To understand why small businesses fail, we must look and learn from real life examples around us.
The startup ecosystem is a breeding ground for innovative ideas, and among them, one business in the fintech industry stood out, garnering significant attention. The venture appeared to have struck a chord with the masses, solving a genuine problem in Africa. But what truly captivated people was the young founder behind it all.
This entrepreneur didn’t simply build their business in obscurity; they embraced media visibility and publicity, becoming a darling among budding startup founders. Their face seemed to be everywhere I looked, whether it was a high-profile interview with a popular YouTuber or imparting knowledge at a masterclass. Their charisma and talent inspired many from the Gen Z cohort, becoming a beacon of success.
They were the epitome of what parents yearn for in their children—a role model whose achievements would be used as a blueprint for guidance. They had mastered their craft and excelled at what they did.
However, despite the media frenzy, constant interviews, globe-trotting, and impressive networking, tragedy struck. News broke that the business had gone bankrupt. Unable to sustain its operations, they had no choice but to ask clients to withdraw their deposits. Witnessing this heart-wrenching downfall, I couldn’t help but wonder: Why do so many small businesses meet an untimely demise? Some don’t even make it past the five-year mark, while others falter before gaining significant traction.
In my quest for answers, I delved into the matter and uncovered some crucial insights on Why Small Businesses Fail:
- The Red Ocean Predicament:
How can one hope to compete with industry sharks when their entire annual revenue pales in comparison to their rivals’ weekly marketing budgets? How can they survive when these sharks have already devoured 60 to 70 percent of the market share?
The key to victory lies in carving out a niche. This concept, known as the blue ocean strategy, emphasizes finding untapped market spaces rather than diving headfirst into overcrowded waters. I cannot stress this enough: becoming a niche is the way forward.
- The Power of Distribution:
The most prominent brands we know today didn’t attain their status merely by being first to market; they succeeded because of their robust distribution strategies.
How did Dangote establish his products across various regions in the country? Distribution!
How did Coca-Cola introduce its beverages to Nigeria? Distribution!
To keep the lights on and ensure sustainable growth, a startup must prioritize sales, marketing, and a well-structured distribution system. The absence of this is one of the reasons why small businesses fail
- Embracing New Markets:
Refusing to step out of one’s comfort zone is akin to digging a grave for the business. It is imperative to penetrate new markets, even if it stretches the entrepreneur beyond their limits. The rewards reaped from venturing into uncharted territory will far outweigh the challenges faced along the way.
- The Crucial Need for Adequate Funding:
This, unfortunately, was the downfall of the entrepreneur in our story and also why small businesses fail. Unable to keep the lights on, they were forced to declare bankruptcy.
As a startup, channel your energy into sales and marketing. Sell until you surpass your own expectations. Success in business hinges upon these critical factors.
I implore you to take these lessons to heart. Let’s ensure your business doesn’t meet a similar fate. It is my sincere hope that these insights help pave the way for a thriving entrepreneurial journey.
Remember, your dreams are worth fighting for.
Group 1
1.A general VA handles a wide range of administrative tasks. These tasks might include email management, scheduling, data entry, customer service, social media management, and basic research.
While Specialized VAs have a deep understanding and proficiency in a particular field. This makes them more valuable for clients who need expertise in that specific area.
Client Base**: They usually work with clients within a specific industry or those who need particular services, allowing them to command higher rates.
Examples of Their areas of Specializations are:
1. Social Media Management VA_ they Specializes in managing,creating content, and growing social media platforms. They might handle tasks like running ad campaigns, engaging with followers, analyzing social media metrics, and developing strategies to boost online presence.
2.E-commerce VA
– Focuses on assisting with tasks related to online stores. This might include managing product listings, handling customer inquiries, processing orders, and optimizing product descriptions to increase sales.
2.Tools they used vary from
1.Google Workspace – Google Workspace offers a suite of cloud-based productivity tools, including Gmail, Google Drive, Google Calendar, Google Docs, and Google Sheets. These tools are used for communication, document creation, storage, and collaboration.
2.Canva-This can help in content making
1. A **general virtual assistant** (VA) and a **specialized virtual assistant** serve different roles, primarily based on the scope and depth of the tasks they handle.
### General Virtual Assistant:
– **Scope of Work**: A general VA handles a wide range of administrative tasks that can vary from client to client. These tasks might include email management, scheduling, data entry, customer service, social media management, and basic research.
– **Skillset**: General VAs possess a broad skill set but may not have deep expertise in any one area. Their strength lies in adaptability and the ability to handle diverse tasks.
– **Client Base**: They can work with a variety of clients from different industries, providing general support.
### Specialized Virtual Assistant:
– **Scope of Work**: A specialized VA focuses on a specific area of expertise. This allows them to offer more advanced, niche services that require particular skills or knowledge.
– **Skillset**: Specialized VAs have a deep understanding and proficiency in a particular field. This makes them more valuable for clients who need expertise in that specific area.
– **Client Base**: They usually work with clients within a specific industry or those who need particular services, allowing them to command higher rates.
### Examples of Specializations:
1. **Social Media Management VA**:
– Specializes in managing, creating content, and growing social media platforms. They might handle tasks like running ad campaigns, engaging with followers, analyzing social media metrics, and developing strategies to boost online presence.
2. **E-commerce VA**:
– Focuses on assisting with tasks related to online stores. This might include managing product listings, handling customer inquiries, processing orders, and optimizing product descriptions to increase sales.
In summary, a general VA offers a broad range of services suitable for a variety of needs, while a specialized VA offers in-depth expertise in a particular area, catering to clients who require specialized support.
2. Here are three essential tools commonly used by virtual assistants, along with their primary functions and how they enhance a VA’s workflow:
### 1. **Trello** (or similar project management tools)
– **Primary Function**: Trello is a project management tool that helps organize tasks and projects using boards, lists, and cards. It allows VAs to track progress, set deadlines, and collaborate with clients or team members.
– **Enhancement of Workflow**: Trello streamlines project management by providing a visual overview of tasks. VAs can prioritize their work, manage multiple clients or projects simultaneously, and ensure that nothing falls through the cracks. This tool enhances productivity by keeping tasks organized and providing clarity on project timelines.
### 2. **Google Workspace** (formerly G Suite)
– **Primary Function**: Google Workspace offers a suite of cloud-based productivity tools, including Gmail, Google Drive, Google Calendar, Google Docs, and Google Sheets. These tools are used for communication, document creation, storage, and collaboration.
– **Enhancement of Workflow**: Google Workspace enables seamless collaboration between VAs and their clients. Documents can be shared and edited in real-time, calendars can be synced for scheduling, and files are stored securely in the cloud for easy access from anywhere. This integrated suite of tools helps VAs manage their daily tasks efficiently while maintaining communication and organization.
### 3. **Zoom** (or similar video conferencing tools)
– **Primary Function**: Zoom is a video conferencing tool that allows VAs to conduct virtual meetings with clients, colleagues, or team members. It offers features such as screen sharing, recording, and chat.
– **Enhancement of Workflow**: Zoom facilitates clear and effective communication, which is essential for VAs working remotely. It allows for face-to-face interaction, making it easier to discuss complex tasks, receive feedback, and build stronger relationships with clients. The ability to record meetings also means that VAs can refer back to discussions without missing any important details.
These tools collectively enhance a VA’s ability to manage tasks, collaborate with clients, and maintain effective communication, thereby improving overall efficiency and productivity.
This is quite revealing and it refers to me and my business before it went under. But with this it will reengineer my new perspective
Wow
“…becoming a niche is the way forward.”
This is so insightful. The journey has began for me in my pursuit of becoming a niche.
Thanks for the lecture
I learnt that strategy is the key to every business/Market
Thanks for the tips. All will be worked on, for meaningful outcome.
Thanks for the privilege.