In Nigeria, so many people want to go into Startups and this can be evidently seen from different angles but the fear of succeeding with it (from previous experiences) have held so many back. What people have failed to realize is that most start ups do fail for obviously reasons, in fact 9 out of every 10 startups in Nigeria do fail and the basic explanation to this is that
“Everyone is too busy trying to create a world without wanting to know the fundamentals backing up success on such adventures”
. Start ups are not meant for the weak-hearted or light-hearted. They require deep commitment and relentless efforts with preparations to scale through so they are meant for risk-freaks!
Today’s discussion on Nigerian start ups is to the address primary reasons why start ups do fail and “7 reasons why your Nigerian startups might fail” as well. Giving attention to these reasons and finding proactive solutions to combat these issues would sure give your start up a better chance to success!
7 Reasons Why Nigerian startups Fail
1. Creating unwanted products/services
In the market of trade, there are already in existence so many products almost with the same serving objectives. Making products that are not needed by the majority of people around you is a perfect way of towing the failure lane. When you create products or services by choice and not for the reason of its use by the market, you’re bound to loose out because no one wants them and attention doesn’t get to you!
2. Undefined users
One of the first and most important basic steps to take when building a Nigerian startup is to define your users. Defining your users means ascertaining rightfully the category of people who are most likely to need your products and this should follow up after you’ve established that your start up products are wanted and needed. It is all easy to see or understand that a particular product or service is in need or wanted by the community but the question is “who in particular “. Being aware or informed of this differentiation aids you to having a target audience and avoid wrong moves.
3. Funding and monetizing
Before the onset or commencement of a startup in Nigeria, it is a professional idea to employ diplomacy in your mapping out. Most startups actually run for about 3 to 5 years before revenues start flooding in. Funds to startup isn’t the problem here, because you might have a solution already but how do you intend to keep up with sponsorship until revenues start generating? Most times you may have to depend on your 9 to 5 jobs for support.
If you’re looking out to having investors, fine and good but how do you get sponsorship for the time being to keep running your start up until these investors finally show up? Taking into consideration that it might take a while for that to happen because they’ll need to be practically convinced with the effectiveness and success possibilities of your business before they finally buy your idea or build interest. Most startups fail in Nigeria for this reason inclusive. Without such plan in place, it’s all too easy to loose interest in your start up yourself and sure you know the end result.
How good are you at what you do? Understanding that carnivorous competitors are already out there in the open market waiting for your arrival just so they could tear you apart should give you a deep insight as to the importance of being dexterous. You ought to be very skilled at your adventure, your products must have a quality, outlook and name that would stand the test of time. Sadly, so many people jump into start ups for the profitability of commencing these productions of specific products or types of products. With deep attention focused on this profitability aspect of your start up first, its very difficult to see the true sense of passion in it. It is important that passion guides your start up, that way it gets easier to improve dexterity.
“When you don’t have passion for what you do, giving your best is as easy as jumping the broom”
Locations or place of situation is also another huge factor likely to affect your start up. Your startups outlet should be at a place very and easily accessible to its consumers. At the same time, being amidst competitors isn’t the best choice, it’s preferably better to be away from them but still taking a closer look at them to see how to make your products better. Many start ups fail because before commencement, most entrepreneurs begin at the wrong place or wrong location. Being at the wrong location would not only deprive you of financial benefits but also creates obscurity and this as an end result, leads to folding up of such little baby companies. This is why a business plan or business model is necessary. It defines all of this. In practicality, there are over a thousand entrepreneurs out there without a Business plan and you can imagine so many things they’re doing wrong already.
6. Failure to adjust or listen
If you’re planning a start up, make it your goal to give key attention to your users and adjust very quickly to their comments and remarks. Failure to do this would result in a successful suicide mission for your startup. When you allow your users complain repetitively of certain aspects of your start up products, then you’re bound to loose their patronage and integrity in no time and when that happens, both investment and expected profit are lost all at once. That is just exactly how many start ups close down within few years of commencement. Those early and subsequent stages should see you being attentive and adaptive to your users.
7. Products cost/pricing
Most startups commence with quality products and high pricing. As a start up, if you make your products financially inaccessible or unavailable to available users, you wouldn’t even buy patronage, talk less of sustaining usage of your products. Unfortunately, this is a very sensitive case. When users see your start up products in the light of “expensive nature”, they’d be poised to question your motives and commitment. When they do, it’s all too easy for them to ignore your products, inadvertently leading to a collapsing thud in your startup.
Start up ideas are lucrative outside Africa, because proper attention are given to necessary areas before commencement but most Nigerian startups fail or fold within years due to the individual reasons that has been highlighted.
What do you think?