To Err is Human! People often make mistakes in life and tend to learn from them. Life is never a bed of roses! Similarly, the entrepreneurial journey is full of trial and error which cannot be dodged. Making small mistakes in such a high cadre may cost one more than they might have imagined. But sometimes peers stop young entrepreneurs from making such mistakes which they realise sooner or later. Stated below are some of the mistakes pointed out by pioneers as these could be and should be avoided.
Trying to act too smart
Being an entrepreneur comes with great passion, consistency, stress and sincerity. Also, there is a small chance that entrepreneurs often tend to think, “only” they do the job well and others don’t contribute much towards the company. This is absolutely common but one shouldn’t act like they know everything and ignore others’ suggestions. This will never yield loyal and honest employees. Moreover, small businesses succeed only with teamwork so, one must always remember to include team members in any of their decisions. Being an entrepreneur, the person might know in and out about their product/service but one shouldn’t fail to split work between their group. So, if you are a young entrepreneur try to plan activities carefully well in advance and avoid these types of mistakes.
Entreprenuers waiting for customers to find them
“If we provide a quality product, customers will come” is a common belief among young and new entrepreneurs. Competition among businesses has gotten stronger but not the reverse, with the influence of social media and the internet. So waiting for customers to reach a business just by word of mouth is mere foolishness. Poor marketing and not spotting the target audience are some of the common mistakes that need to be avoided. Additionally, a business executive must try to contribute funds towards growing their customer base and conduct interesting campaigns by making use of digital platforms. One must not solely focus on digital, but broaden their business by concentrating also on the traditional marketing methods. Hence, one must assign a strong marketing team to find the right mix of target and passive audiences for a business.
Choosing of wrong partners/investors
Investing at the right time is as important as not investing with the wrong team. Entrepreneurs must make sure that they never choose investors or partners who aim just at profits. Small business involves both downfall and success, a partner must be ready to stand with the firm in any of these circumstances. Moreover, young entrepreneurs must make a business plan and strategize their methods of income before relying only on their idea. If you are interested check out our blog on Funding. Also, one must calculate the actual funds required and the excess funds that they plan to have before involving the first set of investors. After all this process, one must be able to interact with the investors and find the best one who focuses both on growth and sustainability.
Focussing on growth only
Aiming at the goal is good but at times, an entrepreneur must try to jump into the shoes of their customers and have a look at their business. Firstly, One must consider their needs and alter their possibilities accordingly because the market functions in a customer-centric approach. Secondly, on aiming at growth, one must try not to experiment with things hastily without proper and sufficient research. Finally, young businesspeople must remember that small business stands strong on the foundation of various factors like customer base, marketing, pricing, customer relationship management, etc.
Financial mismanagement in business
Managing one’s funds is equally important as one’s idea. Firstly, wasting money by investing too much in setup and workspace at the beginning leads to debts and failures. An entrepreneur must think twice before spending their money. So, one must keep an account of their expenditure and tax filings. Hence, bookkeeping, financial statements, projections and financing are the building blocks for a successful business. You can also refer to some books like The richest man in Babylon for more ideas.
Secondly, one must not allow everyone to handle their money. Thus business executives must allot trustworthy employees to keep an account of all these accounts because being stable is more important than growing exponentially. Finally, remember that there are many more real-time problems one might encounter but mustn’t give up due to a failure!
Mistakes are common and can be avoided easily with professional guidance and by concentrating on minute things. But, the role of an entrepreneur in the economic development of a country is crucial. Also, one must never be afraid of their failure, every mistake is a path to success. In conclusion, each person must try to learn from yesterday to create a brighter tomorrow. Also, young entrepreneurs must step up with their ideas to contribute to Make in India and a better future. For more such blogs stay tuned with us!