Jun 16,2017
We learn from our mistakes. Learning from our failures is also a secret of success. In addition to possessing a crucial set of skills, a good entrepreneur should have a good sense of judgment as well.
Some of the most common mistakes that most businessmen experience and a suitable solution for them:
1.Setting unrealistic Financial Goals: Most entrepreneurs make the mistake of assuming their business will make immediate profit, but setting unrealistic goals will only lead to disappointment. Educating oneself with ways to build up business, and work on the eventual turnaround of profits prevents disappointments.
2.Getting influenced from the market: One of the most common mistakes new entrepreneurs make is trying to do what everyone else is doing. Instead of following the market, looking for untapped markets, under-served communities and unmet needs. This is where the greatest potential resides, as well as the least competition.
3.Financial over-reach: Quitting a day’s job and only source of income while only having the germ of an idea and no plan on how to achieve the objective. For those who manage to get investors or large loans early, there is a bad tendency to add people to the payroll without a clear plan on how to use them to increase revenue. Market Research and Product Reviews well before investing in manufacturing can be some solutions to the problem
4.Failing customer’s Expectations: Failing to deliver what people need is one of the biggest failure an entrepreneur encounters. The way to be successful is to reverse engineer what works and improve upon it.
5.Inability to focus on business principles: General business practices apply to all industries and sometimes entrepreneurs fail to follow these principles. Business owners must understand all aspects of business. If one lacks knowledge of a specific field, it might be wise to seek advisement.
6.Irrelevant Marketing and Advertising: Business owners usually forget to market their business brand, which has become the most crucial activity to reach out to more customers. Hence, a necessary effort needs to be taken to connect customers with the company.
7.Multitasking instead of Focusing: Businessmen have the tendency to be responsible for every aspect of the business just because they started it. It can prove detrimental to both the owners and the company. Instead the owner can focus its energy on one or two important things that are tailored to their special talents, and offer insight and fresh views to areas of the company that are not handled by them.
8.Underestimating competition: Competition is often ignored in the working of the business due to a sense of superiority and uniqueness of the owner which often leads to failures. Hence, it is important to understand the competitors and their strategies. Because they might have a better understanding of competition, it is not bad to learn from them.
9.Selecting the partner: Partners are the people who share their knowledge to the growth of business towards a common goal. But selecting a person as a partner without analyzing their character and personality. One should confirm that the person has at least knowledge about the business sector and willing to join.
10.Being Adaptable: A business should be dynamic in nature and the industry should be able to change with time. If one does not change with trend, they will be left out of the crowd. Hence, it is necessary to change and develop as the industry changes.
11.Selecting the Company type: There are different company registration types available to start a business, selecting the right type of business makes a lot of difference.
12.Setting Goals: It is important to have definite goal even before starting a business. And also the goals should be attainable. Fixing a target which is not attainable is of no use at the same time it should not be easy to achieve too.
Entrepreneurs should be ready to learn from those who have already experienced such mistakes. And try adopting suitable corrective measures for the same.