Starting a new business venture as an entrepreneur is never easy. Entrepreneurs can all relate to the fact that it is difficult to navigate uncharted territory in the business world. You will need to do a lot of research, get funding, plan your business growth, and prepare for the best and the worst.
To achieve the utmost success in your business, it can help to learn about the most common drawbacks and misjudgments that other entrepreneurs have made, so you can avoid them. Watch out for these missteps:
“Test fast, fail fast, adjust fast.” — Tom Peters
Thinking of failure as a catastrophe
Perhaps you’ve heard the term “paralysis by analysis” – this is when you spend so much time preparing for your shot that you end up missing your chance to take it.
Successful entrepreneurs will find failure to be an inherent part of getting business up and running. It also means that you will be making important decisions constantly.
Sometimes you need to just go for it. Make a decision. Experiment. Don’t be scared to try things out because once you get going, things are going to change anyway. Just make a decision and keep moving forward.
Hiring Friends and/or Family
You need to hire someone – and you have a friend or family member that’s eager to help you out. What’s the worst thing that could possibly go wrong? Hiring someone you know is not always a mistake. There are many family-run businesses out there that are extremely successful. However, it’s rarely a good idea, especially if your friend or family member ends up being a poor performer.
Remember, even though they’re a friend or family member, they will still be an employee in your business.
Cost Cutting at the Expense of Bringing in New Business
Finding the right balance of price and quality is difficult – especially when you are just starting out and you have put all you have into starting a business. However, at some point, you’ll start cutting corners that will end up costing you a lot more in the long run.
For instance, when it comes to branding your business, take the time to explore and research all your options. Then choose the option that gives you the most value and high quality within your budget. When in doubt, ask around and see how much other businesses have spent in a particular area so you can gauge how much you should be budgeting.
Neglecting to delegate
Another crucial part of letting go of things out of one’s control involves delegating, yet the appeal of running a one-person show has thwarted many a startup. Entrepreneurs got a 24-hour day just like everyone else, which means that it’s critical to decide how to maximize that time.
The advantages of letting others take on some responsibilities are countless – and they include everything from smoother operations to better mental health.
Do not get caught up in the tiny details – that is why you need to hire new people. You need to focus on running your business and trust your employees to do what you pay them to do.
You might be interested in: The Best Goal Setting Strategy for You and Your Business
Not Evolving as an entrepreneur
Businesses and markets are ever-changing and the best business leaders invest in themselves, take notes and ask questions, and build up support systems for learning. For entrepreneurs, the solution may come in the form of books, executive business courses, working with a mentor, or a combination of all these approaches. If you keep trying to run things the same way as your business grows, you will lag behind while your competitors excel. Do not allow yourself or your business to get stuck in a rut; keep evolving with the times.
Overlooking customers’ importance
In the beginning, some business owners consider the importance of their customers with a high priority but later on, they treat them as normal people. This is one of the biggest pitfalls of entrepreneurs.
Remember your customers are also responsible for your business. Their satisfaction should be your top priority if you want to keep the sustainability of your company. It is also important to get input from others. There’s a lot of great insights that can come from other people with an alternative perspective. Just make sure that you understand the context in which the feedback is given.
Selection of wrong business partner
In many instances, you cannot launch a venture alone — you will need partners or investors for funding and know-how. However, you can overdo it, by bringing on too many people, diluting your profit, and confusing your strategy.
Your business plan will hopefully have addressed this issue, but think further about who should really be involved, and what impact it will have on your venture.
Actually, if you are starting a small-scale business, you do not actually require choosing a co-founder for your business. You can manage everything if you have a plan and organize it properly.
There are a lot of pitfalls that entrepreneurs have to manage closely when starting a business, from failing to consider the market, to cost-cutting at the expense of bringing in new business, to the risk of scaling too quickly.
However, being aware of these pitfalls serves as a major safeguard against them, giving managers the advantage of knowing how to hedge their bets to yield higher chances of success.