Top mistakes entrepreneurs make when starting a business
Entrepreneurship is a career path that many people take because they want to be able to put their ideas into action in the form of initiatives. It is a road that needs effort and sacrifice, but it also offers the opportunity to balance work and personal life as desired.
It is very normal to make mistakes when undertaking. All entrepreneurs go through this phase for the mere fact that it is a learning process.
To help you move forward safely in your project, I would like you to take note of these possible mistakes so that you can avoid them if you have decided to undertake with your project.
Common mistakes in entrepreneurship
These are the most prominent errors:
1. Start without a business plan
This is a mistake that can lead to future problems. Start if a business plan in which you can have your action plan, without a solid basis to move forward can be a problem.
A business plan is similar to a puzzle in which each piece is dedicated to an important part of your business. Some of these pieces could be:
Internal weaknesses and strengths
Study of the competition
Products / services you are going to offer
It is a study that you must do before starting your company. In addition, it will help you to ask for grants and subsidies if you need them since it is the main document that they ask you in any bank and investors.
This will help you to have clarity of ideas and know what you will need to develop your business successfully.
2. Compete for price
Here we talk about starting with very low prices and thinking that you should always compete for price. This is a common mistake that can ruin your business.
It will always be harder to raise prices than to lower. So, to begin with, research your competitor’s price, the value they offer, and the value you offer. As a result, set realistic prices, but also serve to maintain your business.
If what you intend is to be continuously making offers, discounts and lower prices is an idea not recommended.
3. I’m the best at creating services
A common and crass mistake. Showing us in love with our idea is not bad, but losing objectivity and believing that we are the best if it can be. Sometimes you can have wonderful ideas, but they don’t have an equal outlet on the market. It is therefore important to be realistic and consistent.
Asking, researching and taking into account opinions will help us to have a clearer idea of whether our idea can really be a successful project or better to discard it.
4. Learn to delegate
If there is one thing clear when starting a project is that the entrepreneur is a man orchestra that controls each of the actions that have to be carried out. It is so important Guide to learning how to delegate effectively
This often happens because there may not be enough resources to have competent specialists to help us. But this must change if business moves forward. Focusing on what we’re really good at will help us be more productive and focus our energy on what we should and know how to do.
Therefore, it is important to learn how to delegate and find the right professionals for it. Otherwise, our project may be affected. However, to do this, it is important to do a preliminary research of the candidates, to have a chat with them and to assess their experience.
It is always good to ask and look for references to leave the actions that we will not work in the hands of someone of total confidence.
5. Partner with someone
You may have decided to undertake in company. Now, is he the right partner or not? You should keep in mind that many businesses go to waste because of problems between partners. The most advisable thing is to make clear from the beginning the tasks of each one, the schedule and the commitment to develop them.
6. Putting marketing aside
This is a very common mistake. Having the product, having spent the entire budget on other manufacturing actions, for example, and not having something as essential as marketing, advertising and communication to help its sale.
The product does not sell itself, and there have been many cases of this type that I have encountered for not having made a good forecast of expenses destined to the marketing area.
He thinks the end customer should know him. You will have to take into account the strategies you want to undertake to carry it out:
Are you going to advertise it on social media?
Are you going to have a blog to provide useful information about it?
Will you run advertising campaigns?
All this requires specialists and an investment, but it is the only way that your product does not stay in a closed drawer.
7. Forget about the competition
It is a fact that will help you when undertaking. Know what they are doing, what works for them, the products they have, their prices, among other issues. All this can guide and guide you in your own business.
Many entrepreneurs forget this important fact and it is a mistake. If we want to position ourselves we must know our competition and from there assess our contribution of value and differentiation so that the audience is directed towards our products.
8. Investing too much at first
You have to be careful with this. It is important to have a budget in line with the idea to be developed, but not mortgage for life.
Believe it or not, raising too much money can also be a problem. Companies with too many funds tend to get big and bloated, hiring too many people too soon and wasting valuable resources on trade show booths, parties, image advertising and others. When money runs out and investors lose patience (which is what happened 10 years ago with the puncture of the tech bubble), startups that squandered their money will have to close. No matter how much money you get to collect at first, remember to save some for bad times.
Some entrepreneurs are determined to start in style. However, the most advisable thing is to assess what is needed, the possible profits and go investing progressively.
9. Depend on external aid
Subsidies and financial aid are not immediate. If we depend on this, it can be a big problem for us.
We can request this type of economic amounts, but we can not be governed by them alone. We must have a commensurate budget for this.
10. Drop out of training
Learning new techniques for our business, strategies and tools can help us to offer a better service and a contribution of value that differentiates us positively from the competition.
Therefore, learning and studying will be something that is not advisable to abandon at any time for the sake of our business