In the last decade, there have been more entrepreneurs in Ghana than ever because many people are fed up of working hard to make the dreams of others become a reality while theirs lie on the shelves collecting dust.
Three out of every five startups fail after a minimum of three years of inception even in the greatest economies of the world and throughout a discussion I got to know of some major factors which contribute to the failure of these startups.
1. The non-existence of long term plans & systems.
One common mistake that cuts across startups which fail to survive is as a result of non-existence of long term plans and systems in their business plans. Long term plans provide a focal point, a target or goal to be achieved at a particular time hence you work towards that goal without being distracted.
To run a business successfully, one needs to put in place structures. A set of mechanisms and rules on how things should be done at every point in time. These structures define your business practices; the methods, procedures or rules you employ in the pursuit of your objective.
The failure to inculcate this into your company brings about inconsistency in the way and manner you conduct business due to the fact that there is no particular pattern being followed.
2. Not Focusing on building a lasting business first.
Entrepreneurs are motivated by various things such as the desire to solve a situation facing society, commercialize a hobby or bridging a gap, just to mention a few but the ultimate goal is to generate income from whatever business you are committing your resources to.
As an aspiring entrepreneur, you are doomed if you focus more on making money than to build a firm and a solid foundation for your business idea to stand the test of time. Building a solid foundation simply means:
- First and foremost, you and your business’ integrity should be without a question. Be transparent as possible.
- Also the quality of your service or product should be of the highest standard. Know that you are in a competition and mediocrity won’t be accepted by consumers.
- Educate yourself extensively on the business you are venturing into. Research on and draw proper marketing strategies.
- The Internet is a powerful tool in driving businesses. Make good use of social media.
3. Living an ostentatious life.
Entrepreneurship is a long winding lonely road which requires a lot of commitment and sacrifice to be able to survive on. To attain the status of a successful entrepreneur, you need to deprive yourself of certain pleasures for a period of time. Even when your business is gaining grounds, you continually need to channel your time, energy and resources to the growth of your business.
But what do we see, young entrepreneurs in the haste to live ostentatious lives. Instead of ploughing back profit for the expansion of their young business, they tend to satisfy their pleasures at the expense of their business by living luxuriously; sometimes spending part of their startup capital.
You are copying wrongly if you want to live life like an entrepreneur who has been in business over a decade. Note that Kwame Despite (one of Ghana’s most successful entrepreneurs) is driving in a Rolls-Royce not because he has been in business for five years but decades.
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