There are now more entrepreneurs than ever before and more of us who are trying to become one. This is in part because advances in technology have opened a lot of doors into both old and new areas of opportunity. Technology, however, doesn’t prevent people making errors. It is with this in mind that we explore some of the common mistakes made by entrepreneurs.
Ploughing too Much Capital into a Project
It is common to hear experienced business players say “start small” and generally speaking this is true. Getting carried away with a new and exciting idea can cause you to lose objectivity and make one of the most common mistakes.
Being realistic and not ploughing too much capital into a project, particularly a startup, is paramount. Many of the biggest and the best businesses were started on a relative shoestring. If your ideas can’t be realised with a modest or rational investment, then maybe you need to think again.
Taking on too Much
No matter what type of business you are involved in, taking on too much can lead to serious problems and even abject failure. How to build a business is an important lesson to learn and those who learn quickest stand the best chance of making it work.
For example, if you are involved in an ecommerce business where supplying goods is an integral factor, you may start off storing, packing and shipping the goods yourself. Once business picks up this can quickly become overwhelming and if you aren’t careful, it won’t be long before mistakes start to happen.
A simple way of dealing with this would to use a fulfillment service, such as those offered by Whistl – outsourcing work can provide a great solution and prevent you taking on too much.
Not Setting Achievable Goals
Not setting achievable goals or even worse not setting any goals at all can prove to be a costly mistake. It is super important to plan for success and to measure the business’ performance regularly. Doing so helps you to gain insights into what is working, what isn’t working and what can be done to improve profits.
The key is balance. Don’t push hard enough and you may not make enough money, push too hard and you may find that you encounter problems with factors such as quality or cash flow.
Failing to Spend on Marketing
Marketing continues to be a crucial factor when it comes to the success of a business. Very few companies can operate effectively without spending time thinking about and implementing marketing activities.
Spending just a small amount on marketing, using social media for instance, can make a huge difference and provides you with a platform from which to escalate your campaigns.
For entrepreneurs, avoiding the most common mistakes is relatively simple. And the benefits can be astronomical.
