Dare A. Bankole

WHY 80% OF SMALL BUSINESSES FAIL IN THEIR FIRST 3 YEARS — AND HOW TO AVOID IT

Every year, thousands of passionate entrepreneurs launch small businesses full of hope.

But here’s the shocking truth:
Most of them don’t survive beyond their 3rd year.

It’s not always because of bad products or lack of customers but usually (and not obvious reason) because they don’t have systems in place to run their businesses.

Yes, no matter how small your business may be presently, even be it a one-man business, you can set up a business system or at least a framework of it, for the business to grow (scale).

Let me share a true story.

8 to 10 years ago in Delta State, Nigeria, there was this unusual and huge rush for fish farming because there was a strong news in town that it was a goldmine and huge profit figure projections were flying around town.

I knew a couple of people back then that started some of those fish farms.

Unfortunately, those farms were short-lived as most of the fish farmers had to quit in just some months with millions of Naira lost in the process.

Why?

Not that fish farming was not profitable. No!

But simply because they failed to do their due diligence, AND MORE IMPORTANTLY, because they failed to set up business systems (no matter how small) for their fish farming business.

I remember I once advised someone not to rush into it but to follow a certain path that would have ensured profitability.

Unfortunately, the person rushed in, but also rushed out of the business. It was not only a painful experience but a huge loss.

So, it's not because these persons didn’t work hard, but because they didn't have their business systems in place nor did they do their due diligence before getting started.

Now, contrast this with another entrepreneur.

A woman I knew back then along Jakpa road in Effurun, Warri, still in the same Delta State, Nigeria.

She was very good in pastries making and started a very small bakery and pastry business.

Instead of only hustling, one thing is she built systems even when she had to start very small:

• Communication System ✓
• Product System ✓
Amongst others.

The last time I heard about her, she was an authority in the pastry business.

Here’s the lesson:

• Hustle can start a business but Systems sustain and scale it.

Without systems, your business will drain you.
But with systems, your business will sustain you.

So, what simple systems can you build today?

✓ A Cashflow System can help track every naira in and out.

✓ A Communication System (marketing) can consistently help your product/service with visibility.

✓ A sales system (Communication) can help with customer follow-up and referrals.

✓ An Operations System can help your processes without you having to be around.
..And few more systems.

These are what turn a hustle into a true enterprise.

If you’re running or planning a business, ask yourself:

• “If I left for 2 weeks, would my business survive without me?”

If the answer is NO, then you don’t own a business yet.

You own a job.

And that’s dangerous!

Entrepreneurs who win long-term and build big businesses are not the hardest workers.
They are the best system builders.

Remember this line:
• “Hustle builds income but Systems build wealth.”

What about you — which of these systems do you think your business needs the most right now?

• Finance (Cashflow System)?

• Sales/Marketing (Communication System)?

• Operations (Operating System)?

• Legal System?

• Or even new Products/Services?

Drop it in the comments section below.

And if you want more insights like this on building profitable business systems, hit the FOLLOW button on this page — I’ll be sharing more proven strategies that can help your business and multiply your profits.

To Your Profitability!

DARE A. BANKOLE
(An Entrepreneur | A Business Systems for Growth and Development Enthusiast | CEO - Darnique Limited)