Starting your business venture can be one of the most challenging things to do. Being an entrepreneur is not easy, as various factors are responsible to achieve success, growth, and fame. Even the most successful and experienced professionals will agree that starting out as an entrepreneur requires a lot of devotion and attentiveness.
Everybody knows about what to do while starting a business, but very few talk about what to avoid while starting. However, knowing what mistakes you should avoid as a new entrepreneur is equally important.
Let’s take a look at what are the 10 most common mistakes every new entrepreneur should avoid:
- Not studying your business market and target audience
A new entrepreneur always believes that he/she is introducing only the best product in the market and often avoids doing market research. However, studying the market and target audience before starting can help you take the right decisions about the business venture. It’s always important to consider the strategies of your competitors and what can influence your target audience.
2. Not setting attainable goals
Be a man with a plan if you want to be a professional entrepreneur and not just any random business person. While starting up, one should not just fly high without setting a decisive, measurable goal. It’s essential to keep an attainable and reasonable goal in your sight, as it helps you create an effective action plan and implement steps, accordingly, to move forward.
3. Making hiring decisions based on cost
Hiring decisions should be based on the quality and requirements of your business and not just cost. It’s easy to hire employees at a low cost when the budget is tight but that results in quantity and not quality. One can’t assure success without hard-working and versatile employees who also prove valuable in the long run.
4. Underestimating/not assessing competitors
Competition is always there, though it’s not always obvious. Investors always want to know your competitors before investing in your business. So, the priority as a new entrepreneur is to assess the most significant threats to your business.
A new entrepreneur may identify competitors but forget to do an in-depth research of his business model. Never underestimate competitors, as they can research your business strategy at any time and can easily leverage their resources to hack growth.
5. Thinking you can manage everything on your own
Overestimating your capacity is not a good thing, but new entrepreneurs make that mistake while starting out. Believing in yourself is fine but being overconfident can be harmful to your business. It’s better to consult a knowledgeable and experienced mentor about business strategies and hire a few people to complement your skills. This can provide a new perspective and help you successfully expand your business.
6. Being afraid to commit fully to the business
To be nervous before doing anything new is a human tendency but being incapacitated by fear can’t let you achieve success. Any startup runs the risk of failure; however, it is important to fully commit to your aim. Be aware of the risk and prepare yourself for the worst in order to boost your confidence and embolden your entrepreneurial spirit!
7. Putting people last
Making money is not the only purpose of any startup. It’s to maintain a sustainable and steady business. So, while determining the business model and creating new products, it is important to think about the customer’s needs and mentality.
You need to focus on your target customers to make a profit. This helps to gradually build a pool of loyal customers who will keep buying from you over the long term.
8. Not organizing your cash flow
It’s important to manage your money in any business to make a profit. Not organizing finance can cause the business to crash like a house of cards. Once you start earning, it becomes crucial to keep a track of expenditure and income. If you are unable to manage your cash, hiring a financial expert can help avoid wastage and financial loss.
9. Ignoring marketing
Marketing plays a vital role in attracting customers to your product. Ignoring marketing will cause you to fall behind your competition. Your marketing strategies should be for all types of people and not just for investors. There are various platforms such as social media, SEO, digital marketing, etc. which you can use to promote your business and increase growth.
10. Not having the legal structure in place
Any new entrepreneur should always make sure that he/she is complying with all legal parameters such as registrations, tax obligations, financial regulations, employment laws, agreements, etc. Not having a clear legal foundation can be harmful to your business growth, so it is important to complete and keep track of all legal formalities while starting a business.
As the famous critic Alexander Pope has said, ‘To err is human’, mistakes are unavoidable for every person but to learn from them is important. Likewise, to become a successful entrepreneur, it’s necessary to avoid things that are wrong for the business and not to repeat them at any cost.
Want Entrepreneurial Guidance? Connect with Chalaang!
Chhalang is an upcoming pan-India platform for new entrepreneurs to learn entrepreneurship skills and become successful businesspeople. In addition, we also offer mentoring and guidance for upcoming entrepreneurs so they can make their ventures work!