Being a successful entrepreneur in Nigeria is a venture with a lot of challenges. Considering the many little details that naturally go into setting up a business and putting it to a path of profitability and sustainability, many entrepreneurs can be forgiven for losing their way along. Even the successful entrepreneurs cannot deny that there common mistakes entrepreneurs make. So, following the old cliche’ that the man who has not made mistakes has not tried new things. Therefore, here I have list of common mistakes entrepreneurs make in Nigeria, and why you should avoid them.
List Of Common Mistakes Entrepreneurs Make In Nigeria: Why You Should Avoid Them
1. Setting Of Goals
A common business mistake that every entrepreneur who’ve had businesses for years is not setting the right goals. First step is to have two sets of goals, It could be short term and long term. Second and more important step is to make sure that your short term goals lead up to your long term goal(s).
When you get the second part wrong, you spend more time thinking and less time doing. If your ratio of thinking-to-doing is anything less than 90%, then your goals are messed up.
2. Lack Of Discipline
Refusal to take pains before pleasure: This is a flaw that is found among the new generation of entrepreneurs. Many have had their dreams cut short simply because they were not ready to start small and take pains before pleasure. Entrepreneurship is a difficult journey; one that certainly requires discipline and in most cases, gradual growth.
Sadly, it is common these days to see many entrepreneurs embrace a flamboyant lifestyle at the first signs of success. If you choose to buy that expensive car or fly Business Class from the moment you close your first big deal, you may be making a mistake that could truncate your success.
For long-term and sustainable success, every entrepreneur must be ready to take the business through a structured incubation period in order to survive in a highly competitive knowledge-driven economy.
3. Not Being Dynamic
Even if you operate in a niche market. Unconsciously, many new entrepreneurs often make this mistake of erroneously believing that their products/ideas are so unique that they can get away with putting in much effort at marketing. If you desire success as an entrepreneur, then you must admit the fact that your business must effectively invest in marketing.
In addition to the word of mouth/free referrals that will come from constantly delivering great service, your business stands a better chance if you work out efficient marketing strategies that will necessarily accommodate content marketing, digital marketing, point-of-sales, promotional marketing, SEO, PR and paid advertising, among others.
4. Anti-expansion Attitude
This is a common business mistake that many struggle with (both new and old) – trust me, The sooner you learn to delegate, the better it will be for your business and mental health.
While it’s tempting to design your own logo, do your own bookkeeping, run your own payroll, it’s usually a bad idea.
Just because you can do it, doesn’t mean you’re good at it.
And that’s not a way of belittling your abilities. Even if you’re good at it, you have to determine whether that’s the best use of your time.
5. Jack Of All Trade Attitude
Another common business mistake that new entrepreneurs make is blindly following advice (whether it’s professional or from a friend who runs a business in another field). You are killing your bushiness when you try to get your hands on all available techniques not minding its effects to your business. Take time and scrutinize any suggestion before getting your business involved in it.
Meanwhile you should always get professional advice, it’s important to be objective about it and put the advice in perspective of your business. Just because you heard it from an expert, doesn’t mean you should follow every single word of it. Try to get multiple opinions and do your best to make an informed decision.
6. Poor Finance Management
Overspending is one the deadliest in the list of common mistakes entrepreneurs make in Nigeria, especially the young ones. It pays to be conservative in your spending until your business has a consistent track record of profits.
Some common items that I observed that many entrepreneurs go crazy on – business travel expenses from hotels to meals to drinks. You can easily reduce them. Same goes for fancy equipment, gadgets, web hosting and software costs, office space, etc.
As a new business owner you just have to close your eyes to spending so much, until your business have grown to a certain level.
In conclusion, take these list of common mistakes entrepreneurs make in Nigeria into consideration in order not to kill your business with negligence of some vital salient decisions.