There are a million ways to kill even the most attractive and promising business, even the most interesting and anticipating idea. But most often the main reason is only one — and this is the entrepreneur himself.
Let’s look at the key mistakes entrepreneurs-beginners make.
To start right away with "serious business"
Startup entrepreneurs mistake # 1 is to register a business with an attractive name, to rent a gleaming office in the city center, to buy expensive leather furniture and computers of the latest model, to inflate the staff … and, even better, immediately transfer operational management to another person, and start flying into business class. After all, you can afford it!
What to do? It’s good if you have the money for all this, but start not from the office, but from sales. Minimize all initial costs. Or maybe at first you don’t need an office at all, huh?
To get plunged into theory
In the next few months, you start reading books, take courses for beginner businessmen, rewrite your business plan for the hundredth time, and now you think that you need good money to start a business. Over the next few years, you either save up or get into loans, making a typical mistake of entrepreneurs who never became businessmen.
What to do? Books are good, but it’s impossible to know everything. Read before going to bed, but for now, stop doing nonsense, but just take and register your first online store or whatever you have. It only takes an hour. At the first stage, you can even get by with a simple designer and your salary.
To launch an incomprehensible and unnecessary product
Wow, rhinestone fins are so cool! The services of a financial consultant are so new, so interesting, so promising, especially in a country with zero economic literacy! But opening a new niche is like choosing manufacturing as your first business. You run the risk of either running into the question: what do you do in general? Or … just watch your fins rot ingloriously in the warehouse.
What to do? Put yourself in the client’s place. Do you need those stupid fins? Are you ready to give an incomprehensible person several thousand in order for him to advise you on “financial issues”? The beauty of simple things is that they are needed and understandable. People need milk and pregnancy tests. Study supply and demand — you don’t even need to go far for this: Google Adwords will help you.
To think that Advertising Is Easy
To read that advertising on the Internet is effective, and pump your entire budget into expensive content. Finally, advertise on central television … and completely forget that your potential customers don’t quite understand the Rolls-Royce at the lowest price point.
What to do? First, remember your target audience. Secondly, do not put all your eggs in one basket, but differentiate the channels as much as possible. Well, for the first months, forget about the word “profit” and put “reputation” instead. In the end, the best way to get clients is to do something for them for free. Even if we are talking about free distribution of useful materials.
To constantly Postpone paperwork
This is one of the typical mistakes of a small business, to avoid the official registration of the company, work with accounting reports and other documents to the last.
What to do? Rely only on yourself and not wait for the problems to be solved on their own, and the reporting will be prepared by itself. Registration usually takes no more than a week.
Love to argue with every sentence
You can be afraid of everything new and solve every problem in the old proven way, because three years ago it helped.
What to do? Try to listen to a couple of new suggestions and still give the go-ahead. The result may be better than you think.
Fear of leaving the company unattended
Some people compare entrepreneurship and motherhood: when you gave birth to your company, the business develops outside your scope. A small business grows on its own and, sooner or later, will go beyond supervision and take on a life of its own.
What to do? Do not repeat this stupid mistake of businessmen with annoying mother syndrome — and still go on vacation for a week. If anything goes wrong, you will be the first to know.