As Nigerians continue to embrace entrepreneurship and open small scale enterprise which undoubtedly has lots of benefit to the individual and economy at large.We are aware such benefits for sure comes with challenges especially during startup.
In Nigeria, being a business owner can feel like an infinite race, which require stamina, constant updating yourself, discipline and rigorous amount of work to succeed is needed.
The main reason for being an enterprenuer is not just about your passion; its about slaying down all the unexpected obstacles that come within your territory and making profits.
Nigeria is slightly difficult place to do business because of diverse religion and ethnicity, but can also be a rosy place if your onions are well known.
Below are the top problems associated with being a entrepreneur
Money is one major factor that leads to business failure.You would need to have a startup capital coupled with additional capital for unforeseen occurrences. The banks in Nigeria are not also helping matters has most entrepreneurs are denied loans. For an entrepreneur , you need not expect huge profit instantly. Business expert advises you to wait at least two years, working on your business slow and steady.
2.Lack of skill or knowledge
Having a passion for a business line is just not enough to bring in profits,what makes you stand out is the uniqueness of your business. it is imperative to have considerable amount of knowledge about the market,competitors, marketing techniques and advertising strings.
As an entrepreneur you must possess the skills needed in your business line, if you have little or no knowledge,educate your self by doing proper research, read relevant books or better still attach your self to a business that offers similar services.
Time waits for know one and time is money remains valid especially in business. it is intrinsic for entrepreneurs to manage their time wisely. Making a detailed plan in advance and ensuring to stick to that plan is very essential for time conservation. This can be done by utilizing calendars, planners and alarm.
Risk management is also essential for entrepreneurs, this is one major reason planing in advance is necessary. Before taking up calculated risk decisions, you need not to be in a haste and utmost you need a back up plan.
Change is constant! This phrase hold water as we continue to see it all around us. Information keeps changing!,new facts, approaches and solutions keeps trending and replacing old methods which becomes obsolete, as a result there is information overload
Day in day out it become difficult to find effective solutions,which becomes a challenge for a new business to utilize data and come up with good decisions.Two good ways to scale through is to ensure the writer of such information is of good reputation or learn from similar business owners who have succeed.
The end point of every business is profit, without client there exist zero profit and in turn with poor marketing the result you get is a low turn out.
As information keeps changing, market response does also.Once you have a clear idea about your target market and your competitors. you can allocate budget for advertising in your planing sessions.
7.Division of Labour
Jack of all trade, master of none, being a workaholic doesn’t mean your business would be successful. You need people of like minds who are ready to work. Do not ever believe you can manage everything yourself and do not need any form of advise from anyone.
This strategy may seems successful at the initials, but as the work load increases the entrepreneur begins to make mistakes and the quality of work decreases.Hiring some employees is very useful, it is better to lose small amount of money to your workers that to lose huge mounts in the future.
As information becomes obsolete, many start-up companies stills stick to the old rules which do not work. As an entrepreneur you need to be innovative, you always need to think outside the box, be open to innovation and ensure your employees are prepare for it, make the understand the benefit of such innovation.
Let take an example from two major banks in Nigeria, Gtbank and Ecobank. I have account with both banks but for the past 2 years i have not deposited even 5 NGN into my Ecobank. Why? Ecobank have a history of customers dissatisfaction, unlike Gtbank that handles their customers issues promptly. This also applies to start-ups, if a customer is extremely satisfied with your services he would always return to you even though others in your line of business beat down their prices.At times its not all about the money, but the value for the money spent.