10 mistakes to detect early
Even with a great idea, to operate complex problems such as administration, financial management and recruitment arise.
Entrepreneurship properly implemented can increase your impact and your income. It can be the gateway to a life of freedom and leave a lasting legacy. However, the reality is that many entrepreneurs build their businesses on weak foundations.
Still popular advice, but unproven. They make decisions based on what they think will work, instead of listening to their customers. And it is not long before any success had been achieved disappears and business growth to atrophy. Not to be statistically more negative, avoid errors more common novice entrepreneurs.
1. Move alone: How many projects that have been successful had only one founder? An exception is Oracle, of Larry Ellison. Indeed, founding a company is hard work that often requires more than a single individual. There are ups and downs, not to mention some tasks that few can afford alone. Sometimes crushing blows and setbacks make it difficult to continue without the support of another person. And then there is the need to bring the plan to market and build the product or service. You have to get money to launch a new business or make it grow. In most cases, it is incredibly overwhelming this address only. A little help from friends and professional colleagues may be key to jump-start your business.
2. Skimp on the business plan: Having a solid business plan plays a vital role in determining future success. At the end of the day, a business plan serves to guide the entrepreneur in the right direction to answer the following questions: what is the purpose of the company ?, Who ?, potential customers are and what values are mission ?, which direction you want to take the company ?, Who are the competitors and what are they doing ?, how can you measure success?
In other words, a business plan determines every aspect of starting up a business. Provided that such information is stuck or is about to launch a new initiative, you should go to him. Needless to begin creating a plan as formal as you would someone who was studying fashion management. But should always have one because it will help to determine the direction of the company in the long run.
3. Manage the money incorrectly: When it comes to starting a business, having money is really important and proper handling is required. One of the biggest mistakes is spending too much, which can occur when the owner or founder of a company become anxious and hire a ton of people. At first, the entrepreneur could believe that all new employees are needed, although this will involve only the fastest depleting resources. To avoid this, hire only those that are essential and advancing step by step in the recruitment. If an investor just give you a big, fat check, you may be expecting a big, juicy results soon. Nothing distracted gait, Time to get to work. Without proper management and use of finances, a new business could not get off the ground. Make sure someone with ability to take care of numbers this part.
4. Lack of ability to turn around: Every entrepreneur can attest that nothing goes as originally planned. However, being able to pivot is part of the joke. At one point, Nokia had a paper mill and made rubber boots; and today is a telecommunications company. To become a successful owner of a company, have a backup plan to face the worst scenarios, but also be flexible and capable of turning if the original proposal is not working.
5. Understatement: If an entrepreneur thinks too much “outside the box” (i.e. if you focus on a very small niche market), the chances of success may decrease too. In the 18 mistakes that kill startups, the investor Paul Graham, founder of the business incubator combination, explains that many business owners believe it is safer to go for a smaller competition is not as tough universe. However, “if you do it right you will have competitors, so it is better that you face,” says Graham. “You can only avoid competition if you avoid good ideas sentence.”
6. Choose the location wrong: This issue has always been important. So, establish your business in the right place is vital. Consider the cost and the geolocation of potential customers and the industrial sector as a whole. For example, originally Rowland H. Macy opened a store in Massachusetts, but was unsuccessful. Eventually, he learned from his mistakes and relocated his business on Sixth Avenue in New York City. The company was successful and became the retail giant known as Macy’s. Keep in mind that many of the large technology companies tend to emerge from technology nodes as Silicon Valley, Seattle, Portland (Oregon) and Boston in the US.
7. Ignore a hunch: For an entrepreneur there is nothing like his instincts. Probably are the reason that many achieve their companies get away with, so do not overlook this hunch: take it. Just make sure you hear that tells you the heart to equilibrate perform many calculations, analyze key performance indicators and implement strategies for business development based on the research.
8. Making the pitch at the wrong time: When a company is launched, timing is everything. Although some circumstances are beyond your control (such as the economy or natural disasters), start at the right time is something that can be organized. Forget about making a thorough scientific approach: only ensures that the company did not start too early, but not postpone it too. Starting too early could put the whole company at risk. Consider the following: Is this a product or service that people really want ?, it is ready to be brought to market? At the end of the day, there is nothing worse than rush to a project to hit the market by the desire to beat the competition or start earning income. Make sure the boot is at the point before making it public. On the other hand, do not expect too much. Otherwise, it is possible that the money runs out or that a competitor is the first to break into the market.
9. Making wrong recruitment process Contracts should not start too fast. that just drain the finances of the company. Eye: the part of the contract that must constantly refine is the effort to recruit the right people. The reality is that many startups have had to withdraw because the people who hired just was not right for the organization. Maybe it was a friend who lacked the skills required for the job, or someone who is not coupled to the team due to irreconcilable differences. The recommendation is to have qualified people from the start. Also Make sure it’s all documented (for internal order and even, for legal reasons). Nobody wants that a former employee files a complaint because he was promised a good portion of the company in exchange for their services, an agreement that was established only by a handshake.
10. Receive too much foreign influence: Whether it’s advice or criticism, sometimes the feedback from an external source is helpful. Facebook, Sean Parker would have taken off if he had not suggested to Mark Zuckerberg to move to California and changed the name of your project and, instead of Thefacebook, Facebook just call him? Of course too much feedback can be detrimental. Throughout the development of a company, many expressed what suits them. If you ignore the advice of everyone, the business will cease to resemble the original idea. Being tossed in too many directions (different) just is not good for a company. Although Zuckerberg followed the advice of Parker, he kept his vision of what he wanted to become Facebook. He did not accept all the advice they gave him. Only he used the suggestions that he knew would work for your company.
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