11 Reasons Why Nigerian Fashion Businesses Will Fail(Part 2)

11 Reasons Why Nigerian Fashion Businesses Will Fail(Part 2)

"So don't let your hype get to your head, grow at a steady and organic pace and only take on what your infrastructure can handle... "

Following up on our newsletter series, last week, we reviewed some of the reasons why fashion businesses will fail and some of them were Ineffective Communication and No Brand Identity. Here are 6 more reasons why I believe fashion businesses will fail and also how you can prevent them. NIGERIA - Yes, Nigeria. Nigeria has a way of working against you, almost as if it’s doing the most to make you fail! Power, infrastructure, employees, levies and taxes can drain you of blood!! BUT WE SHALL OVERCOME. One of the most impactful ways to reduce overheads is collaborating with other fashion entrepreneurs and stocking in multi brand concept stores like The republic. You'll get to test the market, make sales and get feedback from your customers in a cost effective way.

Not Validating Your Business Model / Numbers - This one time, I had what seemed to be the most amazing idea ever!! I couldn't wait to execute it and started making calls and setting the wheels in motion. I had gone as far as doing floor plans and even hired a contractor. Then, I decided to run the numbers. I tweaked and tweaked to try to suit the narrative I wanted - That it was a viable business, but after a while, I had to accept defeat. The numbers didn’t make sense; the business didn’t make sense. Now, I know a lot of entrepreneurs fall into the same trap by putting the cart before the horse and even going as far as investing heavily into an unvalidated idea. The numbers, albeit intelligent assumptions, are really the bedrock of any business. Before you dive in, run the numbers. And hey, if you don't know how - I’m your girl :-) Investing Too Much Too Soon - Growing too big, too fast. I learned this one the hard way! When your business is doing well, it starts to get to your head!! People say “Expand!!”, “Hire more people”, “Go GLOBAL BABY!!” but when the proverbial s*** hits the fan your shoulders will drop. My business partners and I had done the exact thing. Expanded very quickly but soon after, the reality of multiple vendors, multiple staff, multiple locations and multiple overheads began to take its toll. We eventually dialed it back but not before it had caused significant damage. So don't let your hype get to your head, grow at a steady and organic pace and only take on what your infrastructure can handle. Bad Business Processes - How many steps does it take from hearing about your brand to completing the sale? The fewer the steps, the better the customer satisfaction. The long winded process to making sales is leaving too much room for your customers to buy from your competitors. Take yourself through the customer’s journey and assess how many pain points there are before completing a sale. I heard the most absurd thing the other day - Some retailer’s/ service providers require a face to face before they reveal their prices. Excuse me sir/ ma - You are a learner. Bad Customer Services - Lets just do better. That's all I have to say on that!! THE GRAM!! - Guys, this is high up there in my top 5 reasons for business failings. Doing it for the gram. We get so bogged down with trying to give the perception of success and all the good stuff, we forget to do the actually work, and let me break it to you - The rouse is up! Ko le werk!!! I saw a funny meme last week that said “Be careful how you portray yourself on social media, someone might actually meet you in person”. In other words, when people come in contact with you (and you’re badly behaved) and your products (and it’s badly designed) how many of them will be repeat customers? You guessed it - None!! The fashion industry in Nigeria has come a long way from Le Petit Marche and I have seen so many brands killing it, now you can too!! So get out there and turn that fashion idea into a fashion business!! The startupstar is still available on Bambooks and Lulu and also available to pre-order at www.startupstar.ng. Wonuola Okoye Principal Coach Big Startup Sign up HERE for one of our tailored services, designed to meet the needs of new and existing fashion entrepreneurs and you’ll be on your way to building your fashion brand and becoming a Startup Star.