6 Business Mistakes to Avoid
May 16, 2019
Entrepreneurs need to be prepared for many challenges and be ready to overcome obstacles when starting out in their first business. As you navigate the road ahead, you will be faced with funding challenges, tough competition, finding customers and under-performing employees. Some of the biggest problems are the ones new entrepreneurs cause themselves due to inexperience or from having a stressful day. Mistakes are part of the learning process, but with sufficient knowledge and planning, many costly mistakes can be avoided.
Here are six common mistakes that entrepreneurs should try to avoid.
1. Choosing the wrong people
Some of the biggest mistakes that entrepreneurs make are working with the wrong people. You have to assume that some of the people you work with are not going to be right for the company. It’s common for reputable companies to remove co-founders in some cases. In order to avert disaster in these situations, it pays to have a plan and a long-term vesting program for valuable employees.
2. Insufficient initial capital
Many people dream of starting a business even though they have very little or no money to get it off the ground. It’s a common mistake to jump into a venture with inadequate funding. Sometimes it’s possible to make a new venture work if you’re willing to make sacrifices, but your chances of failure are much higher with insufficient startup capital.
3. Don’t ignore your intuition
If you have a bad feeling about a person, don’t ignore it. Regardless of how well someone sells their ideas or how vaunted their resume is, if they don’t feel right for you or your company, don’t make the mistake of ignoring your instincts.
4. Don’t fail to keep customers accountable
When you’re offering a service, it’s important to keep customers accountable. For example, if you are teaching a class, students need to provide some up-front investment to keep them committed to the activity.
5. Underestimating the importance of sales
The core of a business is to sell goods or services, so sales are everything. Before you commit your time and money to a new venture, make certain that you have a solid plan to get people to pay you money for the product.
6. Don’t overwork your team
Sometimes entrepreneurs are extremely driven to achieve success or key milestones for their business. It’s common to drive yourself or your team beyond reasonable limits. Overextending people often has negative backlash.
Making mistakes is part of being human. This does not have to derail your success. Arm yourself with sage advice from experienced entrepreneurs to prepare yourself for the common obstacles that you are sure to face.