Business failure is synonymous to business catastrophe and business miscarriage. When an entrepreneur invested in a business but could not recoup his or her capital talk less of profit over a period of time can be disheartening. In the words of Bill Cox: long term success only comes from after many short term failures. However, failure to learn from continuous mistakes can lead to bankruptcy and sometimes leads to loss of freedom.
A reader of this article may ask herself, what should I do to overcome business failure? But before I proceed, you need to know what can result to business failure. This included among others: loss of goodwill, loss of revenue, loss of freedom, cherry-picking by competitor, high debt-equity ratio, over trading, poor financial management, loan term receivable period, inadequate knowledge of the enterprise.
However, let discuss way forward to overcome business failure and entrepreneurship stagnation:
Stop making excuses
First, stop making excuses. It is a known fact that succeeding in business in Nigeria is a hard nut to crack, but for foreigners to leave their country and come over to Nigeria to succeed legitimately in their business should be one of the major reasons to be determined to succeed in your endeavours. There are more than one million ways to give excuse which will lead to failure. A poorly prepared student that fail an examination may claim that he or she was failed by his or her examiner but failure to adequately prepare is preparation to fail. Giving excuses is giving room for failure. I will advise you learn the rope, read more books on the business of choice, ask question from experience people, attend life productive seminars and unlearn the wrong things your already know. If you want to start or grow your own business in Nigeria, you must be willing to bury excuses.
Willigness to start small
The second thing you must do is to be willing to start small. If you wait to have all the capital and other factors of production needed to start, you would probably still be waiting till unknown day to start. People who are waiting for the perfect weather wait forever. It was even stated in the holy bible that we should not despise the days of little beginning. I know of a bank in Nigeria presently that started with three hundred naira but as at last year financial statement posted more than six billion net profits and with more than five other profitable subsidiaries. My reader, please remember an adage that says: Rome is not built in a day. Start where you are with what you have. Discover needs, provide solutions, sell at premium price and smile to bank.
Sell your ideas and skills for money
The third thing you must do is to sell ideas and skills for money, don’t beg for money. So many intending entrepreneurs mostly will ask for seed capital and help from people without being ready to provide help. It is a proven fact that many potential customers are ready to buy good product or effective service at premium price, so far it meets their demand, solve their immediate problem or provide needed solution. One of the legitimate ways to make cool money in the present millennium is to be flexible, timely, accurate, and efficient in product and service delivery without undermining quality.
As a success minded entrepreneur, ensure you regularly discuss your skills, your experience and ways to provide solution with your potential investor and customer. This will stimulate business growth. This will prompt your customers and investors for continuous patronage but making money earning as hallmark of business relationship will tend to make your customer see you has hungry lion in the jungle of animals with equal great potentials.
Separate your business pocket from managers or ownership pocket
Fourthly, separate your business pocket from managers or ownership pocket. An individual without separation of business entity inflow and outflow from managers or ownership pocket may eventually experience business failure and entrepreneurship stagnation. This is because effective accountability, profitability management could be undermined. It is of good importance to ensure regular independent business and operational process audit. It will help to determine the fair value of the business progress. All this will help in effective planning, successful business management and avoid frivolous spending.
In conclusion, to overcome business failure and avoid entrepreneurship stagnation, don’t give excuse, be willing to start small, sell ideas and skills for money; don’t beg for money, separate your business pocket from managers or ownership pocket.
Recommended: 5 proven route to business failure
Author: Oyeniyi Ayodeji (A seasoned writer, financial advisory expert, project manager and intellectual public speaker)
Contact: [email protected], www.facebook.com/AyodejiOyeniyi