.jpeg)
The main aim of starting a business is to make profit, grow the business from small business to big business. But today so many small businesses are closing up within six to twelve months of starting the business. What really is their challenge?
In my street alone, I observed so many businesses that opened and has closed. Two days ago, I met one if them who opened a business close to my house and asked him, I didn't see you open your shop, what happened? He said, market is bad, sales is low, capital kept going down each day so he decided to close and rest before everything will finish. Others too have similar complain or the other why they close their business.
The question now is, closing their business, will help the economy to improve when we need more businesses to thrive so that their will be more money in the society. Let's check out some of the challenge they face that is forcing them out of business.
Adaptation challenge
Some who open small business fail to adapt to changing situations for example during pandemic, many lost their business completely because they did not know what to do. They could not take their business to internet to leverage from it. Some who tried to do so did not really know how to do it and failed to learn. Some thought that after pandemic, things will return to normal and their business will thrive again not knowing that technology has replace our normal way of life.
In Nigeria for example, during the cashless police, when Nigerians started buying their own money, many small businesses closed up because they refused to accept transfer as people don't have cash to spend. First they complained, how am I sure that you have send the money. So many of them do not have bank account, those who have do not receive alert.
When that happened, they have no choice than to pack out of business. The smart once who were ready to adapt immediately got POS mashine, learn how to operate it and their business continued, but I tell you 50% closed up their business.
Technology
Technology has send some small businesses out of the market. Before now, the only way to buy things is to go to the market, buy what you want and come back. But recently we have e-commerce, all this online shopping has made life easier that you don't need to go out. All you need is to place order and the items will be brought to your house. How can small business compete with them.
technology has changed how people shop , how they do marketing making small businesses irrelevant. Big companies are using technology is so many ways to build their businesses like digital marketing, automation,and Cybersecurity, all this can lead to closure of small businesses.
Can a small business survive?
Sure, in as much as there is a lot of factor that will throw small businesses out of the market, they can also survive know what to do. They can harness the power of technology and take proactive steps to fit the market.
Invest in technology small businesses has to invest in technology by learning how to use it. Make their businesses present and visible online. They should embrace innovation and growth. Life is all about change, they need to change, adapt and stay in business. It is also important to seek professional advice.
Business location
Is starting up a business, the location of the business is important. Although communities are encouraged to support small businesses, the owner of the business should put into consideration where the business will be located and what to sell in that place. Many go for business because others are in that business, others because the shop is cheap, the forget to consider who will buy from them.
imagine someone opening a small restaurant business close to Kilimanjaro hoping to make good sales. Imagine someone opening provision shop where people are not living. This will affect the business.
Capital
For a small business to survive, it must have its own capital not loan. Many make costly mistake, starting a small business with loan. Any new business need time to grow, to build customer base, it is not the right time to pay back loan. This has led to closure of so many businesses because they were unable to pay back. Capital is important not just starting a business.
Learn the business
You can't give out what you don't have, likewise business. Any business you want to go into, you must learn the business no matter the business. Many just open a business without any idea of risk involve, where to get goods in affordable price, how to sell it and lots more. Give your business attention. Even if you know the business you need to give it attention for it to grow. Some employ someone in a new business that they themselves don't really understand, this doesn't help small business at all.
Conclusion
Small businesses can overcome their challenges if they learn to use technology in their business, avoid unnecessary loan, situate their business in a good location, have capital in business, seek for professional advice, learn to adapt to changes.
Posted Using InLeo Alpha
Congratulations @ijelady! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 11500 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPThank you