Starting a business is a significant step that requires more than just the desire to be an entrepreneur. It demands an understanding of the intricacies of the chosen field, no matter how small the business may seem. Having adequate knowledge about the business you intend to pursue is critical for success. Without this, even the best intentions can lead to failure.
It is often said that salaries alone do not make someone wealthy. While some argue that certain jobs pay more than many businesses could ever generate, this perspective varies depending on individual experiences and circumstances. What is clear, however, is that salaries, though consistent, can create a sense of dependency and limit one’s focus on achieving financial independence. On the other hand, entrepreneurship, while promising, comes with its own set of challenges and risks. Unlike jobs where losing one often leads to finding another in time, losing a business can have far-reaching consequences. This is one of the reasons many businesses fail within their first five years. However, businesses that survive this critical period often go on to thrive.
A good friend of mine recently ventured into poultry farming for the first time, and his experience highlights some of these challenges. He began by purchasing 400 chicks and decided to raise them in an uncompleted building rather than constructing a proper space for them. Unfortunately, things did not go as planned. The chicks started dying, and despite his efforts to provide food and medication, the situation worsened. Within a week, 50 chicks had died. By the end of the first month, nearly 200 were gone. Now, only about 50 of the original 400 remain, and even those are not in good health.
When I visited him, he looked devastated. He expressed his regret and admitted that if he had taken out a loan to start the business, he would have been in serious debt by now. He shared that he had invested over a million naira into the venture, and seeing such a significant loss was heartbreaking.
From observing his setup and practices, I noticed some critical mistakes that contributed to the losses. First, he did not have a proper shelter for the chicks. Using an uncompleted building without ensuring a clean and suitable environment likely exposed them to diseases and stress. Second, he bought too many chicks at once without having enough experience to manage such a large number. Starting small would have allowed him to learn the ropes and minimize risks. Lastly, he did not dedicate enough time to the business. Aside from feeding the chicks, he paid little attention to their well-being, including maintaining proper hygiene in their living space.