Entrepreneurs are the life force behind the business world. They are the risk-takers, they enable growth within their sectors and through their sheer innovation, drive and passion stimulate economic growth.
They do, however, make mistakes from time to time. We’re all human after all! It’s tricky when you’re running your own business to make mistakes though – simply put you have more to lose.
Here’s our list of the top 5 mistakes entrepreneurs make:
1. Not enough preparation.
Many new starters in business make this mistake. You can never do too much research! It is essential towards having a successful business. You need to know the ins and outs of your main competitors. You’ll need to know (and be able to push passionately) the benefits of your products/service over other people’s. Know your rights when it comes to your intellectual property. If you’re lucky to live in an area that actively encourages entrepreneurship, research what grants/free help you may be entitled to. Go to local events that are in your field of expertise. Be proactive!
2. Not having a financial cushion to fall onto.
Sometimes things don’t go to plan, unexpected charges/expenses pop up and delays occur. You’ll need to pre-empt these as much as possible. A lot of entrepreneurs recommend having a nest egg of 25% of your projected finances tucked away to fall back onto if things don’t go right. It’s easy to be overeager and optimistic with your sales projections – sometimes sales can be slow initially. On the other end of the spectrum, growth is often overlooked and there isn’t enough funding to take your company to the next level. Whichever way your new project goes, it’s best to try and have a financial safety net behind you.
3. Overlooking marketing.
Your amazing, unique product will not just magically appear in people’s consciousness! Go out and sell it to your customers! Marketing, marketing, marketing. So many fantastic ideas have been complete flops simply because their creators didn’t have a clue how to market them. Make sure you’re aiming your advertising towards your target consumers. Never mind the naysayers – if you truly believe in your product/service, push it to your audience. Get it out there, get it seen, and get those sales in.
4. Ignoring others’ mistakes and experiences.
No matter how much research you do into your chosen field, you cannot overlook the positive influence of others’ expert knowledge. A well-put-together team can do fantastic things for your vision of your company’s future. Hire those that have extensive knowledge, passion for your product, and the right attitude for your company. Entrepreneurs are usually bogged down with requests from friends and family to hire so-and-so but please do not succumb! This is your business, your money, and your future. You need to take heed of others’ mistakes and hire the right candidates for any positions you may have.
5. Being impatient.
Rome wasn’t built in a day and neither will your business be. Keep calm, keep positive and the company will grow.