Statistics show that about 50 per cent of first-time businesses fail within their first five years of operation, experts say. In this report, Okechukwu Nnodim and Ayomikun Abiola highlight the major reasons why first-time entrepreneurs fail in business
Businesses succeed as much as they fail. To run a successful small and medium scale business in Nigeria, aside adequate capital investment, some basic criteria must be strictly adhered to by the entrepreneur. Experts note that the neglect of these criteria contributes to the failure of most businesses.
Entrepreneurs, especially those just starting out in business must appreciate the fact that shrewd businessmen treat business failure as a milestone on the road to success. They must try to bounce back notwithstanding the fall. Experts note that real entrepreneurs count on learning from their mistakes, and use the experience to move to the next idea. Owners of start-up businesses should learn from the mistakes of others to avoid the pain and suffering associated with business failure.
Below are major reasons why first-time businesses fail, according to experts and medium scale business entrepreneurs interviewed by our correspondents:
Lack of business plan
Many young entrepreneurs often neglect the essence of writing out a business plan for their venture. Experts note that you should not believe the myth that a business plan is not worth the effort. The Managing Director, Nordmark Communications, a medium scale communications firm in Ojo, Lagos, Mr. Daniel Nze, says no matter how small a business might be, the entrepreneur must take the pains of writing out a plan. He notes that the time and energy put into writing down a plan shows that the entrepreneur truly wants to transform his idea into a business.
Improper execution of ideas
It is one thing to come up with a business plan and another to astutely execute the idea. Experts note that an idea alone is really worth nothing. According to them, the idea is useless if not executed. They note that the entrepreneur must be a risk taker and one who takes strict business decisions in order to do well in this area of idea execution.
CLICK SOURCE FOR MORE
- 9 Common Myths About Entrepreneurs (grasshopper.com)
- 5 Reasons You Need an Advisory Board From Day One (inc.com)
- 10 Top Reasons Why First-Time Entrepreneurs Fail (kellybusinessadvisors.com)