not thinking about what can go wrong. everything can go wrong and some of them just don’t think about it before its too late and they get into a lot of strife.
1) Fear of rejection
Many suffer from paralysis through analysis, thinking they have
to know every detail before they get started. They are afraid to
pick up the phone in case the potential says no.
2) Unwritten goals
Without writing down goals, they are just dreams. They need
to be written down and broken down into daily tasks in order
to meet them in a timely manner. This is their road map to
success and many don’t realize that.
3) Too much information to potential customers
Sometimes, in our excitement, we talk to much. The
customer becomes overwhelmed and as a way out,
they say they need time to think about it. You need to take
advantage of marketing tools and learn when less is more.
COMMON MISTAKE # 1
First and definitely the most critical, not assessing the market. You need to know exactly how your business model fits into the market, who your competition is, and how the supply/demand will affect your pricing. Making baseless predictions on anticipated revenue is the most common and most devastating mistake entrepreneurs make. In your financial analysis in your business plan, ask yourself how you came up with the anticipated revenues.
COMMON MISTAKE # 2
Being underfunded. Plain and simple, you need to properly assess how much you will require to last you a certain length of time if all goes badly, then double it. Time and time again you will find the best ideas with the perfect marketing situation fall totally apart because of lack of funding. Some businesses require little to maintain, and if so, that is part of your assessment, but make sure you know exactly what to expect. Even the least costly business have expenses.
COMMON MISTAKE # 3
Getting involved in foolish things like MLM/Network Marketing that base their entire business plan on hype rather than real world assessments. An entrepreneur who starts a business on the premise of desire for riches as oppose to a strong business plan is destined for failure. Not that desiring to become rich is bad, but if that’s your main reason for starting a particular business, then you are way off base. You enter a business to make money, but you choose the business because its a sound investment of your time and capital. Most people who begin business based on hype fool themselves into thinking that the business model is strong, but this is only rationalizing. Always ask yourself before entering any business if you would be willing to leverage all your current assets on the business plan. This is a great thought provoking question. The point is, if you are convinced of the business plan so much that you think risking everything you own is worthwhile, then you have likely looked into the model enough to know what you have. But if you are leery when asking that question, its likely because now the emotion has been taken out of the hype and you are looking at the business rationally. Again, looking at it rationally doesn’t automatically mean that you know what you are doing, because there are enough people who would risk everything they own for terrible business plans, but at least you are not kidding yourself. You need to never look at business emotionally, those who do find themselves spinning their wheels for a dream that will never come true.
There is so much opportunity in this world that having the right attitude and mindset is your best asset. With a proper business plan and market assessment, you can right your ticket to pretty much anything you want to do.
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5 Responses to What are the three most common mistakes entrepreneurs make when starting their business?
not thinking about what can go wrong. everything can go wrong and some of them just don’t think about it before its too late and they get into a lot of strife.
Many spend too much money on things they really don’t need or take too much money than they can repay in a reasonable time.
They often don’t do enough research to find the right location, market, customer stats, etc.
To avoid, do your research, write a business plan, only borrow as much as you need, and you don’t buy a bunch of expensive stuff you don’t need.
They quit too soon!
1) Fear of rejection
Many suffer from paralysis through analysis, thinking they have
to know every detail before they get started. They are afraid to
pick up the phone in case the potential says no.
2) Unwritten goals
Without writing down goals, they are just dreams. They need
to be written down and broken down into daily tasks in order
to meet them in a timely manner. This is their road map to
success and many don’t realize that.
3) Too much information to potential customers
Sometimes, in our excitement, we talk to much. The
customer becomes overwhelmed and as a way out,
they say they need time to think about it. You need to take
advantage of marketing tools and learn when less is more.
COMMON MISTAKE # 1
First and definitely the most critical, not assessing the market. You need to know exactly how your business model fits into the market, who your competition is, and how the supply/demand will affect your pricing. Making baseless predictions on anticipated revenue is the most common and most devastating mistake entrepreneurs make. In your financial analysis in your business plan, ask yourself how you came up with the anticipated revenues.
COMMON MISTAKE # 2
Being underfunded. Plain and simple, you need to properly assess how much you will require to last you a certain length of time if all goes badly, then double it. Time and time again you will find the best ideas with the perfect marketing situation fall totally apart because of lack of funding. Some businesses require little to maintain, and if so, that is part of your assessment, but make sure you know exactly what to expect. Even the least costly business have expenses.
COMMON MISTAKE # 3
Getting involved in foolish things like MLM/Network Marketing that base their entire business plan on hype rather than real world assessments. An entrepreneur who starts a business on the premise of desire for riches as oppose to a strong business plan is destined for failure. Not that desiring to become rich is bad, but if that’s your main reason for starting a particular business, then you are way off base. You enter a business to make money, but you choose the business because its a sound investment of your time and capital. Most people who begin business based on hype fool themselves into thinking that the business model is strong, but this is only rationalizing. Always ask yourself before entering any business if you would be willing to leverage all your current assets on the business plan. This is a great thought provoking question. The point is, if you are convinced of the business plan so much that you think risking everything you own is worthwhile, then you have likely looked into the model enough to know what you have. But if you are leery when asking that question, its likely because now the emotion has been taken out of the hype and you are looking at the business rationally. Again, looking at it rationally doesn’t automatically mean that you know what you are doing, because there are enough people who would risk everything they own for terrible business plans, but at least you are not kidding yourself. You need to never look at business emotionally, those who do find themselves spinning their wheels for a dream that will never come true.
There is so much opportunity in this world that having the right attitude and mindset is your best asset. With a proper business plan and market assessment, you can right your ticket to pretty much anything you want to do.
Best of luck.