Common Mistakes of a Novice Entrepreneur

Common Mistakes of a Novice Entrepreneur

Many entrepreneurs are ready to tell about their successful experience, but not all are ready to share a history of serious mistakes or even failures.

However, the analysis of such mistakes can be extremely useful for other businesspersons and, perhaps, will save many of them from those “rakes” that their fellow tradesmen have already stepped on.

Many people dream of starting their own business. However, being an entrepreneur is not that easy.

Many potentially promising businesspersons failed only because they did not do their homework before the start, and as a result, they made all the possible mistakes of newcomers that could only be done.

So that this does not happen to you, we will tell you what your hapless predecessors were wrong about.


1. They did everything themselves

Entrepreneurs are essentially big egoists with high opinion about themselves since they think they can go to an already active market, withstand competition and get income.

Actually, this is normal and there is nothing criminal.

However, it is important not to go to extremes, being assured that you have almost superhuman abilities that help to survive and succeed.

For some reason, some people think that they can do it themselves without any help from the outside: build a client base, keep accounts, and interact with suppliers.

Moreover, when such entrepreneurs start complaining about total fatigue, poor appetite, depression and insomnia soon after the start of business, it becomes clear: bad days for business are just around the corner.

After all, in this state, it is simply impossible to work productively.

That is why you should never put everything on your own shoulders. It is necessary to acquire competent assistants who will help to conduct business in the right direction.

It is not necessary to hire a person in the staff but to consult with successful entrepreneurs from time to time (lawyers and accountants will not be superfluous).


2. They choose inefficient accounting tools

Software developers have created hundreds of accounting programs that help to organize the recording of cash transactions effectively.

In addition, it does not take a lot of time to find out which of the programs is most convenient for each particular user.

Nevertheless, for some reason, entrepreneurs often choose not the most convenient, but the cheapest option, wishing to save money at the start, and only after a while realize that not only they did not save, but also spent much more than if they would have invested in a normal program from the very beginning.

Do not repeat someone else’s mistakes, choose something that is more convenient and easier to use, and not something that is cheaper.


3. They trust intuition more than facts

Scientists insist that successful entrepreneurs should have good intuition, and they must trust it.

Of course, sometimes you need to snap an idea and act, instead of spending time-consuming research. Inspiration is really important.

However, do not get carried away. New ideas also need to be checked for their viability.

You need to know what the production of the product will result in, whether there is a demand for it, at what price you can sell it, that it is attractive for purchase and profitable for sale.

If the facts are in harmony with your instincts – go ahead! If research says that your intuition is wrong – think of something more realistic, which meets the needs of the market.


4. They underestimate the power of marketing

When an entrepreneur has a great idea, he somehow thinks that it will sell itself.

They are so involved in the process of product development and production that they completely forget that the product needs marketing.

In addition, very often it turns out that no one buys the product, or buys, but poorly. Therefore, never underestimate the power of marketing.

Without proper marketing, people will not even know that your product exists at all.

The presence of a marketing strategy is exactly what keeps the enterprise from failing and leads to success.


5. They hire low-cost employees instead of talented ones

Never save on employees. Those who agree to work for low wages are unlikely to have sufficient competence and are able to help you succeed.

Although there is always a chance to stumble upon a homegrown talent.

Therefore, if you are in rather cramped circumstances and need qualified personnel, choose those who evaluate their work at least in the average price range of the chosen industry.

However, do not cast aside any CV without careful study. There are many reasons that could force a competent person to put a lower price for his knowledge, skills and experience.

It would be insulting to miss this opportunity, is not it?


6. Enter a Short-Term Lease Agreement

When you rent a room, it does not matter whether it is a cafe, a workshop or a small store, be sure to enter into a long-term lease agreement with registration.

Naturally, at first you do not understand whether it will work, and it is easier to conclude a standard contract for 11 months.

However, seeing your progress, a dishonest property owner may begin to twist your arms upon expiration of the contract.


7. Trust delivery people

Far from every delivery person works on an ongoing basis.

For most of them, it is a temporary job. He might be in touch today but who knows where he is tomorrow.


8. Do not start running a business without partners

You can endlessly sort out the reasons why you cannot do business yourself and waste time searching for partners.


Business persons handshake.
As a novice entrepreneur, do not start depending on running the business on a partner.

In fact, you can do everything; the main thing is to start. When the process goes, it will be easier for you to find a partner; if you are going to still be in need of one.

You may have many ideas never implemented in practice because you did not find whom to cooperate with.


9. Do not deal with partners from the get-go

A business partner is a very important person.

Do not promise anything to people without thinking, without speaking, without discussing, without considering the economy.

You both need to understand what everyone will do and which front of work to cover. If there is discomfort in communication, it is better not to rush.

A partnership is a case when “look before you leap”.


10. Do not go to the sales department but to the workshop

If you have a production and you need to make a prototype, then you should not go to the sales department of some related production.

Touch the sales department with a ten-foot pole! Look for a general foreman in the workshop. These are techies who “walk the earth,” and they are always interested in doing something new.

They do not think about money at once, it is very easy to negotiate with this type of people.

The main thing is to communicate respectfully.


11. Dismiss a proposal from friends and acquaints

Listen to the questions of friends. In 90% of cases, they are the first buyers and assistants to promote your project.

If everyone asks you the same question, perhaps this is the gold mine of your business, and not what you originally invented.


12. Do not think that web promotion is easy

Having plunged into the topic of online promotion, you need to do this professionally or not to do this at all.

It is impossible to make up the selection at the same time, look for new authors, and think up ways to promote the project.

Find a professional with recommendations, check him, and give him this task. If you still want to control his work, then it is better to study the topic of Internet marketing before starting a business.


13. Think that too much work is an exaggeration

It may seem to you that you can organize a business so that you spend one or two hours a day. Write and send letters, go for consumables – it is quick and easy.

No, it is not easy and takes time. To work hard means to sleep a little, to volunteer Friday parties, to work on weekends.

When you work before the New Year for several days in a row, and sleep and hunger are knocking you off your feet, it can be somewhat shocking.


14. Confuse priorities

Answer the question of what place your business takes in the list of your priorities.

Taking into account how many participants are there and who is who (someone might be still a student, for example), the idea of priority is different for everyone.

For the student, the project is less important than study — this is normal, but it does not have a very good effect on profit.


15. Do not make up accounts

Be ready to count money. Every penny.

Take into account every sold centimetre and every working minute.

Yes, and the amount of money you are ready to invest is better to triple.

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