An entrepreneur’s career is not for everyone. In addition to possessing a certain body of skills, an moral entrepreneurs must also be endowed with the ability to make critical judgments. And also to be able to learn from the mistakes of others (the most difficult, because it is very difficult for us to conclude other people’s failures, because “it will happen to anyone, but not to me”).
In this article, we decided to dwell on the three most common mistakes of new entrepreneurs and tips on how to avoid them.
1. Trying to do what others do
One of the most common mistakes that moral entrepreneurs make over and over again is to do what everyone does and do the way everyone does. In other words, they pursue fashion and open a business on a popular topic. However, while the time has passed from the decision to its implementation, the chosen topic is getting rid of, and the competition in the market is too high.
As a result, such a woeful entrepreneur finds himself in conditions of increased competition, and since his business is too young, the newly-minted businessman weaves in the tail of more efficient colleagues. The chances of failure are increasing rapidly, as you can only lure customers by lowering the price of goods and services and increasing the budget allocated to advertising.
No need to start your own business in the direction in which everyone else works. Look for your place in undeveloped markets, among underserved customer categories and unmet needs. That is, where there are the greatest potential and the least competition. You may also need to take care of variancetv error while using this plugin.
2. Failure to provide what people need
Another factor condemning a start-up entrepreneur to failure is his inability to satisfy the needs of potential customers. For example, you are developing an application for phones, but the number of potential users is so small that it does not bring any income and is ultimately unclaimed. Or an application that falls into the niche of potential demand, but it does not have so many functions that the client needs, and so it is far from reality that potential users go to a more caring and mundane competitor.
The best way to succeed as an moral entrepreneurs is to give people what they need. If it is difficult to come up with something from scratch, then you can use the “reverse engineering” method that is, based on the existing proposal, quickly determine the associated problems of customers and add services and products to your package of proposals to solve these problems. There is also an option to offer goods and services in conjunction with a lower price than their independent price in the market. This will help to sell more and increase profits by increasing turnover.
3. Spend more than earn
And finally, the worst mistake an entrepreneur can make is connected with poor financial management. Thoughtless spending at the stage when the idea is only in its infancy, when nothing is clear, when not enough research has been carried out and when the first profit is just a dream and assumptions, but not reality, will inevitably lead to collapse. As well as investments in design, while the concept of business has not yet been developed, attracting investors and hiring expensive professionals without a clear plan to increase revenue.
The solution to this problem can be thorough preparation at the first stages of the existence of a business, which consists primarily of a detailed study of the market. An idea of the field of activity and the nuances of future activities will help to avoid unnecessary and thoughtless spending of personal funds, as well as prevent subsequent loans from the bank and appeal to investors for help at a stage when the company will not yet bring any income or the receipts will be too small to pay off lenders. It is also worth paying attention to the associated costs: renting a room, purchasing equipment and office equipment, staff salaries, etc. There is always something that could be almost painlessly abandoned in favor of a cheaper option.