Business Dynamics | Your Business Will Cease to Exist Because of These Six (6) Reasons
Business Dynamic - The Nigerian dynamics today on small business has been a tremendous one from my very own point of view, a nation where over 85% of the 40 million small business owners haven't had any sort of formal business training and knowledge but still manage to succeed. a bigger percentage of those businesses dies within the absence of the owner.
These businesses die after few years because of:
- Lack of proper record keeping: Improper documentation and record keeping has been the first reason small businesses in Nigeria don’t obtain loan from our commercial banks. Businesses don't seem to be passed down from father to daughter or son because nobody have a plan of what has been happening within the business, how issues were resolved within the past, what was the result of the specific decision made years ago, what mistakes are made within the past and what are often done to avoid these mistakes within the future. Most business owners today in Africa don’t have proper written account of individuals owing the business and after they promised to pay back these debts. This can be a heavy disaster to any small business and this attitude must stop if you wish to survive in your business.
- Bad customer experience: meaning, business owner in Nigeria doesn't care if a customer returns after buying goods once, we believe God will always provide customers that are ours. So for this reason we treat our customers with the utmost disrespect, not minding the implications of our actions. Treating customers with respect and care has been proven to be the paramount factor of success for any business in and around the world, after you treat a customer well; he/she tends to be pleased with you, knowing that you simply value their presence in your business. This may make them want to come around you and buy from you next time they need such an item. Remember nobody wants to be in a place where they don’t feel welcomed not even you!
- Competing supported price: Lowering the worth of your goods to compete has being the fastest route to kill your business in today’s business environment, because at some point someone with extra money will always still decrease his/her price to compete and you may run out of business in time. The simplest tactics to out-compete your competitors is to make a trusted relationship with your customer. After you have established this relationship with your customers, they'll want to examine your business survive, they'll obtain your goods and services in spite of the worth. They'll even see the products of your competitor as fake irrespective of the cheaper price.
- Access to capital: 80% of economic banks today don't have interest in providing loan services to small businesses because of the high risk emanating from such transactions. Capital is the life blood of each business on earth, the day you completely run out of cash and options to urge in money, your business may likely not survive. As a business owner; you wish to find out ways to source capital from different sources to grow your business. You wish to find out a way to leverage on what you have gotten to usher in what you wish, a way to get line of credit from your supplies, a way to build partnership along with your internal and external customers. These skills will certainly keep you in business.
- Lack of Sales Experience: All business dies when the owners lack the experience of selling or stop selling for reasons known to them. Selling could be a skill that has to be mastered by all business owners, effective use of this skill will cause the start of recent levels in your business. An honest sales person during a bad location can make profit but a nasty sales person during a good location will cause losses and therefore, the business will eventually fold up. After you don’t savvy to convince people, they'll find themselves leaving your shop without making any purchase. Learn the act of persuasion and your business will flourish.
- Rather create value: Giving value to your customers is the most vital thing you wish to try to as a smart business owner. Try and deliver quite regularly to your customer’s expectation and access the cost so that you don’t make the foremost money out of them while providing products/services below their pay. As a baseness we should always sometimes do things for purchasers that doesn't translate to immediate reward, we should always consider the massive picture and aim for the last word goal. African entrepreneurs don't savvy to make value for his or her target market. In creating value for your customers, business owners can collaborate and even organize free health/safety training for his or her community members. This may help create a lifetime relationship with customers - Good business dynamics practices.
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