According to the data shared by the U.S. Bureau of Labor Statistics, almost 20 percent of new businesses fail during the first two years of operation, whereas half of the new ventures fail to survive past the fifth year. So, how does an entrepreneur successfully launch and run a startup?
To help you out, we have made a list of mistakes entrepreneurs need to avoid to become successful.
Mistake #1 – Not Spending Money Wisely
Money is a major concern for almost every new entrepreneur. Pre-launch cash flow is usually very low; therefore, earning and saving money takes priority over all other objectives.
New entrepreneurs typically demonstrate two types of mindsets. The first one is, “I need to spend money to earn money,” whereas the second one is, “I’ll spend very little until I have a decent cash flow.”
Both these attitudes, if taken to the extreme, can be dangerous. You need to make sure you utilize your available cash wisely, but you shouldn’t shy away from investing in quality products and good people. This will help you become successful in the long-term.
Mistake #2 – Believing You Don’t Have Any Competition
The excitement surrounding the launch of a new product or service often makes young entrepreneurs feel that they don’t have any competition. Some even think that their product is so good or unique that they’ve managed to create a completely new category.
The truth is that the chances of having no competitors are extremely low. Unless you’ve invented a brand new product, there will be someone who already owns a market share in your niche. Make sure that you do your research to find out who these companies are and how you can differentiate your offering from them.
Mistake #3 – Taking Up Too Many Projects
Many young entrepreneurs often take up too much work, and consequently, all of their projects start to suffer. Being a young entrepreneur, you already have a lot on your plate, and adding more will only make you rush through tasks or experience burnout.
Always make sure you’re realistic about the amount of work you can handle and how much time you can allocate to work every day. For instance, you can set up a weekly task list and break down how many you can finish each day.
Mistake #4 – Failing to Set Practicable Goals
Young entrepreneurs are often so thrilled by their “big idea” that they start working without having any concrete plans in place. However, to succeed, you need to set attainable and realistic goals!
Ideally, you should set both long and short-term goals and make sure they’re precise. For instance, don’t just say, “I want to make $100,000 in sales revenue”. Instead, set a practical goal and determine the steps you need to take to reach it. You can even follow the SMART goals framework to guide you in your goal setting.
Last Few Words
Now that you know the mistakes entrepreneurs need to avoid, start self-reflecting, and make sure you aren’t making any such mistake.
Also, don’t be scared of failing; instead, learn from your mistakes and adapt your business model as required. Try out new ideas and get feedback to modify your product to fulfill your customers’ needs better.
