Building Sustainable Businesses

posted on Jun 30, 2022 |   302 likes

Find out why only 25% of new businesses survive through the first five years after establishment and how to build businesses that live centuries after.

Being an entrepreneur is not working on your terms like many believe - it requires extra hard work and sleepless nights. According to Small Business Administration, only 50% of new businesses survive through the first five years after establishment; and only one-third of the 50% can survive for 10 years.

It is not surprising, however, that many businesses in Nigeria start quickly, like a sugar rush, but disappear as soon as they get off the ground.

Starting a business entail more than just having an idea to solve a problem, getting the right hands and skills to execute it, then launching it into the market.

Here are some of the reasons most startup businesses fail: 

Money-Making Mind Set

Before, the sole aim of starting any business was to make money, leaving out other vital areas like improving customer experience and satisfaction and creating value for all stakeholders. With this mindset, it is only a matter of time before such business fizzles away. 

Entrepreneurs fail to realize that businesses have changed from being business-centric to customer-centric. This means that value creation should be the first aim- the need to meet customer needs is the first essence of a business.

A valuable product or service is like a magnet- if it can meet customers need, it will attract monetary value. However, when businesses fail to solve problems, they give room for competitors to take away their customers. 

Lack of Proper Planning:

Lots of young entrepreneurs get so excited about their unique idea, service, or product that they cannot wait to be the first to start the business. They are in such a hurry to let their unique idea hit the market that they forget to put a lot of work into strategic planning into structuring the business. 

Some newbies fail to conduct in-depth research into their target audience and also consider the perfect timing to launch a new business. Thus, they begin to experience some potholes they did not foresee.

Lack of Foresight

Foresight is the ability to detect or predict the occurrence of future events. It is a skill that a lot of entrepreneurs lack. When entrepreneurs cannot predict unforeseen business events, they lack ideas to prevent those occurrences or to handle the inevitable. 

Business Tips for New Entrepreneurs

Starting a new business can be very tedious for young entrepreneurs, as it will require lots of hard work, discipline, and endless commitment. Here are some tips to get new entrepreneurs started with their new business venture.

Love what you do

According to Steve Jobs, ‘the only way to do great work is to love what you do. The first step to starting a long-lasting business is to love it. You need to love the idea you have and cherish the value you have created.

The passion for the work keeps you going during the rough days. It builds your tenacity to endure the rainy days. The love for the business creates an enthusiasm to work harder to achieve great results at all times.

Research. Information. Data

Over time, research, information, and data have become the backbone of businesses. As an entrepreneur, you need accurate information and data to ensure that your product is the best fit for the consumer.

You need to research the right time to introduce your product into the market and how customers will perceive it compared to similar products already in the market. Adequate information enables you to plan and prepare for the task ahead. 

Develop Work Structures Ahead.

As a new entrepreneur, you might ignore the need to set up firm systems and processes because you feel it is too early. You might also want to wait till you have the staff before creating a structure.

However, it is better to go ahead and state the roles, functions, and regulations that will govern everyone you intend to hire in the future.

It is not just professional- it assures people that your business is credible and can be trusted.

Putting structures in place allows for fast growth, as everyone understands their specific duties in the organization.

Develop Relationship Skills

People are everything. As an entrepreneur, you need people to think the business plans through, execute those plans, and purchase your products or services. 

It is not news that no one can build a successful business alone. Therefore, cultivating and maintaining good relationships with your staff and customers is relevant to the success of your business.

Building a good work relationship means you have to;

Respect your workforce and always let them know how valuable their input is. 

·         Keep the communication gateways open. 

·         Avoid boxing people in by enforcing them to think and act in a certain way. Accept and encourage varying ideas- it enables creativity and growth.

·         Always take responsibility for your words and actions, and be careful not to let your emotions affect the people around you.

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It would help if you also built relationships with other businesses for future partnerships and leveraging your credibility to access loans.

Have a strong financial support

Let’s face it, money is the fuel that keeps every business alive, talk about liquidity and fast access to cash to execute ideas or take advantage of opportunities, you need a financial partner that can be trusted to come to your aid whether it’s 2pm or 2am.

Page prides in being able to assist business owners in facilitating access to financing to meet various business objectives like asset financing, IPOs, working capital and invoice discounting.

If you’d like to discuss further on your SME facility, or explore other opportunities available to you through our SME financing product, we are happy to help your business achieve its potentials.

Send an email to customer@pagefinancials.com or call 017007243 to speak to a customer success specialist.