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5 Solid Reasons Why Nigerian Startups Fail Too Early by AnneMomoh(f): 12:14pm On Aug 19, 2015
“Too many startups begin with an idea for a product that they think people want.”

That no one seems to want the product/solution you are building, surely any other issues can be turned around. But if your potential users don’t want it, what’s the point.

Trying to address a problem that doesn’t exist in the first place might be a sure way to leave the startup scene at an early stage. A good approach to address this is by confirming that your proposed solution is solving a meaningful problem which people would be ready to use or even pay for.
Launching without validation
Another issue startup entrepreneurs cannot escape for new solution is validation, launching without a minimum viable product (MVP).
Some solutions are designed with the entrepreneur having only him/herself in mind, not considering the product’s potential users customers – and in most cases there’s a clear difference between what the company believed to be a ‘must have’ feature and what the customers are willing to use or pay for.
And the Lean Startup Methodologies are just perfect for this.
Revenue Model

Twitter operated for about three years before even looking into monetising the millions of users on the platform, which is running on a series of funding for three years without a revenue model. One question we might want to ask is – how many African startups can run for over 18 months only on funding without losing a larger chunk of its equity to the funders?
It takes real money to keep a business running, hence the need for an early decision on monetization and revenue model is pertinent. Not sure the make it popular and then monetise is still a good approach though, especially in Africa.
Entry Barrier and competition
When the barrier to entry into a sector is relatively low, that translates to a fierce competition and vice versa. A case of the ever growing number of eCommerce players as well as logistics in Nigeria. And playing in a niche market with an entirely different comparative advantage is key.
Yet, some great ideas go quite far only to discover there are barriers that prevent the team from proceeding. So in this case, looking for ways to enhance already existing solutions rather than compete with them could go a long way than trying to build a solution from the scratch. With that, it’s not going to be a competition. What do you think?
Of course, Tunde Kehinde could have taken on Jumia Nigeria and Konga after exiting the former but these giants already have a common enemy which every other eCommerce players in Nigeria can’t shy away from – logistics.
Funding

In Africa, seed funding and grants for early stage startups are mostly between $5,000 and $50,000. And to keep up with the funding challenges, the only available options might just be to keep your current 9-5 job with a decent pay to support your startup, or take up funding for equity. Losing a larger chunk of the company’s equity when you are yet to go public could diminish your interest and passion, and of course we know the end-result of those.
My last attempt at entrepreneurship was a case of two co-founders running out of funds when the business couldn’t generate revenue after 12 months.


Credit: TechPoingNG


http://www.naijahamlet.com/2015/08/5-solid-reasons-why-nigerian-startups.html



CC: lalasticlala, ishilove, dragnet, honsule, puskin

1 Like 3 Shares

Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by kelechi50: 1:22pm On Aug 19, 2015
One of the reasons I'm looking for a good pay job because to breakthrough in entrepreneur In naija is not a child's play
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by MISSNORA(f): 10:02pm On Sep 08, 2015
AnneMomoh:
“Too many startups begin with an idea for a product that they think people want.”

That no one seems to want the product/solution you are building, surely any other issues can be turned around. But if your potential users don’t want it, what’s the point.

Trying to address a problem that doesn’t exist in the first place might be a sure way to leave the startup scene at an early stage. A good approach to address this is by confirming that your proposed solution is solving a meaningful problem which people would be ready to use or even pay for.
Launching without validation
Another issue startup entrepreneurs cannot escape for new solution is validation, launching without a minimum viable product (MVP).
Some solutions are designed with the entrepreneur having only him/herself in mind, not considering the product’s potential users customers – and in most cases there’s a clear difference between what the company believed to be a ‘must have’ feature and what the customers are willing to use or pay for.
And the Lean Startup Methodologies are just perfect for this.
Revenue Model

Twitter operated for about three years before even looking into monetising the millions of users on the platform, which is running on a series of funding for three years without a revenue model. One question we might want to ask is – how many African startups can run for over 18 months only on funding without losing a larger chunk of its equity to the funders?
It takes real money to keep a business running, hence the need for an early decision on monetization and revenue model is pertinent. Not sure the make it popular and then monetise is still a good approach though, especially in Africa.
Entry Barrier and competition
When the barrier to entry into a sector is relatively low, that translates to a fierce competition and vice versa. A case of the ever growing number of eCommerce players as well as logistics in Nigeria. And playing in a niche market with an entirely different comparative advantage is key.
Yet, some great ideas go quite far only to discover there are barriers that prevent the team from proceeding. So in this case, looking for ways to enhance already existing solutions rather than compete with them could go a long way than trying to build a solution from the scratch. With that, it’s not going to be a competition. What do you think?
Of course, Tunde Kehinde could have taken on Jumia Nigeria and Konga after exiting the former but these giants already have a common enemy which every other eCommerce players in Nigeria can’t shy away from – logistics.
Funding

In Africa, seed funding and grants for early stage startups are mostly between $5,000 and $50,000. And to keep up with the funding challenges, the only available options might just be to keep your current 9-5 job with a decent pay to support your startup, or take up funding for equity. Losing a larger chunk of the company’s equity when you are yet to go public could diminish your interest and passion, and of course we know the end-result of those.
My last attempt at entrepreneurship was a case of two co-founders running out of funds when the business couldn’t generate revenue after 12 months.


Credit: TechPoingNG


http://www.naijahamlet.com/2015/08/5-solid-reasons-why-nigerian-startups.html



CC: lalasticlala, ishilove, dragnet, honsule, puskin

wanna ask u something pls

1 Like

Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by AnneMomoh(f): 11:39pm On Sep 08, 2015
MISSNORA:
wanna ask u something pls

Ok ?
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by MISSNORA(f): 7:32am On Sep 09, 2015
AnneMomoh:


Ok ?
do u knw dis dude saintk el...?he bn bugging my ass. Wanna know if he has bugged u too.
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by saintkel(m): 9:14am On Sep 09, 2015
Sorry for bugging u, it won't happen again
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by osasboy(m): 10:50am On Sep 09, 2015
AnneMomoh:
“Too many startups begin with an idea for a product that they think people want.”

That no one seems to want the product/solution you are building, surely any other issues can be turned around. But if your potential users don’t want it, what’s the point.

Trying to address a problem that doesn’t exist in the first place might be a sure way to leave the startup scene at an early stage. A good approach to address this is by confirming that your proposed solution is solving a meaningful problem which people would be ready to use or even pay for.
Launching without validation
Another issue startup entrepreneurs cannot escape for new solution is validation, launching without a minimum viable product (MVP).
Some solutions are designed with the entrepreneur having only him/herself in mind, not considering the product’s potential users customers – and in most cases there’s a clear difference between what the company believed to be a ‘must have’ feature and what the customers are willing to use or pay for.
And the Lean Startup Methodologies are just perfect for this.
Revenue Model

Twitter operated for about three years before even looking into monetising the millions of users on the platform, which is running on a series of funding for three years without a revenue model. One question we might want to ask is – how many African startups can run for over 18 months only on funding without losing a larger chunk of its equity to the funders?
It takes real money to keep a business running, hence the need for an early decision on monetization and revenue model is pertinent. Not sure the make it popular and then monetise is still a good approach though, especially in Africa.
Entry Barrier and competition
When the barrier to entry into a sector is relatively low, that translates to a fierce competition and vice versa. A case of the ever growing number of eCommerce players as well as logistics in Nigeria. And playing in a niche market with an entirely different comparative advantage is key.
Yet, some great ideas go quite far only to discover there are barriers that prevent the team from proceeding. So in this case, looking for ways to enhance already existing solutions rather than compete with them could go a long way than trying to build a solution from the scratch. With that, it’s not going to be a competition. What do you think?
Of course, Tunde Kehinde could have taken on Jumia Nigeria and Konga after exiting the former but these giants already have a common enemy which every other eCommerce players in Nigeria can’t shy away from – logistics.
Funding

In Africa, seed funding and grants for early stage startups are mostly between $5,000 and $50,000. And to keep up with the funding challenges, the only available options might just be to keep your current 9-5 job with a decent pay to support your startup, or take up funding for equity. Losing a larger chunk of the company’s equity when you are yet to go public could diminish your interest and passion, and of course we know the end-result of those.
My last attempt at entrepreneurship was a case of two co-founders running out of funds when the business couldn’t generate revenue after 12 months.


Credit: TechPoingNG


http://www.naijahamlet.com/2015/08/5-solid-reasons-why-nigerian-startups.html



CC: lalasticlala, ishilove, dragnet, honsule, puskin

I was looking to see your five reasons clearly stated either by bullet point or numerically.
Anyway the major reason is most entrepreneurs don't do market and product research before setting up a company.

Another reason is getting the right people to manage the business operations.Most entrepreneurs don't hire professional during early stage of busuness .

High cost of Finance ,with the current loan rates the banks offer you have to make a profit before interest and taxes of above 40% to remain in business.

There are more practical reasons I can give to you because I have done dome findings on this topic.
Thanks
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by Nobody: 1:48pm On Sep 09, 2015
Been an entrepreneur in Nigeria is not a child's play. Forget about what those motivational speakers always preach about. If it was that easy, they would have been Dangote themselves. To succeed in Nigeria, you need an idea, large amount of money before talking about carrying out a feasibility study.

2 Likes

Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by godson99(m): 5:09pm On Sep 10, 2015
Tydies:
Been an entrepreneur in Nigeria is not a child's play. Forget about what those motivational speakers always preach about. If it was that easy, they would have been Dangote themselves. To succeed in Nigeria, you need an idea, large amount of money before talking about carrying out a feasibility study.
no b lie my brother ... Infact eh in most cases u will hv to compromise ur values or something else u will ordinary not do in other to excel in biz..
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by davidif: 2:38am On Nov 22, 2016
AnneMomoh:
“Too many startups begin with an idea for a product that they think people want.”

That no one seems to want the product/solution you are building, surely any other issues can be turned around. But if your potential users don’t want it, what’s the point.

Trying to address a problem that doesn’t exist in the first place might be a sure way to leave the startup scene at an early stage. A good approach to address this is by confirming that your proposed solution is solving a meaningful problem which people would be ready to use or even pay for.
Launching without validation
Another issue startup entrepreneurs cannot escape for new solution is validation, launching without a minimum viable product (MVP).
Some solutions are designed with the entrepreneur having only him/herself in mind, not considering the product’s potential users customers – and in most cases there’s a clear difference between what the company believed to be a ‘must have’ feature and what the customers are willing to use or pay for.
And the Lean Startup Methodologies are just perfect for this.
Revenue Model

Twitter operated for about three years before even looking into monetising the millions of users on the platform, which is running on a series of funding for three years without a revenue model. One question we might want to ask is – how many African startups can run for over 18 months only on funding without losing a larger chunk of its equity to the funders?
It takes real money to keep a business running, hence the need for an early decision on monetization and revenue model is pertinent. Not sure the make it popular and then monetise is still a good approach though, especially in Africa.
Entry Barrier and competition
When the barrier to entry into a sector is relatively low, that translates to a fierce competition and vice versa. A case of the ever growing number of eCommerce players as well as logistics in Nigeria. And playing in a niche market with an entirely different comparative advantage is key.
Yet, some great ideas go quite far only to discover there are barriers that prevent the team from proceeding. So in this case, looking for ways to enhance already existing solutions rather than compete with them could go a long way than trying to build a solution from the scratch. With that, it’s not going to be a competition. What do you think?
Of course, Tunde Kehinde could have taken on Jumia Nigeria and Konga after exiting the former but these giants already have a common enemy which every other eCommerce players in Nigeria can’t shy away from – logistics.
Funding

In Africa, seed funding and grants for early stage startups are mostly between $5,000 and $50,000. And to keep up with the funding challenges, the only available options might just be to keep your current 9-5 job with a decent pay to support your startup, or take up funding for equity. Losing a larger chunk of the company’s equity when you are yet to go public could diminish your interest and passion, and of course we know the end-result of those.
My last attempt at entrepreneurship was a case of two co-founders running out of funds when the business couldn’t generate revenue after 12 months.


Credit: TechPoingNG


http://www.naijahamlet.com/2015/08/5-solid-reasons-why-nigerian-startups.html



CC: lalasticlala, ishilove, dragnet, honsule, puskin


Have you read the Lean Start up before?
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by dboss444: 11:00am On Nov 22, 2016
Been an entrepreneur in Nigeria is not a child's play. Forget about what those motivational speakers always preach about. If it was that easy, they would have been Dangote themselves. To succeed in Nigeria, you need an idea, large amount of money before talking about carrying out a feasibility study.

I just finished service. I have ideas of bussiness I want to start. food processing and packaging. d money I have is money from allowee and little hustle and of course mmm. entrepreneurship is d only thing on my mind. but d idea I have is to create samples of my product and solicit for investors. what can u pole say about this?

my mind is telling me not to start anything until I raise enough capital I can divide into two. continue investing with one and start production with the other one. am I on the right track
Re: 5 Solid Reasons Why Nigerian Startups Fail Too Early by Nobody: 4:15am On Dec 31, 2016
AnneMomoh:


Ok ?

U r one fine babe <3

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