6 Common Mistakes of Start Up Entrepreneurs
6 Common Mistakes of Start Up Entrepreneurs - A lot of moving parts go into running a business and there can be a steep learning curve. No bullet-proof game plan exists which guarantees against mistakes, though it would be nice if it did.
Experience will be the best teacher and flubs along the way are pretty much inevitable. But, arming yourself with some knowledge about common mistakes of start up entrepreneurs can hopefully help you avoid some common pitfalls or at least minimize the effects should you fall prey.
Not Making a Solid Business Plan
There is something very powerful about making a plan and putting that plan to paper. It gives solid structure to all the ideas floating around in your head. Many a business expert commonly notes lack of a business plan as one of the key mistakes in starting a new business.
So, if the plan for your business only exists in your head and some rough calculations on paper, you may be setting yourself up for failure before you even start. A good plan will be very detailed with clearly defined parameters, while at the same time allowing for flexibility.
Not Accounting for Strengths and Weaknesses
Everyone has their strengths and weaknesses—no one is perfect, nor is everyone well-suited to certain types of tasks and businesses. Before you jump into a business, you need to do an honest assessment of yours.
This will help you figure out if the type of business you are thinking about is a good fit, what you need to learn more about, and when you may need to get some outside help.
For example, if you really do not have strong people skills or you are not particularly social, running a retail store may not be the best match, no matter how passionate you may be about the product. There is so much that goes into running a business, and it is highly likely you are skilled enough to do it all.
Pouring Every Cent into Your Business
Opening your own business takes a lot of blood, sweat and tears. This is why many who dream of being an entrepreneur never really take it much farther than that. Given all the sacrifice, it may make sense to you to spend every dollar you have getting your business off the ground, and pouring every cent you make back into it, all the while not giving yourself a piece of the action.
While it is true things may be tight until your business truly becomes profitable, you should not leave yourself in a position where you have no idea how you are going to support yourself and tend to your myriad financial responsibilities.
Skimping on Marketing
Cuts to the marketing budget are very common when established businesses are facing some tough times—rent, employee salaries or vendor payments take top priority. As a new business owner, you may be seeing a similar pattern and feel that you cannot devote as much to marketing as you would like.
Sure, there are lots of free strategies that can be very effective, like referrals or social media, but they take time. When you are just starting out, the most effective methods will be paid ones. Think carefully about your marketing strategy and invest enough money to make it effective.
Not Enough Time on Sales
While you surely need a top-notch product to be successful, spending too much time on development and not enough time on garnering sales is a common mistake of the start-up. Similar to not devoting enough time to marketing, this idea that simply starting the business and existing will bring people to you, is a dangerous assumption.
Targeting Too Small a Market
You can’t be everything to everyone and your product or service will likely have very specific markets. The idea of targeting a specific niche and dominating it is, on one hand, a good one.
But, on the other hand, focusing on too small a market will halt your business growth. Broaden your focus so you can get a bigger piece of the action, even if you are just a smaller player.
Post a Comment for " 6 Common Mistakes of Start Up Entrepreneurs"