As a business owner, you will fail except you avoid these mistakes
There are some mistakes that people make that they can either make planning complicated or make it a failure.
Why some see starting a business as a big risky move, many see it as an opportunity.
For me, I see an opportunity in Nigeria. Nigeria has had its citizenship opportunities. As of 2020, the total population of Nigeria is around 205 million. This is an opportunity of over 200 millions potential customers .
What can you see?
A superb business opportunities in densely populated areas. It depends on your attitude. It all depends on the mindset.
Some people have seriously mentioned that the cheapest thing in the world is poverty while the most expensive thing is success.
If you really want to be poor, Its very simple. Just sleep and wake up useless. You need more than luck to succeed in business world. Living the whole life is a choice and living a temporary life is a choice.
Coming back to our topic, you will agree with me that there are a lot of business opportunities everywhere, but choosing the right one really matters.
10 Common Mistakes to avoid in Business:
In most cases, aspiring entrepreneurs do not create the right budget for their business. A lot of research is needed to determine the true value of the business you are doing.
If you need N2m to start a business and you have an N1.5m budget, chances are you are stuck in the process of starting such a business and it may affect the enterprise.
It is important to get the budget you need before starting a business building implementation. Not having the right budget doesn't make a difference in the way you think about business.
Right Target Audience
This is a group of consumers who want your product or service. A childhood friend of mine once told me that he intended to start a gold retail store(in a very remote area of Lagos)
He thought the store rent is cheap and he will reinvest some of his investments over time. It started. I asked him, how many people in such an area would really wear gold?
Goldsmiths are self-sufficient and you can hardly find such people in this area. Setting up a gold business in such an area is a waste of investment and is largely wrong.
On the other hand, I know of a very successful woman who sells almost everything in the area. She did not train as a caterer, but she is good at cooking and has built two houses in the same area from the food business.
It is true. The food business is the perfect place for a business where retailing is a complete target for consumers as opposed to setting up a sales outlet. Therefore, the right target market or audience is important in every business.
It measures the amount of profit earned by the performance of any work in a business. It gives you a clear idea of how well your business is doing. However, some people do not really know how to do it.
Just because you have goods(stock) in your store or warehouse doesn't mean you're making a profit. In order to reach your goal, you need to analyze your costs separately from your business.
Your overhead and other related expenses will have to be deducted. If this is not done, the business will not run and you will not know when mistakes are being made to correct them.
Choosing a good development period
Every business has its own period for development(gestation). From the start of the business you should be able to identify a number of factors that can help you break even.
Falling to the ground is a factor that has cost overhead and space for the right users, beginners. It's okay to put your expected business on people's target number and attach data (value).
It gives you an idea of what your costs will be and what your business will look like.
If your estimated business can't handle the costs, then don't dare. This is important because a lot of people go into business and find out later that business is not going well because of the wrong projection from the beginning.
Create a separate account record
Most of people want to run a good business but you don't know how to separate your business accounts from your personal accounts.
Due to family pressure or social pressure, you go to your business accounts to get money to meet your individual needs or family needs. Some people also take goods from their shops that are given to children who come to your places of business.
As good as it is, it's okay to take money from your own savings but not from a business account.
This is one of the reasons why businesses are not performing well and if you really want to succeed in business you must avoid such losses.
Collect money for your service
It is not very different from the above. To avoid losing your capital, you must learn to pay yourself from profits.
Many business people reach into their own business accounts just to get money for their personal needs, but that is not how the business works.
Learn to pay yourself in such a way that you have a personal drive to move the business forward so that you can pay at the end of the month.
No family and friends with your business
This is a very common mistake in Africa. We all have family relationships, but it's always best to keep your business plans away from family and friends.
My first business was car wash and I didn't manage to learn that I had dug a grave for that business. True, due to lack of accountability, this business could not run for 4 months and everything was uprooted.
Africans are used to misusing opportunities. Don't fall into such traps. Employ people who are qualified and have no ties, so you can run the business.
Market your product
As a business person, it is important to know that every business needs marketing. People need to know what and how you really sell your offer
It all depends on how you want to market your product, but in this age of social media, you want to have at least one Facebook page that you can evaluate.
This will enable you to promote your business online. Twitter and Instagram are also useful tools that you can take advantage of. It goes as far as you can imagine.
Printing handbills to reach people can also be helpful in marketing your business, but people should be aware of what you sell.
Embrace competition or Rivalry
Every business requires some skill. It is a controversial fact that you may not know all this but it is very dangerous to start a business that you do not know.
You can go to seminars, vocational schools and read about business to get acquainted with places.
Before starting a business, skills and experience are best acquired before you can hit and strike a balance.
Always be mental stable
You just have to be more discriminating with the help you render toward other people.
Starting a business requires a lot of mental intelligence. No business starts on a comfortable plot.
At first, it may be rough, but you have to be mentally prepared to stay in business. "Nothing in life is easy."
Many people have done some business and keep jumping from one to the other. Patience is key. Endurance is a big factor. In the long run, it will end quickly and business will grow.
Have you ever experienced any of the above 10 Mistakes in Business? Let me read your thoughts about this article
I will appreciate if you like, comment and follow so as to see my next article about business
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