The most effective way to learn as an entrepreneur is by making mistakes or learning from the mistakes of others; learning from our mistakes helps us to perform better and become better business people.
However, you don’t have to wait until you made a mistake before you can learn.
Since it’s better to learn from other’s mistakes, we’ll share 6 common mistakes made by entrepreneurs. Here we go:
1. Expanding Too Soon
Expanding your business idea without getting the right things on the ground could lead to a negative consequence. Experience and further business research have shown that before you expand your startup, it needs to have the following key resources:
- Access to credit,
- Access to equity,
- Key management or staff,
- Secured supply lines etc.
Never underestimate the power of organic growth, it may be slow at the beginning, but truly it achieves solid positive results.
2. Not Taking Advice
Many startup founders are not succeeding because of their failure to learn or seek proper advice from the right people. It is always necessary to seek advice from someone who is highly knowledgeable in business transactions such as strategy experts, financial planners, lawyers, accountants etc.
Good business people derive maximum joy in seeking advice from the right people. If you want to win bigger contracts or want buyers to take you seriously, then you need to start an LLC.
Get in touch with a seasoned mentor. You may have a business idea but doesn’t know how to make it happen. All you need to do is to keep networking, reach out to the right people. These connections will assist your business growth.
3. Failure To Deal With People
You need to develop a likable personality; if people don’t like you and/or don’t like what you do, they will never do business with you. So, it is a necessity you have basic people management skills. Besides having effective customer service skills, you must also learn how to deal with your workforce, because they are your biggest asset.
They are there to help in growing your startup; you need to treat them well by paying their salaries and/or remunerations at the right time as well as relating well with them on a professional basis.
4. Failing To Adapt To Change
Many entrepreneurs are blind to know why they should adapt to current change in their organizations. There are stories of many businesses that were handed down from father to son or from grandfather to the son and now to the grandson, which have crashed because the current manager is yet to adopt new changes. Some of the managers don’t know the beauty of people management skills. Many of them lack real entrepreneurial mindset.
Some inherit and destroy the business within a short time, while a good number of them are still doing the business the old way. Today, advancements in technology have brought a lot of innovations to the way we do business.
Your startup will fail to realize its set objectives if you neglect to explore the available huge benefits in this digital age. Adapting to the current technological innovation is the real deal.
5. Admit Your Weaknesses
Every person no matter how talented they have strengths and weaknesses. One of the biggest mistakes you can make today as a startup founder and/or CEO is to ignore your weaknesses. You should know things you can do well and areas you can’t.
Those areas where you can’t do well, it is necessary you hire experts who can assist you. That you took a course in accounting or Business Law during your MBA class is not a guarantee that you are suitably qualified to review legal agreements or interpret balance sheets of your business. Don’t try to be a jack of all trades; hire people who can provide valuable expertise in areas you have shortcomings, while you improve on your strengths.
6. Skipping Market Research
Before you start a business, make sure you have a well-defined target market. Do a proper business research. It is not wise to launch a startup idea after discussing with your friends and family about it.
Do a research, and see if it is workable; see if it is something you can easily get involved with. In kick-starting a business, both primary and secondary sources will help you to identify your ideal clients and hire the right talent that will help in driving your vision.