Why 80% of Business in Nigeria fail in 5 years period
Apr 6, 2020
How long have you been running your business? Cos according to expert; you have 5 years test to pass before you can sit back and bask in the rays of your success, reasons for these failures range from but not limited to: poor product, wrong location, lack of focus, poor cash-flow record but the Megatron of all these reasons is the inability of business to respond to customer’s ever-changing taste. According to Abbakin, some of the reasons why a business fails in our dear country Nigeria are; poor product, management, planning, and other factors. Let’s scheme through a series of companies who have either lost or won because of this key factor.
Take for example Coca-cola; they reevaluated their offerings in the 1980s, they concocted new, sweeter soda “New Coke”, when the public reacted negatively it was replaced with the older, established formula “the classic” and Coke maintained its market dominance. Amazon kept changing inventory till it attained the status of world's largest store, now there are talks of delivery via drones and makers of films(in 2017, amazon won three Oscars).
Do you know that Paypal was originally created to be a cryptography company but later found itself as a default online payment system for millions of people? Google, Youtube, Facebook, Apple; almost every successful company at some point had to evolve to stay in vogue with customer demand; mobile companies started looking at data as the future of communication but Nokia was confident in their product performance and customer base; they didn’t want to lead the drastic change in user experience. Yahoo undervalued the importance of search, they focused on becoming a media giant which means they neglected consumer trends and need to improve user experience, they almost bought google and facebook at a different point in time but the deals fell through.
Easy taxi, campus, Blackberry, Xerox, MySpace; I could go on and on about companies that have failed due to this “that’s how we do things” mentality, but it also applies to you and me as individuals. Seeking for a new improved way to carry out activities may be disruptive because it most times demands that we step out of our comfort zone to achieve desired results which are not guaranteed, but as an organization or a person; when we don’t take the disruptive actions, we risk being obsolete. The volatility of the Nation’s economy and the policies of the government even necessitates fluidity in the way you should run your business if you intend to avoid Yahoo’s fate and turn that business into billion-dollar conglomerate, think big, think new and disrupt the traditional way which your competitors might have adopted, remember that if you have to watch them try something new before you then they are already ahead in the race. Learn from Telcos industries, phone makers and my favorite Elon Musk of Tesla; always listen to what your customers are saying and adjust accordingly to stay afloat for the five years probation.
So when next you hear the statement signifying unwillingness to be dynamic in your place of business, be it your mind telling you or someone else; quickly retort and rebuff, be known to be forward thinker and an incurable optimist then share your testimony with us at the end of the fifth year, you can also divest some of your company’s profit into our investment package to give your business the solid financial spine it needs to scale through. Thank you for reading, hope you will bookmark and subscribe to our newsletter so you receive a notification when the next post comes up and if you have questions or comment kindly send to [email protected]