Tech startups in Nigeria are sprouting on a daily basis, ironically. But in truth, Nigeria software engineers and evangelist have been on the forefront pushing ideas into various businesses you can see everywhere in Nigeria.
Starting from successful technology startups, Flutterwave, Paylater, Quickcheck and more in the fintech startups as well as Medtech, Hostech, Agrotech and more has grown up employing more Nigerians and thereby reducing unemployment. These big tech startups as I called them here, are receiving investment from venture capitalist and Angel investors.
This, and other reasons, has encouraged many Nigerians having business ideas to come up with their startup technology businesses, so as to become the next big bang in Nigeria. Will, they succeed? Many will but it’s certain that many will still fail.
Nairametrics, a Nigeria online investing, financial literacy and business blog stated some startups that may likely not succeed this year. According to The Entrepreneur, 75 percent of ventured sponsored startups failed. Reasons for startup failure are many and one of it is failure to make profit!
Profit is the sole and the major motivation in starting up a business. If a business is not counting it’s profit, it may lead to demotivation on the part of the Techpreneur and as such he/she may decide to close the business.
So, what if your startup isn’t making any profit? Should you just give up on it?
Here are three things, the founder(s) may consider in such situation.
Firstly, you need to consider how old is the business? A general rule is that, a business should start making profit after three to five years. If the business has already pass this number of years and still not making profit? I think it’s time to let it go. However, if it hasn’t, then it is advisable to continue it and not give up yet.
Secondly, there is no market for the product. Do you mean that this beautiful piece of idea turned into a product has no market? You can conduct market research, to know who really need the product. Also, a good marketing campaign that can persuade the wealthy class of a country can be a strategy that can apply. It’s always best to test your product with the wealthy citizen of a country at first instance, before considering other consumers.
Thirdly, Improve the content and quality of a product. Probably, your product is of low quality. If so, why do you expect people to buy it? It is best to make something of high quality and sell it at a high price than produce a product of low quality and sell it for a lower price. Claiming, you want to beat competition.
For me, if I buy a product for a low price and I discovered later on that the product is of low quality, I tell you, I will never return to buy the product another time. Which means that you have just lose a customer.
But what if, you have done this three things and any other actions, you deem necessary and the business is not still making profit, not even a dime? Then, please, it may be time to call a spade a spade, “loose it and let it go.”
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