Do you have a new business idea? Great, are you ready to throw it out in the world and see how successful it would turn out to be? Your passion is inspiring for sure, but before proceeding ahead, make sure that you avoid common business mistakes made by entrepreneurs. After all, only 30% of businesses survive the first three years, so you must be careful when developing your business plan, coming up with a revenue model and establishing your finances.
Ignoring Risks
This is one of the most common business mistakes made by entrepreneurs and is why most companies fail. Many entrepreneurs that we’ve come across only focus on perfecting their products and setting their services apart. Yes, you should do all these things, but you should also ensure that whatever you’re offering does deliver enough value to your target audience. Your idea must be likable and viable for it to succeed. So research market conditions first and try to understand how your products and services will be perceived before you put invest in them.
As a suggestion, you should reach out to potential customers for at least six months or so, trying to understand their needs. You can then validate your idea accordingly.
Acting on the Wrong Advice
When others come to find out about your business idea, they’ll give you many suggestions. Are these solutions workable? Most of them won’t be. So you really need to be careful when deciding which advice to act on and which to ignore.
Ignoring Feedback
Though most of the advice may be wrong and not worth implementing, that doesn’t mean that you should start ignoring feedback altogether. Sometimes, feedback can be constructive, especially when it is coming from an engaged client or an experienced venture capitalist. Consider the source, determine their expertise, and then act on the feedback accordingly.
As a rule of the thumb, remember that whether you act on other people’s feedback or not, you should definitely consider what your clients have to say if you want to stay in business in the long-run.
Proceeding Ahead Too Quickly
Some entrepreneurs go ahead full steam, quickly putting in more and more money into their business. Yes, you want your business to expand rapidly, but hey, put on a break, and take time to digest your progress and the response you’re getting from your customers.
Launch only a limited number of products in a specific area first. See their response in the market, and hear your customers out. Take their feedback into consideration, improve your products and then launch them in a different area. Proceed ahead one step at a time, and throughout, focus on your core business goals.
Not Recruiting Appropriate Talent
One of the most common early business mistakes is building the wrong team. Rather than hiring the sales head, begin with only two or three representatives. Instead of finding the chief marketing officer during your early days, bring on board a few executives for the time being. You can expand your team later as the business grows.
Act on our advice, avoid these common business mistakes made by entrepreneurs, and your firm will grow rapidly.
