One of the most important qualities of a successful entrepreneur is the ability to learn from one’s mistakes. However, some mistakes may be so costly to the extent of bringing down your startup business. It is always wiser to learn from the mistakes of others. Seeking the advice of successful entrepreneurs may go a long way in avoiding mistakes in your entrepreneurial journey. Below are some of the top mistakes that you need to avoid.
Having Too Little or Too Much Capital
Having enough capital is crucial to the success of any startup. ‘Enough’ here means not too little and not too much. With too little capital, you will not keep your startup running for long. On the other hand, you should desist from the perspective that to make money you need to spend money. Spend just enough to keep your business running. This way, you save the extra funds for rainy days.
Setting Unrealistic Goals
It is common to see new entrepreneurs too excited by their business idea that they just want to implement it without having a solid plan. Take time and set realistic and attainable goals. You will find it so easy to succeed when you come up with such goals. Also, be sure to have a timeline for your goals. For instance, get 150 customers within two months.
Setting Very Small Margins
A business that is not profitable stands to fail in the future. Therefore, it is crucial that you set a healthy profit margin for your products. Setting it too low is definitely good for customers, and rest assured that they will come in plenty. However, from a business perspective, it is unhealthy because you will find it hard to sustain your business. As much as this may be a strategy to attract new customers, your customers might not be on your side if you decide to increase the prices in future. Offering periodic discounts may be a better option since you get to retain a healthy profit margin.
Going solo in business has both its advantages and disadvantages. As much as you enjoy full control of the business, not to mention enjoying profits alone, sometimes it’s better to have more than one founder. Even though you can do all the required tasks by yourself, you need another mind to help you brainstorm, and talk you out of bad decisions. Having extra eyes on any issue is an invaluable asset for any business. You should try it. This does not necessarily mean that you enter into a partnership; you can seek the opinion of a professional consultant if need be.
Taking Marketing Lightly
‘As long as you build it, they will come.’ This is a wrong perspective that many startup entrepreneurs hold. They believe that developing the product is all they need to start selling. Most startups fail because entrepreneurs invest a significant amount of the budget to product research and development, leaving an insufficient amount for marketing purposes. If your people do not know that a certain product exists, and its benefits, then they cannot buy it. It is up to you to market your goods and/or services; make it a priority.
Be a smart entrepreneur! Don’t let mistakes take down your business. Learn from the mistakes of others and seek advice.