How To Avoid The Most Common Mistakes Entrepreneurs Make

The fear of failure is extremely common among entrepreneurs. Unfortunately for most of us, starting a business does not come with a user handbook. As you can imagine, a new entrepreneur is bound to make mistakes. And that is absolutely fine. The difference between successful and unsuccessful business owners is that the former have the ability to turn each mistake into a useful learning experience.

As much as I want to encourage everybody to embrace their missteps, there are cases in which one can easily be dodged. Here I have compiled a few tips on how to avoid a few of the most typical mistakes the newly self-employed tend to make.

1. Leave your day job when you feel ready . Keeping your old job at first to ensure a viable income from your new firm is the wise thing to do. However, once you start earning enough money to keep you going, it is time to quit your 9-5 and start focusing all your energy on your new business. If you want that venture to become a real business, instead of a side gig or a hobby, it needs to become your sole focus.

2. Find out what you are good at and stick to it . It is typical for business owners to become confused as to what exactly their role within their new company should entail. I often find that new owners feel like they should be handling everything and be competent in a number of different things. While it is true that you would need a basic understanding of everything your business deals with, the only way this is going to work is if you find an area or two you have the most confidence in and stick to that. Gathering all sorts of different skills can only disorientate you and is really unnecessary.

3. Be visible . Grasp every single opportunity to talk to people about what it is you are launching. They might not be directly interested in your offering, but you cannot know who this person might refer you to or what they might need in the future. Simply having people who know you and your business can be instrumental in the long term. No matter how busy you might be, never miss the chance to network.

4. Be customer-centric . When launching a new product, it is tempting to go for the most innovative idea you can think of or the latest technological achievement. However, smart product development suggests thinking about what the customers want first. In other words, unless your product adds value to your potential clients, it is guaranteed to fail no matter how cutting edge it is.

5. Spend money wisely . Spending too much or too little is one of the most common problems entrepreneurs come across. You already know you are supposed to spend money during the first few months to get the business going. How much is enough, however? Knowing where to invest is key. My suggestion is to focus your initial investment on good people and product quality. Whether it is staff you employ or third-party contractors you have chosen to do business with, dealing with knowledgeable people can and will determine the future of your company. Ensuring a certain level of quality on your products can also guarantee returning customers.

6. Invest in marketing . Over the years, I have come across countless new business owners who are dedicated that marketing is a luxury solely large corporations can afford to enjoy. That mentality is one of the main reasons why nine out of ten start-ups will fail. The reality is that marketing is crucial during the first steps of any business and under no circumstances should you skip it or rely on word-of-mouth.

7. Seek feedback . Chances are you love your product, website, customer service policy, etc. Ever wondered what other people might think though? Asking friends, family, old colleagues and customers for feedback is essential when you are running a new business. Other people are able to see things from a different perspective and their opinion can be invaluable, thus, I would definitely recommend asking for feedback with every chance that you get.

I hope these tips will save you some time whilst guiding you in the right direction with regards to all those fundamental decisions that lie ahead of you. If you are already an entrepreneur, I would love to hear all about your experience, any mistakes you might have made and how you handled them, so please feel free to comment below.