When starting business mistakes will happen along the way. Many of those mistakes went on been a blessing in disguise. When you learn something valuable to your business. think of mistakes as teachers of some new knowledge that would never have come to you otherwise.
According to the data provided by US bureau of labor statistics, 20% of new businesses fail during the first years of operation. And roughly half of all businesses don’t survive past the fifth year’s of operation.
The data above is a staggering data of business failure cause by one mistake or another, Most of those business are entrepreneurs first venture. But this don’t have to make you called the shot off. In the word of our ever quotable legend Steve jobs, “sometimes when you innovate, you makes mistakes, it’s is best to admit them quickly. And get on with improving your other innovations.”
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And some of those entrepreneurs that there first venture fails went on becoming giant. People’s like Robert kiyosaki And velcro wallet business. And the bill gates. One thing they are did was they learn a lot of lessons and bounce back.
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Yes it’s true that in business you can’t learn with mistakes. But at same time, you need to be on guard against some mistakes. By learning from those that has previously made them. That’s what all the library full of business books are about to make you minimize your mistakes.
Let’s look at some common mistakes and how to minimize them.
1. Overspending when it is not needed.
In their enthusiasm, many new entrepreneurs spend most of their funds too early. Since they lack in experience, they are mostly unable to set limit for spending the funds at hand. This mistakes pinches the most when starting a business by taking a loan. Any directionless spending of money is bound to put startups in financial trouble soon.
If your business has started making a profit, still take precaution every time you think of splurging on various things. Have patience and wait for the time your business is finally on a strong foot hold before doing something extravagant.
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2. Wrong hire and hiring too quickly:
It may look to be a grim mistake at first, but the fact is that startups do make wrong hiring, decisions. Remember that having the right set of employees is crucial to running any business. And organization, but it is easy to be carried away by the excitement of starting a new business and hire whoever wants to join your company.
When trying to minimize your mistakes as entrepreneur. Don’t make the mistakes of hiring people who don’t understand your company or it’s vision. Don’t hire people who are just looking for a job. They will kill your business because they don’t see the long-term goal of the organization.
Most times, they are just there to collect salaries. If you makes this mistakes then you will also faced with the painful task of letting them go and start the recruitment process again.
3. Falling into the friendship trap.
Many startups are created by friends who come together and have a “great idea.” At the time of the foundation. Most of these friends do not know each others true character, abilities to execute and deliver, and often forget the “ego issue” many startup fail because problems between founders.
If you want to minimize the chance of making mistake as an entrepreneur. Do not found or startup with friends or family member, but choose professionals who know their area, sign written agreements shaking hand is not enough.
4. Never asking for help:
Even the most hardworking entrepreneur needs help getting his idea off the ground. Whether it means outsourcing administrative tasks to online frelancers or seeking advise of a Mentor. It’s important that founders get help while building their businesses. Trying to do it all alone means you’ll spend far too much time on activities that aren’t as effective in helping the company grow.
5. Taking on too much work.
Major business failures have occurred as a result of taking on too much work. This is likening to promising too much and delivering too little. It may seem weird that taking on more work than you can handle could be a bad thing. But this can really get you into trouble you may have a short term win when you eventually complete the work, but if it is not up to par and quality expectations, then it will be at the experience of long term repeat referral work.
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6. Not reinventing early year profit to achieve stability.
For many entrepreneurs when a business starts to gain momentum, business owners want to upgrade their personal lifestyles, (fancier cars, bigger vacation houses, frequent holidays etc) and not taking those profits to reinvest then in the business. In other to secure its long-term performance and future. In effect, business owners, strip away the business precious resources that could be used for vital operations, or expansion and instead treat themselves as if their job is done.
The reality is that the most important and sensitive part of a business life is during it’s growth phase. By saying and extracting the capital out of this business, they are effectively putting the business on life support at the most crucial time.
7. Not organizing your days;
Been organized save time. Keep a good dairy and use different apps on your phone to ensure that you are on top of your tasks. As you grow as an entrepreneur, it does become demanding on your time. Keeping a solid and commit yourself to complete tasks that grow your business daily.
A dairy helps you to prioritize tasks, as they come in and completing them in time to ensure that you are on track.
8. Attachment to ideas:
As an entrepreneur, ideas will come and go and you need to get used them going more than coming. Not every idea is a good one and we tend to get carried away with bad or impractical ideas that barely serve us in the long run. As a business person, you need to listen to those around you and present yourself as a receptive person to receive honest and productive feedback.
There is a theory that nothing is new under the sun. Therefore it is highly likely that someone tried your idea before research. again, goes a long way in understanding the viability of new idea. Before investing large amounts of money. Some businesses develop a minimal viable product to test the market.
Becoming attached to your ideas can be dangerous and lead you holding on to and implementing a bad idea. Learn to let go of ideas, even those you are super passionate about.
9. Focusing too much on results.
Entrepreneurship is about designing and maintaining the flow of business in the desired manner. It is also about helping the firm function in a result-oriented mode. If an entrepreneur does exactly that, then the performance of the firm will be better. This will lead to substantial monetary gains as well. thus, instead of thinking about the results, one should work for results.
Usually startup entrepreneurs are too concerned with getting instant results, rather than setting their business basics right. Many startups entrepreneurs believe in short term results, for them. Initial performance matters the most and they measure performance in terms of pure profits and in doing so, they overlook the elementary facts of running a business successfully.
For any type of business, one needs a good foundation which includes the right kind of infrastructure, and the ability to implement strategies that were prepared before the start of a business.
10. Avoiding new business checklist.
You may not wants to spend $1,000 to take a lawyer or accountant before you’ve ever make a dime in business. Unfortunately, some initial outlay into the administrative foundations if the business is not optional. The appropriate and legal structuring and registering of a business is not something that cannot be glossed over during a business initial set up.
You don’t have to dig too deep into the annals of entrepreneurial war stories to find tales of business owners owing back taxes, being fined by state governments and having to restructure after a careless start. Some of this trail by fine, yes. But plenty of purse-ache could be avoided with due diligence.
Make yourself a “starting a new business” checklist. It should in crude research into business structure, hiring a lawyer and accountant, securing necessary domains, and researching local regulations.
11. Not taking much risk.
Entrepreneurs that always play it safe are rarely the ones you hear about making disruptive inroads in their industries. If you want to achieve success, you’ll need to learn to get out of your comfort zone and start taking chances unfortunately. Just because you take a few risks, that doesn’t mean that everything is going to work out perfectly. It still takes planning, intelligence, and courage to carefully evaluate your options and know when something doesn’t go as planned, you’ll need perseverance to try again the next time.
How to use mistakes to your advantage if made some.
Why almost all the best piece of content so far, on the web and in our libraries about business is to help entrepreneurs like you minimize there mistake. Still yet tone of it are always made often, so if you have cast yourself (presently or past) in any of the above mistakes, or something else that as course some kind of failure to your business. No need give up.
Like I have previously been saying, mistakes are vital for entrepreneurs, that it why you don’t have to throw yours away. Learning from it is the best use of those mistakes. And immediately Bounces back. Entrepreneurship can’t be taught in school because mistakes are punish in school, but in real life there is room for lesson.
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1. Get your ego off:
In a entrepreneur head you’ll found so many things like, the drive to build something great; the resilience to dust yourself off when you repeatedly get knocked down. The passion powering a reality distortion field that mesmerizes potential teammates investors, and partners. But inside a founders head may also be delusional arrogance.
This is the most important thing you need to do. If you let your ego get in the way, you will never learn from your mistakes
To put everything on track, you need to be open to changes and accept the fact that you don’t know everything. And you’re not the smartest person in the room.
2. Make a list of mistakes and successes:
Some people are list makers and some aren’t, but as an entrepreneur, a list is a great way to “keep score,”
With every mistake I make, I write it down. I’m not talking about little mistakes like missing a comma in an email. I’m talking about the big one. The one’s where afterward you think, “boy, I screwed that one up!”
To learn from your mistakes you need to make sure that you remember them. So, start a list on your computer. Keep in mind this is not a journal. You shouldn’t be writing down an essay on why you made the mistake, at least not here. This is simply a list, so write it down in point form.
By writing down your failures and successes, you’re going to have a record of every single thing you’ve learned along your entrepreneurial journey. Eventually, you are going to internalize those lessons, ensuring that you won’t make them again.
What ever it’s when you have a goal, (not new year goal) because some new year goals are mostly value and lacks deadlines.
But a well written goal. It keeps you track, and gives you directives which can help you bounce back from from any setback.