Becoming an entrepreneur might as well be your dream. Maybe you even started to prepare things in order to start your own business very soon. This is probably the reason why you are even reading this article, as you are trying to maximize your chances of success. In the same stage that you are, a lot of entrepreneurs make a lot of mistakes, which ultimately has a price.
Mistakes are an inevitability when it comes to becoming an entrepreneur and starting your own business. Though they are a valuable learning experience, during the startup period these errors can cost you a great deal, or even lead you to true failure. No matter how prepared you are, things can still happen. However, preparing yourself as much as possible to avoid problems is always a much better choice. This way, you can minimize the chances of losing money and time.
So it’s important you learn how to avoid the most common mistakes most entrepreneurs have committed in the past. We’ll analyze the trail they left behind for us and help you learn from the errors they made so you can gain the experience without the cost.
In this article, we’ll give you advice on how to avoid these common mistakes, steer you on the right path to success, and help you become more careful in your own journey.
1. Not doing proper research
This is mistake number one, and so many entrepreneurs have fallen in this trap. No matter how good you think you are, you can still make mistakes. Also, you need to research. Considering that this is probably your first time starting your business, you need to go back to the basics.
This means that you want to dedicate yourself to learn as much as possible even before you start your business. If you are beginning this journey, thinking that everything will be easy and you don’t need to do much you are in for an enormous shock.
You will need to work very hard, just like other entrepreneurs. The first step of doing that, it’s, of course, doing research. This way, you will know all of the information about your market, profitable business ideas and target audience.
2. Following a bad idea
Listen to what people around you are saying. If your business idea isn’t profitable, then there’s no point in moving forward. Sometimes you might have this idea for the longest time, and despite knowing that it doesn’t make a lot of sense from a business perspective, you still insist on doing it.
We have an article about how to find the perfect niche market for you, which you can read here. Regardless of your current position and job, the steps are very similar. You need to make sure that the idea fits the criteria that you have set for yourself. By doing that, you will make sure that you are heading to a dead end.
3. Not becoming involved in the process
Being a CEO isn’t just carrying this title and making money. This might happen eventually depending on how much your company grows, but you still need to be heavily involved in the process, especially the beginning.
Make sure that you are actively participating in everything that is going on and that you know your business like no other. Especially at the beginning, nobody is going to do anything for you. You have to go out there and do things for yourself. Finding investors, writing a business plan, hiring people.
You need to be prepared to do the dirty work as much as is necessary if you are planning on succeeding and becoming a CEO. Being an entrepreneur is a dream for many, but not everyone understands the implications of the position. If you think you will immediately get to sit on a chair and relax while making millions you are in for an enormous shock.
4. Not paying attention to the financial aspect
Starting a business is – the majority of times – not free. Being so, it might not come as a shock to the fact that a lot of businesses fail because of money and financial problems. You definitely don’t want this happening to your company. So, you need to learn as much as possible about finances.
You can start your business small by investing smaller amounts of money into it. However, a loss is a loss, and of course, you want your business to succeed. To do that, make sure you have a detailed financial plan from the get-go, and you know exactly how much money is at risk.
This way, you can adapt your business plan according to how much money you have available. Making something too big on paper might sound tempting, but as soon as the business doesn’t show amazing expected results right away, you will be in grave danger of closing doors.
This is why starting small is so important. Make sure that not every dollar that you have is gone and you will have enough financial support while your business grows.
5. Not focusing on the business
There is a chance that you are currently working on a 9/5 job right now. Being so, you might think that you don’t have enough time to focus on your business. You might even start a side hustle, but you are not fully dedicating yourself to it in your free time. This is one of the biggest mistakes entrepreneurs make.
If you want to become successful like other entrepreneurs, you need to focus on the growth of your business. You won’t be able to do that by concentrating the majority of your time on your desk job.
Of course, we are not saying that you should immediately quit your job. However, you need to hustle extra hard to make sure your side hustle is getting the attention that it needs from you on top of your 9/5 job. This is the only way for you to grow.
Read Also: 10 Useful Tips to help you fund your startup idea in 2019
6. Being disorganized and not having a proper to-do list.
It’s a mistake more commonly committed than you expect, and you probably could be doing it as well.
Twenty different tasks will require your attention at the same time, and you need to have a list of priorities established not to get lost in the rush. It’s important to get your to-do list off your mind and onto a piece of paper, since it gives them entity and allows you to get a better grip of what it’s more and less important, or at least more or less urgent.
It might sound obvious, but writing it down in order of priority can truly make a difference and make you more productive through your already busy day.
7. Put yourself down
It’s all too easy when facing the endless tasks and inevitable mistakes you’ll make along the way, that you might feel like you’re not doing as good a job as you wish you were. Lacking confidence and viewing situations in a negative light will only make it harder for you to achieve your goals.
It’s important you believe in yourself and you work on your self-confidence because no one is going to root for you if you feel you’re defeated before even starting.
8. Try to do it all yourself
It’s hard letting go, but it’s fundamental as a business owner to learn to delegate. If you try to complete every task yourself, it’s inevitable you’ll slip on some responsibilities. You have employees, partners and even family members who support you for a reason: They are there to help you, so remember to actually use their strengths!
If you try to aim at many targets at the same time, it’s inevitable you’ll fail the mark in most of them. Try to figure out what your weaknesses are or what tasks absolutely require your attention to realize what is best to focus on and what you should allow someone else to take care of.
9. Get too full of yourself
It’s great if you are achieving success in the early stages of your entrepreneurship, but it’s important to remember to stay humble and not let your ego get the best of you.
Hubris is a dangerous quality to hold as a business owner, as it will render you blind to the reality that surrounds you and you’ll miss opportunities to grow or change your ways when making mistakes. Stay humble and listen to other people’s advice, especially customer reviews, and accept change when necessary.
10. Begin cutting corners
Don’t get desperate if you don’t see a good profit (or any profit at all) during the first few months. It’s a hard reality that it might take some time to actually earn money when starting a business.
It’s fundamental you don’t begin cutting corners, diminishing the quality of your product or services or making promises you can’t keep in the hopes of earning a better profit, as it will be highly detrimental to your brand in the long run. Don’t let the eagerness to make a few bucks today ruin what could be a bright future.
Remember you first have to reach your breakeven point: Achieving that milestone is already a great sign, so don’t get overly ambitious too soon. Once you get to that point, you can begin to actually earn a profit and get a good paycheck, but never achieve this goal in detriment of other important aspects of your business.
11. Forget to save for a rainy day
It’s important to reinvest what you earn in your business to help you improve your trade and provide the client with a better experience that will lead them to return, but it’s also fundamental to save for a rainy day.
What happens if you encounter an emergency and don’t have any funds available? Having money available to resolve issues quickly and effectively can be the difference between your business succeeding or failing along the way like so many others.
12. Listen to too many opinions
Though it’s an unquestionable fact that listening to other people’s advice is a great way to help your business grow, it’s important to find a proper balance between being open to change and finding yourself paralyzed in a sea of voices.
Don’t let yourself be overwhelmed by the different opinions, try to find those voices that speak from experience and that are valuable to you and block the rest out, at least for the time being. It’s a great idea to hire a consultant if you can afford one, to help you sort out your own ideas and those other offered you, as well as take a look at your business plan and give a professional outlook on what you could change to improve your product or service.
VIDEO TIP: This Youtube Video by Patrick Bet David, CEO Valuetainment reveals 15 mistakes he made as a first-time entrepreneur.
The Bottom Line…
These mistakes are some of the most common mistakes that entrepreneurs make. Now that you are aware of them, you can try to make sure that you will not be committing them, which will deeply impact your business.
Make sure that you are taking your business seriously. The reward that you will get from your company will be just as big as the effort that you put into making it work.
Wrapping Up!
What part of this article resonated most with you and why? What common mistakes have you made in the past? Share your ideas, tips, thoughts, and experience below in the comments.
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