WHY DO MANY SMALL BUSINESSES DIE YOUNG?
July 11, 2023 at 12:08 am #71516NebuzzParticipantRank: Sojourner::
There’s this business that sprung up in the startup ecosystem, the business operated in the fintech Industry and was really gaining lots of traction.
People loved the business idea, they were solving a real problem in Africa, what was more interesting was the founder, he was young and this caught the fancy of many.
He didn’t just build in silence, he had lots of media visibility and publicity that made him popular among young startup founders.
Then, any time I turned on YouTube, I would see his videos. If he wasn’t having an interview with a top YouTuber, he was teaching at a masterclass.
The guy was good, he’s the kind that most parents would desire their children to be like, he’s the kind that was an inspiration to many Gen Zs,
He’s the kind that would be used as a case study when you want to give advice to your younger ones, he was that good at what he does.
However, despite all the media visibility, publicity, interviews, travels and business tours, the business went south.
It didn’t just go south silently, it was carried in the news that it has gone bankrupt, they couldn’t keep the lights on anymore they had to call their clients to come withdraw their deposits with them.
When I saw this, my heart melted, why do small businesses die young? Some don’t even reach the five years mark anymore, some even die before they start gaining traction.
I did a little research and I discovered this:
✓ They Played In The Red Ocean:
How do you hope to compete with the sharks in the red ocean, when your entire annual revenue is their weekly marketing budget?
How do you breathe, when the sharks have taken 60 to 70 percent of the market share?
The easiest way to win this game is to become a niche, I will keep saying this until it sinks into you, harvard people call it, the blue ocean strategy.
✓ They Didn’t Have A Distribution System:
Hmmm, the biggest of all brands today aren’t big because they came first, they are big because they have a consistent distribution strategy.
How did Dangote get his products to different parts of the country? Distribution!!
How did Coca Cola bring their products to Nigeria? Distribution!!!
To keep the light on, sales, marketing, and quality distribution is a must for you.
✓ They Were Unwilling To Break Into New Markets:
When you refuse to step out of your comfort zone, just dig a grave for your business, because it will definitely die there.
Penetrating newer markets has a way of keeping you in business, yes, it will stretch you beyond the normal, but you would be grateful you did.
✓ They Lacked Serious Funds:
This was what happened to that guy in the story, he couldn’t keep the lights on again, he had to declare bankruptcy.
Please as a startup, focus all your energy on sales and marketing, sell until you outsell yourself, this is what will determine your success in business.
I need to stop here, please heed to these things ooo.
I don’t want us to loose your business oo.
Thank You.July 11, 2023 at 12:15 am #71517July 11, 2023 at 12:17 am #71518July 11, 2023 at 12:19 am #71519
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