Bloomberg research shows that 8 of out of 10 entrepreneurs who embark on business ventures experience defeat within the first 18 months. Business failure could be as a result of some mistakes from the business owner. In this article I will be sharing common mistakes that people make and how to avoid them in order to make you a better entrepreneur.
BELIEVING MARKET RESEARCH
Many businesses fail despite carrying out extensive market research to know exactly what businesses want. Market research may not be the best way to know what people want because people themselves don’t know what they want. As human we usually think we are so smart and we know what we want. When it comes to buying something we usually act on our emotions and not our brains. The best way to know if a product will sale is to observe what people are doing not what they are saying.
More also, do not mind what men say about a business, just watch what they do. If you want to launch a successful product, pay attention to what people are doing not what they are saying. People will likely continue to buy more of what they are buying now and will even buy a better or modernized version of what they bought before.
Business is like a war, no one go to the war front all alone. Individual don’t build businesses, only a team can. If you want to be an entrepreneur, you must learn how to partner with another good mind.
WORKING WITH FRIENDS OR FAMILY
Because some people understand they cannot do business all alone, they choose to partner with their friends or family members. The problem with doing business with friends and family member is that this group of people sooner or later will start feeling entitled. They will either think they deserve more pay or less work. Business is a serious game don’t play it with your friends and family members.
SEEKING FINANCE TOO EARLY
Most people starting a business think the first problem they have is money but that is not true. When you are just starting a business, there are hundreds of things you don’t know and tens of mistakes you are going to make. Those mistakes will not affect you if your investment is not huge. If you invest a lot of money, a single mistake can affect your entire business. If you are just starting out a business don’t dream of having a lot of money, get started as small as you can so that you can make the necessary mistakes and learn from them.
NOT CHOOSING A SUITABLE BUSINESS NAME
Your business name is very important because people always judge a book by it title. An inappropriate business name can affect your business. Therefore, take time to be creative with your business name.
EXPECTING SUCCESS QUICKLY: if you get a job today, you will most likely get paid in the next thirty days but when you start a business, you may not get any reward in the next three months or even a year.Unfortunately, most people who start a business usually have high expectations, they want something to happen and they want it very fast. Building a company requires a lot of patience.
NOT USING THE INTERNET TO PROMOTE YOUR BUSINESSES
Most people still don’t understand the power of the internet. Several people who have small businesses do not use the internet to promote their businesses. You need to learn how to use the internet as a marketing tool.
PLANNING ONLY FOR SUCCESS
Most entrepreneurs are very optimistic, that is quite understandable. However, this becomes a problem along the way because you don’t have adequate plan for the unexpected. Don’t just plan for success, make some plans for failure too.
SPENDING MORE TIME ON LITTLE THINGS
In business, there are so many little things that bring no returns to the business, such things should be delegated so that you can have time for meaningful things such as thinking, reading, strategizing and marketing,
Whether you want to employ new set of people, negotiate a deal or buy some raw materials, you are faced with the temptation to be emotional. Imagine what it means to allow your emotions to dictate who you employ, firing someone you should or being emotional when negotiating a deal. As an entrepreneur you must strive hard to be frank, tough and if possible unemotional when making business decisions.