When starting a business whether in Nigeria or other parts of the world. you need to have in-depth knowledge and expertise in the field you want to work in, along with the correct attitude, commitment, and passion.
According to studies, the majority of firms from all over the world fail just a few years after they are founded due to a variety of errors that the business owner makes.
In this article on EKO HOT BLOG, we would be looking at some mistakes you must avoid when starting a business.
1. Ignoring the importance of thorough planning
The majority of people believe that businesses can be managed by simple intelligence and do not perceive the necessity for strategic planning, particularly written plans. It is crucial to realise that effective planning must be made in terms of “what to sell,” “how to sell,” and “where to sell”. Among the important decisions that must be made before starting a business are all of the above and more.
2. Not keeping track of your development and correction
Most people frequently believe their firm is growing, thus they don’t see the need of maintaining inventory or records. The purpose of keeping an accurate record of all your transactions and expenses is to determine how well your firm is doing and whether any adjustments are required.
3. Lack of sufficient preparation before starting a business
Understanding how a business is handled and managed is essential before starting one. People, especially some of your employees, might take advantage of your ignorance if you start a business in a field about which you know little to nothing. Even if you don’t know everything about the company, make sure you know how money is made and managed.
4. Choosing the incorrect pricing for exploitative reasons
The efficiency of your firm will be impacted by ideas like raising a product’s price to generate a significant profit or lowering it significantly to pique customers’ attention. By dramatically increasing a product’s price to generate an excessive profit, you run the risk of losing customers, which will lower your sales and ultimately your business.
5. Offering poor customer service
This, in our opinion, is the most important aspect that might prevent any customer-based firm from expanding and succeeding.
Having a bad attitude toward your consumers will make them less likely to buy your items, which will reduce the amount of money coming in. Keep in mind that consumers are the lifeblood of any company, and you must satisfy them to maintain their patronage.
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