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7 Mistakes Small Business Owners Make in Nigeria

by Ilashe Otuogbai

June 23, 2020 6

Owning your own business would always be a good thing, many times it would have its ups and downs just like some other things in our lives. The truth is that many small business owners at various points are prone to making mistakes. I mean mistakes are part of life, right? 

That is why materials like this are made available to you, to reduce your exposure to these mistakes. Some of which can be very costly to your business. StatisticBrain in a widely cited statistic, reports that over 71% of startups die out or churn within 10 years.

Noteworthy is the fact that small businesses are vulnerable to failure the moment the correct measures are not taken. Failure is part of the journey but we do not always have to learn from experience. I put it to you that experience is not always the best teacher. Imagine how many F’s a lazy student could have avoided if only he studied hard? Imagine how many mistakes you can avoid if you read this article attentively?

Hence, this article is necessary for small business owners as I will be letting you in on top mistakes that  could affect your business.

1. LACK OF PREPARATION

It is often said that “if you fail to plan then you plan to fail” as cliché as it sounds, it is completely true. Many small business owners make the mistake of not planning adequately before jumping into the market, only to discover how unprepared they were. Every research that can be possibly done about the business you want to get into should be done! Researches that have to do with how your prospective consumers will accept your business and what performance you should expect within a particular period of time must not be overlooked. 

Starting out your business without adequately preparing in terms of a good business plan, financial plan and marketing plan is a way to downhill as fast as you started. 

Hence, plan as much as you can; take surveys making considering the location and the nature of your business.

2. BAD BUSINESS NAME IDEAS

A lot of people say that a business name has nothing to do with the success of a business. Let me debunk that notion. The type of business you plan to go into should affect your choice of the business name. For instance, we all love how Chicken Republic and Shoprite sound and it is so easy to relate to them because they are catchy and represent appropriately the brand they stand for.

3. BAD MONEY MANAGEMENT

 As a small business owner who spends money without caution, please be equally prepared to stay in business as long as your money management skills. The money gotten from a growing business is supposed to be used to boost and bring more returns. However, most new business owners who begin to make money get overly excited by their returns and spend lavishly. 

You should be put your business revenue to good use.

4. POOR MARKETING

For any business to thrive and be widely accepted, marketing is paramount. Not just marketing, but well-strategized marketing. Why is this important? You don’t market, no one knows you, no one knows you, no one buys from you, no one buys from you, your business dies. 

Therefore, you cannot be slack or just plan your marketing strategy shabbily. There are various platforms that are great for marketing, do yourself good to utilize such platforms for advertisement. Funny thing, social media is there for you. Facebook, Instagram and Twitter amongst others can be used to amplify your business, create awareness today!!!

For instance; have a social media presence, get a website – take advantage of technology to its fullest! Don’t complain about the cost; just as I stated in the previous point; your returns should be used to boost the business so go all the way with it!

5. LITTLE OR NO COMMITMENT

This is another area many small business owners make a mistake. The fact that it’s not a large business does not mean it should be left to sort itself out. How much time and energy you commit to your business is how much result it would yield. 

After choosing the business that’s best for you; be single-minded, give it your commitment, be patient and work tirelessly. It would eventually pay off.

6. UNDERESTIMATING PROFESSIONAL ADVICE

Do not play yourself by ignoring the services of certain professionals. You can’t know it all, you can’t be a jack of all trade, do yourself some good and employ the service of accountants, consultants, lawyers and necessary experts. 

Do not hide under the shell of “It’s too expensive.” The returns for your business should boost it, remember? Hence, the aspect of business finance is quite complicated and having professional advice is necessary to ensure you don’t end up with more regrets than savings.

7. LITTLE COMPREHENSION OF CUSTOMER JOURNEY

Have you stopped to think of how valuable customers are? Do you know that without customers your business yields no profit? Surely, you do. Therefore, realizing that customers are very important in and to your business enterprise, you have to understand a typical customer’s journey to buying your product. 

A correct understanding of customer journey will help you build an experience for your customer such that they are fully engaged at every juncture. Be creative, give them the experience to remember. 

This altogether would foster customer satisfaction, and when your customer is satisfied, be ready to have them become loyal to your brand.

Basically, if you are able to identify where you are lacking in the stated mistakes, do well to correct your ways before they become pricey. Push! Push!! and Push!!! till you become a brand worthy of note, a household name. Dear entrepreneur, dare to dream, a journey of a thousand miles begins with a step. Look up other articles on SME360, we’ve got you covered.