28/01/2025
https://www.facebook.com/100064776636074/posts/1099532172215994/?mibextid=rS40aB7S9Ucbxw6v
*𝐆𝐑𝐎𝐖 𝐘𝐎𝐔𝐑 𝐁𝐔𝐒𝐈𝐍𝐄𝐒𝐒*
**7 Business Mistakes to Avoid in 2025 if You Wish to Grow Your Business.**
**WARNING: IT’S A LONG READ. BUT IT MAY BE THE BEST READ THAT COULD SAVE YOUR BUSINESS.**
Knowing what to do to grow a business is as important as knowing what not to do or what to avoid. Certain business mistakes can offset your progress and delay your business growth. Some mistakes can even lead your business to an early grave.
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**Mistake #1: AVOID HAVING MULTIPLE STREAMS OF INCOME OR DIVERSIFYING TOO EARLY.**
In 2023, a close friend of mine was running a successful mobile money booth business. His working capital was above K50,000. His booth was the busiest in the area because he offered reliable service delivery and consistently had cash available. His monthly income was pretty decent, and customers loved doing business with him.
One Sunday afternoon, I stopped by his business place. We talked about business, nice cars, and women. After some casual conversation, we delved into more serious business discussions.
"Mike, this new year, I want to grow my business," he said. "I also want to drive a Mercedes by the end of the year. I need your advice," he added.
"What growth plans do you have?" I replied.
"Well, in addition to my mobile money business, I hear the chicken business is profitable (good returns). I want to start rearing chickens. I’ve also saved up some cash, and I want to buy a car and put it on Yango as a taxi. I also saw a cheap plot somewhere in 10 Miles; I want to buy it and start building to explore the real estate business," he explained. He sounded so excited, just like most people who start businesses. He had made some calculations on his calculator about how much he was going to make. He was a "calculator millionaire."
He gave me the floor to speak. As you may know, I don’t waste time or try to sweet-talk people or sound cool. "Well, bro," I began, "what you’re trying to do is what I call business su***de. Don’t even dare do all those things," I yelled at him.
"Listen, mate. You’re a mobile money business expert. This is what you’re good at. All these years, you’ve been doing it, and it’s been working great for you. If you want to grow, open another one or two more mobile money branches and hire people to work for you. Since you’re already an expert, you’ll easily manage and excel in the new branches. Now is not the right time for you to diversify. Be patient. You’re not ready to diversify."
"Firstly, having too many businesses will
1. Dilute your capital and resources.
2. Dilute your focus
3. Dilute your Current customers satisfaction rating.
4. Dilute your Current business profits.
5. Dilute your commitment to your current business, and subsequently kill your current profitable business.
6. In addition, from a marketing perspective, it will disturb your business brand identity," I concluded.
"Switching to a new business now is like divorcing your wife for a girl with big hips whom you recently met at Grand Daddy’s Club."
"Ahh, Mike," he responded. "You sound jealous," he replied. "How come you have three different businesses, yet you don’t want me to do the same?" he asked.
I replied, "Well, listen. I have three businesses and 18 employees. Each business has its own working capital and a competent manager. Each business can run without my presence. I’ve trained people to run my businesses."
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A few months later, it seemed like my advice had fallen on deaf ears. He purchased a taxi and put it on Yango. He began rearing chickens. He bought a plot and started building.
At this point, it was too late for me to give any further counsel. I simply said, "Congratulations on your new projects."
By mid-2024, his mobile money business began having cash flow problems. His Yango (taxi) business wasn’t doing well because he was new to the industry and was struggling to find adequate time to rear his chickens and learn about efficient taxi management. His taxi car caught frequent breakdowns, as if it had an Sti infection. It demanded spare parts every other week. It milked his Cash, more than a slay queen from kabwata.
On the other hand, he couldn’t go past window level at his house construction project in 10 Miles. He ran out of cash midway and couldn’t finish his house.
To mitigate this cash crisis, he borrowed some money.
Things went from bad to worse. He defaulted on his loans and was forced to sell the car. His mobile money business is currently walking on eggshells. Customers no longer frequent his shop because he’s usually without cash. His business is on the verge of collapse. It’s currently in the ICU at Levy Mwanawasa Hospital, grappling for survival.
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**Moral Lesson:**
The single greatest startup lesson is **focus**. Once you identify a business that works for you, focus your growth strategy on it.
Before you start to diversify or engage in a new business, ensure the following conditions are met:
1. Your business has sufficient capital, such that diversifying into a new startup won’t destabilize your current business.
2. You’ve exhausted all possible growth markets for your current business.
3. You have proper systems in place.
4. You have a well-trained management team.
5. Your business can run for more than six months without your presence.
If the above conditions are not met, then you’re not ready to diversify. Diversifying too early may work against you rather than for you.
- Before Trade Kings diversified into other products, they only focused on Boom.
- Before Coca-Cola started making other drinks, they focused on Coke.
- Before Royalty Makeup & Hair started diversifying her business, she focused solely on makeup.
-Before Mwizukanji opened meatopia and stylo. she focused on her marketing business as a brand ambassador.
All these peoples success, can be traced from their ealier focus.
Only after they met the above five conditions did they begin diversifying.
The key takeaway lesson is **focus**, then diversify when sufficiently ready.
Remember, diversifying too early may work against you rather than for you.
Note : Look out for the other 6 business Mistakes to Avoid in my next article.
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YOURS.
MIKE BUSINESS COACH.