What are the Causes and Solution to Business Failure in Nigeria

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What are the Causes and Solution to Business Failure in Nigeria – Business Failure in Nigeria: Causes and Solutions, Studies have revealed that over ninety nine percent businesses in Nigeria failed in the first few years after the businesses have commenced operations.

Many persons have wondered what could have been the causes of failing businesses in Nigeria.

And I am here to answer this question. In this article.

I will be sharing with you the causes of failing businesses in Nigeria.

And the possible solution to this challenge of failing business in Nigeria.

Therefore, should you want to know these causes and possible solutions to business failure.

I am about to tell you so that you can watch out those causes of business failure.

And as well avoid them in your business operations.

I will tell you why your business fail, and thereafter.

We will discuss together how to prevent your business failure.

If you are ready, here are they.

Business Failure in Nigeria: Causes and Solutions

See also: 7 Tips On How To Increasing Your Sales Income Business

Causes of business failure:

Business Failure in Nigeria: Causes and Solutions

1. Lack of proper marketing strategy:

In every business, developing proper marketing strategy is of utmost important.

Because such strategy can put you on top of the game and make you have competitive edge over your competitors.

And it is through such marketing strategy that you can increase sale and achieve the aims of your business.

The paradox is that when marketing strategy poor and inadequate.

The resultant effect is business failure, since the strategy could identify area of concentration that could hold more sales.

Business Failure in Nigeria: Causes and Solutions

2. Poor management:

Poor management has been the major cause of business failure in Nigeria.

Any time business in manage by unskilled labour, such business cannot survive lest alone to grow.

This has been the situation in Nigeria.

Where people who lack experience and sound management competence are given leadership responsibility in business organization.

What happen is that the business collapsed and the nation loses.

Business Failure in Nigeria: Causes and Solutions

3. Poor funding:

Poor funding has contributed to business failure in Nigeria.

And has been one of the major challenges facing businesses in Nigeria.

There are some businesses with good intention and vision that would have contributed to overall economy of Nigeria.

But because of lack of funds to finance the business, the business die and failed to achieve such laudable objective.

Business Failure in Nigeria: Causes and Solutions

4. Change of government policy:

Change in government policy is another cause of business failure in Nigeria.

This happens particularly, where there is political instability.

In this case, there are some policies mage by the government that will not favour the business.

But rather affect the business adversely hence, the business will die.

Look at a situation, where you are into importation business peradventure.

There is a policy made that banned the importation of the product your business firm is dealing.

Certainly, this policy will negatively affect the business, and subsequently lead to the business death.

Must read: 6 Tips to Start Noodle Production Business in Nigeria

Business Failure in Nigeria: Causes and Solutions

5. Bad economy:

Unfavorable economic condition does affect businesses adversely.

Such condition comes with diverse economic problems that causes business failure.

Many of these problems include interest rate and exchange rate that is unbalanced.

And inflation among other problems.

As a result, this has led to high cost of goods and services hence, lessen the purchasing power.

What are the Causes and Solution to Business Failure in Nigeria

6. Underrating competition:

This is very crucial, and in most cases people do not consider.

I supposed, it is the reason why their businesses failed.

You should not play game with your competitors.

Never take them for a joke.

Otherwise they will move on top of the game, while your business collapsed.

Solutions to business failure: 

Business Failure in Nigeria: Causes and Solutions

7. You have to prepare for failure:

Avoiding business failure in your enterprises begins from you.

Reason being that for your business to succeed you a responsibility.

Once you allow the possibility of failure in your business plan.

You are likely to neither work in order to ensure that your business does not fail.

And I bet you, your business will nor fail.

Do you know why most businesses failed?

The reason is not far-fetched.

This is because once the owners of these businesses entertained fear.

Because they afraid, they are being frustrating from doing what is needful to sustain their businesses.

That is the simple truth because when you are afraid you likely to be more than careful.

And this cautiousness will simply lead to failure.

You should also understand that the business world is dynamic.

If this is true, that means you should not be static.

How? I will tell you.

You need to upgrade you knowledge in line with your kind of business.

To avoid business failure you have to continue learning how to build a successful business.

See also: How To Start A Grocery business In Nigeria

What are the Causes and Solution to Business Failure in Nigeria

8. Do not take decision haphazardly:

You should be careful about the kind of business decision you take.

You are the sailor of your business’ ship.

Therefore, any wrong decision can shipwreck your business’ ship.

That is why you should be careful because you decisions are directly proportional to the success of you business.

Always think before you decide, perhaps you doubt your decision.

Seek other professional inputs before you implement your decision.

Business Failure in Nigeria: Causes and Solutions

9. An eye on your cash flow:

You cannot run a successful business without sufficient cash flow.

Because cash flow is the life wire of any business.

You should hold your accountant accountable.

which is why your accountant must be one of the best brain in accounting business to be able to manage your funds particularly, the organization’s cash flow creditably.

No matter how much you owe your creditors.

It is a must that you keep to efficient cash flow management in your business.

Business Failure in Nigeria: Causes and Solutions

10. Align your business with the current trend:

You should ensure that your go speedily with the current trend.

You should be competent enough and smart to make sure that your business is aligned with the varying trend within the industry in which your business belonged.

Once your business is moving with the imminent trend.

Your business is likely to have competitive edge over your competitors.

What are the Causes and Solution to Business Failure in Nigeria

11. Establish good relationship with your staff:

Whether you believe it or not, your staff members are the people who will grow you business.

And because the people who make up your business are your staff.

You have responsibility of treating your staff as you will wish your staff members to treat your own business.

Commend on hard work and reward your staff accordingly.

Studies have revealed that over ninety nine percent businesses in Nigeria failed in the first few years after the businesses have commenced operations.

Many persons have wondered what could have been the causes of failing businesses in Nigeria, and I am here to answer this question. In this article.

Will be sharing with you the causes of failing businesses in Nigeria, and the possible solution to this challenge of failing business in Nigeria.

Therefore, should you want to know these causes and possible solutions to business failure.

I am about to tell you so that you can watch out those causes of business failure, and as well avoid them in your business operations.

I will tell you why your business fail, and thereafter.

We will discuss together how to prevent your business failure.

If you are ready, here are they.

Related post: How to start iron rod and steel selling business

Causes of business failure:

Business Failure in Nigeria: Causes and Solutions

12. Lack of proper marketing strategy:

In every business, developing proper marketing strategy is of utmost important.

Because such strategy can put you on top of the game and make you have competitive edge over your competitors.

And it is through such marketing strategy that you can increase sale and achieve the aims of your business.

The paradox is that when marketing strategy poor and inadequate.

The resultant effect is business failure, since the strategy could identify area of concentration that could hold more sales.

What are the Causes and Solution to Business Failure in Nigeria

13. Poor management:

Poor management has been the major cause of business failure in Nigeria.

Any time business in manage by unskilled labour, such business cannot survive lest alone to grow.

This has been the situation in Nigeria.

Where people who lack experience and sound management competence are given leadership responsibility in business organization.

What happen is that the business collapsed and the nation loses.

Business Failure in Nigeria: Causes and Solutions

14. Poor funding:

Poor funding has contributed to business failure in Nigeria.

And has been one of the major challenges facing businesses in Nigeria.

There are some businesses with good intention and vision that would have contributed to overall economy of Nigeria.

But because of lack of funds to finance the business, the business die and failed to achieve such laudable objective.

Business Failure in Nigeria: Causes and Solutions

15. Change of government policy:

Change in government policy is another cause of business failure in Nigeria.

This happens particularly, where there is political instability.

In this case, there are some policies mage by the government that will not favour the business.

But rather affect the business adversely hence, the business will die.

Look at a situation, where you are into importation business peradventure.

There is a policy made that banned the importation of the product your business firm is dealing.

Certainly, this policy will negatively affect the business, and subsequently lead to the business death.

Business Failure in Nigeria: Causes and Solutions

16. Bad economy:

Unfavorable economic condition does affect businesses adversely.

And such condition comes with diverse economic problems that causes business failure.

Some of these problems include interest rate and exchange rate that is unbalanced, and inflation among other problems.

As a result, this has led to high cost of goods and services hence, lessen the purchasing power.

What are the Causes and Solution to Business Failure in Nigeria

17. Underrating competition:

This is very crucial, and in most cases people do not consider, I supposed, it is the reason why their businesses failed.

You should not play game with your competitors.

Never take them for a joke, otherwise they will move on top of the game, while your business collapsed.

See also: 8 Tips to Start Kerosene Business in Nigeria

Solutions to business failure:  

Business Failure in Nigeria: Causes and Solutions

18. You have to prepare for failure:

Avoiding business failure in your enterprises begins from you.

Reason being that for your business to succeed you a responsibility.

Once you allow the possibility of failure in your business plan.

You are likely to neither work in order to ensure that your business does not fail.

And I bet you, your business will nor fail.

Do you know why most businesses failed?

The reason is not far fetched.

This is because once the owners of these businesses entertained fear.

And because they afraid, they are being frustrating from doing what is needful to sustain their businesses.

That is the simple truth because when you are afraid you likely to be more than careful, and this cautiousness will simply lead to failure.

You should also understand that the business world is dynamic, and if this is true.

That means you should not be static.

How? I will tell you.

You need to upgrade you knowledge in line with your kind of business.

To avoid business failure you have to continue learning how to build a successful business.

What are the Causes and Solution to Business Failure in Nigeria

19. Do not take decision haphazardly:

You should be careful about the kind of business decision you take.

You are the sailor of your business’ ship therefore; any wrong decision can shipwreck your business’ ship.

That is why you should be careful because you decisions are directly proportional to the success of you business.

Always think before you decide.

Perhaps you doubt your decision; seek other professional inputs before you implement your decision.

Business Failure in Nigeria: Causes and Solutions

20. An eye on your cash flow:

You cannot run a successful business without sufficient cash flow, because cash flow is the life wire of any business.

You should hold your accountant accountable.

Which is why your accountant must be one of the best brain in accounting business to be able to manage your funds particularly, the organization’s cash flow creditably.

No matter how much you owe your creditors.

It is a must that you keep to efficient cash flow management in your business.

Business Failure in Nigeria: Causes and Solutions

21. Align your business with the current trend:

You should ensure that your go speedily with the current trend.

You should be competent enough and smart to make sure that your business is aligned with the varying trend within the industry in which your business belonged.

Once your business is moving with the imminent trend.

Your business is likely to have competitive edge over your competitors.

Must read: 6 Tips to Start Floor Mats production Business

Business Failure in Nigeria: Causes and Solutions

22. Establish good relationship with your staff:

Whether you believe it or not, your staff members are the people who will grow you business.

And because the people who make up your business are your staff.

You have responsibility of treating your staff as you will wish your staff members to treat your own business.

Commend on hard work and reward your staff accordingly.

The post 22 Business Failure in Nigeria: Causes and Solutions appeared first on IPCAREER.

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