6 Mistakes You are Likely to Make as a New Entrepreneur
Pushing yourself to start a business is never a bad idea. Although most startups end up failing within two to five years, the ones that survive achieve heights of success that a jobholder can never imagine. However, jumping into things without learning is not taking risks; it is idiocy. So, here are a few mistakes you are likely to make as a new entrepreneur.
Improper Use of Finances
Sometimes you will spend way too much thinking it’s a part of the investment, and, sometimes, you will keep your hands too tight. Not evaluating the proper needs and return before putting your money will only be a waste of time and investment. Make sure the investment is worth the cost, and if it’s worth it, give it enough resources.
Not Setting SMART Goals
You might have a great idea, but it won’t go anywhere if you don’t have a proper plan. The idea won’t sell itself if you plan to lead it yourself. Many entrepreneurs set goals and put everything to achieve them. They are left disappointed and heartbroken when they fail at it. Make sure you only set SMART (Specific, Measurable, Achievable, Realistic, and Timely) goals.
Making Low-Cost Hires
There will come a time when you need to expand your team. At this phase, you should know how to scale a business before taking any risks. As most young entrepreneurs are usually short on resources, you might opt for recruits that cost less. Hiring a cheap workforce brings long term losses.
Not Keeping a Good Profit Margin
It’s understandable that you must offer a competitive rate to get an edge in the market as a new business. However, you shouldn’t compromise on profit margin. You might think that the prices can be increased later, but your audience won’t appreciate it.
Not Paying Attention to Marketing
Most entrepreneurs are very skilled at the job they do. However, they lack knowledge of running a business and usually underestimate marketing. No matter how great of a product or service you offer, you can’t get any sales without marketing.
Underestimating The Competitors
Thinking you have no competitors, and jumping in the market is not a smart idea. It’s extremely rare not to have any competition. If you look hard enough, you will find it. And if you didn’t start with a plan and unique selling point, you won’t be able to get ahead of that competition.