7 Mistakes Entrepreneurs Should Avoid

It takes a lot of strength to step out of the corporate lifestyle and start a business.

Many can only dream of being entrepreneurs, but few actually achieve it. It is no secret that the benefits of following that path are immense. However, it is also riddled with challenges that are worth overcoming. Starters who envision a life of profits and long vacations in the early stages often get a rude awakening once they are knee-deep in launching a start-up. This has led to many blunders and the collapse of young businesses that had the potential to become more. If you have been thinking of becoming an entrepreneur, here are seven mistakes you should avoid. 

1. Failing to Put Systems in Place

Organisation is crucial if you want to have a successful startup. Systems ensure that your business operates smoothly and efficiently. Without them, you cannot replicate results and feel secure in the knowledge that your enterprise will still run successfully in your absence. To identify the systems your business needs, highlight your administrative or routine tasks and how long it takes to complete them, as well as the tasks you perform after them. Write down the details of how you complete these tasks. This will help you introduce a process that cuts your time in half and makes you productive. Afterward, implement it and tweak it along the way if you find faults with it. Introduce automation, and don’t be reluctant to outsource where necessary. Also, remember that supervision is key when it comes to maintaining systems.

2. Poor Marketing

No business can go far without marketing. You can have the best product on the market or provide the most outstanding service, but without proper marketing, your business won’t generate any revenue. For instance, many households experience plumbing issues from time to time. However, growing your plumbing business requires a good marketing strategy to gain new customers and improve your brand’s recognition. You build trust and increase sales when you go on campaigns and demonstrate how your products work to customers, so keep this in mind. As an entrepreneur, it is essential to take advantage of social media platforms and create engaging content that will captivate your audience. Failing to market your business well can cause you to lose money and waste time on unnecessary strategies that produce zero results.

3. Hiring the Wrong People

The kind of team you bring together can determine how far your business goes. It is important to hire right and ensure your team is well-equipped to handle the operations and pressures of your startup. Most entrepreneurs lean on their loved ones when starting a company. While this might provide cheap labour, it can have some dire consequences, especially when your loved ones aren’t skilled enough to handle their roles. Also, disputes or disagreements between your loved ones can affect the dynamics and flow at the workplace, which can impact productivity. To make the right choices regarding your workforce, provide a thorough job description when you are scouting. List the skills, qualifications, and expectations your company needs clearly so that suitable candidates can apply. 

Whether you are handling the recruitment process alone or including a member of your team, consider a pre-screening process over the phone to shorten interviews. Provide oral, written, or technical tests to gauge if the candidates are up to standard. Go over their resumes and call up their references for testimonials. Remember to perform background checks so you don’t end up with the wrong people in your organization. Finally, if you are interested in knowing their personalities and how they will fit into your company’s culture, you can take them on an office tour or invite them to lunch to measure their interest.

4. Trying to do Everything Yourself

Many entrepreneurs take pride in handling all aspects of their startup. This might work if you are managing a small business, but you will need to learn how to delegate once you start growing. Certain tasks may be out of your area of expertise, or you might be too busy handling other things. Also, working alone can cause you to be rigid and prevent you from seeing roadblocks. Collaborating with others will help you see a new perspective on things and provide you with fresh ideas to move the enterprise forward. More importantly, delegating tasks will allow you to free up your time for your loved ones and interests so you don’t burn out. Before you share tasks, understand the skills and competencies of your team members so you can match the work correctly and get maximum results.

5. Neglecting Customers

Refusing to pay attention to customers is another mistake entrepreneurs make. It's worth noting that poor customer service can destroy your business, as word of mouth travels fast. A client or customer that has a bad personal experience with your business, might bring it to your attention. However, if you fail to de-escalate the issue or provide a soothing solution, they can vent their frustrations by telling a potential consumer or writing a negative online review. This can damage your reputation and cause you to lose sales. Ensure you treat your customers with respect by attending to them with a professional and friendly attitude. You can also make them feel valued and appreciated by offering incentives like loyalty points, discounts, or a thank you message when they purchase from you. It would be beneficial to train your employees to handle angry customers tactfully and provide prompt assistance. Be open to positive and negative feedback so you can stay in tune with the needs of your consumers and improve on your solutions. Finally, engage with them and make them feel included.

6. Having Unrealistic Expectations

Dreaming big and having your ideas turn into a viable product or service can be thrilling. You feel like you're on cloud nine and begin to develop certain expectations for your startup. Though this isn’t a bad thing, you have to be careful so you don’t get disappointed or discouraged by unrealistic expectations. Doing your research and making correct projections about your business will save you from mindlessly entering a highly competitive industry. Entrepreneurs who believe that their business will become an overnight success don’t prepare well for the challenges and hard work ahead. In a short time, they become tired and easily give up before their business takes off. Also, they expect to raise funds as quickly as possible. However, it takes a lot of work, research, and networking to attract investors and secure funding. Have a realistic budget in place so you can continue to put money into your enterprise when there is no outside investment. If you have envisioned a sale where customers are forming long queues and clearing your stock within a few hours, consider making room for the possibility that it might not happen immediately. Expect lean times when your startup might not be profitable.  

7. Giving Up Too Easily

Entrepreneurship is not for the faint-hearted. You will face ups and downs. Sometimes, you will question why you even took the step, and at other times, you will miss your 9-5 job, where you had no responsibilities and controlled hours. However, there is nothing more fulfilling than offering products or services that contribute positively to society. Consider taking a break to relax when you feel overwhelmed and leaning on loved ones for support during tough times.

Entrepreneurship is an ongoing learning process. While mistakes are bound to happen, some are preventable. With these tips, you can navigate your journey and produce results.