People venture into entrepreneurship with a dream of expanding their start-up to new heights but some of them succeed in their attempts while others fail. It is not that those who failed were less than anybody, but they unintentionally did common mistakes which put the growth of their start-up at stake. Therefore, it is very important for every newbie entrepreneur to know these common mistakes so that they can take all the necessary precautions while running their ventures.
Please read: "5 things that are stopping you from becoming an Entrepreneur"
(1) The habit of doing everything single-hand with no work delegation and task allocation
As an entrepreneur, you are doing multiple tasks and playing different roles every day. Your main focus must be to grow your business. You are good in certain tasks while average in some tasks and may be poor in few other tasks. If you are doing all the tasks by yourself then definitely your productivity will reduce. Therefore, you should delegate those tasks, in which you are poor, to the people who are efficient in them. The delegation may cost you few bucks but it will improve the quality of work, moreover, you will get more time to do those tasks in which you are efficient and effective.
If you are the only employee of your start-up, then try to prioritize your work and then allocate your time and resources accordingly; channelize more time and energy towards those tasks which are important in your hierarchy and subsequently do the less important ones. This will increase your productivity and your quality of work will gradually improve.
Another interesting one: "The seven Important characteristics of an Entrepreneur"
(2) Lack of communication between you and your employees
One of the common reasons behind the break-up in any relationship is the lack of communication. If you create a barrier between you and your employees due to any reason, chances are higher that the productivity of your start-up may suffer and affect its growth. If you do not provide platform to your employee to share and exchange their views, their new ideas will eventually die in their minds. They will feel stagnation in their career and they will leave your start-up.
Therefore, as an entrepreneur you should always talk to your employees on the daily basis. This process will connect you with the team and enable the employees to share their ideas and exchange views. This process helps in maintaining the job satisfaction among the employees and reduces the attrition rate, which is good for the growth of the start-up. A good company always has low attrition rate and high job satisfaction level.
(3) Lack of the personal touch with your customers
Most of the entrepreneurs do common mistake of being professional only without adding a flavor of personal touch with their customers. This approach sometimes results in losing them. Generally, a professional approach do not take into account the human emotions rather this approach is based on rules and regulations, which makes the business monotonous and boring. As an entrepreneur you should add the flavor of personal touch along with your professional approach.
A regular communication besides business talks from your side will help in breaking ice and making relationship stronger. You can wish your customers on the occasion of their birthdays, marriage anniversary or any other important event. Your friendly approach will help you in retaining them for the longer period of time.
(4) Lack of the knowledge about the latest technological changes and new developments in your field
Technology is changing at a very fast pace and if you are not aware about these changes then beware, you can get out of the competition anytime. Do you remember that how pager technology in India in 90’s was overpowered by mobile technology?
The pagers were out of the Indian market within a year when mobile technology was introduced.
You have to strive and push yourself in seeking relevant information about your business and be ready to accept change. This will enable you to incorporate new changes into your product that will provide you the cutting edge in the industry. Moreover, it will enhance, accelerate and improve your decision making power of incorporating new changes or launching a new product in your field.
Article worth reading: "How to manage change & enjoy it?
(5) Lack of inclination towards sales
Howsoever good is your product, it has no worth without a sale. You might have great production line and efficient product designing team, but a less inclination towards sales can put your journey at standstill. Always try to meet new people every day and discuss with them about your business and the product. This activity will make you to leave your comfort zone on daily basis and will help you in acquiring new prospects which on later stage can become your esteemed clients. Their product related queries & problems will help you in making your product more user friendly by incorporating the solution of their problems into your product. Always focus on acquiring new clients rather than designing a logo or tag line of the company. These are just used to showcase the company but are never the prerequisites for doing any business.
(6) Waiting for the perfect time or the situation to take the action
Most of us have the tendency to first create a perfect situation and then start the show and this perfect situation might not come and you never start your show. For example, to start a business you need a laptop with internet connection or a smart phone with internet pack. But you create a picture of the perfect situation that first I need at least a 15’ x 15’ office, a set of furniture to sit and invite clients, printer and stationery along with laptop, certain amount of inventory, a company’s website, it’s logo and tagline with certain minimum amount of cash to meet daily operational expenses etc. As the requirements increases, your actions get delayed and you end up waiting infinitely or always engaged in creating the perfect situation.
Actually, entrepreneurship journey is full of uncertainty, there is no perfect timing or situation in this journey where you can start or take action. Rather you have to be in the action mode most of the time. You can say the entrepreneurship is more or less a Hit and Trial process, where your knowledge, your experience, your attitude, your willingness, your actions and your intuition creates a probability of the outcome. The stronger are the above qualities, the higher is the probability of the desired outcome.
Read: "13 important characteristics of strong minded people"
(7) Lack of discipline, consistency and the deadlines in your tasks
Why some people are good in jobs but when it comes to entrepreneurship they fail ? It is because of the fact that most of us follow and accept the "stick and carrot" approach. We maintain discipline like getting up in the morning, reaching office in time, meeting deadlines when these things are instructed on us. During holidays, we follow a very undisciplined and lethargic approach like rise late in the morning, lying in the bed half of the day etc. It is because of the fact that there is nobody to dictate rules on us. Similar is with entrepreneurship, there is nobody to dictate rules on you expect yourself. Therefore, it is your responsibility to maintain discipline, consistency and set deadlines in your work.
Nothing can be achieved without discipline and consistency. Whatever task or job you have in your hand, keep a deadline of finishing it. Remember, a goal without time line can never be achieved. Now, you are not into 9 -5 job, where your timings & jobs are defined, but you are an entrepreneur now and you are the in-charge of your own actions and the tasks. Please get out of the stick and carrot mentality and be proactive in your approach, then only you can realize your goal.
(8) Not managing your finances effectively
If you do not know how & where to allocate your finances, then it is most likely that your start-up will soon get into trouble. During initial phase of your journey, there will be scarcity of fund. Therefore, you have to be very careful in spending and try to manage and do things within your limits and finances. An over expenditure in your business, which is outside your limits, can put your business under the burden of debt, which can hamper the growth of your start up. Although, a right amount of leverage can accelerate the growth of your start up but before taking it you need to plan accordingly.
An Interesting Article: "How a right Debt-Equity (D/E) structure is important for the growth of a company?"
(9) Wrong price discovery of the product
There are already many players in the market which are well established and serving their customers for long years. It is very difficult for the new player to enter in the segment and create a niche. Your company might be providing best of the services but as it is new in the market and customer always feel apprehensive in trying the new product. A wrong price discovery can lead to less or no sales. Therefore, the price discovery has to be such that it makes the customer to buy your product. Initially, you can offer some extra services in the same price of what your established competitor is offering. This will help in attracting new clients for your start up.
(10) You start losing confidence with every failure
Initially, it is most likely that you face defeat more than success in your endeavor. This will shake your confidence that will compel you to leave in between. Your thoughts become negative and you start giving importance to the negative news like, 90% of the start up fails in their initial phase which further reduces your confidence level. These thoughts will haunt you and you will fear to further enter into this territory. Here at this point, you need to focus more on your work to overcome these negative thoughts of failure. You have to know the reasons behind each failure and take corrective actions. With each corrective action, you again start building your confidence and the negative impact gradually fades out.
Here you are the master of your actions, practically nobody is dictating any terms on your decision making. Therefore, you need to take into account each and every aspect of your start-up before taking any action. A right action can further accelerate the growth of your start-up, whereas a careless or loose decision can put unnecessary obstacles in your goal.