Good morning my lovely people. You are warmly welcome back to Business Edge with Nanky James.
I am sure you missed this special offering as much as I missed you too. We had to go on a break due to some reasons that were to the benefit of all of us. Now we are back and I promise to be here for the long haul.
Like I said, this time around, we will place much emphasis on guiding our youths and young business entrepreneurs on how to go into the world of business instead of waiting for non-existent white collar jobs.
We will also give prominence to tips on how to start up a small business and nurture it to sustainability.
In this episode, we will explore 10 tips for business survival. During my research on why many small businesses in Jos hardly go beyond the incubation period, I found out that many entrepreneurs make some common and avoidable mistakes and before they know it, they business they had invested so much money, time and passion into has collapsed. Some will turn around to blame their village people, family members, bad luck and even the government without taking into account their own decisions and failure to do the right things.
I also identified common mistakes people make when starting or running a business, leading to some businesses shutting down due to uncertainty about their direction or strategy.
These are some of the things you need to consider while setting out as a business owner or entrepreneur.
1. Talk to Locals
Engage with people, understand their needs, and preferences. Take into account what’s hot and what’s not.
Let me give you my personal experience: I have a shop in Kwang which I always refer to my ‘Kwang Shop Story’. I almost got scammed by an agent who wanted me to pay for a shop without disclosing that the owner’s son was eyeing the same spot for the same kind of business I intend going into.
Luckily for me, I talked to existing tenants and saved myself the stress! My talking to the people in the area, I was able to know how many of my intending business was in the environment.
2. Analyze Competitors
Scout the competition, identify gaps, and opportunities. Do not be intimidated by competitors; they should even be a source of inspiration for and your business. Tell yourself, ‘if they can do it, I can do it too. I know I’m the best among the rest because I keep improving and innovating. I’ve got my own strengths, and I’m focused on leveraging them.’
This doesn’t mean not you shouldn’t acknowledge the fact that another person is ahead of you and creating room for learning.
3. Do your research
Leverage on social media, forums, and local news to stay informed. Be teachable! Seek guidance from experts, and don’t be afraid to pay for consultation. It’s an investment in your business. Perform thorough market research to understand demand, competition, and your target customers.
5. Do write a business plan
To be successful in business, you need to have a comprehensive business plan. This is essential for outlining your strategy, products, marketing, and financial needs.
6. Do focus on finances
Know your numbers and secure funding before you start.
7. Do build a support system
Surround yourself with subject matter experts and mentors to learn from their experience.
8. Do understand your strengths
Be aware of your own skills, what you can and cannot do, and how much time you can commit.
9. Do stay organized
Maintain detailed business records and consider using professional accounting and payroll systems.
10. Do start small
Begin with a manageable scale and plan for growth.
11. Do be customer-focused
Make customer service a priority and use feedback to tweak your product or service.
Let’s look at the ‘don’ts’ of business survival and sustainability.
1. Don’t Assume
Don’t assume that what works elsewhere will work in Jos. Local tastes and preferences might differ, so in setting up a business, make sure you offer something different even if there are such businesses around where you operate. You can create a different feel for your business which could make customers prefer patronizing you.
2. Don’t Rush
Take your time, gather data, study the business environment and make informed decisions.
3. Don’t skip the business plan
A plan is crucial for consistency, focus, and measuring progress. Skipping it means you lack a roadmap.
4. Don’t neglect market research
Creating a product without validating customer need is a primary cause of business failure.
5. Don’t assume people will want your product just because you built it.
6. Don’t neglect legal registration
Failing to register your business or choose the right legal entity can lead to costly problems later.
7. Don’t rely on verbal agreements
Avoid relying on verbal contracts; always use written agreements to prevent future disputes.
8. Don’t underestimate costs
It’s common to lowball startup costs, which can lead to inadequate financing and cash flow problems.
9. Don’t expect immediate profits
Don’t think of profits from day one; instead, focus on building a sustainable business.
10. Don’t overspend on non-essentials
Be cautious with spending, especially early on, and avoid investing in non-essential items that don’t contribute to growth. Most importantly, don’t start ‘eating’ your profits. Instead, invest them in your business and watch it grow.
