The path of entrepreneurship is one that provides lots of opportunities for errors. As a new entrepreneur trying to figure things apart, it may take you a while to realize that you are making several mistakes. Some mistakes can cost you a great deal, and in worst cases they can break your entire enterprise.
Lucky for you as a start-up entrepreneur, below are several mistakes you must avoid, so you do not necessarily have to learn from your own experience:
Figure 1 - entrepreneurial mistakes to avoid
Not developing a good working relationship with partners
In my experience in business, not standing alone means soliciting for partners that can get you to where you want to be both financially and overall as a business. For example, if you are looking a business for sale to kick off your entrepreneurial endeavours, be sure to have a clear and defined working relationship with any partners you solicit, at the very outset of your company. A few years of experience in business is the only thing that can tell you how valuable a distinctively defined relationship with your partners regarding the understanding of responsibilities, expectations, and final decision-making, will mean for the success of your venture.
Starting a second venture while on the initial steps of the first
Any little amount of success or failure in your new business can throw you off-bus in an instant. Due to the overwhelming emotions that the entrepreneurial process brings, you may think it wise to start another venture. This is a terrible mistake because, for one, it splits your concentration, in such a way that you cannot be fully devoted to making your first business successful. This is more especially true for ventures that are completely unrelated to your first company.
In a start-up business, you need to focus and channel all your attention, funds and energy in making your company run successfully, preferably without debts all over. If you want to know when to be ready for a new company, ask yourself, ‘will this first company completely function without my involvement?’ If the answer is no, then you are not yet ready for a new venture.
Numerous social media mistakes
Given the power that social media has amassed over the years, it is tempting to think that you will get fired if you are not active on social media. While these platforms can greatly promote your business and increase conversions, you cannot afford to make careless blunders online. Since your business is still small and at its initial stages, you may not feel the impact of the negativity online. However, the internet never forgets. As your business grows, it would not be slightly to hold such a bad impression on your social platforms.
Figure 2 – do-it-all
Doing Everything Yourself
Starting, every entrepreneur wants to be a superhero of their business. Even while it might be for being short of funds to remunerate a crew that will work with you, trying to do everything yourself will not only overwhelm you but is a great mistake that can kill your business. The last thing you want to have as a startup is less work getting done, which is precisely what you are signing up for when you try to do everything by yourself.
If I had a second chance in starting up my company, I would have most definitely asked for help. So many people are willing to help, and sometimes, it is just pride that makes you not take up these opportunities. You could save yourself so much trouble of figuring everything from scratch just from having several hands on deck.
Most new entrepreneurs fail because of desperation. There is always the impending need to become a success overnight, which pushes most people to seek desperate measures thinking their business has become a desperate situation. However much the pressure gets as you get your business on its two feet, you must never look desperate. Any business owner will tell you that the beginnings are the most difficult times, and if you are not careful with the decisions you make here, you will settle for less, and give in to unreasonable demands from partners and investors.
This is by far the worst mistake I made in starting my business. At the time, it looks very convenient to trust people because you know them or have worked with them before. However, where money is involved, you cannot be too trusting with the decisions you make. Make sure you have legal terms in place to help you navigate smoothly through the partnerships and the people you bring on board.
Blog by Alex Merashi - Dealstream