Failing to plan is planning to fail, right? Right. And that is why it is important to make sure you cover all the bases before launching your business. The last thing you need is to spend valuable time and money on a project, only to have it crash and burn because of one small factor you overlooked.
It is time to uncover several common business pitfalls you should know as a startup or a business owner. We hope you find them revealing. You may also find this topic interesting; 26 Daily Income Businesses in Nigeria and Starting Cost.
What is a Business
What is a business? It is a great question and one that has been answered thousands of times. The United States Small Business Association defines a business as a company or organization engaged in the trade of goods, services, or both to consumers and to other businesses. This is a very broad definition, and it even includes organizations that provide volunteer services for a good cause.
- A shallow understanding of the business
- Starting a business without plans
- Impatience
- Making emotional decisions
- Short-term Focus
- Trying to handle everything yourself.
Read- 5 Sources of Business Grants in Nigeria for Startups.
6 Business Pitfalls you Should Know as a Startup
In venturing into a new business as a startup, there are common mistakes and business pitfalls that are common everywhere.is one of the most exciting experiences you can have in life.
Let us discuss 6 of these business pitfalls you should know as a startup.
1. A Shallow Understanding of Business
As a startup founder, there will be lots of business pitfalls you should know. One of the most common problems startups face is having a shallow understanding of the business. Many entrepreneurs do not invest in what they know, but they see everybody doing at the moment.
The better you understand the business you are doing, the higher your confidence and you won’t be afraid you might lose control over the company if you raise money from investors. The message is simple and clear; get your findings and facts together before you take the dive into the business.
Learn the 10 Strategies to Help you Stay out of Debt.
2. Starting a Business without Plans
Starting a business is one of the most exciting experiences you can have in life. But without proper planning, you are bound to fail. The prospect of creating something from scratch using your unique skills and knowledge, then building it up to create a successful enterprise, is incredibly motivating and requires a high plan map.
We all know that there are several investment opportunities in Nigeria to choose from, which are filled with many hurdles along the way, which can lead to business failure if you are not careful.
Talk more when you don’t have a mapped-out plan for the business activities.
Read- 4 Creative Ways to Impress Your Customers.
3. Impatience
When you start a business, there are going to be pitfalls you will need to navigate. But what keeps you going is patience. When you are just starting out, you won’t know what those pitfalls will be and when you will encounter them. With impatience, you can give up anytime and the business freezes.
Flash deals like Ponzi Scheme rarely hold water, and business requires great patience.
Here are a few of the most common pitfalls that I see startups make as they develop their business.
The ‘slow and steady’ idea still holds absolute relevance and shouldn’t be discarded from any business venture. Patience could prove a difficult virtue for Startups and entrepreneurs to master. It should be your greatest asset. An effective way to manage and prevent this business pitfall is to stick with the long-term business goal mapped out.
Learn the 9 Legit Business Loans in Nigeria.
4. Making Emotional Decisions
Startups fail for various reasons. Reasons like making emotional decisions and considering certain ideas with emotions attached to them.
The main reason is that a startup does not have enough strength to deal with financial stress, which can affect the business decision-making process. Emotional decisions are full of biases and provoking ideas. That is why we think it is important for you to know that behavioral finance is an aspect of business that accounts for personality types. Stay woke.
Read- How to Make Money with Affiliate Marketing in Nigeria.
5. Short-Term Focus
There are so many mistakes you can make as a startup. One of them is focusing your whole energy on the short-term gain. Startups chase flashing business deals that would give them big profits right away. This emancipates from not having realistic expectations about how business works.
However, understanding whether to have money right away or focus on the long-term goal is important in every business.
Therefore, note that startups, business investors, and entrepreneurs who focus on the long-term goal make consistent decisions that lead to robust revenue and profits.
Learn the 10 Roles of Small Scale Business in Nigeria.
6. Trying to Handle everything yourself
In the beginning, everything seems so simple. You have an awesome idea and you need to execute it. Then, as your business grows, so do the challenges you face.
No matter if you are a solopreneur, there is always ‘room for improvement’. So you need to work with a team of business experts and personnels that will bring their skills to the business. If you have been working on your business for longer than several months, you might have already experienced the pitfall of trying to handle everything yourself. Be smart enough to know that learning, training yourself all over again, and sorting for teamwork is a great idea to explore as a startup.
Read- 7 Successful Ways to Start Small Chops Business in Nigeria.
Conclusion
As the popularity of the internet and e-commerce have grown, so have the number of aspiring entrepreneurs. Whether as a startup or an already profitable business, it is important to know how to avoid pitfalls that many businesses face today.
Again, several business pitfalls and mistakes are avoidable. When you put the right foot forward, you are on a journey to enjoy a smooth business sail.
Also note that implementing these ideas does not come right away, neither can you achieve them in the twinkle of an eye or by chance. It requires discipline and learning to pull through successfully. We hope to see all the entrepreneurs, startups and business owners on the other side of financial freedom.
Other Searches
