Monday, 4 July 2016

3 Brutal Startup Mistakes You Might Make.

Data compiled by Disrupt Africa showed that 125  tech startups raised funding in 2015 around the  African continent to the tune of US$185.7 million.  With Nigeria receiving 24%(US$49,404,000) of the fund raised.
Nigeria as a country seems to spend so much on startups and skill acquisition for its citizens.
Despite the huge budget set aside yearly to fund this annual activity, this sector in our society seems to maintain status quo.

Setting up a skill acquisitions to help drive income to the accounts of those enrolling for such training, is same as helping them set making money as the primary goal. Whatever skill the sign up to learn, this is the orientation the government render to these individuals as 65% of them are unemployed, and 35% are underemployed.

With no entrepreneurship skills and a goal of making quick money off their newly acquired skills,  funding such startups only turn out futile.
And despite the massive funds spent on startups in Nigeria, 80% of its youths are still unemployed.
Just like every business start-up, making quick money shouldn't be it's core purpose.
Funding start-ups by the government or individual is a half way project that's why it reflects in the durability of the business.

It's not certain as to why certain business excels against all the odds and why some collapse despite a promising future ahead but there are a few reasons most start-ups and successful business fail.

Reasons Startups Fail

Being blinded by technology

Technology is just a tool to run your business not the brain trust behind your business. Many failed e-business owners forgot and neglected the fact that human abilities are always needed to run and maintain a long term successful business, this is one thing even the most expensive technology can't replace. Someone needs to balance those sheets on ink and paper. Tech isn't and has never been a way out of the hard work in setting up great business plans. Machines shouldn't be doing all the jobs; it's 100% important for small firms to take notice of personally sending anniversary wishes, birthday, etc. Wishes to customers rather than use automated software.

Growing too quickly

 In the boom of the dot com era one of the fast growing e- businesses went into self-liquidation because they attempted growing too fast. They opened regional warehouses which are said to be one of the reasons that lead to their liquidation. How do you explain the downfall of a company with  320 employees and a failed investment of US $300 million vanished in the course of making profits from reinvestment for its profit?

Bad Ideas

Great organisations focus a lot on building an effective team and workforce that would contribute largely to the ideas and tactics required to excel their products/services in all aspect of business, but not every successful business happen to maintain their spot on top of the market chain.You would think it's almost impossible for these big firms to get crippled with the team of great professionals who always seem to come up with brilliant innovations. However, a lot of top business can't survive the test of time or change with the changing times.

Others are just being managed by mediocre that's why we will always have a one shot success business firm that vanishes into thin air. The future of every business is its founder's core purpose of starting the business; it's a business priority to make sure profit is made to maintain the payroll but beyond that is something worth more than the dollar or naira signs, which is the founder's purpose of being in business.

Also, read: The purpose of a business

Just as an individual, a business has rights and responsibilities and in a case where it exercises it's full rights and not responsibilities, the business becomes useless to the citizens.
When starting a business, you have the right to own property, hire workers and enter into contracts.
A business owner who aims only at making money off its customers is simply not contributing the slightest change in any aspects of its customers and like a person, you lose your value and worth.

 And I think every business has a growth potential, time and place are major influencers for every business. And when it comes to investment in startups we should be low on the budget brilliant ideas are worth more than any hired professional, marketing tech or capital.

Recommended For You:  How To Create Your Own Successful Blog.

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