Advertising
Advertising

13 of the Most Common Mistakes Entrepreneurs Make When Starting A Business

13 of the Most Common Mistakes Entrepreneurs Make When Starting A Business

Even the most seasoned entrepreneurs commit mistakes, most of which they don’t want to talk about. But imagine the many pitfalls entrepreneurs can help others avoid when they share the mistakes they have made to warn others.

Most, if not all, entrepreneurs have no problem with goal setting or in having a clear vision. Along the way, however, they fail to anticipate or even realize that the road is filled with bumps and humps that can make even the seasoned entrepreneur fall if they are not careful.

He feels that it is not fair for entrepreneurs to commit the same mistakes over and over again simply because no one dared to talk about them.

Below are some of the most common mistakes most start-ups commit. By recognizing what they are, you can skirt around them and avoid downtime.

Advertising

1. Picking the wrong partner

Having business partners is common and also advisable in the world of business. But it is quite tricky to pick the business partner who is a good fit for you and your business. Just because someone is your friend or someone is a family member, doesn’t mean they are necessarily the right business partner for you.

How do you even know that you picked the right business partner?

The primary step in choosing the right business partner is to understand that business partnership is like a marriage. That means that there will be misunderstandings and fights, but they are necessary. However, you need to realize that misunderstandings should be met logically. Therefore, it is essential that you set the right expectations on Day 1, so that both of you know what to do.

2. Lacking focus

If you lack focus, you won’t just be harming your business but your relationships with your clients and partner as well. However, the challenge of not being able to find focus is real for some people, and the advice that “you have to find your niche” can sometimes seem implausible.

Advertising

Instead of feeling bad about lack of focus, you can turn your lack of focus into an advantage. Think about Richard Branson and all the diverse products he has to offer. If someone is to judge Branson negatively for a lack of focus, that person can be seen as a fool just by looking at Branson and all he has achieved through diversification. Thus, if you are having a hard time focusing or finding your niche, try adopting a diversified business model.

3. Too much planning

Lack of planning is a formula for failure, but too much planning can also lead you to the same path. Too many plans can in fact weigh you down. Instead, a good plan is always something that leads to a decision. So how do you make a plan that leads to clear decisions? Focus on a few key themes instead of addressing all your potential problems immediately. Strengthen what areas are already bringing revenue to the company before moving onto minor issues.

4. Choosing the wrong investor

Just as it is crucial to find the right partner, so it is when finding the right investor. Just because someone has deep pockets doesn’t guarantee that they are the right fit for you. So how do you find the right investor for you? It all starts by understanding the investment options you have. Study all the options you have before choosing one. Second, don’t be afraid to ask what the investor can provide for you. This will also determine how involved your investor will be in the business or project. Lastly, make sure that your pitch will clearly articulate your vision and business plan.

5. Not spending on marketing

So you want your business to grow and become successful, but you don’t want to invest in marketing? Then, good luck if you want to make it past the first month. It is a no-brainer to invest at least to some degree in marketing your business.

Advertising

6. Doing everything yourself

Research has already found evidence that multitasking can harm your brain and affect your productivity. Multitasking will not make your company grow quickly or increase your profits. In fact, it can do the opposite because you will wear yourself down by wearing too many different hats at the same time.

7. Hiring too quickly

While it is not advisable to do everything by yourself, hiring too soon can also spell out disaster for your business. So when is the right time to hire? One of the best ways to determine that is to look at the growth of your business. Just because you experience a sudden growth rush doesn’t mean you need to hire right away. Make sure that the increased workload will be for a long time before you start hiring.

8. Ignoring the finances

Business and finance go together. No business owner, from small to big-sized companies, in their right mind ignores this factor. Checking the financial statements for your business will help you know where it stands. It helps you evaluate which areas gobble up much of your cash and which areas you need to cut spending on.

9. Neglected company branding

Your brand reflects your consistency and when you are inconsistent, people lose their trust in you. How do you destroy your brand? Ignoring your customers, not listening to criticisms and feedback, and refusing to change are surefire ways to destroy your brand.

Advertising

10. Not listening to customers

Product reviews and feedback aren’t provided without a reason. They help you gauge which approaches work best with your customers and which don’t. Paying attention to these helps you improve your business and avoid approaches which do not work well with your customers. When your customers see that you care about what they have to say, you will be able to earn their loyalty. More so, they will become your most effective marketers.

11. Trying to be perfect

Everybody is familiar with the quote which says that nobody is perfect; this is true. Each one of us has flaws, so do businesses; thus, it is natural to make mistakes. It is a fact of life that mistakes are inevitable. When this happens, get up and find out what’s wrong, re-strategize, and start all over again. What’s important is to not keep committing the same mistakes.

12. Missing employee accountability

Effective leaders and successful businesses are accountable. When there’s no accountability, there is no standard to measure employee performance. As a result, good employees are not recognized and bad employees are not penalized. In the end, the good employees are frustrated and leave the company filled with bad employees. What happens next is not difficult to guess.

13. Waiting too long to launch

It is easy for the scope of your project to get out of hand. However, the product you have does not need to be perfect at first, and the additional buttons and features you painstakingly add are not necessarily fundamental. When you get your product out there, you can get feedback easily and you can modify your product/service along the way. Waiting too long can contribute to a loss of momentum.

Featured photo credit: Gratisography via gratisography.com

More by this author

important apple watch apps for productivity Top 7 Most Essential Apple Watch Productivity Apps of 2016 Best Places to Relocate in Australia Living In Australia: 5 Top Cities To Relocate To And How To Choose 13 of the Most Common Mistakes Entrepreneurs Make When Starting A Business 13 of the Most Common Mistakes Entrepreneurs Make When Starting A Business Sleeping with Pets Benefits Study Says Your Pet Critically Affects Your Sleep Quality

Trending in Entrepreneur

1 13 Characteristics of Highly Successful Entrepreneurs 2 How to Start Working for Yourself and Become Your Own Boss 3 Top 5 Easy-to-Use Accounting Software for Small Businesses 4 10 Best Success Books You Need to Read to Be Great at Business 5 16 Young And Successful Entrepreneurs Who Prove That Age Is Nothing but a Number

Read Next

Advertising
Advertising
Advertising

Last Updated on March 29, 2021

5 Types of Horrible Bosses and How to Beat Them All

5 Types of Horrible Bosses and How to Beat Them All

When I left university I took a job immediately, I had been lucky as I had spent a year earning almost nothing as an intern so I was offered a role. On my first day I found that I had not been allocated a desk, there was no one to greet me so I was left for some hours ignored. I happened to snipe about this to another employee at the coffee machine two things happened. The first was that the person I had complained to was my new manager’s wife, and the second was, in his own words, ‘that he would come down on me like a ton of bricks if I crossed him…’

What a great start to a job! I had moved to a new city, and had been at work for less than a morning when I had my first run in with the first style of bad manager. I didn’t stay long enough to find out what Mr Agressive would do next. Bad managers are a major issue. Research from Approved Index shows that more than four in ten employees (42%) state that they have previously quit a job because of a bad manager.

The Dream Type Of Manager

My best manager was a total opposite. A man who had been the head of the UK tax system and was working his retirement running a company I was a very junior and green employee for. I made a stupid mistake, one which cost a lot of time and money and I felt I was going to be sacked without doubt.

I was nervous, beating myself up about what I had done, what would happen. At the end of the day I was called to his office, he had made me wait and I had spent that day talking to other employees, trying to understand where I had gone wrong. It had been a simple mistyped line of code which sent a massive print job out totally wrong. I learn how I should have done it and I fretted.

My boss asked me to step into his office, he asked me to sit down. “Do you know what you did?” I babbled, yes, I had been stupid, I had not double-checked or asked for advice when I was doing something I had not really understood. It was totally my fault. He paused. “Will you do that again?” Of course I told him I would not, I would always double check, ask for help and not try to be so clever when I was not!

Advertising

“Okay…”

That was it. I paused and asked, should I clear my desk. He smiled. “You have learnt a valuable lesson, I can be sure that you will never make a mistake like that again. Why would I want to get rid of an employee who knows that?”

I stayed with that company for many years, the way I was treated was a real object lesson in good management. Sadly, far too many poor managers exist out there.

The Complete Catalogue of Bad Managers

The Bully

My first boss fitted into the classic bully class. This is so often the ‘old school’ management by power style. I encountered this style again in the retail sector where one manager felt the only way to get the best from staff was to bawl and yell.

However, like so many bullies you will often find that this can be someone who either knows no better or is under stress and they are themselves running scared of the situation they have found themselves in.

Advertising

The Invisible Boss

This can either present itself as management from afar (usually the golf course or ‘important meetings) or just a boss who is too busy being important to deal with their staff.

It can feel refreshing as you will often have almost total freedom with your manager taking little or no interest in your activities, however you will soon find that you also lack the support that a good manager will provide. Without direction you may feel you are doing well just to find that you are not delivering against expectations you were not told about and suddenly it is all your fault.

The Micro Manager

The frustration of having a manager who feels the need to be involved in everything you do. The polar opposite to the Invisible Boss you will feel that there is no trust in your work as they will want to meddle in everything you do.

Dealing with the micro-manager can be difficult. Often their management style comes from their own insecurity. You can try confronting them, tell them that you can do your job however in many cases this will not succeed and can in fact make things worse.

The Over Promoted Boss

The Over promoted boss categorises someone who has no idea. They have found themselves in a management position through service, family or some corporate mystery. They are people who are not only highly unqualified to be managers they will generally be unable to do even your job.

Advertising

You can find yourself persistently frustrated by the situation you are in, however it can seem impossible to get out without handing over your resignation.

The Credit Stealer

The credit stealer is the boss who will never publically acknowledge the work you do. You will put in the extra hours working on a project and you know that, in the ‘big meeting’ it will be your credit stealing boss who will take all of the credit!

Again it is demoralising, you see all of the credit for your labour being stolen and this can often lead to good employees looking for new careers.

3 Essential Ways to Work (Cope) with Bad Managers

Whatever type of bad boss you have there are certain things that you can do to ensure that you get the recognition and protection you require to not only remain sane but to also build your career.

1. Keep evidence

Whether it is incidents with the bully or examples of projects you have completed with the credit stealer you will always be well served to keep notes and supporting evidence for projects you are working on.

Advertising

Buy your own notebook and ensure that you are always making notes, it becomes a habit and a very useful one as you have a constant reminder as well as somewhere to explore ideas.

Importantly, if you do have to go to HR or stand-up for yourself you will have clear records! Also, don’t always trust that corporate servers or emails will always be available or not tampered with. Keep your own content.

2. Hold regular meetings

Ensure that you make time for regular meetings with your boss. This is especially useful for the over-promoted or the invisible boss to allow you to ‘manage upwards’. Take charge where you can to set your objectives and use these meetings to set clear objectives and document the status of your work.

3. Stand your ground, but be ready to jump…

Remember that you don’t have to put up with poor management. If you have issues you should face them with your boss, maybe they do not know that they are coming across in a bad way.

However, be ready to recognise if the situation is not going to change. If that is the case, keep your head down and get working on polishing your CV! If it isn’t working, there will be something better out there for you!

Good luck!

Read Next