Being an entrepreneur in your starting days can be as challenging as it gets. It’s the time of utmost confusion and the hit and error method where you find out about your true strengths and weaknesses. So, how to be a successful entrepreneur? The first few years of your entrepreneurship career decide if you will be successful or be a failure like a majority. Obviously, every situation is different and exceptions are always there. But if you have the following signs, there’s a good chance that you will fail as an entrepreneur. So, keep reading if you want to know about the business mistakes that you must avoid.
Entrepreneurship is based on aiming high and working hard. The number one reason why most entrepreneurs fail is that they do something for some time and then leave it in the middle to try something else and then move on to something else. They rush things and get annoyed at not seeing results. But they don’t realize that they haven’t put the work that’s required. The only short answer to this is, to stick to any one thing and keep improving.
Stop fooling yourself
Lesson one is to not fool yourself when you’re the easiest person to fool. It will make you feel like you’re getting somewhere but you will just be running in circles. Doing so will drain you and make you feel tired, but in truth, you will only be busy and not productive ultimately leading you to zero growth and maximum misery. It is the most common issue in the initial phase and is one of the many reasons why entrepreneurs fail. Don’t be afraid to take action and stop worrying about what other people think of you. This will cripple your growth rate and you will end up being a failure.
Haven’t yet started
This is a big one, so there’s a major possibility that you will fail as an entrepreneur if you haven’t started yet. If you only talk about getting stuff done instead of actually doing it, I got bad news for you. If you’re wasting your time researching about failure when you haven’t even begun, chances are you’re not ready to be an entrepreneur and even if you force it, you won’t survive as one. So, if you really want to be successful, I suggest you start right this moment. Entrepreneurship is all about the experience, and you get experience from experimenting. Make a plan and find the fastest way to implement it. The only motivation you will have for your first business would be money and nothing else, so try to get there as fast as you can. And you can only ensure that if you start now.
Blaming others for your problems
Always be in control, ’cause in entrepreneurship, it doesn’t matter whose fault it was. The only thing that matters is, you pay the bill. If you lost a $100,000 by a mistake that your employee made, you still pay the bill. Be responsible and don’t look for someone to put the blame on. Don’t be afraid of taking calculated risks. Risks are considered a major part of being an entrepreneur. It doesn’t mean you go all in without thinking like a stupid 9-year-old to see what happens. As Warren Buffett once said, “Never test the depth of a river with both feet.” But be sure to take calculated risks in order to grow to your full potential.
If you don’t know what you’re doing, you can’t do it right. If you don’t have the skills required to set up a business and keep it running smoothly over the course of time, you will fail as an entrepreneur. You need a strong skill set, even if you plan to outsource it later. You have to own a craft to make it your own. A lot of people think that they can get around it, but there’s no way around it. You need persistence and a strong mindset to actually master a skill so that you can make a living off of it. If it were as easy as you think, everyone would be a billionaire.
The right TEAM
Obviously, you can’t do everything by yourself. You need a team to manage and operate everything. But if you think that you will make a killer team by teaming up with your best friend or a cousin you knew all your life. And think that you will learn stuff along the way, I suggest you reconsider your options here. Yeah, getting along is an important part of being a team. Yeah, maybe if your best friend or your cousin is interested in the same thing and is just as passionate about it, you can make ends meet. But it’s quite difficult and if you don’t have the people with the right skill set on your team. Sooner rather than later, you’re going to fail as an entrepreneur.
People don’t pay you for who you are, they pay you for what do you do. What value do you bring to the table, and if your team is not qualified enough, you won’t be able to do that. Always try to provide more value in lesser money to have a strong and lasting community.
Weak feedback mechanism
In the end, it’s the customer who will be using your product. It doesn’t matter how good your product is. If your customers are not satisfied with it, they will look for alternatives in the marketplace. The best thing you can do is to collect feedback from as many customers as possible. If you have a good feedback mechanism, it helps you improve the overall quality of your product. Also, helping you test new theories and also helps you have a database that can be used for years to generate sales.
It makes the people feel that their opinions matter to the company and that sense of being heard makes them want to come back. If someone’s suggestion made your product quality better, reach out to thank them personally. It creates the connection and the person would feel appreciated. And would be more likely to recommend your product to other people.
Survival of the company
If you get the initial short term success and you don’t know how to manage your business properly, you will fail as an entrepreneur. In this case, you will be successful for a while and will go broke in the near future. Research on your niche and try to find unique ways to dominate the following you’ve built. Work on the face of your company, that’s what consumers will be able to address. The front that people see. Technical aspects are no doubt important but they are often put as a second priority. The first goal to any company is to draw people in. Engage with the masses and try to do a better job than your competition. Make sure your company survives.
Cash Burn Rate
What cash burn rate means is the rate at which your investment money would be spent on your business per month. Cash burn rate must never be ignored if you dream of starting a successful business. You need to keep it under consideration as you may run out of money and your startup will crash if you do. If you run out of cash, you will need to give away equity or arrange funding, which is not easy to find in 2019. So, plan all the financial resources you have wisely. You need money to make money, so always think this through. It is often neglected and if you’re not careful, you are sure to face a loss.
Raising funds too early often acts as a set back for many companies. So, make sure you experiment yourself with your project for a year or two before funding it with external help, if need be.
These are the things that are often neglected by upcoming entrepreneurs, myself included. And these become the reason for a grand failure that sets you off track for a while as recovering from that loss and getting things up and running again takes time and effort. I’ll leave a link to a really helpful post from Forbes, so you should really check that out. Of course, failure should be encouraged, as your first few attempts are bound to fall apart. It lets you know what exactly it is that you want out of entrepreneurship. Thank you for visiting. If you have some more tips that might be useful to upcoming entrepreneurs, be sure to mention them down below. Your feedback is always appreciated.