Everyone who starts off a business is green in the industry and makes mistakes. However, there are some mistakes that are common to many, and result in the failure of a new business. Most new entrepreneurs, especially if they are young, have either of the two qualities, ego or fear. Some may be too egoistic to accept ideas from anyone and others are scared and lack confidence in themselves.
When in the market research process, it’s important to also analyze why the competitors failed or succeeded, what were their ideas and how they implemented them in order to achieve their goals. All this helps you avoid those problems and make sure you are better prepared. It also saves time, which is of the utmost importance. Here are some common mistakes of new start-ups that if avoided can brighten your chances of success.
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1. Unstable planning
When the idea is still in the head, putting it on paper brings the reality to focus. A good business plan that covers all aspects of the enterprise will make sure you are on the path to success. Entrepreneurs that don’t plan, end up failing miserably, not because of the idea but because of the lack of preparation for executing it.
2. Too much expenditure
You want to look professional; understood. But you don’t want to appear foolish-making sure you spend on everything you don’t need. Hundreds of dollars on domain names, brochures, ads in the yellow pages, etc. Don’t overdo your office space either, buying expensive-looking furniture, etc., this is will drain all your investments into what’s not even your product, leaving you more in debt than anything even before you start. Be mindful of the money you spend, it should be for what’s absolutely necessary to make your company, not what you think will make your company.
3. Drenching in “You’re so fab, you’re so fab”
There will be people who will pull you down, these are genuinely evil people, but many times it’s those who will overly encourage you and give you the false appreciation that will ruin you. The problem is not the people, it’s the entrepreneurs’ ability to stay real in such situations and not get carried away. Stays focused on what you want to achieve and never take exaggerated compliments into considerations.
4. Not being flexible with ideas
The idea is everything, and as the entrepreneur, it’s what gives you confidence, but the idea has to sell. And that is a fact which needs to be accepted the moment the idea itself is conceived. Be open to making changes and ‘evolving’ your ideas to ensure profit and sales. The point at the end of the day is to make money with the idea, if the idea needs to be altered, do it!
Many entrepreneurs are too excited about the adventure that awaits them when starting up their own business. Researching, and staying real is the key to survival and success.