Starting a small business is one of the most exciting and bold things a person can do — especially in Nigeria, where many people are looking for better ways to survive, make income, and become independent. But as exciting as it is, launching a business is not just about having a good idea or creating a logo. It takes careful planning, commitment, and a good understanding of what works and what doesn’t.
Many new business owners rush into things without fully preparing themselves, and this leads to avoidable mistakes that can cause failure within the first year. In this article, I’ll share the most common mistakes people make when starting a small business and how you can avoid them.
1. Not Doing Proper Market Research
A lot of people start a business just because they “feel” it will work. Maybe they saw someone else doing it, or they believe there is a need for it. But without proper market research, you’re simply guessing.
Market research helps you understand:
Example: You may think selling clothes in your area is a good idea, but if 10 people are already doing it, and customers are not even buying regularly, your business may struggle.
Tip: Ask questions, visit local markets, check online trends, and talk to real people who might become your customers.
2. Starting Without a Business Plan
Some people believe business plans are only for big companies, but that’s not true. Even a small business needs a simple plan that shows:
Without a plan, you’re walking in the dark. A business plan doesn’t have to be long or perfect — just something that helps you stay focused.
3. Underestimating Startup Costs
Another mistake is thinking you don’t need much money to start. Yes, some businesses like laundry, POS, or online services don’t need millions, but there are always hidden costs — registration, transportation, packaging, marketing, data, rent, and so on.
Some people start with all their capital in products and forget they still need to promote and manage the business. They run out of money too soon.
Tip: Write out all expected costs (even small ones), and keep at least 10–20% extra for emergencies.
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4. Doing Everything Alone
When you’re just starting, it’s normal to want to do everything yourself — customer service, delivery, social media, record keeping, even accounting. But this can become overwhelming quickly and lead to burnout.
Reality: You can’t do everything well. If you can’t hire someone yet, at least get someone to support you part-time, or use tools like WhatsApp Business, Canva, and bookkeeping apps to make your work easier.
5. Neglecting Online Presence
In 2025, every small business should have at least a social media page. Many small business owners ignore this, thinking their customers are only offline.
Even if your business is local, people want to see:
Facebook, WhatsApp Status, Instagram, and even Google Business listings are powerful tools — and free to use.
Don’t wait to go online — start building your brand presence early.
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6. No Clear Brand Identity
Your business name, logo, color, tone of voice — all make up your brand. If your brand is inconsistent or unclear, people won’t take you seriously.
Example: A woman selling skincare products but using different names on WhatsApp, Instagram, and her packaging — that causes confusion.
Tip: Pick one name, stay consistent, and use simple, clean visuals. Let people remember and trust you.
7. Ignoring Customer Feedback
Some business owners get defensive when customers complain or make suggestions. But feedback is one of your strongest tools for growth.
Listen. Ask. Improve.
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Sometimes, one little change from customer feedback can boost your business more than a full marketing campaign.
8. Poor Record Keeping
Even if you’re not a fan of numbers, you must track:
If you don’t know where your money is going, how will you grow? Many small businesses collapse not because of low sales, but because of poor financial management.
Use simple notebooks, Excel sheets, or mobile apps to track your finances — and update regularly.
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9. Trying to Please Everyone
Not everyone is your customer. When you try to serve everyone, you end up serving no one well.
Find your niche. Are you targeting students, mothers, working professionals, or budget shoppers? Focus your product, message, and pricing to suit that group.
When people see you understand them, they’re more likely to trust and buy from you.
10. Giving Up Too Soon
Every small business faces slow days, mistakes, and losses. What matters is your ability to learn, adjust, and keep pushing. Don’t expect quick riches — success takes time.
Many people quit just before things start to work. Stay consistent, stay visible, and always keep learning.
Conclusion
Starting a small business is like planting a seed. It needs planning, nurturing, and patience to grow. If you can avoid these common mistakes, you’ll increase your chances of success and build a business that can support you for years.
Don’t be in a rush. Take your time, learn every day, and ask questions from those ahead of you. The small steps you take today can lead to big success tomorrow.
Joel
