As an entrepreneur, you always have a good idea on what we can do, either the business runs with product or service. There are always challengeable and risks for the entrepreneur especially for first-time entrepreneurs. In the road to success, you need to be fraught many mistakes and obstacles. However, being aware of common pitfalls of entrepreneurship will help you to encounter those failure happen and shorten your road to make the pathway of success.
Below are the top 5 typical mistakes entrepreneurs make that you should avoid.
- Lack of research of your industry.
One of the worst mistake can be happen is not know your business well in the current industry. As a start-up for a new business, you need to be actually works in the industry and gain experience from the expertise. Assume that you hire with few accountants will good enough for you to start a business for an accounting firm are definitely a huge mistake. If you want to run for accounting business you need to be actually worked inside the firms and know how to operate an accounting business.
- Poor-hiring decisions
Hiring talent has always been a weakness for entrepreneurs. Hiring productive talent will required time on search of the talent. Wrong decision on hiring not only cost you money on the overhead but also waste your time on the ineffective productivity. Over-hiring will burden on the cash flow, but insufficient of talent will burden on the existing employee turn in exhausted. Shorten the time on completing tasks; well analysis and effective productivity can entrepreneurs on focus on their business developing.
- Overspending without reservation
To sustain a business, financial control is one of knowledge must know by all of the entrepreneurs. Money is a powerful tool to succeed a business. Investing on the required equipment will help your business, but always remember to save part of it also. Spending money on the right time will help your business to have the reverse on future investment. Always remember, when you have money, it’s easy to make money from what you have save. Set a goal, will help your business on cash flow control and save a lump sum without losing money on every dime you make.
- Reliance on “outside money”
Finance from outside might necessary for some of the business start-up. It will help to reduce your own financial burden on the business and also help on expansion of the business model. However, over reliance on the angel investors or venture capitalist is on the reason for a successor fall from top just in second. Entrepreneur should maintain its own business financial ability. Hence proper financial planning always required for an entrepreneur.
- Expanding too fast
Expanding is a good sign for success on your business. However, aggressively growth without planning can negatively impact on your business. It might affect your business reputation by lower the level of customer service, overwhelm on employee and poor decision on some short runs task. At the same time to accelerate on the things you are doing, you might overlook other better option surrounded you. Try not to doing too much thing at once, focus on the right track for business development and outsource the rest.
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