The best lessons that successful entrepreneurs learned are the painful ones they experienced committing mistakes. We have collected the 5 most common mistakes that entrepreneurs usually committed at the start of their entrepreneurship careers. By carefully learning from each mistake, aspiring entrepreneurs can be benefitted without having to deal with plenty of headaches and heartaches. For those who are already in the business, learning from these mistakes can help them navigate their journey so they can take a different route and avoid plummeting down to Doomsville.
No Vision
Without a vision, a business is likened to a ship without a rudder,always in danger of drifting aimlessly. Sadly, thousands of startup entrepreneurs lack a clear vision so they tend to do different tasks without really understanding their actions. Vision is important as it is supposed to be the cornerstone of the company. Having a vision makes company goals more achievable.
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How to avoid this mistake:
Try to understand why the business was started in the first place. Create a mission/vision statement that clearly states what a task is for. Come up with a vision that is concise and give purpose to your business, capable of motivating you and everyone in the business.
Not Heeding Advice from Mentors
Some small business men tend to view things differently when it comes to mentors. Some even consider them as threat to their growing business. They are so stubborn to completely ignore advice from their mentors – those that have put a credible name and have established their businesses years ago.
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How to avoid this mistake:
Take every opportunity to learn from successful people. Heed their advices, ask them questions, take notes, and revisit the notes every so often. Best of all, never forget to implement.
No Business Plan
Having a solid business plan plays a vital role in determining future success. It guides companies to the right direction. It serves as a GPS to business success. It determines every aspect of the business. When the business makes a different turn due to economy or other factors not controlled by the business, you can always refer to the business plan. It serves as the guiding light to help determine the company’s direction.
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How to avoid this mistake:
When creating a business plan, make sure to draft it, write it down and use business plan tools.
Drafting. Jot down all necessary details like the company’s purpose, potential customers, mission and values, direction, competitors and action plans.
Writing. It should include Executive Summary, Business Description, Market Strategies, Competitive Analysis, Design and Development Plan, Operations and Management Plan, and Financial Factors.
Using business plan tools. This include templates, books and manuals, and business mapping software.
Choosing the Wrong Partners
Choosing the wrong partners in business is a common and costly mistake for many startup entrepreneurs. Business is almost the same as marriage. You don’t get a partner just because you’re lonely, or you need capital, or he/she is a relative, or you just wanted to lighten your workload. Likewise, a relative, a family member or a childhood friend does not give one a pass to be a business partner.
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How to avoid this mistake:
Draft a partnership agreement. Write down the full description of you and your partner’s responsibilities in the business (hiring, firing, tax issues, purchasing, etc.). Clear issues regarding initial financial contribution and how the profit should be divided. Make sure that they have the same vision and passion as yours. Choose someone who is well-known for being trustworthy.
Choosing the Wrong Location
Location is the core of the business. Before starting a business, you need to identify factors that will affect your business. Siting a business has always been important. Setting up shop in the right location is key, considering the cost and the geoposition of potential customers and the industry as a whole.
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How to avoid this mistake:
Use business tools like Mapline mapping software that will help you to identify the best location for your business. Map your customers, potential market, competitors, and other factors that might affect your business. In a glance, you’ll be able to get an idea on where’s the perfect place for a continuous thriving business.
