Everybody makes mistakes, even entrepreneurs. They fail their way to success in order to make their business prosperous. Starting a business is challenging and you will make mistakes especially if it is a new adventure. In order to reduce the mistakes you make in the start-up process, learn from other entrepreneurs and use their mistakes as a guide. There are common mistakes that most entrepreneurs make such as lacking confidence in their ideas and delay launching it. There are other entrepreneurs who were over confident and they invest all their financial resources into a business that failed. They did not implement a backup plan where they could recover if the business failed. It is good to take risks as an entrepreneur but be prepared for all conditions including failures. Let us look at the common mistakes entrepreneurs make so that you can learn what mistakes to avoid when starting a new business.
Mistakes to avoid when starting a new business
Depleting all resources
Sometimes you have a great idea and you invest all your resources into a new business that has a 50% chance of succeeding. It is good to invest but there should be a balance. You need to have a backup plan on how you will bounce back if the business fails.
You quit a 9-5 job to start your own business but are you financially stable to survive when you do that? Before you quit wait until the business is ready to generate profit and you can survive without your day job.
Your 9-5 is not the dream job but take all the experiences you can get and work on the small business after work. The financial cost must be taken into consideration. Some entrepreneurs find themselves in debts when they borrow loans and the business failed. Make your business plan and analyze the budget before you execute your plans.
Delaying the start up
You need to work with what you have and start working on your ideas. Some entrepreneurs delay starting their business because it is not the right time and they don’t have the resources. They are waiting on a grand opportunity. Most businesses started off small in an apartment and an idea using the resources available.
A principal for a pre-school in New York started as a daycare worker in a rented apartment. Take one step at a time until your vision becomes a reality. It is a process and you have to start somewhere. Don’t delay the process because you cannot see the vision happening now. Use what you have, be creative and make the dream work.
Hiring the wrong persons for the job
Employing candidates who are not passion about building your business can cause grave damages. Hiring someone who is just looking for a job and don’t care about the company’s mission will not get the business to the end goal.
You need people who understand your vision on the team. You need people who are motivated to work with your company. If they are motivated they will be your best employees. Employees are very important in a business because they can either make it or break it.
Take great precaution when hiring people to work with you. You need to hire people who are strong in areas that you are weak in, people who can move your organization forward and add valuable contribution to the business.
Ignoring customers feedback
Customers’ opinions are very important because you are serving them. Time and money are spent on customer’s survey because every business wants to get feedback. They are constantly improving their product and service.
In a start-up business, you need to understand your clients. How will they respond to the product or service that you launch in the future? Will they be satisfied? Customer satisfaction correlates with a business success. Every customer is important, listen to their concerns and aim to please them. Happy customers help a business to thrive. Don’t ignore their opinions but try to listen to them.
Failure to follow legal procedures
There are protocols that business owners should follow. It is different in every country and you need to be educated if you are not aware. It also depends on the type of business you are interested in. Some businesses require a license. It will cost you dearly if you operate illegally.
Another legal aspect is intellectual property. You have to be careful you are sued for copying somebody’s idea. It is tempting to steal a successful idea but be original and create your own brand. It shows your individuality and you save money by avoiding lawsuits. You need your business to start with a credible reputation. Follow all legal procedures and build your business.
Trying to do everything
“I will handle the auditing, operation of the business, customer care, and public relation.” It is a lot to take on everything and when you do this you don’t give every area the needed attention. When you try to do everything on your own your are pressured and everything will not run smooth as you would like. It is better to have a good team who will support you in different aspects. This ensures the smooth operation of the business.
As a new entrepreneur, you will not know everything but there are others who will have expertise in the area you lack. It is better to use their expertise than try to do it yourself. Even a large corporation such as Samsung partner with Google for their operating system instead of creating their own.
Marketing is absolutely significant when starting a business. If the public is not aware of your service and product then your business will not be viable. Marketing is essential in the start-up process. Marketing allows you to attract clients and sustain the business for the future.
There are different ways you can market yourself apart from using social media. You can create websites, blogs, conduct television or radio interviews, attend business conferences and host events. Do not limit yourself to social media. Diversify your marketing strategy.
Sony is a great company yet they have few customers in comparison to Samsung and Apple. They have high-quality products but their marketing strategy is weak. Technological enthusiasts are attracted to either Apple or Samsung. Have you ever wonder why? Yes, they have excellent products but they also have strong marketing campaigns.
Wrapping it up
If you are starting a business be wise and avoid some of the common mistakes entrepreneurs make. Plan your finances and budget in order to prevent bankruptcy. Do not delay the process because you don’t have the resources. Use what you have and be creative. Remember it is okay to make mistakes but learn from them. Do not repeat them.