WHY BUSINESSES FAIL AND WHAT YOU CAN DO TO GET IT RIGHT.

A lot of businesses die in Nigeria and I have come across the reasons why they do so. So sit back and enjoy reading.

Three important reasons why businesses die when they seem to be doing fine, are as follows;

1. COMPETITION/MARKETING.

When businesses are doing well, people will notice and get interested in doing the same business. They would then decide to open shop in the same area that your business is situated, thereby taking your royal customers. The solution to this problem is to offer your customers a different kind of service that will keep them doing business with you. They call it customer service. So if you are into wholesale or retail business, you need to think about offering home delivery services to your customers. Why wait for them to come to you when they would rather go to the closest shop next to their homes. Or if you don’t have a specific product, that would make them go to the nearest shop that does. So you need to have all products available in your shop at all times and give them home delivery services. You need to collect the names, addresses, mobile numbers and social media contacts of your customers, so that you can update them about the products and services you are offering them. Marketing and advertising professionals call this “below the line advertising”.

2. BOOK-KEEPING/ACCOUNTING.

The moment you start using the income your business makes to solve your problems and not that of your business, your business would begin to have problems. It is important to prepare a monthly budget and profit and loss statement of your business income. First, you need to write down what you sell or determine the number of people that used your services for the day and how much u make a day. They call it stock taking. This would help you know the number of products you sold or services you offered. You can then use this to determine your profit and losses and determine the number of stock that is remaining and make a budget of what needs to be replaced. If the business is your source of earning an income, then it is important to pay yourself a monthly salary, so that you would not use up your business’s income.

3. MANAGEMENT/ORGANIZATION.

As you create new ideas on how to attend to your clients/customers needs, you’ll see that you can do everything at the same time. You’ll need extra hands to help you in managing your business. You can do everything by yourself. That is why you need to write down everything you do and how you do it. They call it job description or responsibilities or key performance indicators (K.P.I’s), in business management. You can use this in hiring new hands and also use it in training them and in evaluating their performances. You need to get your business organized and well managed because that is only way it can ever grow. There are three areas your business needs to be organized and they are in marketing, operations and finance/accounting.

Now that you know all this, it is time for you to use this skills to grow your business to what it was before it failed and watch it grow. If you need help just call me, Cheta on 08122351449 or BB pin 2323F358 or follow me on facebook, http://www.facebook.com/chetaokorafor or on twitter on http://www.twitter.com/MYBIZ_ng. Or simply place a comment on this article.

Posted from WordPress for BlackBerry.

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