc.
7. Poor Communication Mistake
Effective communication is important in all aspect of business in Nigeria. The reason most Nigerian entrepreneurs fail in business is as a result of poor communication among employers, suppliers. Customers, partners and even investors. As an entrepreneur in business you have to effectively communicate your purpose to your employers and motivate them on how to carry out the duty. A good communication among employees will enhance productivity and increase revenue.
8. Cash Flow Mistake
Entrepreneurs should not joke with the idea of cash flow in their business. Understanding the cash flow system and how to increase cash flow of your business is important and having a clear knowledge of assets than liabilities is a very essential thing as a Nigerian entrepreneur.
Having a good knowledge of the Cash flow quadrant is also an advantage of knowing the purpose of employees, business owners, investors. Etc.
Nigeria entrepreneurs should equip themselves with information and knowledge about the important things that will grow their business to clearly avoid a business failure.
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