Yesterday, our team was involved in a very important discussion regarding, Whats the single most important factor that causes startup failure? We bounced a few ideas here and there. Some of us said it was a lack of consistency. Others thought it was a lack of customer care. Most articles on the subject would also tell you it is a lack of cashflow. But we got to realise that all those we listed and are mostly found in articles are symptoms of a major problem. So after more deliberation, there was a consensus that most startups fail due to a weak, or non-existent business system. So we went on to ask, What is a business system? Again, we got to understand that just as in science where a biological system is said to consist of various different organs that function to achieve a particular goal, a business system is also the various parts of a business; administration, legal, sales, marketing, etc. working to achieve what the business is meant to do. So in our line of business where we deliver knowledge at your doorstep, all those individual parts ought to work together in harmony to deliver the said result of delivering knowledge at our customers doorstep in an efficient and speedy manner. We further identified that the reason why we have few, if any, second generation wholly African owned businesses is due to the lack of a system that works independently of the owner. A good number of African entrepreneurs would build their businesses around them; such that their death results in the death of the business. Please understand that building a business system is not a reserve of big businesses. In fact, it is a fundamental requirement to building a startup into a grown business. It is what every startup entrepreneur must be occupied with. As one of us rightly said, startup entreneurs, especially, chase after achieving some set goals at the expense of building a working and efficient business system. Goals are important. However, when you commit to building a successful business system that works, those goals will be well taken care of. One book we can recommend for you if you want to understand how to build a successful business system is Robert Kiyosakis, Rich Dads Guide to Investing. It is a very solid book that teaches the reader on how to build a successful and lasting business system. Do have a blessed week!
Posted on: Mon, 15 Dec 2014 07:27:33 +0000
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