It is no secret that mistakes can give much more experience than success. Any businessperson should be ready for them, because after a cozy office and a stable salary, it is necessary to become a pioneer in the unexplored expanses of your own business. However, we all know that the consequences of some mistakes can be very sad for business. It is better to know about them in advance and try to avoid them, than to eventually become part of the unfortunate statistics, according to which 90% of new companies are closed in the first three years of existence. In this article, we will tell you about the mistakes of novice entrepreneurs, whose biggest and most promising ideas were ruined at once. In order to save your idea of a perfect trip to the USA, you can use EZ auto rental Daytona Beach.
Let us start with the most important thing. Determine your goal. It could be:
I want to make money.
I want to find freedom.
I want more respect.
I want to self-realize – grow and learn.
I want to be a business owner.
I want to provide for my old age.
Most common mistakes of novice businessperson are:
Attempts to do everything alone
Even if you have a great idea, much enthusiasm, and there are some resources, do not immediately take up global projects in the hope of earning a million dollars in a month. First, hold several meetings with familiar business people who already have positive experience in doing business. Chat with them. At this stage, it often happens that you are afraid of a probability that your idea could be stolen by someone. However, the idea is not everything. It is valuable only when it is implemented.
Procrastinate the time
A quick decision, not even the right one, is better than the delayed right one. It is better to understand later that you are doing something wrong and correct the course, or even to change it completely, than to lose time and pace of development. The speed of making decision is one of most valuable qualities.
Being a business plan fan
The situation is changing so quickly that sometimes the business plan needs to be adjusted, or it is necessary to try something new, to take risks. In your project, you can meet hundreds of new people, the opportunity to create your own technology business and take part in it, get an incredible experience.
Gap in security
Informational, legal, industrial safety is not what entrepreneurs think primarily.
There is no need to focus on this strictly, but you should not forget about it as well. Your technology, customer base – is confidential information that is worth protecting.
Take everyone on trust
All agreements must be recorded in writing. First of all, this is, of course, about partners and about the team. It would seem that everything is simple- you talk, agree on something and everything is fixed. Nevertheless, in reality, it could turn out that you and your partners have understood everything differently.
Inability to delegate authority
Hiring unsuitable employees is one of the businessperson’s mistake. Determine areas of responsibility and assign them to employees. Some functions, such as accounting, can be outsourced. Wherever possible, introduce a flexible wage system – a small fixed salary and interest on performance indicators. In addition, temper your perfectionism for a bit – even if something is done not as perfectly as you imagine, but the business develops, everything is going well.
Desire to earn all the money in the world
This is, of course, the personal choice of everyone, but when thinking only about business, you risk losing a lot more – family, health, friends and passion. Finding oneself a lonely sick old person, who has nothing to remember except the rush for making money, is not something for which it is worth starting a business and taking daily risks.
Lack of interest
If you do not like what you do, if there is no passion for business, then the chances of success are much less. The performance suffers, including the speed of making decisions. If you take business only as a source of money, then there is a possibility that you will not get this money. Passion in business not only increases one’s own motivation, but also helps to motivate other people and your team.
Money settles everything
Many startups today are ready to be immediately sold to the investor who pays the most, and the ideal investor for them is the one, who will not interfere in the business. However, the real value of an investor is his or her connections, capabilities, experience, advantages: distribution channels, technologies, reputation. Money is not enough.
Unwillingness to enter into a business partnership
A good business partner can offer you resources and investments, business experience and connections, skills that you do not have, for example, in sales; unique business idea, invention, patent.
Of course, it is not so easy to choose a business partner, but it is wrong to refuse beneficial cooperation only because you are afraid of possible problems. Do not forget that all the conditions of a joint business should be carefully negotiated prior to the commencement of activities and should be written down. Consider also that equal partnership, when shares in the company are evenly distributed, can lead to a stalemate in the event of disagreement. It is desirable that one of the partners is senior and bears the main responsibility for business development.
The main problem in building a business from scratch is the lack of experience of most of the founders as independent managers. Even a great idea will not help when you face with such difficulties as financial management, building a stream of customers and hiring employees. Starting a business is always difficult and making it successful is even more difficult task. That is why it is so important to have a plan that will not only help you determine the metrics of success, but also warn you about the dangers, which can become a serious problem on your way.