Starting a business is not as easy as saying it. Entrepreneurship requires a lot of hard work and sacrifice. You may be successful in the end but I am sure you get a lot of failures and disappointments along the way.
Mistakes are inevitable. Businesses are never without it, which is one of the fundamental reasons that new entrepreneurs need to have a business mentor and listen to valuable feedback. Let us discuss below the common mistakes that most new business entrepreneurs make:
Mistake number 1
Do not ask many advice or feedback because it creates confusion. Do not be afraid to seek professional advice but do not overload your brain. Human as we are, we only can process as much as our brain system allows us.
Too many advisors can lead to confusion and an analysis paralysis. Give yourself some time to devour new information and make big decisions.
Ask feedback but never miss an opportunity to learn. Design your own blueprint and create your magical system.
Mistake number 2
Most new businesses do not test their product or service first before launching. Introducing your product without first testing the market can be jumping off a cliff. Test what you offer with a small group and then take it from there.
Time and money are extremely valuable. Entrepreneurs know that, but they still ignore market testing before going into mass production. One of the reasons of stumbling into failure is creating a product without verifying its market acceptance and market feasibility.
Mistake number 3
Did not study the current and projected demand supply ratio. Not knowing how much the target market wants your product and realizing how easy it is to enter the industry can help redirect your goals. One should gather more information about this unmet need, its current demand and supply situation as well as the projected demand and supply.
Mistake number 4
Does not know how much customers are willing to pay for the product. Pricing along with the perception and need of the market for a specific product or service is extremely important. Do not price it too high nor price it too low. Make a good comparative research by knowing more about your competitors.
Mistake number 5
Does not have a unique selling proposition. The only way to live and stand out from a noisy world is to offer a unique selling proposition that would differentiate you from the rest of the market suppliers. Study what tickles the consumers and make the best offer to keep them coming back to you.
Mistake number 6
The business may not be compliant to government policies. Is your sales, advertising and promotion method compliant to government restrictions and policies? For example, if you are selling a cigarette, it should always have a label like “cigarette smoking is hazardous to health.”
Know which governmental regulations your service or product is subject on a state and federal level or even the local level.
Mistake number 7
Do not stay focused on the core business. Many people accept too many ideas while trying to run the core business. As a result, they find themselves chasing so many projects and eventually neglected the core business.
The best way to stay focused is to write the short and long term goals and to work one project at a time. Evaluate which you can work right away but avoid distractions.
Mistake number 8
Most entrepreneurs hire the wrong people. For example, in one of the job interviews, I can sense that the HR is in disagreement with my idea to hire people with the right attitude and just train them for the skills. Actually, this idea came from the famous Southwest Airlines company.
Southwest Airlines hire for the attitude and train for the skill. The Harvard University even made a study about the principle due to the obvious success of Southwest.
Depending on your product or service, it is always better to hire for the attitude and just train for the skills. Clearly, Southwest was a game changer of the traditional HR concept.
Now, what are the attitudes that define your best performers? How do you recruit these best performers?
Mistake number 9
Business entrepreneurs do not care about their staff. Some do not pay on time. Some ignore the complaints and needs of their staff. Maintain your business network but you should care for your staff as much as you care about your clients because they are the ones facing them every day.
Be kind. Be nice. Be conscientious. Think of them as friends instead of staff. Build rapport and they will help you keep your business growing.
Mistake number 10
You oftentimes find yourself arguing or quarreling a customer. You never allow anybody to have the last word and never stop even a moment to consider what your customer has just said. The best response to anything not in agreement with you is to keep your mouth shut and smile in patience. Do everything you can to be at peace and in good relationship with the people around you, especially your customers.
Businesses make deadly mistakes because they do not listen. There is no golden bullet and sure fire blueprint to success. Everything seems to be a trial and error.
Mistakes are part of any business. Mistakes are part of life. Learn from it and make sure it won’t be that bad enough to cripple what you started.
Success has a lot to do with practicing your patience and listening skills. Listen to your customers. Focus on what you started.
Set a goal and lay down your steps. Put much effort into defining and refining your steps.
When you venture into business, one of the goals is to help people find solutions to their problems and not to be greedy to make money out of their need. If your concept about business is plainly making money, then you are destined to fail.
Don’t focus on the money. Focus on the need and how you can improve your customers’ lives by improving your product or service. Spend more time developing the idea and being happy how you can help people, then money will pour in.