How To Save A Failing Small Business in Nigeria From Dying
If you study or you are a student of Robert kiyasoki, you will understand the very core reasons why businesses fail. Some according to him failed before it even got started. 6 out of every 10 business never make it to 5years and those that made it 8 out of 10 never make a million dollar yearly turnover.
The question remains why and why and why. Why do we have few businesses succeeding and much fail? What I have come to understand in my little time business is that so many so called starters are never prepared for what they are going into. When they a new business experiencing stagnation or downturn, they either quit or sell it off. The fear if losing is always greater than the fear of success. You don’t just want to waste all your investment simply because you are experiencing a temporary setback. We will discuss some reasons and ways on How To Save A Failing Small Business in Nigeria From Dying.
No one ever said it’s easy to start a business. But it’s harder to shut it down. Have you put into consideration all you went through to get there? The strength to climb back is more than the strength to move farther. Some times the reason your business is crashing may not be your fault entirely. It could be an outside force like markets volatility, to aggressive competition, and each warrants a detailed analysis before you jump out. For example, the recent coronavirus pandemic is causing great economies to fall on their kneels. Its affecting every facet of life so any business affected is no big deal at all. It’s not your making. Every business that was planned and established can be saved from falling. Selling it or shutting it down should not be an option until all available means have been exploited. From experience, every business has the chance to survive no matter what happens because the life of a business is in the mind of the owner.
Let’s discuss these five steps to take before you shut down failing business
1. Reduce your expenses
Have you tried to cut down on your expenditure? Because sometimes I business we do spend money on stuffs that’s not really a necessity. There are times you have to forgo some stuffs and keep your business floating. Always learn to stick to your original plan as it will help you stay focus on what you are doing. As a baber who runs a barbing shop, why would your generator set be on when you are not attending to any customer? You see? You may say it’s just 200 naira fuel but that’s how a little drop of water forms an ocean.
At times too, reducing or cutting down expenses may come in a more harsh tone than the previous example i just gave. This time you may be forced to lay off some of your staffs and shut down some departments and merged others. Now this will sure put people out of job but it will be better to make some unemployed and than everyone when the company or business goes out. So cut down expenses.
2. Re-think your strategies
Now before you started the business, you had a plan. A strategy you felt could work. You had already planned 10 years from today already. Sometimes you may even have a bunch not plan. So if your business is facing a downturn, go back to your plan. Reevaluate your strategies and see what must have gown wrong. And I tell you, you may just find the answer to the problem right there. Sometimes, we stray away from our original plans and when things are not moving in the direction we want, we just want to give up. But think again. At times you may just be doing everything right. Yeah i mean right. For example you could be doing the right product, identifying the right customer base, right pricing but may lack the good quality skill of marketing. How do you sell what you produce if you are not able to convince your potential customers to buy your products.
If this is the issue, then you have to find how best you can market your products. Marketing your structures and programme to enhance growth of sales becomes key and Paramount.
3. Seek external funding
The time if planning a business and the time of establishing it is a long time my friend. Things might have changed in between. So? When you start up a business, at times what it actually needs is a financial push and nothing more. Some business have died simply because they lack adequate funding for it. For example: my poultry farm business many years ago crashed because I couldn’t afford their feed and treatment. It was a difficult experience for me. If you are in this delima, then you have to look for funding to either from close relatives or friends. If this won’t work, the find business partners or investors or lending house.
Please don’t think of the bank at this point because they won’t want to risk their cash on a dying business. You may want to seek such as Angel investors and VCs. Who are they? These guys are strong monetary investors. Infact the likes of Facebook and Google are held strong by people like these. That these businesses are still operational today is because these guys are providing funding for them. They are your best shot as far this matter is concerned.
4. Take more business risks
Don’t be afraid to do more in terms of risk taking. Who knows maybe just one risk or one more step, you are there. Well taking the risk is no big deal after all your business is already dying. Your dying business is like a sinking. Are you gonna allow it just sink and allow everything to waste? Find a rowboat, save as many stiff you can save and you will be proud of yourself. My point here is that you don’t fold your arms and do nothing. Its not gonna work that way. Even if it means that you will fail. Go on and trust me, it will worth all the stress.
I don’t believe is playing it safe during a time of crises. Go all out. Be attacking minded but also watch out for your defense. If the business is gonna die, then i better fight til.it dies than do nothing. Try new stuffs. Stuffs you could not have ever done before. Take calculated risk
5. Pivot or rebrand the business
Let me give you some advise. When you are hard hit in your business, you can decide to rebrand, or totally change your product line or services you render. This can happen when a business owner didn’t do his due diligence regarding their business ideas before launching it out. When you decide to rebrand your business,kt won’t just sky rock at all initially. This means that your entire market brand will lose it’s market value and start again. But you don’t have to necessary change your business logo. Rebranding means total overhauling.
You own your business and you know what you went through to establish it so you need to be very proactive when your business faces a major shut down threat. Being proactive means taking action than reacting. When you take actions that are not only preventative but that also fix glaring problems, you have successfully won the battle.. you can turn that business around and there is a special Joy that comes with it.
For business is all about passion and when your passion begin to die, you ought to have prepared for it’s burial.
Though Passion may not always come with the voice of reason, but trust me, that’s the fuel you need to reignite that fire you had before you started a the business.
Burn your passion up.