The Nigerian business environment has over the years seen a new wave and influx of start-ups in the market. With an ever-increasing population, the competition continues to get tougher, while start-ups continue to get creative in developing new approaches to problem-solving especially start-ups in the technological sector. The start-up organization is one of the greatest forms to improve the economic situation of Nigeria, however, if the start-ups are such a great means of National development, why do so many fail?
A lot of factors have been put out as reasons for start-ups failure, but very few are reflective of the Nigerian Environment. Here we would run through the key factors that determine startup success in a dynamic Nigerian environment.
- IDEA: Many start-ups fall into the illusion that the idea is everything, once they are able to come up with an innovative idea, the market would welcome them with open arms, but when reality sets in and implementation become challenging, everything that looked so good on paper becomes a mirage.
- TEAM: There’s a popular saying that ‘Teamwork makes the dream work’. However so much about a team’s execution depends on its ability to adapt to an ever dynamic market as the customer is the true reality of whatever innovation has been developed. A team can only be as good as it realizes the importance of balance and expert contribution of team members.
- BUSINESS MODEL: Many start-ups today do not have a clear part and model of operations. ‘Failure to plan is planning to fail’ Businesses thrive on properly laid out plans of action and business models that guide operations and acts as a go-to source in times of confusion and challenges. A start-up without a business model is ‘not’ a start-up.
- FUNDING: It is common parlance in Nigeria that ‘better soup na money kill am’. Start-ups today sometimes receive an intense amount of funding and they still end up failing, while others start off with little or next to nothing and become a global success. This goes to show that although funding is key in a start-up success, proper utilization and resource management may even matter more.
- TIMING: ‘Make hay while the sun shines’. Is your idea too early that you need to educate your customers on how to use it? Is it too early that the market is possibly not ready for it, or is it too late that there are already many competitors in the market and slim chances of success? Or is it just right at the very point of customers’ needs and problem-solving? These are salient questions many start-ups fail to ask themselves upon conception.
The reason why a majority of start-ups fail in Nigeria is often times associated with poor timing. It is evident that with the right idea, skilled team members, and captivating business model, it is very easy to get start-up funding especially when the consumers adopt and appreciate your product and you gain desired attraction, it is also very possible that what you love may not be what the market needs hence the need to make an unbiased look at your feasibility studies before setting foot in the market.
We hope that these insights would help you have a higher success ratio amongst start-ups.