6 Common Mistakes that Can Kill Your Business as an Entrepreneur

So, you’re diving into the world of entrepreneurship, or maybe you’re already paddling along? Whether you’re just starting out or you’ve been at it for a while, this is a must-read. We’re going to talk about some common mistakes small business owners make – mistakes you might be making yourself, or ones you definitely want to avoid.

It seems like everyone wants to be an entrepreneur these days. But let’s be real, not everyone’s prepared for what it actually takes. And if you ask most entrepreneurs why they started their business, you’ll probably hear something like, “I need to make money.” Which is fair enough. But on a bigger scale, a lot of people are turning to entrepreneurship because they feel like there aren’t enough job opportunities out there. Nobody wants to be unemployed, so they’re taking the entrepreneurial plunge.

The problem is, even with all these new businesses popping up, so many of them struggle. Think about your cousin, your neighbor, that shop you loved – they were so excited at first, but then they just… disappeared. Even some of the big names you know, the ones that seemed to have it all – they often don’t make it past the five-year mark.

According to SMEDAN, a huge chunk of small businesses in Nigeria – like, 80% – close down within their first five years. The tough economy definitely plays a role, but let’s be honest, the owners themselves make mistakes too. You could probably list a bunch of reasons why businesses fail, right? But let’s focus on ten common ones that can really kill a small business, whether it’s yours or one you admire.

1. Sticking too rigidly to your business plan: Everyone says you need a plan, and that’s true. But a plan shouldn’t be set in stone. Things change, the market shifts, and what looked good on paper might not work in reality. You have to be flexible. There’s no single magic formula for success; it’s a mix of things. Be ready to adjust your strategies as needed.

2. Targeting the wrong audience: This is a huge one. Imagine trying to make a horse drink when it’s not thirsty – that’s what targeting the wrong audience feels like. You might get lots of people knowing about your brand, but you won’t be making sales. And at the end of the day, sales are what keep you going. If you’re seeing low conversion rates, spending a fortune on marketing with no return, or getting complaints that your product isn’t right for certain customers, you’re probably talking to the wrong people.

3. Being only passionate or treating your business like a hobby: Passion is great, but it’s not enough. Running a business based only on passion is like riding an emotional rollercoaster. You’ll have highs and lows, and your business will suffer. You need logic and rational thinking too. And if you’re treating your business like a hobby – well, hobbies don’t usually make money. You need to be serious, dedicate time, and get expert advice when you need it.

4. Not understanding your customers: You’re in business to solve problems for people. But what happens when their problems change? You need to stay on top of that. As soon as you solve one problem, others pop up. If you don’t address them, your customers will go somewhere else. Talk to your customers, listen to their feedback, and analyze their behavior. What do they want? What are their experiences? And most importantly, act on what they tell you.

5. Hiring the wrong people: Your employees are essential. One bad hire can really damage your business. You might have the best product or service, but if you don’t have the right people in the right roles, you’re going to struggle. It’s not just about technical skills; it’s about people skills too. Can they handle difficult customers? Are they good in a crisis? If you realize you’ve made a bad hire, act quickly. Try coaching, training, or a different role. But if it’s not working, you might have to let them go.

6. Lack of skills: You can’t just wake up one day and decide to be an entrepreneur. It’s not that simple. You need to constantly learn and improve, especially in areas where you’re not strong. Do you understand customer service? Are you good with cash flow? Do you know how to manage your finances? You don’t need to be an accountant, but you need the basics. Read books, take courses, and learn about things like SWOT analysis. Running a successful business takes more than just passion and money; it takes strategic thinking, adaptability, and a willingness to learn.

So, if you want your business to survive and thrive, avoid these mistakes. Remember, every big brand started small. What makes them successful is their ability to learn, adapt, and keep growing.