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Morris Mpala, MoB Capital Ltd
THIS is not to say big businesses don’t fail, but we are worried about our local businesses which are small to medium entrepreneurs.

Research has shown that most businesses fail in the first three years of existence and these are some of the reasons:-

One man band
The vision is being carried by the founder member. If she/he dies the brand follows.

No succession planning
The man at the top has no motivation to pass onto the baton to his protégé or successor. If they choose to leave or pursue other interests or die, the brand also does, and never to be resuscitated again.

Ignoring customer feedback
You can’t produce goods that are not wanted for the market. At times the market signals are ignored with “I have always done it that way for years.”

Lack of capital
Capital inadequacy has been one of the biggest challenges in most businesses. At times wrong capital is the challenge.

Stealing from themselves
The lack of a defining line between the person and the business thus funds are misused or diverted to non business wants to the detriment of the business.

Little to lack of knowledge
Doing things due to ignorance or arrogance leads to demise. Little knowledge is very dangerous and lack of knowledge is catastrophic.

Lack of appreciation of figures in general is a recipe for disaster. Acquiring knowledge is not cultivated.

Toxic environment
The general prevailing economic arena is not conducive enough due to numerous challenges thus eventually businesses fold due to tough times.

Smaller to no markets
Non sustainable markets being serviced or those markets have no appetite for the products or services on offer. As such revenues derived are not enough to sustain the business.

Competition
The stiff competition that exists where a business has no competitive edge or comparative advantage means downfall. Business is a blood bath for customers those that don’t adapt or are not strong die.

Strategic planning
Tomorrow doesn’t exist, they only think and live for today which has serious consequences for brand longevity. Lack of budgeting has led to planning to fail.

Dealing instead of leading
A business of wheeling and dealing is seasonal due to lack of strategic leadership in the brand and or product/service. A jack of all trades but a master of none leads to brands that are here today and gone tomorrow.

Offering temporary solution (personal actualisation) to the market leads to temporary existence.

Taking things for granted
No one takes responsibility for their brand which leads to autopilot and then demise. Existence by sheer luck is not sustainable.

Nepotism
This has led to skills compromise and devalue brands through lack of knowledge and reputation risk.

Different opinion not available.

Wrong team
The brand has a totally wrong fit in terms of human capital probably due to lack expertise, lack of compatibility and lack decision of makers.

Costing and pricing
The art to price based on costs so as to derive a profit is non-existent. Businesses can’t tell whether they are making money or not.

Poor support structures
Generally there is no support system for the business such that in bad times it’s down south. Reserves non-existent for lean times.

Poor networking and marketing
The art of selling and interacting to leverage for revenues is foreign even though crucial to sustain revenues. They keep it to themselves.
This documented evidence is such that others learn from other people’s mistakes and avoid making the same mistakes that lead to disappearance if brands before they even get established on the market.

In previous articles we have articulated solutions to these challenges except succession planning which will be done going forward.

IF YOU LIVE IN BULAWAYO PLEASE CONSERVE WATER, IF YOU LIVE IN ZIMBABWE PLEASE USE ELECTRICITY SPARINGLY SWITCH OFF SWITCHES (SOS), IF YOU LIVE ON PLANET EARTH PLEASE PRESERVE THE ENVIRONMENT.

Morris Mpala (Mr Brown) is the managing director of MoB Capital Limited, a Bulawayo headquartered micro-finance institution with footprint across the country