7 Rookie Errors New entrepreneurs Make That Could Kill Their Startup
Launching a new business venture isn’t always glamorous, the road to success can involve long days, sleepless nights and skipped weekends. Sometimes entrepreneurs find themselves not knowing which is the best approach and strategy for their business, this can lead to mistakes and unnecessary stress or worry. Here are 7 rookie errors new entrepreneurs make that could kill their startup so you know
Poor money management
As a new entrepreneur cash flow is sure to be one of your persistent concerns and the thoughts that can have you lying awake in bed. People can go to extremes and blow their budget buying every piece of equipment or software that may not be necessary thereby depleting their funds very quickly without much of a return on that investment. The other mistake people make is trying to spend nothing at all which can really suffocate the business and stop it from growing. It can take time to find the right balance for your success, but diligence is key.
Trying to do everything on your own instead of outsourcing
At times this occurs as a result of being cash poor and not affording to outsource, having a lack of trust in employees or because it helps the entrepreneur feel more in control of the business. Every person possesses their own unique skillset and in the interests of efficiency and productivity entrepreneurs should be outsourcing or delegating the items in which they don’t excel. Trying to do everything yourself often means you will do a poor job. No human being can succeed when overloading themselves like that.
Taking a stubborn approach to adaptiveness
If you want to have a successful business you will need to be dynamic and able to shift as the market dictates. When people pour time, effort and passion into a project they can become fiercely protective of that but this is actually a counterproductive move. Changes bring new opportunities to take market share from competitors if you move first, don’t be afraid to make the moves that can increase your revenue stream.
Never making time for reflection
There is a never ending list of items that need attention when you are running your own business. Those never go away. It can be very tempting to work as close to 24 hours a day as possible but this can lead to poor decisions being made because you are not taking the time to rest and reflect. When you are in the middle of your day to day it can be difficult to step back and see the big picture. You need to make time for this on a consistent basis to help ensure that you steer your business in the right direction.
Believing your USP means you have no competitors
Wrong! Even if you believe you have the very best product or service on the market avoid falling into the trap of believing you have no competitors. Look beyond your direct competitors and review alternatives your customers can be turning to. We never run the race to business success alone, there is always competition so keep an eye on what they are doing.
Embrace reality checks
We all need a reality check every now and then but they can be invaluable to a new entrepreneur. Don’t mix this up with encouraging negativity this is about not looking at your business with a utopian view of the work ahead of you. Successful entrepreneurs often have very thick skin and are able to identify the difference between useless negativity and valuable nuggets of truth that can be used to their advantage.
Believing success will happen overnight
“Overnight success” takes many years of hard work to achieve. If you start your endeavour expecting to get rich quick you are likely to give up on your dream before seeing it to fruition. You must exercise patience and give your business time to grow. There can be an eagerness to scale the business quickly out of enthusiasm but this isn’t always the smartest option because it takes more money than you may realise to grow. If you attempt to do this too soon then you can create vulnerability in your business. Creating a successful business takes planning, strategy and time. It’s very tempting to become tunnel visioned but it can lead to missteps that can cost your up and coming brand.
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