Top 3 Reasons Why Many Businesses Fail—How to Avoid the Pitfalls

Posted on Sep 28 2016 - 10:00am by Francis Isaac

Emeka worked into my office today looking devastated, with hot tears dripping from his eyes, I was startled, to say the least. What could be wrong with such a promising young man to warrant such display of despair I wondered in awe, not until the young man narrated his ordeal was I able to make sense of why he acted the way he did.

It happened that Emeka had tried his hands on a number of businesses, failing each time he tried. Today am going to tell you exactly what I told Emeka when he worked into my office that faithful afternoon. There are certain decisions we make that can bring our business to an abrupt halt. Below are few of them:

Having a vision, but no strategic plan

Having a vision with no  blueprint on how that vision can be accomplished is like  driving a car with no headlamp. Like the car without a headlamp, the end is better imagined than experienced. Like my client Emeka, every business owner out there wants to build a successful business, yet still only a few have a work plan or strategic plan to ensure their business survives the harsh competitions in the business world.

While your desire to be successful is a good step in the right direction, I must warn you, succeeding in your current business will not come on a cheap. To succeed in this highly competitive business world, you must have an in-depth knowledge of your competitors, an understanding of the industry which you belong and how those in that industry have been succeeding all the while.

Finally, you must find out your business competitive edge and leverage on them, this will definitely help keep your head above water in the business world

Hiring the wrong hands

Hiring the wrong hands to manage your business will amount to shooting yourself in the leg.  This to me is suicidal. Businesses today are under pressure to fill vacant post because of the apparent workload, as a result there is little or no time to thoroughly select the best applicants for the job.

Nothing can be more damning than employing a staff who has no vision, drive or motivation. Also in an attempt to maximize profit, businesses today recruit under qualified staff all in a bid to reduce the salaries they would have paid to a more competent staff.

My candid advice; never be under pressure to hire your next staff, if you must hire, do that on a contract basis until you find a more competent staff who can better handle your business.

Top 3 Reasons Why Many Businesses Fail—How to Avoid the Pitfalls

Letting friendship supersede business ethics

Every successful business that has survived the fall today, lays it claims on exceptional qualities and leadership capabilities of its owners. While it is good idea for business owners to have a cordial relationship with their staff, there are however certain lines you should never cross if you want your business to succeed.

One of such line is the “Friends at the workplace” line. This is a red flag every business owner must avoid. Always have this at the back of your mind, never mix business with pleasure. If you do, then be prepared for doomsday as your business might be sinking in no distant time.

 

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