Why many entrepreneur fails at startup? You must be aware of some fatal entrepreneurial mistakes that may lead to fail in business. Having not enough money or not having proper skill, so not having an innovative idea; What is the main reason that entrepreneurship fails? Remember only one biggest mistake can ruin your all dreams and business instead of making you successful entrepreneur.
Usually, an entrepreneur is a visionary person, with creative ideas and constant attitudes, who is always seeing business opportunities where others do not see them. Sometimes, due to lack of experience, the new companies fail despite the desire of the new employer to go ahead.
That is why we made a list with the most common mistakes that entrepreneurs make and that leads, finally, to the failure of the company. If you need to learn, you can read; What are the core principals to entrepreneurship?
Take note and avoid them from the beginning:
1. The lack of experience in the sector
In business, things and changes happen fast, and we may not have time to learn enough about it. Therefore, before embarking you must investigate about the market in which you will insert to define if your project is really demanded by the public and what is the competition that you will face, as well as your ability to face it.
Read: 15 Sign That you are born to become entrepreneur
2. A bad location
Location is everything for the physical trade. If we are not in the right location we will not be able to find or convince customers to come and visit us.
Before renting or buying a local, you must make a study of the amount of people who daily pass through that space and the characteristics of it. Try to set yourself up in a busy commercial area, where people are part of your target.
3. The lack of a Business Plan
It is necessary to know, at least, the key data about your project and the sector. For that, you must study the market, analyze the pricing policy, the costs, the profitability, the necessary investment and the financing. The business plan will help you understand the key points, avoid mistakes, make projections and above all, to get capital and loans for your company.
Related: 5 Tips to Writing Perfect a Business Plan
4. Lose too much time in developing the product and strategy
No product will be perfect nor will any strategy be foolproof. It is much better to make a decision analyzed, to make mistakes and to correct. Although you must enter the market with a good plan and strategy, if you delay a lot may someone else implement your idea and win the business.
Read: 5 Necessary Legal Steps for Starting a Home Business
5. Start without enough capital
Entrepreneurs often calculate a financing need a little above the initial investment and rely on the success of the company to self-finance from the beginning. However, things often take months or years to generate enough cash. An initial capital too short can condemn a good project within a few months of its inception.
Related: 10 Financial Tips for Startup Entrepreneurs
6. Not having a market
The tendency to seek a market without competitors leads the entrepreneur to seek a market that is not enough to market a product or deliver a service. It is very important that you identify your potential customers and ensure that there is sufficient demand for your offer.
7. Want to start big
It is an unnecessary risk. To do that, equip your company with second hand material, rent instead of buy, start with a tight template and open a single branch.
8. Excessive growth
Sometimes, the entrepreneurs develop their company so quickly that they end up dying thanks to their own success, which in most cases is due to financial reasons. If your company is starting to do well, you must develop a strategic and realistic plan for sustained growth.
9. Insufficient advertising
You must keep in mind that you must advertise and promote your company, but not in excess but you have the resources to do so. It also happens that some business owners think that customers will come alone and do not want to do any advertising or marketing strategy. The important thing is that you should make your company known to consumers.
10. Being too lonely
A company is built on the team that forms. By being surrounded by more people, you can support yourself in the rest and together face the challenges and challenges, thus you will be more motivated to carry out your business and overcome the failures.
11. Leave too soon
To undertake is not an easy task, it requires a lot of patience and perseverance to keep you firm in your idea of ??getting it out. In many moments you will feel overwhelmed, but if your business is good you will soon see its fruits if you work hard and hard. Remember that, in general, the benefits do not appear in the short term.
12. Surround yourself with poorly capable people
You should not be afraid to hire people more capable than you, because it is precisely these types of employees that you need to make your company successful and not mediocre workers who do not perform their jobs.
Successful entrepreneurship reading list:
20 Rulse to become a successful entrepreneur
10 Productivity Tips For The Overwhelmed Entrepreneurs
Always keep in mind that the customer is the most important of your company; You have to listen from your customer, re-arrange feedback and improve your service.