05 reasons why launching your business in Cameroon failed

What causes the failure of your business start-up in Cameroon? Find out why many entrepreneurs fail as early as their second year.

For any new business, risks are inevitable! Projects that quickly become a great success are not so numerous. Some companies start out strong before they stumble, while others crash within just a few months.

So why do some companies go bankrupt?

Entrepreneurs, find out! Because most setbacks can be avoided if you become aware of them early enough.

Global Business Consulting, a digital marketing and consulting agency in Cameroon, has listed for you the 7 major causes of entrepreneurial failures and how to prevent them.

Top 5 reasons why new businesses fail

1. No market need or not targeting “the right need”.

If there is no market for your product or service, you won’t be around for long. There is no way around this problem.

You need a market and demand for your product or service, and you need to be able to capitalise on that demand. That’s where research and planning come in.

Before you start your business, you need to do a lot of research regarding the market in which you plan to operate and seriously assess how much market share you will be able to achieve.

This should be present in your business plan and form an integral part of your operational forecasts.

2. Rapid development

You may be able to experience moderate success in your first months.

After a few months, you think it’s time to expand and move to a new space or hire your first employees.

Then you run into problems. Expansion is a healthy part of growing and developing your business, but growing too fast can be fatal.

3. Poor  budget management

New businesses fail when they run out of cash. If you can’t cover your immediate costs and expenses, even if your project is profitable in the medium term, it’s only a matter of time before you have to shut down your business.

Mismanagement of your budget, whether it’s a lack of initial capital, failure to acquire new sources of funding, incorrect pricing or poor accounting practices, can send your business into a deadly spiral.

Good cash flow management will help you ensure that you have available cash and know whether you can meet your financial commitments when due.

Get away from potential capital problems by :

– Managing your expense items wisely,

– Securing your budget with stable financial resources,

– Closely monitoring your cash flow, i.e. your actual and forecast cash inflows and outflows.

4. Poor location, Internet presence, and marketing

A bad location is explicit if your business relies on the location for pedestrian traffic. A bad Internet presence is just as dangerous.

These days, your location on the Internet and your strength on social networks can be just as important as the physical location of your business in a shopping district. An online presence will let people know that they can give you their business, so if the need is already there, the availability and visibility of your business is the next important step.

This is similar to marketing. Not only do you need to make sure that marketing reaches people, but it also needs to reach the right people. So make sure that the type of marketing matches the audience you want to reach.

Large billboards may not be the way to go for an Internet business, just as online advertising may not be the way to go for a heavy construction company. If the need is already established, make sure you reach the audience that needs your product or service.

5. Lack of leadership and management

Not all entrepreneurs or leaders are necessarily good managers or team leaders. Some are more effective in the background and should leave a more qualified team member to lead.

If that is you, you should step aside and be prepared to hand over the responsibility to someone else.

In the beginning, SMEs and startups need clear and transparent leadership that allows for effective asset and team management.

Need coaching to better manage your business?

Global Business Consulting invents tomorrow’s Expertise 100% Digitization

We provide you with all your management in 1 click.

Save time and money!
All our professional advice and recommendations are available online at +237 670 932 922/+237 697 686 996 or at contact@globalbusinessconsulting.com

At Global business consulting we make your business better than others !!!!