How To Avoid Business Failure

How To Avoid Business Failure In Nigeria

On over a hundred articles we have discussed different business in Nigeria, how you can set them up, how you can even raise money for you businesses, how you can access fund using a business plan, we have even discussed the 10 top most lucrative business in Nigeria. However, on these articles the focus will be on how to avoid business failure.

Just like we have discussed on Why business fail in Nigeria and we also touch a few of those factors that causes failure in business as well as success, we highlighted that and emphasized that those factors that causes failure in business are the same factors that will that will enhance business success if the opposite  is done.

The question on how to avoid business failure in a country like Nigeria is a complex on, because the factors that causes business failure seems to be more and probably very much pronounced, from government policies, environmental factors etc however, there are other factors which could be categorized as one of the avoidable factors that contributes to business failure in Nigeria.

These factors could as well be described as controllable factors, and they can be totally avoided if the right things are done. While discussing how you can set up your business, we listed several factors to consider, factors such as your business location, rising fund for your business, getting a feasibility study, hiring the best hands for the running of your business, carrying out a proper research on the available market and knowing your competitive advantages. While you continue reading, you will see some other factors you should look out for and probably avoid.

How To Avoid Business Failure

Business failure must be avoided like a plague and in order to do this, the following steps are worthy of notice and serious consideration, in fact implementation as suggested.

  1. Avoidance of inappropriate methods and technologies
  2. Entrenchment of clear visions. Where there is no vision and appropriate knowledge, people and organisations perish.
  3. Avoidance of ineffective items
  4. Avoidance of inappropriate empowerment as well motivation, such as payment of wages that are not tied to performance and productivity.
  5. The destruction of bureaucratism, bureau-mania and bureau-pathology, as well as the removal of bottlenecks and stumbling blocks to creativity, innovation and imagination.
  6. Avoidance of unnecessary legalism and the realization of actions
  7. Avoidance of over reliance on ICT to the neglect of the welfare of Human Resources who possess the key knowledge needed by the organisation.
  8. Avoidance of rigid demarcations of organizational boundaries. Successful organisations have seamless inter faces and networks for internal quality controls.
  9. Avoidance of failure of understanding of organisational purpose and their implications.
  10. Courting success and seeking it wherever it may be found. This can be achieved by doing the following;
  • Creating a bold and sweeping vision
  • Using appropriate methodologies, as a rule
  • Working constantly with knowledgeable and experienced teams.

The creation of business success is a systematic thing that follows some steps which include the following as has been depicted.

Creation Of Success In Business

The creation of success involves the following five (5) phases;

– Establishing Vision and settling clear goals

– Bench marking and defining success

– Innovating and creating the process that leads to success

– Transforming process and implementation stage

– Promoting and evaluating success.

Creating success involves a clear vision, and having a vision implies having a purpose, a direction, mission, objective, goals and targets. Entrepreneurial or business success involves “Agenda setting” because you do not simply, plan and plan and plan, the future, you invent the future. All entrepreneurs in history began with visions, for example Ford, Disney, Kay etc as we have noted in chapter on of this book.

According to Konzes and Ponser (1994) all pioneers entrepreneurs, leaders and managers need a compass and a dream. They often passionately believe that people working together ca add value and make a difference. Visions are the “Magnetic North” of successful entrepreneurs and business leaders that give them direction and purpose. Successful entrepreneurs will always create and communicate their vision of the future, establish and lunch their efforts and develop appropriate goals and performance or productivity measurement tools for harvesting success.

Also, they establish and communicate their expectation and will always coordinate resources to carry out their visions and the efforts needed to realize them.

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