10 Most Common Mistakes Made By Entrepreneurs When Starting Up
Being an entrepreneur is exciting, no doubt, but it doesn’t mean that it’s not fraught with uncertainties. Building an empire from scratch, with nothing but an idea at your disposal is a daunting task, no? Keeping that in mind, there are several mistakes that entrepreneurs make, when starting off, that throw them off track. Here are some of the things that you, as an entrepreneur, would like to avoid:
Having the Wrong Co-Founder
One of the worst decisions that an entrepreneur can make is starting the business with the wrong co-founder by his side. Why is this important? Well, it’s because it’s imperative for the skills of co-founders to be complementary, for the performance and growth of the startup will depend upon it. It’s essential for the co-founders to see eye to eye and have similar objectives for the business to achieve.
Not Having a Target Audience
When it comes to starting a business, it’s important to target only a specific segment of the population with your products and services. Why? Well, because a product cannot, possibly, be made to cater to ALL kinds of audiences. It’s important, therefore, to focus on your product and make it suitable to cater to the need of the targeted audience. Don’t try to please everybody out there!
Waiting For Too Long
Everyone strives to be a perfectionist, right? However, when it comes to starting a business, perfectionism can serve to be a thorn in the side. Why? Well, it’s because entrepreneurs are, often, caught up in perfecting even the minutest details so much that they lose sight of the things that matter, or lose the perfect opportunity. Remember: in a business, timing is everything!
Assuming Control of Everything
Who doesn’t wish to be in perfect control of their business? However, it’s not practically possible for an entrepreneur to control everything along the course, which is the reason why they hire employees in the first place. The purpose of an entrepreneur is to envision the bigger picture and ensure that the business is on course. Micromanagement can cause the entrepreneur lose sight of what’s really important for the business.
Not Focusing On Cash Flows
Speaking of startups, cash inflows are nothing short of gold dust for them. Why? Well, it’s because smaller businesses—especially startups—have a dire need for cash to conduct operations in the earlier stages. If the business makes too many sales on credit, for example, and doesn’t keep the cash flowing in, then the business might ultimately come to a standstill.
Hiring the Wrong Human Resource
When it comes to startups, the fact of the matter is that they can afford the salaries of only a small number of employees in the initial stages. Keeping that in mind, the need for the startups to ensure that they hire the right mix of employees cannot be stressed upon enough. Remember: there’s only a limited budget that you can spend on employees, so ensure that you end up spending it in the best possible way!
Not Caring for Customer Feedback and Satisfaction
When it comes to startups, the fact of the matter is that mistakes are inevitable. No matter how much the entrepreneur might try, mistakes will happen. What’s important, however, is for the entrepreneur to learn from these mistakes and ensure that they don’t result into the loss of customers’ trust. Customer feedback can play an important role, in this regard, for it will not only ensure that the mistakes are identified and taken care of, but it will also signal to the customers that their feedback is heard and taken seriously. This can make all the difference!
Taking the Competition Too Seriously
The competitors are important for a business, no doubt, but that doesn’t mean that your business should take cue from them only. Startups often tend to follow in the footsteps of the “big fish” in their respective niche, only to realise that they’ve lost their individuality along the way. Remember: you need to “beat” your competition and not “be like” your competition!
Not Understanding Everything
It’s true that entrepreneurs shouldn’t get caught up in micromanagement, but that doesn’t mean that they should not understand all sides of their business. Entrepreneurs need to focus on the bigger picture and policy setting, no doubt, but they need to understand their businesses inside out if they are to be effective goal setters.
Getting Emotionally Attached
One of the worst mistakes that entrepreneurs can make is if they get too emotionally attached to the business. It’s true that entrepreneurs pour their heart, sweat and blood into the business, but they need to remember at the same time that getting too emotional about various aspects of the business can cause them to lose sight of the bigger picture and objectivity.
These are some of the most common mistakes that entrepreneurs make when starting their businesses off. It’s important, therefore, for them to keep these considerations in mind if they are to getting started on the right track!