Are you a business owner in Nigeria? Are you looking for how to prevent business challenges and solutions? Then this is the right place that you have come to for such information.
This article provides first hand knowledge on everything you need to know about business challenges and the how it can be managed.
What are challenges?
Challenges are simply bad situations that one might find oneself that can lead to one’s downfall. Challenges and problems are often used interchangeably.
What are business challenges?
Business challenges thus are those bad situations you might find your business in that can lead to the downfall of your business if not well taken care of.
Business challenges could range from financial challenges to personnel challenges.
Is it possible to do a business without experiencing any challenge what so ever?
It is not possible to do a business without experiencing any challenge. This is because we do not have knowledge of everything. In as much as challenges would surely occur in businesses, it is a great mile stone if one overcomes it.
What are the challenges of doing business in Nigeria?
Below are some of the chanlleges one may experience while doing a business in Nigeria:
1. Unstable power supply
2. Lack of security
3. Bad transport system
4. Poor road network
6. Lack of proper capital and funding
7. Marketing problems
8. Poor attitude to work
9. Lack of passion to work
10. No prompt payment of employees
UNSTABLE POWER SUPPLY
One of the biggest problems facing Nigeria businesses right from time is unstable power supply. The government is yet to find a long term solution to this problem which does not only negatively affect small scale businesses but up to multinational company businesses.
One of the solution of this problem to the businesses that can afford it is to acquire solar plants or a standby generator that would help achieve the goals and objectives set by the company.
LACK OF SECURITY
It is no longer news of how insecure Nigeria really is in all aspect and the business sector also goes through this problem. An investor may not want to put in a lot of money in a country where security is of your properties is not guaranteed.
Some shades of insecurity are: robbery, kidnapping, extremist in religion etc. The government can help with this problem by increase the rate of security by providing jobs for the youths and the public at large.
BAD TRANSPORT SYSTEM
When we talk about bad transport system, it simply means that there are no much reliable means by which to get to your customers in Time mainly because of bad roads. This can limit how much customers you might be able to access.
POOR ROAD NETWORK
Many companies and organizations location of their businesses may be the cause of their business not progressing. It is important that a company’s location should be one that is close to raw materials as well as the market. It is important to note here that that your market means your customers.
If one does not consider the proximity of raw materials and market when getting a location for a business, then this would be an issue and there are so much bad roads in Nigeria. Some companies might even be stuck on road for days in order to get its goods reach the customers
Corruption is said to be the biggest problem that Nigeria has, it is simply said to be non-observance of the rule of law, recently, people see corruption as a normal thing and are even very bold to practice it in public.
A very good example is by ignoring the principle of merit in a system. This can fast lead to the downfall of that system. For instance, a system or organisation is in need of personnel and calls for an audition probably, the best candidate might be rejected because he or she might not be able pay a certain amount of bribe while the least qualified candidate might be accepted because he or she can afford the bribe. This leads to the employment of quacks and it might not take so long for the business to crash.
LACK OF PROPER CAPITAL AND FUNDING
Capital is a major aspect of beginning a business. The issue of underfunding or lack of capital has become a big threat to many businesses in Nigeria today.
Businesses find it really difficult to get external funding or capital needed for the growth of the business. External fund refers to loans.
One way by which this problem can be solved is that banks should be able to help investors by granting them loans,
Marketing is a way of convincing or compelling your customers to patronise you. When marketing, we majorly make use of soft power. It is important to note that if marketing is done wrongly, you might not be able to get as many customers as needed for your business.
To avoid marketing problems, a business must thus employ a professional and competent marketer instead of making use of random employees that lack the skill. Marketing usually fail if it is not done by the right people. Whether you choose to market digitally or physically, use of professional marketers would yield better results for you.
POOR ATTITUDE TO WORK
For many Nigerians. They possess poor attitude to work that may lead to the company’s downfall with time. An example of this poor attitude to work is laziness. Many people do not want to stress themselves to work but they just need the money. This can inhibit the growth of the business.
LACK OF PASSION TO WORK
Lack of passion to work is quite different from poor attitude to work. Lack of passion to work is born out of lack of drive. This may be because the employer does not properly motivate his or her employees. They may thus lack the passion to work.
Many employers fail to realise that motivation can go a long way in improving their businesses and it should be done regularly.
NO PROMPT PAYMENT OF EMPLOYEES
Prompt Payment of employees can serve as a form of encouragement or motivation to them after they have worked. If you do not pay your employees promptly especially after they have worked really hard, then they might develop lack of passion to work with time which can lead to the downfall of your business. An employer that wants his business to grow properly should put this into place.