Smart Tips for Small Business Success

A favourite line for politicians is “Small business is the backbone of the Nigeria Economy” Is it true? If so, why and how? The value of ordinary people in small business, in general, cannot be overemphasized

Small Businesses outnumber large companies by a wide margin in Nigeria and employ a lot more people. While they are the driver of innovation andcompetition in many economic sectors, they are also the highest employer of labour when aggregated.

The total number of Small Business is put at approximately 74 million businesses, which constitute ~84% of the labour force, ~50% to GDP and only a meagre ~7% export!

Across the past 20-plus years, small businesses have been responsible for creating two out of three, or 84 per cent, of net new jobs in our country.  This drives consumer spending into our economy as well as income tax naira into the government’s budget.

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What does it take to survive in the intensely competitive marketplace environment? Some of the common traits of successful small businesses are enumerated below.

A sound financial plan

A plan along with the discipline to comply its important. Financial resources, stability and backing with staying power is necessary to come off the land. An intellect that no profits should be expected in the first few years of operation plus a commitment to reinvest back in the business is essential.

     Business Processes and Operations

     Having clearly defined business processes will boost productivity while decreasing costs at the same time. A progressive focus on becoming more efficient will cement the foundation for the business.

     Create a Marketing Plan

   An overall marketing plan includes advertising, public relations, product development, sales and promotions. In order to compete, the use of social media should be utilized. Offering online sales and shipping in addition to the in-store point of sale will maintain your competitiveness.

Develop a Strong Passion for the Business

Relishing what you do cannot be supplanted by any amount of effort or investment. Appropriate your skills and focus on primary products that turn a profit.

      Only Hire the Best People

Without outstanding employees, the business will not work. Enthusiastic and skilled staff members are more valuable than great operations and high tech processes. Once you hire people, ensure you pay competitive wages, offer good benefits, provide training and development opportunities. This will guarantee a higher than average retention rate.

      Most Importantly, be Creative and Flexible

     Creativity by you and your employees will keep your business fresh and up to date. Being flexible and listening to and responding to your customers will keep them coming back. Trends change rapidly and customers are fickle. Have fun in your business will keep it fresh. It will make shopping a rewarding experience for customers.

The failure rate of small businesses is 20 per cent in the first year. While about 30 per cent of small businesses fail in their second year. 50 per cent of small businesses fail after 5 years in business. 30 per cent fail in their 10th year of operation. These rates are consistent over time and are tracked by the Bureau of  Statistics.

Entrepreneurial business owners who are successful choose to work long hours, often sacrificing rest time, and keep going and taking the necessary risks to succeed. It is a 24/7 commitment. 

The payback is more than financial. It brings satisfaction and fulfilment. Ownership by women accounts for more small businesses in Nigeria. 

Be opportunistic by always being open to innovative new ideas. Utilizing teamwork with practical solutions will result in success. It is essential to stay close to the customer, capitalize on all available resources and stay within your budget by watching expenses like a hawk. With dedication and pursuance, you can be successful.