“A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them.” — John C Maxwell
Entrepreneurship is the dream of every aspiring individual. But being a successful entrepreneur takes a lot of effort and hard work. In reality most people fail at the very beginning but the key is to learn from your mistakes and come back strongly. History tells us that even some of the world’s most successful entrepreneurs have failed at first but the main thing is to not give up. What all successful entrepreneurs have in common is that they have the willingness to learn and improve themselves. This is the drive you need to be successful.
The journey is never easy but even major obstacles can be overcome by planning ahead. A business is run on methods and strategies that you develop; if there are flaws in your planning then you need to fix them. Learning to accept your mistakes is the first stage of the overall improvement process. Let’s discuss some of the most common entrepreneurial mistakes and how they can be avoided.
1) One Man Army
The “one man army” approach is completely wrong. According to this approach you control everything and give limited responsibility to others. If you are to run a successful business then you must learn to trust others and share responsibility with them. Team effort plays a major role in the development and growth of a business. So by delegating out tasks to others you not only reduce your workload but also give opportunities to others to show their talents.
2) Underestimating Costs
Entrepreneurs often make this common mistake where they end up miscalculating the costs of the operation. This can hurt the business later on as additional costs can add up and lead to the demise of the business. A successful business budgets all the costs and plans accordingly.
3) Value of Customers
Customers are the most valuable assets of a business; it is absolutely essential that you hold them in high regard. Without customers your business wouldn’t even exist so think about that the next time you are dealing with them. Businesses that are customer focused tend to be more successful over the long-term. Building relationships with customers is important because this is what drives business growth. Those who choose to ignore this key element are likely to fail.
4) Lack of Awareness
Entrepreneurs who lack awareness about the market will always struggle to survive let alone expand. Knowing the market size, potential and other complexities is crucial to the survival of your business. If you can’t figure out your target market then you are doomed to fail. Experts recommend analyzing the market first before actually entering it. If you know the market inside and out, then you are more likely to succeed.
5) Competitor Analysis
You won’t be alone in the market there will be competitors who won’t want you taking over their market share. If you want to succeed in the market then first carry out a competitor analysis to figure out the strengths and weaknesses of your opponents. Remember. that customers will only buy your product if you can convince them that it is better than the rest.
6) Investing in the Wrong Areas
Entrepreneurs’ need to learn how to invest or else they will lose more money than they make. Often young and inexperienced business leaders neglect the areas where investment is needed which is why their business fails. A solution would be to talk to experts and experienced pros who know how everything works. Investing in sales rather than product development could be the difference between success and failure.
Entrepreneurs who pend more than they earn are likely to run out of money very quickly. Financial management is crucial and needs to be implemented instantly. By borrowing money from banks businesses can incur more pressure which they can’t afford. A successful entrepreneur spends less than what he/she earns and always makes sure that the financial health of the business is secure.
8) Weak Pricing Strategy
Entrepreneurs often are so scared of the competition that they lower their prices to attract customers. Often the profit margins on these prices are so low that the business can’t sustain itself in the long run. A solution would be to develop a comprehensive pricing strategy that is in accordance with the demand and supply of the product.
9) Rapid Expansion
If an entrepreneur can achieve success early on they will want to expand rapidly. This can often backfire because unless the business has established itself in the market expansion won’t work. So timing is always crucial in the success of a business. Knowing when to enter new markets and introduce new product lines determines the failure and success of your business.
10) No Plan B
Entrepreneurs who have limited thinking and capabilities can never succeed. Any experienced businessman will tell you that in business having a plan B is very important. Just in case your initial strategy fails you should have something to fall back on.