Common Mistakes Committed by Newbie Entrepreneurs

Being a businessman like Dike Ajiri might be a dream for many but not easy for everyone. If you are in the race of becoming a successful entrepreneur, you would have to learn a lot and put in much effort. The learning phase will be there before and after launching your business. It is not enough to learn the tactics and procedures of launching the business alone. But you should also learn from the mistakes of those who fail. Following only the successful people will not help. So, let us list some common mistakes committed by newbie entrepreneurs in this article.

Not having a plan

The first mistake of almost all business people who fail would be starting the business without a proper plan of action. Some people will start with a basic plan for the short term but will not care about the long term. So, they will end up with no clue after a few days of their launch. On the other hand, people can see gradual development in their businesses if they follow a well-devised plan. Although there may be some uncertainties to following the plan as is, you can change a few parts afterward. However, acting without a base plan is a crucial mistake to avoid.

Hiring a wrong team

You may have a strong mind with a great vision. You may also have all the skills required to be in the business. However, you cannot do so for a long time without support from some people. It is why all business people will hire a group of members to their teams. However, it is crucial whether your employees and partners are worthy just like you. If these people are inefficient, you cannot see your business moving ahead. You can see several businesses falling apart because of a low-grade team working at various levels of the management. You should avoid the mistake of hiring the wrong people.

Getting the help of the wrong investors

Getting funds from an investor is good until the investor demands something unacceptable. Most businesspeople will end up partnering with an investor without even going through the terms. You should not give away a huge portion of your business’s equity to an investor who invests a small portion alone. If you proceed with investors without knowing the dynamics of funding, you will be in trouble. Also, you should ensure that the investor is capable of providing the agreed money. You should avoid the common mistake of choosing the wrong investor.

Relying only on lenders

You can borrow a few of your initial funds from a lender to support your savings or other types of funds. However, if you borrow everything and start a business, you may end up being in unwanted debt if your business also fails. So, you should try raising your funds yourself without relying only on lenders.

Rushing up the activities

You may be willing to make money quickly. However, it is not possible with all the businesses. If you rush up the activities, you are committing a mistake.

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest