Improving the efficiency of existing operations yields better results says Akindele

By Philippine Duru

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Nigerian businesses have been advised to strengthen their internal systems, enhance operational efficiency, and adopt automation before pursuing aggressive expansion strategies.

Financial analyst Temitope Akíndele issued the advisory, cautioning business owners against pursuing rapid growth without first establishing robust structures capable of supporting increased operations.

According to Akíndele, expansion may create the impression of progress; however, without efficient processes, sound financial controls, and effective management systems, businesses risk rising costs, operational inefficiencies, and declining profitability.

He emphasised that business owners should first assess the efficiency of their existing operations before committing additional capital to opening new branches, entering new markets, or significantly increasing production capacity.

Akíndele noted that automation can play a critical role in helping businesses reduce repetitive tasks, minimise human error, improve productivity, and optimise the use of available resources.

He further encouraged entrepreneurs to invest in reliable accounting systems, inventory management solutions, customer relationship management tools, and other digital platforms that support accurate, data-driven decision-making.

The analyst warned that expanding a poorly structured business may simply amplify existing challenges.

“Growth without strong systems can increase losses rather than profits,” he cautioned, stressing that businesses must ensure their current operations are both financially and operationally sustainable before scaling.

He advised business owners to prioritise productivity, cost efficiency, workforce optimisation, and customer retention as key components of their preparation for sustainable growth.

The recommendation comes amid persistent operational challenges facing Nigerian businesses, including high energy costs, inflationary pressures, limited access to financing, and intensifying competition.

For many businesses, Akíndele noted, improving the efficiency of existing operations may yield better outcomes than immediately committing scarce resources to expansion.

He therefore urged entrepreneurs to adopt a measured approach to growth by first strengthening their foundations and expanding only when their systems, finances, and workforce are adequately prepared to handle additional demands.

He added that sustainable expansion should ultimately be driven by improved productivity and profitability, rather than the pursuit of growth for its own sake.