Business Monday: Reasons why one-man business fail Part 2
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Business Monday: Reasons why one-man business fail Part 2

Continuing from last week, it's a fact the most companies in Africa are one-man businesses, this topic on one-man business was dealt with earlier in one of my articles where I wrote about the sole trader. Ten out of every hundred one-man businesses don’t get to upgrade their business status to become a large corporation due to the attitude of the owner which filtered into their management style and got to crumble the business at the end.

Most one business which I have seen from experience aside from taking business decisions alone, also suppress ideas from their management team and override their decision. I would like to expatiate further on this. One of the major issues of one-man business which is traceable to all literature is that they make decisions alone.

This serves as one of their mean characteristics and even when they call their management team for a meeting, most of them end up stampeding their decision and making their own decision to prevail. The management team are puppets in most cases. They dance to the tune played by the business owner. On finance, some one-man businesses, though not all, always divert funds for personal uses. When the company makes money, they usually divert the fund into other business ventures. I am not against business diversification but this at times kills existing businesses when it’s not properly or strategically done.

The worst of it is not even divergent into a new business but divergent of funds into luxury and lifestyles. Some of these funds are diverted into the purchase of exotic cars, sending of kids abroad, and buying of buildings in exotic areas at the expense of the company or from the company's account and not the personal account.

Lack of staff motivation: Human resources is a very important part of any business. Staff are crucial to the growth of any business; they should not be joked with. Many one-man business
underplay their role in the growth of the business. Many of the businesses don't fulfill their promises to their employees.

Some of them change the goal post on their employment contacts for their staff. Standard employment benefits such as Pension, HMO, and Leave. Allowance bonuses in some organizations are mere
promises on paper that are never fulfilled. Some go to the extreme of delaying staff salaries under the pretense of no sales. The question is was there money saved up or kept to pay salaries when there was a boom in sales knowing fully well that there will be a period when there will be a decline in sales?

A typical behavior of a one-man's business is micro-management. They like to manage their management team and the entire staff at the same time. Junior, .mid and senior staff are managed by the owner portfolios are mere nomenclatures in some situations and managers may not be allowed to take charge and ownership.

We meet again next week….

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