We often spend time to know the secret of success but forget to learn the mistakes which takes one to failure. Every new entrepreneur should spend some time in knowing the business failed in their sector and the reasons. There are some common misses which new entrepreneurs make which I have wrapped up as follows,
Selecting the partner
This point has more importance than any other point in this article as Partners are people who share their knowledge to the growth of business towards a common goal/mission. But this doesn’t happen when you select a person just because he is your friend or family. First you have to confirm that the person has at least knowledge about your business sector and willing to join you, that means never force anyone to be your partner.
Most of the young entrepreneur’s search for free service to start the business, it is really going to save a lot of money but not going to bring your business up. I am not saying to spend unnecessary money on your business but do spend the necessary amount. And let us face it, everything good doesn’t come free.
Underestimating your competitor
We often underestimate our competitors. Yes, I agree that your business/idea stands out in the crowd and is really good but your competitors have something which you don’t have that is “Experience” as entrepreneur in your industry. They might have already faced many competitors and still exist in industry so it is going to be difficult to compete.
I am not trying to bring your confidence down. I am just making you ready to face the competition.
To know how to analyze your competitors read my blog “6 Steps to Know your Competitors”
Young entrepreneurs give less importance to marketing in their plan but this is as important as your product idea. Without reaching your target market how will your business be successful? The only way that your customers are going to know that your product/service in industry is through marketing. Spend enough money and time in marketing.
Also, selecting the right platform for your marketing is important. Marketing a beauty product in a tech expo is not going to get you more customers.
Doing it all by yourself
There are lot of work if you are going to start a business. First chart the stuff you are good at and not good at. This is not a game. it is a business so if you are not good at something don’t do it. If have no knowledge in website development and trying to create a professional website it is going to take lot of time or it is not going to look professional. Either way it will affect your business. To keep it simple jack of all trades doesn’t work here as your competitors have hired kings of each trade to build their business.
Selecting your company type
There are different company registration types available to start your business, selecting the right type for your business makes lot of difference. If you going to seek investment from venture capitals/angel investors for your company, then it probably should be a “private limited company”. If only you are going to just, try an idea then go with sole proprietorship as it doesn’t have complicated procedures.
You should be able to change as your industry changes, if you don’t change then you will be left out in the crowd. One of the well-known examples of the world is Nokia, who released the first OS phones but didn’t change when the android market popped up hence the CEO told “We didn’t do anything wrong, but somehow, we lost. If the company could have been adaptive then this day wouldn’t have come.”
Everyone who starts a business set a goal and move towards it but they should also set a small goal based on a time period to measure the progress. Most importantly we have to make sure the goals are attainable. Fixing a target which is not attainable is of no use at the same time it should not be easy to achieve too. You have to put in some extra effort then your previous month’s effort to achieve it.