Bursting with energy and enthusiasm, starting off on your very first business venture is one of the most exciting times of your life. Get it right and the world is your oyster, get it wrong and it can knock both your confidence and resources for six.
Many have a potential business idea, but only the best have the capabilities to successfully execute it. Traps and pitfalls await at every stage of the road, but the shrewdest business minds know how to overcome them, no matter their level of experience.
Having looked at examples where things haven’t quite gone to plan, we’ve noted down the most common mistakes made by first time entrepreneurs- so you won’t make them.
1. Underestimating the amount money needed
The Entrepreneur has recorded that a third of new business owners have underestimated their monthly expenses, thinking more about the bigger picture and forgetting about the smaller things which can quickly add up. If you are launching a new product, don’t forget about your packaging and if you are taking a wage, don’t forget to leave enough to pay the tax man when he comes knocking on your door. Remember that cash is king- all decisions in early stage ventures should be based upon the impact of cash generation.
2. Underestimating the amount time needed
The same goes for your time. Think you might take a holiday this year? Think again. You will soon find there is always something which needs your urgent attention and if you are the brainchild and founder of the business then the likelihood is that you will find it difficult to switch off.
3. Market Analysis
You may think that your idea is going to change the world as we know it, but are there already a number of competitors out there doing it bigger and better? Make sure you dedicate time to completely and accurately identifying the market and back it up with a good business plan. Always ask yourself, do people want this?”
Many people think their product or idea is so brilliant that they take a “if you build it they will come” approach, only to find out the hard way that they don’t. If you know your audience is out there find every avenue you can to reach them.
4. Doing it alone
With money and resources tight, it is tempting to take control of every aspect of the business yourself. You can’t always be an expert in every field- it’s not possible. Seek good advice and delegate; success requires a team effort so outsource the less important daily routines, leaving you with the opportunity to sink your teeth into the good stuff.
5. Expanding too soon
So you’ve had the initial taste of success and it has left you wanting more. Companies push too fast, too soon and find themselves in a situation where they haven’t had time to plan their execution. The business expands before the foundations are in place to support such as enterprise, and sadly more often than not, things can crashing down around them.
Try to avoid these issues where possible, but at the end of the day, everyone makes mistakes- and everyone can learn from them. Your mistakes will bring you closer to understanding the right path to take on your individual journey to business success.