As we know, there are many types and levels of businesses out there. For example there are 3-Star Hotels and there are Restaurants; there is PZ Industries and there are smaller Soap makers, etc.
Our focus is on personal business setups, by which we mean micro businesses; the type majority of us do here in Aba. The purpose of your business or any business for that matter is profit. So profitability is a measure of business success.
The fact is, whatever the type and size of your business, there are basic requirements for its effective management, profitability and survival. And if these are lacking, the business may begin to bleed and crumble inside, even though activity is seemingly booming on the outside.
You may also be interested in Why a Small BUSINESS Fails
See Small Business Loan Approval - What do Banks Want to See?
Business Failure Warning Signs
No business fails overnight. Before a business collapses, there are usually signs and signals. If you are watchful and observant, you can recognize these signs and symptoms, and thereby prevent a business collapse before it happens.
Here are some obvious signs to watch out for:
a) There is acute shortage of cash required to meet running costs
b) You always need bank overdraft before you can pay salaries
c) You have many delinquent debtors (customers who have refused to pay)
d) You have a large sum of bad debts (money you cannot recover)
e) You are not in profit even after years of operations
Business Failure - How You Can Avoid it
Use these tips to keep your business afloat and profitable:
1) Start with a strong and adequate capital base.
2) Avoid financial waste and resource mismanagement.
3) Avoid credit sales (keep more money within than outside the business).
4) Keep innovating, improving and developing new ideas and strategies.
5) Build a solid line of quality products or services. Quality speaks for itself.
6) Integrity is number One! Avoid deceit and sharp practices. Keep your promises to your clients.
Do not over-delegate:
Always know the state of your business (do periodic overview)
Always know the status of your stock of both raw and finished goods (keep basic inventory)
Always know the status of your finances (with basic book-keeping)
Always know the status of your bank balances (get statement of accounts)
Monitor your staff and keep an attendance register
If you are a believer, give GOD His rightful place in your Business!
Finally...
Remember, if you're not updated, you become outdated.
If you're not informed you become deformed.
If you're not inspired you become expired.
If you're not in the know you cannot be in the flow.
To survive in business, you must be constantly innovative, creative and proactive.
Related: Will Your Business Remain Relevant Tomorrow? Find Out!
You may also be interested in:
Access to Easy and Affordable Loans for Small Businesses in Nigeria
You may also be interested in:
How to Apply, Qualify and Get the Central Bank of Nigeria Small Business Loans
Stay Smart, Wealthy and Wise!
