Entrepreneurs are optimistic people. It is their optimism that makes them put their heart, soul, and energy into turning their dream into reality. As an entrepreneur, the passion, enthusiasm and related obstacles that give wings to your business idea may also drive you against the wall. It can lead you and your founding team to commit some mistakes. Being all starry-eyed towards your dream is important, but to turn blind isn’t. Here are some common mistakes to avoid when starting up to ensure that your business is able to sustain long-term.
Poor, inadequate research
The first and foremost step to set up a venture is to conduct in-depth research about the business plan. You must research extensively about the demand of the product/service being offered, the financial viability, market feasibility, etc. Without adequate research there is a high risk of the company stumbling in the very first phase of its inception. Even after the business has crossed its initial phases of development, the team still needs to constantly research to come up with innovative offerings to keep up with the dynamic economy of the nation.
Weak financial planning
Monetary support and planning are extremely crucial to keep a business running. You may have a perfect business plan in place, but if the financial aspect is not well-planned, the business is sure to see doomsday eventually. Another mistake startup founders tend to make is marking their offering too high or too low and not preempting tax-related calculations correctly.
Setting sights too high
While it is great to be optimistic about one’s business, it is a good idea to keep expectations regarding potential and success practical. Entrepreneurs should start with one long-term goal and a set of short-term goals. The latter work as milestones in achieving the larger goal.
Taking your eyes off competition
Unless your company exists in a monopoly-driven market, you are bound to have a whole bunch of competitors. Doing competitor analysis will ensure that you never lose focus on two things – your USP and weaknesses or areas of development in comparison to the other market players.
Poor supplier and customer controls
Along with the internal team, your external stakeholders play an integral part in helping your venture grow. Your customer satisfaction rates will decide your fate in the big race. Organizations must strive hard to keep their customers extremely happy, even if it means going the extra mile. While your clients are important, your suppliers or vendors too support your journey uphill. Remember that they too are essential for positive or negative publicity, depending on your relationships with them.
Hiring the wrong people
Hiring errors result in high cost and time investment implications for the company. Research suggests that recruiting the right set of employees ranks first on the list of priorities for entrepreneurs. Successful entrepreneurs suggest that the first 15 employees of your startup should be in tandem with the company values, mission and goals. This ensures that the new employees joining the bandwagon are in the right hands.
Poor stock and asset management
Manage stocks and assets well if you want to fulfill client requirements or else it will lead in severe delay in product or service delivery. As a startup you need to be in complete control of this to ensure that all their efforts do not go down the drain.
Knowing what you’re doing right is as much important as knowing where you’re going wrong.