Frustration in Business

The Cry of the Boss.

 

Mr. Albert is in a state of exiting his business, his business is only 4 years old and he is already thinking of packing up and looking for a paid Job or starting up a new business. His started a Branding  firm with two quality accounts.  As a young entrepreneur he had put in his all and was expecting great reward of success. By putting all he has done the expected thing a business is meant to do.

From company registration to corporate account opening, to setting up an office space, marketing strategy, Good PR, employed staff and tax payment.   He had spent so much putting everything in place.  All his savings, time and effort were about to crumble in his presence.   What could he have done wrong considering the fact that he had started on a very high note with multinational companies.

 

What went wrong? He pondered about his collapsing business every night with a sleepless night.

 

1,            His business grew so fast in the first year two years that he began to take some small clients for granted.

2,            He made wrong financial expenses. Instead of minimizing overhead he took in more expenses. He employed more staff instead of engaging them on a contract base when there is no business he is still stuck with paying salaries but if they were contract he could have disengaged them when there is no business.

3,   He retired too early, this means he wasn’t available as at when needed by his client because his business was the growing type the clients wanted him more not his staff. Sometimes the presence of  unexperienced staff that can’t answer questions or calm the fears of clients turns the clients off.

4,  He listened to  motivational speakers so much  he didn’t think of how it will affect  his own business.  For instance they would say “dress the way you should be addressed” for him  he spent money on expensive gadgets, cars and he expanded his office space spending so much on renovation.   Even  when his business didn’t require all that. His business is the type that requires him going to clients and the clients hardly ever visit him, a small decent space for the first 3 years with minimal expense would have been ideal.

He got his first big clients without a car why did he think acquiring a range rover sport will attract him clients or keep the clients. Service keeps clients most times.

5, When he had cash flowing in rather than  thinking of how to expand his business by acquiring  new skills more equipment that he can rent or use for commercial purpose when the chips are down he spent them on aesthetics that have no second hand value.

 

In his third business year the national economic recession caught up with him. He started experiencing low patronage and you can’t blame clients they are also conserving money.  He was already exposed to a certain life style that was becoming hard to sustain.  He owed staff that he shouldn’t have employed in the first place. Rent for his bigger space obliterated his savings. His range rover required good money for servicing.  His staff started resigning s due to non-salary payment for the last 5 months since November.

 

Life is getting harder he is thinking of existing business and start afresh or dusting his resume to get a paid job.

 

What are your thought he needs help.

 

Leave your comment below.

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One thought on “Frustration in Business

  1. I’d say its never too late to start again but this time, take all the lessons learned and ensure he makes smarter decisions moving forward.

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