Common mistakes in entrepreneurship. A big part of staring a business is having a plan and having the discipline to act on it. Being part of a startup isn’t always glamorous, it has its extreme challenges and can and often require you to simply submit yourself to the process. Mistakes are bound to happen, and here are a few to watch out for;
*Not spending enough money or spending too much money-As a new entrepreneur, money is likely to be one of your biggest concerns. Pre-launch cash flow is likely to be close to nothing, so making and saving money will usually take priority over everything else.
There are two mindsets you will adopt, either “You have to spend money to make money” or “I’ll spend the bare minimum until I have some decent cash flow.” Both of these attitudes, when taken to the extreme, can be harmful. Spend your startup cash wisely, but don’t be afraid to invest in good people and quality products.
*Making hiring decisions based on cost-This is closely tied to number one, but is very important hence the need to be mentioned separately.Low-cost employees and consultants are usually low-cost for a reason — they are more likely to be inexperienced, unskilled or unreliable (or all three). Avoid such where you can and consider skilled personnel as an investment for the future.
* Not setting attainable goals-New entrepreneurs can be so enraptured by their “big idea,” they work without a solid plan. But the reality is you need set realistic and attainable goals in order to succeed.Make a point of setting both short- and long-term goals, and make sure they are specific.
*Having too small margins-Having a healthy profit margin will be critical to your success. Setting it too low now will make life infinitely more difficult for you in the future and it be upsetting to your customers when you need to raise your prices later on. take into consideration, your production and operating costs, and determine how much flexibility there is, to avoid making hasty decisions that will ripple your business.
*Thinking you have no direct competitors-The excitement about a new product or business can often lead new entrepreneurs to think they really have no direct competition. In reality, it’s extremely rare to have no direct competitors. Do your due diligence to find out what these companies are and how you can differentiate your business.
*Being incapacitated by fear of “what if’s.”– in the words of Robert F. Kennedy , “Only those who dare to fail greatly can ever achieve greatly.” Starting a new business is scary a journey not suitable for the and isn’t for the faint-hearted. Being scared of failure and rejection is understandable, but letting yourself become incapacitated by this fear can significantly hinder your progress. Recognizing common fears is a great first step, as it reassures you others have been where you are now.
