Business

5 Common Mistakes You Must Avoid When Starting A Business In Nigeria

Published

3 years ago

Jun 20, 2022.

EDITOR’S PICK:

Starting a business, especially for the first time is not as easy as many people would think, it requires exquisite knowledge and experience in the desired area, which should also be buttressed with dedication, passion and the right mindset.

Studies have shown that most businesses from the different parts of the world have ended barely a few years after their initiation because of different mistakes made by the entrepreneur.

Well, in this article on EKO HOT BLOG we would be looking at some things you need to avoid when starting a business in Nigeria.

1. Neglecting the essence of adequate planning

Most people feel business can be run by mere intelligence, thus; they don’t see the need to make strategic planning, especially the written ones. It is important to understand that; for a business to succeed, adequate planning has to be made in terms of ‘what to sell’, ‘how to sell’, and ‘where to sell’. All these and more are among the necessary considerations that should be made before setting up a business.

2. Failing to monitor your progress and adjustment

Oftentimes, most people feel their business is progressing so they don’t see the essence of keeping stock or records. The idea of keeping a viable record of all your transactions and expenses is to ascertain the progress of your business and the need to make the necessary adjustments.

3. Not having proper knowledge before venturing into a business

Before setting up a business, it is vital you first understand how it is run and managed. Starting a business you have little or no knowledge about might amount to people taking advantage of your ignorance, especially some of your employees. You might not know everything about the business, but ensure you understand how the cash is generated and how it is managed.

4. Setting the wrong price

The idea of increasing the price of a product to make a massive gain or reducing it far below the actual price to bid customers’ interest will affect the productivity of your business. Skyrocketing the price of a product to make an excess profit might discourage people from patronizing you, which will in turn reduce your sale and eventually your business.

5. Ignoring technology

The use of the internet is another significant tool that can be used to promote your goods and services and also to reach wider customers. For instance, you can use the help of social media platforms like WhatsApp, Facebook and others to promote your products to potential buyers.

FURTHER READING

Failure to annex this strategy might only leave your business on a local scale of which you might not achieve much.

Click to watch our video of the week: