How many dreams die because of a mistake? As an entrepreneur, you’re going to make mistakes, maybe learn from them, however, you don’t have to be learning from mistakes. Yes, you remember better from mistakes, but you can learn better without having to throw away months of hard work.
Emotional rewards abound from starting a business. Being the boss of the whole thing is a great freedom, and isn’t that why you started in the first place. As Harry Truman said, ‘The buck stops here’, and that’s a great feeling. Your emotional rewards are definitely important, however, don’t get stuck on those alone as you can’t survive on joy and contentment.
Not taking into account profit of your business, can kill your dreams faster than anything. Wanting more out of your business than profit is great, and that emotional connection is needed. That said, you’ll doom the business if it’s not making money (profit). You need a business plan that helps you make money, so you can run your business, and sell your product or service.
Doing it all Yourself
A business is a many armed beast, you can’t do it all, and can’t be everywhere. Let’s face it, we all have our weaknesses, and need to think where we fall down. Are you good at marketing? What about the numbers side of things? Figure out your weaknesses find people to work them, do what you can’t and be where you’re unable. Delegation is a big key to running a successful business, otherwise you’ll kill it.
Is your venture meant to expand? Not all are, depending on your offering, or your desires. In such a case, doing it all may be okay, if you’re going to stay small.
As an entrepreneur, you probably understand if no one buys, you don’t make money, but that’s as far as your understanding may go. Many businesses get caught up on one person buying, which proves that someone wants it, but a successful company is not made on one client.
As an entrepreneur, misjudging the number of prospective clients is the biggest mistake you can make. That’s more than just miscalculating future revenue; it’s misunderstanding your businesses viability. Once you have your product or service idea, think about your ideal client who’d buy it before even producing said product or service. You don’t want to waste time or resources because you had to change direction halfway. Think about pre-selling or crowdfunding as a way to get interest, and have some startup money.
No Unique Selling Proposition
A great product is pointless, and not a determining factor in your businesses success. Competition is fierce nowadays, and doing the same thing as you, so to get your market’s attention you need a Unique Selling Proposition (UPS), which shows how your product or service is unique from everyone else’s. You need on for each product or service you sell. Apple and Samsung are good examples. Their smartphones have comparable performance, but different in the apps available, how their app stores are setup, to how they work with other devices. Apple’s real difference is their ecosystem, which most others don’t have.
The days of jumping into an industry, and putting out your product or service are gone. You need something to urge customers to leave their existing supplier and come over to you. You can’t compete if you don’t have something unique to offer. That could be something as simple as a pickup service or drop off service.
Your Accounting Sucks
Everything has a cost. Especially when it comes to finding a business location, as you may have to focus on one area over another, or be home-based at the start. Money & time are one of the more literal and direct costs of your business. Under-funding is one of the biggest startup killers. Remember, if you don’t have money you can’t work your business.
You need room to breathe, whether it’s your plan, or your estimates. More than likely, it’ll take longer than expected, and cost more than you thought. Keep yourself safe by overestimating (being conservative).
Entrepreneurship is risky, even if it’s done perfectly. You may be strong in your way, but some errors will kill your business. You don’t need to see your business crash and burn to learn from those mistakes. Do your due diligence before you start, and you’ll succeed.
Use Heptalysis to Evaluate Your New Business Venture
Blow Your Competition Right Out of the Water
It’s Summer, Time to Delegate
Reduce Liability Risks for Your Small Business
Can Your Business Handle an IT Disaster?
Do You Look at Your KPIs?
How do You Measure up on Making the Hard Decisions?
Seven Things You Need to Look at for Financial Success