Editor’s Note: This article was excerpted from my published e-book, “Secrets Of Business Breakthrough“ (Click the link to DOWNLOAD)
Are You Afraid Of Failing In Digital Entrepreneurship?
Digital Entrepreneurship: Why the massive failure?
Have You Noticed That Most Seeming Lucrative Businesses Shut Down Within Two Years Of Their Establishment?
Are You Afraid That Your Business Might Collapse Soon?
Then, This Article Shall Indeed Be An Eye Opener!
But, this article might not be your normal short and straight to the point article. It is seeming controversial but highly revealing and educative.
“Failing In Digital Entrepreneurship?” this blog post is for you!
After studying the documentation of Eyime Enang and Magnus Abeng in the pages 16-17 of June 1996 Edition of the Magazine, “Success Digest” and reading the work of Sunday Adelaja from one of his books entitled, “Declaring War On Poverty” (2008: 73-74), I got to know some major reasons digital entrepreneurship fail, especially in Africa collapse. These factors are both physical and Spiritual.
I have been writing on this series for a while now (See yesterday’s blog post entitled, “Digital Entrepreneurship: 5 Powerful Ways To Define It“)
Writing further on the subject of Digital Entrepreneurship, I wish to bring to fur these 25 factors why Digital Entrepreneurship fail, so that you too can know them and avoid them. Now, let’s take them one after the other:
#1 Reason You’re Failing In Digital Entrepreneurship
Poor Feasibility Report
A feasibility report is the company’s terms of reference. It shows at a glance, the economic justification of the business activities, resources necessary to actualize them. A poor doctored feasibility report would certainly lead to business failure as the investor would not only be misled but also be given false hopes, expectations and wrong sense of security. By the time the “Scale fall off his eyes” an irreparable damage might have been done.
#2 Reason You’re Failing In Digital Entrepreneurship
Lack of Adequate Planning
Planning has to do with forecasting future circumstances and requirements, deciding objectives, setting long and short term goals, and determining measures and steps to be followed. Since every investment decision has risk components, adequate attention must be given to the planning process as to ensure an articulate identification, appraisal, implementation and monitoring of activities aimed at minimizing and maximizing the chances of failure and success respectively. When planning is not properly handled, chances are that such a business would not stand the test of time. The mistake most entrepreneurs make is to engage the service of ubiquitous quacks for cheap fee to handle their planning.
#3 Reason You’re Failing In Digital Entrepreneurship
Incompetent Management
Not having competent experienced and efficient management team is one of the most devastating set backs any business establishment could suffer, since the success or failure of any enterprise rest squarely on the quality of its management. This is in line with the age long adage that “The body cannot lay claim to good health when the head is sick”
#4 Reason You’re Failing In Digital Entrepreneurship
Inarticulate Program of Action
This is closely related to factors explained above. Work planning and the determination of the company’s objectives become effective only when they are expressed in policy form. Looked upon this way, policy formulation is an essential ingredient in the successful administration of a business. A policy is a guide to action and provides a continuous framework for the conduct of individuals involved. Sound and consistent policies are required if good results are to be expected and poor policies would lead to poor results and the eventual collapse of the enterprise.
#5 Reason You’re Failing In Digital Entrepreneurship
Under-capitalization
This has become one of the greatest causes of misery to Nigerian business owners. While a lot of people with very brilliant business ideas cannot get started due to lack of funds, those who take the bold step forward to commence their dream business with the little resources at their disposal, sooner or latter discover that after a while, the business becomes distressed due largely to liquidity crises.
#6 Reason You’re Failing In Digital Entrepreneurship
Poor Market Analysis
This has to do with the business owner’s assessment of the nature and level of the demand for the product or services offered by the enterprise. Inaccurate market projections would result in the misuse of scarce resources with the resultant negative consequences on the fortunes of the business. In the same token, an accurate market analysis would enable the organization determines within an acceptable margin of error, the present and the future market requirements. But when the market analysis is faulty, the organization would not be in a better position to design its product/service in accordance with customers’ preferences, at automatically efficient quantities, packed suitable and making appropriate arrangements for effective promotion and distribution, otherwise the product would not be accepted in the market place. As when this happens, the business would fail.
#7 Reason You’re Failing In Digital Entrepreneurship
Lack of Opportunities for Staff Growth
The staff component of any organization is a crucial factor for success. There is no denying the fact. Any company wishing to succeed must inevitable carry its staffers along its growth path. Staff unlike other resources, feelings and aspirations, aspirations which they look unto and hope that their companies would assist them in realizing. This include among other things, career fulfillment and financial stability. Any company that does not see to its staff financial and career well-being would be a training ground of staff for other companies. When a company continuously losses its best hands, it would in the same fashion crash out of existence.
#8 Reason You’re Failing In Digital Entrepreneurship
Filing Behind the Crowd
This happens when a business is set up to do just what its competitors are doing, and in the same styles. This does not give the organization its own identity in the market place. No client would make any conscious effort to trek a meter away from the nearest competitor as there would be nothing special to justify the effort. There may be new line of business to venture into, but business success calls for creative innovations to existing business ideas or product/service delivery system, otherwise innovative competitors would in no time knock you off business.
#9 Reason You’re Failing In Digital Entrepreneurship
Neglecting Business Ethics
The safest way to ensure that your business fail is to neglect the rudiments of acceptable business ethics. The demise of the Nigerian sub-sector, where directors and top management staff have to convert depositors’ fund into personal use and maintain different accounting books for different inspectorate bodies finds explanation within the context of abusing the ethics of the profession. Once ethics are thrown to the dust bin, be reassured that business would sooner or later fail.
#10 Reason You’re Failing In Digital Entrepreneurship
Neglecting its Social Responsibilities
Business succeeds only when it is sufficiently patronized by members of the community it finds itself. A business enterprise therefore does not exist in isolation from the society in which it has its being. A business outfit must recognizes its responsibility to its immediate society and where there is any special interest, the business must offer its to the wider community. Subsequently, product or services must be beneficial to the community, reducing as much as possible any harmful effects of its activities on the operating environment by avoiding the negligent discharge of pollutants and of course, avoiding unnecessary waste of the earth’s resources. Any company that neglects this would be at dagger drawn with the communities it operate and the ensuring conflict may degenerate into situation where it would be difficult to achieve business objective which inevitable would lead to business failure.
#11 Reason You’re Failing In Digital Entrepreneurship
Poor Communication
Communication is the means whereby individuals in an organization exchange information necessary for the smooth operations of the enterprise. It involves the exchange of ideas, facts and emotions by two or more persons within and outside the organization, through the use of words, letter and symbols. Effective communication is the key, element the success of any structure organization as it provides the link between various departments. When there is not free flow of information, production or services delivery system would be dislocated as policy decision and objectives cannot be communicated to those concerns and the ensuring disenchantment could spell down doom for the organization.
#12 Reason You’re Failing In Digital Entrepreneurship
Wrong Location
What has location got to do with the success or failure of a venture? You may ask, but remember location determines a lot of things. If your business requires manufacturing that requires processing of bulky raw materials, it is only economical to locate your factory near the raw material source; otherwise, a chunk of your working capital would be spent on transportation. Also what is the rational of setting a video viewing centre in a community of the blinds? Certainly, it is a sheer waste of time and resources. A number of businesses have failed because they were cited at the wrong places.
#13 Reason You’re Failing In Digital Entrepreneurship
“I have arrived!” Syndrome
Many entrepreneurs run out of control as soon as they venture into business themselves. As this happens, they talk and act bigger than they should. Subsequently, through their unguided utterance, assume more financial responsibilities than their pockets could sustained, and ingloriously dig into their business capital and before they realize it a deadly blow had been dealt to their business funds.
#14 Reason You’re Failing In Digital Entrepreneurship
No Reward For Hard work
Many business owners in Nigeria are yet to see the need for rewarding staffers who put in more than they are being paid for, they would rather treat all their staff in the same way. Unmindful of the grave consequence this has on staff morale. When there is no thank you for a job well done, the few hardworking in your team may not find justification to continue working hard and this may affect the fortune of the business and subsequently lead to failure.
#15 Reason You’re Failing In Digital Entrepreneurship
Extraneous Factors
These are factors purely outside the control of the business owner or that of his managers. It could be a political crisis, like we are experiencing in the country. Since June 1993, when a Presidential election results were annulled or an unanticipated out break of war, that make the conduct of normal business impossible.
#16 Reason You’re Failing In Digital Entrepreneurship
Unwillingness To Face Hardship
“ The soul of a lazy man desires, and has nothing; but the soul of the diligent shall be made rich.” Proverbs 13:4
#17 Reason You’re Failing In Digital Entrepreneurship
Always Choosing The Easy Way Out
It is becoming a common knowledge today that most often short-cuts short-circuit destinies. Looking for an easy way sometimes end businesses in easy pits of destruction.
#18 Reason You’re Failing In Digital Entrepreneurship
Inability or Willingness to Discipline Yourself
“I went by the field of the lazy man, and by the vineyard of the man devoid of understanding; and there it was, all overgrown with thorns; its surface was covered with nettles; its stone wall was broken down.” Proverbs 24:30-31.
#19 Reason You’re Failing In Digital Entrepreneurship
Resistance To Reproof and Correction
“Whoever loves instruction loves knowledge, but he who hates correction is stupid.” Proverbs 12:1
“He who is often rebuked, and hardens his neck, will suddenly be destroyed, and that without remedy.” Proverbs 29:1
#20 Reason You’re Failing In Digital Entrepreneurship
Refusal to Face Reality
Running away from challenges and problems of life limit promotions and advancements in life. When challenges come looking at you and your business eyeball-to-eyeball, refuse to back off, face the reality and you will discover that they are mere illusion and not real.
#21 Reason You’re Failing In Digital Entrepreneurship
Desire to Gratify the Flesh
“For of his sort are those who creep into households and make captives of gullible women loaded down with sins, led away by various lusts,…” 2 Timothy 3:6
#22 Reason You’re Failing In Digital Entrepreneurship
Laziness
“Do not love sleep, lest you come to poverty; open your eyes, and you will be satisfied with bread.” Proverbs 20:13
“Because of laziness the building decays, and through idleness of hands the house leaks.” Ecclesiastes 10:18
#23 Reason You’re Failing In Digital Entrepreneurship
Ignorance
“My people are destroyed for lack of knowledge. Because you have rejected knowledge, I also will reject you from being priest for me, because you have forgotten the law of your God, I also will forget your children.” Hosea 4:6
#24 Reason You’re Failing In Digital Entrepreneurship
Acceptance of The Standards of the World
Many businesses in today’s world have abandoned the Creator of life and businesses and chose to operate by the dictates of the world. But, God is the one that teaches us to make profits (Isaiah 48:17). Thus, until you connect your business strategies to God for optimum operational instructions and execution, you remain at the mercy of recessive factors and total business failures.
#25 Reason You’re Failing In Digital Entrepreneurship
Inability To Live By Faith, Living Only By Physical Evidence
Faith, hope and love are a fortress for tomorrow. Contributing to this discourse, Caleb McAfee, wrote that The Small Business Administration points out that only 15% of all small business operators and owners have attended a formal business school. Furthermore, 75% of small business, operators have no previous business experience. It has been apply said that education only costs once but ignorance costs over and over again.
According to Dunn & Bradstreet the major reason for small business failure is incompetence. It is not incompetence relating to the product or the service to be offered to the public. Usually the typical entrepreneur knows a great deal about his or her product how to design jewelry. The thing that typically leads to business demise is incompetence in the area of how to run a business.
Unfortunately, many who take the plunge into business don’t invest the hours and effort needed to seek out the sources of information, wisdom and expertise required to develop competence.
Buy the truth and do not sell it; get wisdom, discipline and understanding. Proverbs 23:23
Before talking the plunge consider the odds of failure. Many new businesses fail within their first six months of operation.
Seventy five percent of start ups shut down within the first five years. These odds can be depressing. It makes you wonder how many businesses operating today will eventually fail or just give up trying? The great American dream often needlessly becomes the great American nightmare.
After you’ve read all these negative statistics, I hasten to add that your chances of success will be 93% to 95% if you can acquire the right knowledge and properly apply it.
Make plans by seeking advice; if you wage war obtain guidance. Proverbs 20:18
Most businesses that fail are of the “fly-by-the-seat-of-their pant” variety. Those owners take unnecessary risks. They fail to plan. They just guess. They use the “Crossed-finger theory” as their strategy.
In conclusion, our consulting firm, Gabriel Onyekawa Consulting, can help you overcome the hydra-headed challenges and problems of your organization. Our focus is on helping our clients answer the seeming hydra-headed questions of their businesses and life entirely, even core spiritual matters that concern the devil and his cohorts, FEEL FREE TO ASK ME ANY BOGGLING QUESTION OF YOUR HEART by connecting to me through our corporate WhatsApp Number: +234 907 330 8104. And God’s wisdom, operating in me shall answer ALL your questions, to the glory of God!
P.S: Have you ever made any of these mistakes? Then, use the comment form below to air your view, it’s FREE!
Are you motivated by this article? Then, share your suggestions in the comments section below.
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To Your Success,
Gabriel Onyekawa,
Digital Entrepreneurship Consultant
CEO,
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