15 Startup Mistakes Every Entrepreneur Must Avoid
https://www.imustread.com/2020/12/startup-mistakes-every-entrepreneur-must-avoid.html
“The desire to follow your passion, let’s you step out of your comfort zone!” There are many among us who have the courage to start a business on their own but fail to get a proper direction. Following your goals with unplanned strategies can lead to a huge downfall or even failure of your business. In order to be a successful entrepreneur, look forward to the common mistakes that you can avoid:
Having appropriate data about your target audience, competitors, product/service demand in the market, will ease your work halfway around!
What if you want to expand your product/service reach in the market or design creative and effective strategies? Market research ensures that what you would deliver to your customer and meet the customer expectations in order to fill the customer gap in advance and reduce the risk occurring in the future.
Sometimes, even if you have a new business idea with which you can succeed in the market, you try to nullify the effect by not even keeping it as your option.
Reason: “Fear of failure”. An entrepreneur is a person who can combat all fears especially when you are passionate about your idea. Being optimistic, planning your activities, looking for opportunities, giving your best is a few of the mantras entrepreneurs keep in their minds.
Balance your negative thoughts by giving one simple explanation, “Being Logical and having patience is the key”.
The fear of risk-taking is always the reason that’s holding you back from the best version that you can be. Reach out to the other people, try being more logical and give justifications to your method. The more you suffice your process in a crystal clear format, the less you are doubtful and unsure about taking risks.
“Whatever is unique, pulls the audience towards it!”
Where most people are lacking is designing effective marketing strategies for your product/service. Marketing campaigns make you reach your target audience in a way you want to. Simply, work on increasing the market collaborations and corporate partnerships for having amazing marketing campaigns run under your product/service making it a huge brand.
The manual process of figuring out the budget and details of the financial plan could be cumbersome and inherently tough. This must be digitized.
Financial planning involves budgeting, financial data analysis, maintaining accounts, to handle large volumes of data. It is very crucial to plan your budget and determine the costs of every activity. You can make a cost sheet and determine the break-even point you are likely to occur. This will help in forecasting the chances of availing profit with a given period of time.
Managing inventories and having inventory control makes the process slightly easier.
The stock handling should be based upon the demand-supply curve. The more the demand the more the supply and vice versa. Plan out your activities and include stock only required. This ensures a smooth distribution channel with effective production, manufacturing, selling, and distribution processes.
Deloitte has observed that 83 percent of 924 companies on a global scale have low analytics not backed by advanced practices. Hence, talent acquisition is the most observed problem for entrepreneurs today.
The right talent is seeking the wrong ambitions and hence results in the wrong people hired for the process. While in a startup, you need to have fresh talent and minds who understand your business as you do. It is your job to find the right candidate and uplift them.
“Seek for the right one rather than getting many wrong ones!”
Unethical business practices, illegal product demonstration, lack of ISO certifications, or any other illegal documentation process, can make your business come to a full stop.
If you manipulate your accounts or are involved in any case of bribery, you come under a defunct/ dormant company after which the Companies Act 2013 makes your business shut down. Avoid such malpractices and get your company registered under the Companies Act 2013 and complete the whole documented process legally.
“You fear when you can't hear”
Every problem comes with a solution. It’s a matter of being an active listener by not focusing on the problem instead of focusing on the solution. Research well and find out the key possibilities or outcomes that can happen. Being spontaneous is the best tool! Try to figure out spontaneously what could be done but take your time to research the pros and cons for the same.
There you go! When you start feeling disconnected, you become less thoughtful and more depressed.
Ease the thing. Connect with people and get to know about their failures and outcomes. Every conversation gives you something to be creative. Don’t miss the chance! Find out what could be done in a unique way for your business.
“After all, an entrepreneur can never sit idle!”
Poor managerial skills, decision-making skills, lack of focus to name a few; are the specific areas where the visibility of the business is affected.
Increase your social media visibility (google business, IndiaMART, alibaba.com, etc.,) as well as the company’s visibility (mission and vision). The people should understand what you deliver and feel relevant to give a thought for the purchase. Try out some creative tactics and use social media as a tool.
Logistics includes transportation, inventory, packaging, supply, warehousing as a whole.
Unhandled logistics is the major cause of business failure. Use technological equipment to simplify the process. Logistics, if not taken care of, will ruin the entire business. Create your online presence and track the process through digital-driven technologies.
A disappointed customer is furious to destroy your business at one go. Don’t let it happen! Reviews and ratings are very important to keep up the loyal as well as new customers. Treat their orders as important as your career. Happy customers can not only make your business work effectively but also drive a whole new set of targeted audiences from different domains.
Lack of inadequate research falls to choosing the wrong location.
If there exists zero possibility of potential growth, your business is at a huge loss. Entrepreneurs are liable to look for such factors that would give them high returns and leads to lesser warehousing costs. Ensure that your location gives the customers security and likelihood of visiting on a regular basis.
Understand your audience by adding relevant filters of age, gender, education, purchasing power parity, class, religion, etc.
You design your product/service considering the problem statement you identified. The need to provide such a product/service should be the need of the hour. Eventually, you need to define your target audience to meet the needs and their expectations.
For an entrepreneur, running a business is like taking care of their child. The more you handle sensitively, the more likely are your gains.
Get inspired by your influencers and put them together. Considering the mistakes mentioned above, be careful and run your small empire. Good luck!
Diksha loves to write about the vast understanding of everything happening around her. She regularly contributes to F and B Recipes on Intuitive Energy Healing.
#1: Lack of Market Research
Having appropriate data about your target audience, competitors, product/service demand in the market, will ease your work halfway around!
What if you want to expand your product/service reach in the market or design creative and effective strategies? Market research ensures that what you would deliver to your customer and meet the customer expectations in order to fill the customer gap in advance and reduce the risk occurring in the future.
#2: Fear of Failure
Sometimes, even if you have a new business idea with which you can succeed in the market, you try to nullify the effect by not even keeping it as your option.
Reason: “Fear of failure”. An entrepreneur is a person who can combat all fears especially when you are passionate about your idea. Being optimistic, planning your activities, looking for opportunities, giving your best is a few of the mantras entrepreneurs keep in their minds.
#3: Fear of Risk-Taking
Balance your negative thoughts by giving one simple explanation, “Being Logical and having patience is the key”.
The fear of risk-taking is always the reason that’s holding you back from the best version that you can be. Reach out to the other people, try being more logical and give justifications to your method. The more you suffice your process in a crystal clear format, the less you are doubtful and unsure about taking risks.
#4: Inappropriate Marketing Strategies
“Whatever is unique, pulls the audience towards it!”
Where most people are lacking is designing effective marketing strategies for your product/service. Marketing campaigns make you reach your target audience in a way you want to. Simply, work on increasing the market collaborations and corporate partnerships for having amazing marketing campaigns run under your product/service making it a huge brand.
#5: Inadequate Financial Planning
The manual process of figuring out the budget and details of the financial plan could be cumbersome and inherently tough. This must be digitized.
Financial planning involves budgeting, financial data analysis, maintaining accounts, to handle large volumes of data. It is very crucial to plan your budget and determine the costs of every activity. You can make a cost sheet and determine the break-even point you are likely to occur. This will help in forecasting the chances of availing profit with a given period of time.
#6: Inadequate Inventory Planning
Managing inventories and having inventory control makes the process slightly easier.
The stock handling should be based upon the demand-supply curve. The more the demand the more the supply and vice versa. Plan out your activities and include stock only required. This ensures a smooth distribution channel with effective production, manufacturing, selling, and distribution processes.
#7: Lack of Human Resources
Deloitte has observed that 83 percent of 924 companies on a global scale have low analytics not backed by advanced practices. Hence, talent acquisition is the most observed problem for entrepreneurs today.
The right talent is seeking the wrong ambitions and hence results in the wrong people hired for the process. While in a startup, you need to have fresh talent and minds who understand your business as you do. It is your job to find the right candidate and uplift them.
“Seek for the right one rather than getting many wrong ones!”
#8: Unethical/illegal Practices
Unethical business practices, illegal product demonstration, lack of ISO certifications, or any other illegal documentation process, can make your business come to a full stop.
If you manipulate your accounts or are involved in any case of bribery, you come under a defunct/ dormant company after which the Companies Act 2013 makes your business shut down. Avoid such malpractices and get your company registered under the Companies Act 2013 and complete the whole documented process legally.
#9: Lack of Problem-Solving Abilities
“You fear when you can't hear”
Every problem comes with a solution. It’s a matter of being an active listener by not focusing on the problem instead of focusing on the solution. Research well and find out the key possibilities or outcomes that can happen. Being spontaneous is the best tool! Try to figure out spontaneously what could be done but take your time to research the pros and cons for the same.
#10: Lack of Social Networking
There you go! When you start feeling disconnected, you become less thoughtful and more depressed.
Ease the thing. Connect with people and get to know about their failures and outcomes. Every conversation gives you something to be creative. Don’t miss the chance! Find out what could be done in a unique way for your business.
“After all, an entrepreneur can never sit idle!”
#11: Insufficient Visibility of The Business
Poor managerial skills, decision-making skills, lack of focus to name a few; are the specific areas where the visibility of the business is affected.
Increase your social media visibility (google business, IndiaMART, alibaba.com, etc.,) as well as the company’s visibility (mission and vision). The people should understand what you deliver and feel relevant to give a thought for the purchase. Try out some creative tactics and use social media as a tool.
#12: Unhandled Logistics
Logistics includes transportation, inventory, packaging, supply, warehousing as a whole.
Unhandled logistics is the major cause of business failure. Use technological equipment to simplify the process. Logistics, if not taken care of, will ruin the entire business. Create your online presence and track the process through digital-driven technologies.
#13: Lack of Meeting the Demand on Time
A disappointed customer is furious to destroy your business at one go. Don’t let it happen! Reviews and ratings are very important to keep up the loyal as well as new customers. Treat their orders as important as your career. Happy customers can not only make your business work effectively but also drive a whole new set of targeted audiences from different domains.
#14: Choosing the Wrong Location
Lack of inadequate research falls to choosing the wrong location.
If there exists zero possibility of potential growth, your business is at a huge loss. Entrepreneurs are liable to look for such factors that would give them high returns and leads to lesser warehousing costs. Ensure that your location gives the customers security and likelihood of visiting on a regular basis.
#15: Lack of Understanding Your Target Audience
Understand your audience by adding relevant filters of age, gender, education, purchasing power parity, class, religion, etc.
You design your product/service considering the problem statement you identified. The need to provide such a product/service should be the need of the hour. Eventually, you need to define your target audience to meet the needs and their expectations.
Conclusion
For an entrepreneur, running a business is like taking care of their child. The more you handle sensitively, the more likely are your gains.
Get inspired by your influencers and put them together. Considering the mistakes mentioned above, be careful and run your small empire. Good luck!
Diksha loves to write about the vast understanding of everything happening around her. She regularly contributes to F and B Recipes on Intuitive Energy Healing.
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