8 Common Mistakes Entrepreneurs Make And Tips To Avoid Them
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Beginning anything at all is difficult. It’s even tougher for entrepreneurs because creating a successful business module, funding it, and ensuring that it stands the test of time is an uphill task. The road to business success is paved with perseverance and tough work, no less.
According to SmallBizGenius.net, 46% of entrepreneurs have no business-related training whatsoever. So calm down, you are not alone in your probable confusion as to what to do to get your business up and running, and keeping it that way. Here’s a list of the eight most common mistakes entrepreneurs make and some helpful tips on how to avoid them.
Failing to plan
Failing to plan is essentially preparing yourself for failure. One great big idea is not enough to win everybody. If your family and friends seem hesitant when you pitch your ideas, it’s probably not because they do not want to support you. Instead, they most likely just cannot see it through your eyes. So put everything down on paper and come up with a plan. A business plan comprehensively gels the various aspects of your business concept.
Ask questions such as:
What am I going to need?
How is it all going to come together?
How am I going to fund the production of this concept?
Write down the answers to these questions on paper (not in your head). Also, have your friends critique your module from a client or investor viewpoint. As you comprehensively plan, have it critiqued, and tweak based on feedback. You’ll find that you’ll be able to, first, factor in other details that wouldn’t have come to mind and, second, defend your concept to naysayers. Since planning is foundational to every business, you should invest the time in building a strong one. Many online resources offer free business plan templates. You can download and fill one out and tweak it as you require. This will help you to better view and communicate your business concepts to people.
Over-prioritizing branding
While branding is to a business what clothing is to us, you do not have to make everything about branding. Some entrepreneurs wrongfully interpret branding to mean parading yourself as a hotshot business executive to attract clients who have the money potentially. It’s great to have the funds to rent your very own glass and steel building. But if you don’t, run your business within your means. Most people can sense an ingenious person when they meet one, and clients might be put off by this and not want to patronize your services. You don’t have to adopt a ‘fake it to make it’ business approach. Sometimes the best brand you can be is yourself.
Thinking you can do it all alone
You may be a pro at multitasking, but you can’t be a manager and perform different staff roles all at once. You are not a one-person team, and it could reduce productivity to try to be one. So, don’t underestimate great human resourcing. Make sure to provide accurate job descriptions to attract the best available talent. Also, check out the applicant’s referees as some applicants may lie on their CVs. If you dread making a bad recruiting decision, you can outsource your recruitment to https://xmigrowth.com. Hiring based on how limited your funds are will cost you invariably more money to replace the help, as well as time and productivity. You can also lose other employees as no one wants to work with a bad egg.
Get an industry-relevant mentor
Aside from not being able to do it all, you do not also know it all. This is where a mentor can be of great help. According to Forbes, mentored startups grow a whopping three and a half times faster and bring in seven times more revenue than their non-mentored colleagues. You can identify two or three entrepreneurs who are making it in the industry you want to get into. This is because what might work for the auto industry, for example, might not necessarily help you in the food business as the challenges they may have overcome are not likely to be the same you’ll encounter. You do not have to meet with them to get their counsel physically. You can invest in the material they’ve already put out there, such as books, tapes, and interviews. Tapping into their knowledge is what counts.
Leave the right paper trail
Prioritize getting your business legalities in order. Many businesses only regard the initial cost and don’t pay attention to these things until they require documentation to bid for a contract or access funding.
It could be too late by then, and you might lose out on a big opportunity. Some entrepreneurs also get by on verbal agreements, and it is not an advisable business practice to do so. So, don’t trivialize business documentation. A tip to avoid miscommunication is to get everything in writing. It could be as simple as emails or texts, but whatever it is, get it in writing.
Have a marketing plan in place
Not having a proper marketing strategy and plan in place could spell doom for any startup. Many entrepreneurs have an idealist perception of how business is done. The idea that customers will flock to you once you have a great idea running is not entirely accurate. Even the most successful companies today still need a marketing push.
While it’s great to be optimistic about your idea, factor in the marketing push it’ll need to grow. Harness the power of the internet and take advantage of the dynamic marketing options it offers businesses. It could be as simple as creating a Facebook or Instagram account, and progressing to ads promotion to get your business out there.
Launching into the deep with a bang
While it might seem like a great idea to go big and make your presence known, it could be a recipe for disaster if you can’t handle the stress and demands of new customers after your big launch. You don’t know what challenges lie ahead, so get structured and take things one step at a step. It pays to be ready at your own pace. If you get encouraged when others seem to be doing better and snowballing, remember that sustained growth is the best growth of all. Launch when you are ready to handle the pressure of increased client demands. It’s better to focus on delivering 100% to fewer clients than a half-baked job to more clients.
Ensure that the price is right
Don’t under-sell your product or service just to please a customer or as a marketing gimmick. While it’s true that you can utilize a sale or limited time offer to increase your customer base, regularly slashing your prices for some demanding clients will eventually impact negatively on your coffers. They’ll always come back with the intention of not paying your asking price. You can avoid this by simply saying no. Always be polite and helpful to your customers, but don’t be a pushover or afraid to say no to excessive demands. The customer isn’t always absolutely king. Be kind and let them understand that you have a business to run and a brand to protect.
You’ve decided that entrepreneurship is your calling, and it’s time you also made your mark. Having the idea is only the first step. Now that you’ve taken that step, it’s what you do from here that’ll determine how it’ll all turn out.