An Entrepreneur’s Worst Mistakes :- Sometimes, even the greatest of entrepreneurs can fall. We all know that “to err is human,” but we also know that we can learn from others’ mistakes. This doesn’t fully eliminate all chances of failure, but it greatly diminishes them.
Let’s take a look at the most common mistakes that entrepreneurs make, and the consequences of these mistakes.
An Entrepreneur’s Worst Mistakes
1) Aiming too high.
When you start a business, your primary aim should be to stay afloat for as long as possible. Do not look at how much money the businesses of others above you make. It takes luck to reach that high. If it happens for you as well, that’s great. If it doesn’t but your business is still going strong, it’s great as well. Just don’t let yourself sink by trying to invest in what the other has invested while knowing that it’s a hit or miss tactic.
2) Thinking that your ideas are bulletproof.
Newsflash: they’re not. You will need to test them by releasing a product on the market and seeing the reaction of your clients. There will be some unavoidable mistakes spotted by some clients, who will offer negative feedback. Do not be discouraged. Learn from this and release an improved product in the future.
3) Ignoring the customers.
This ruins the public image of a business. All businesses grow thanks to their clients and collapse if they lose their clients. Customer service is very important as it offers information regarding what went wrong with your product or what could be improved. Do not fall into the opposite end’s trap of implementing suggestions that may only help the minority and ruin it for the majority of your clients. That could be equally as dangerous as not listening to clients at all.
4) Not investing enough in marketing.
Marketing is the most important way of launching a business. No one is going to notice you if there are only a few ads of yours on an obscure website that has no connection to what your business deals with. Enticing television and viral online video ads, aesthetic ad stickers placed on cars, and ads placed on relevant websites can all increase awareness of your business.
5) Hiring no people or the wrong people.
Teamwork pays off. Other people can take over some of the tasks, freeing your time and allowing you to work more efficiently on specific parts of the business. This also speeds up productivity for your business as a whole. However, make sure that you hire people who know what to do and like what they do, otherwise your business not only will be slowed down but you will end up spending money faster than your business can earn.
Investing in too much too fast will likely lead to a collapse of your business. Plan ahead for everything and make a few investments, see how they work out and then move on to the next ones. Do not invest in unneeded but attractive items or services.
7) Focusing too much on not failing.
Sometimes, things are going to flop. It happens. What a good entrepreneur should do is make sure that when things start to go downhill immediate action can be taken in order to not allow the business to completely fail. Apologies will be made, measures will be taken and the business will likely be going back up again if proper plans were made before the failure happened.
If you are an entrepreneur or are considering becoming one, remember these seven “sins” of inexperienced entrepreneurs and try your best to avoid them.
Norman Brodeur is an American venture capitalist and a member of Private Capital Network (PCN) & Archangel Global Investors. He has 20 years of experience in investment banking and the financial service industry. Norman currently lives in Irvine, CA, USA, is married and has two children.