Becoming an entrepreneur isn’t an easy task. It requires a lot of commitment and passion to build and nurture a business. The job profile of an entrepreneur is etched with difficulties as one has to often face losses and setbacks. Also, because the job profile of an entrepreneur is so complicated and not fleshed out well, one tends to make a lot of mistakes while starting out. If these are avoided, the work can progress more smoothly.
Here are a few mistakes entrepreneurs make while starting out:
1. Not having a clear and long-term vision
Entrepreneurs make a common mistake of developing a business solely on the basis of an idea and ignoring the future of the company. If you don’t have a long term vision and goals which need to be achieved, what are you even working towards? If you conduct your business without a concrete plan, not only will you be confused and unsure about your achievements but also about what should your next step be?
Hence, it is crucial for an entrepreneur to have a clear and far-sighted vision for his business.
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2. Assuming there is no competition
A lot of start-ups crop up because the entrepreneur has a completely new and out-of-the-box idea which one needs to develop upon. Because your idea is innovative, you might think there aren’t any direct competitors. But, this is a crucial mistake one makes as someone else with a similar concept might have a different USP which your product lacks.
For instance, Nike and Zivame aren’t direct competitors but they definitely are competitors.
3. Not accepting guidance
You are new to this field; there are people who might be more accomplished or more knowledgeable about the same field you’re venturing into. By not listening to them or discarding their guidance, you are wasting a golden chance to make your business bigger and better. More so, through your guide’s advice, you can learn how to make decisions and implement them successfully in a market so dynamic.
Respect and honour experienced suggestions and it will definitely help you avoid unnecessary trouble and help you take decisions more wisely.
4. No business plan
Even if your business is a part-time one, it is crucial to have a business plan ready for the future for investors and possible mergers. A business plan is a must-have for a company as it charts out the mission, vision and future plans for the company. Without a business plan, no one will know what they’re doing and why! This will lead to absolute chaos and no firm decisions.
5. Not focusing enough on selling
You have a marketing plan, great; now focus on selling your product. A lot of entrepreneurs focus on marketing and forget to take sales into consideration. Sales is what earns you money so one must be very careful while charting out a sales plan: what channels of distribution to use, sales channels etc. Also, efficient sales ensure repeat purchases.
Related Post: Focus on the “why” while selling your product
6. Hiring the wrong people
Entrepreneurship might seem like a one-man show but it isn’t. It is very important to hire your team very carefully as these are the people who you trust with your vision and company. Hire people who you think fit the bill and not on the basis of experience or any other criteria. For instance, a person might seem very experienced in the field of marketing but have limited knowledge of social media. If something like this happens, you’ll be in a fix.
7. Not focusing on the customer
You exist for the customer and not the other way round. Create products if your customer needs them otherwise it is merely a wastage of resources. Your complete focus should be on pleasing your customer as a new entrepreneur. Make sure you take customer feedback to learn about your shortcomings and the areas you can improve in. If your customer is happy, they will come back for repeat purchases.
Related Post: 8 Common business plan mistakes
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