If you are going to survive and be a long-term success in business, then you need to be aware of the most common mistakes and pitfalls that can ruin your best-laid plans.
Here are the 10 common mistakes entrepreneurs commit that you really need to watch out for:
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1. Choosing the wrong business.
It is hard to achieve success if you select a business that you know nothing about, has no passion for, and in a field that you do not enjoy. More so if you have been ignoring warning signs about the business, from the high risks involved, competitor might, and even potential obsolescence. Your business has no chance in succeeding if you are trying to sell the unsalable.
2. Lack of vision
Not having a clear short and long term vision for your business is a recipe for disaster. You need to be clear what you want to achieve through and from the business. Without vision, your business cannot prosper and grow because you are reduced to keeping things the way they have always been.
3. Setting the wrong price for your products.
If your price is too high, customers will not buy from you. If you set your price too low, you lose money because your costs exceed the money you are bringing in. Make sure you do all the math before you decide on your pricing strategy. Calculate all the costs you incur and determine how your price will affect the bottom line.
4. Underestimating the resources and capital needed by the business to succeed.
A common mistake made by entrepreneurs when starting a business is making unrealistic and false assumptions about the business, rendering their cash flow and financial projections off. When starting a business, take the time to ensure that you know exactly the startup expenses the business requires — and whether you have the capital for that.
5. Trying to start a business with too little money.
Ask yourself: can you afford the business? If not, do you know where and how to get the money you need? If you do not have the cash to support your venture, there is a high likelihood that your business will end up as a failed start-up.
6. Not having a solid business model.
The business will fail if you do not have a clear understanding how the business will make money. Unless you have an endless pit of capital and investors, you must have a clear path for generating revenues for the business.
7. Failing to hire the right people.
The quality of your team will spell a huge difference in the success – or failure – of your business. In fact, many successful entrepreneurs consider the quality of people as key to success. Find people who share your passion and vision, and those ready to fully commit themselves to your business.
8. Mismanaging the business
Jumpstarting the business successfully is one thing, but managing it is a different story altogether. You need to be able to set clear goals and direction for the business. You need to spot opportunities, ensure adequate flow of finances, keep employees motivated and happy, and manage economic ups and downs.
9. Failing to handle growth.
A growing business is good only if you can handle its growth properly. The whole operation could implode if you don’t know how to handle the increase in customers, new distribution channels, or sudden opportunities for the business.
10. Resisting the urge to ask for help.
Most people do not usually ask for advice in choosing a business, either because they are too proud, afraid someone else will steal their idea, or simply don’t know help is available. Help is out there; you just need to look for it.