5 Common Mistakes Made by Entrepreneurs
Mistakes are too common to be made while engaging in entrepreneurship. There might be potholes at every corner of the endeavour. Some of them require to be confronted head-on. But, at the same time, there are some primary mistakes that are well-off avoided at all costs.Gigapreneur is here to address at least five of those common mistakes.
Know Your Capital:
One, the lack of proper assessment while committing the capital. Except for a few, the availability of capital will be of severe concern for most entrepreneurs. They are then likely to follow either of the two paths: overspend it following the so-called dictum that “you have to spend money to create money” or the other group that gets to redefine the meaning of stinginess in their terms. Do not follow both as they are likely to land you in a mess. Instead, take care to be prudent in your spending. Know your limits on spending but at the same time, not letting your entire actions be controlled and directed by those limits would be a good practise.
Poor Investment in Human Resources:
Another one of the most common yet hazardous mistakes committed by entrepreneurs is while recruiting personnel for their jobs. When money is limited, it's tempting to hire cheaply. The trouble with that is that you'll end up paying much more in the end. Employees and consultants who are cheap are that way for a reason. Surely, a poorly paid intern can do the same work in marketing as a marketing professional. But the results will be vastly different owing to the difference in the quality of work undertaken by both. The intern or the cheaply hired employee could be inexperienced, unskilled, or unreliable. Employees are the foundation of any business and therefore it is imperative that the hiring process goes rightly. Remember, quality comes at a price. Invest in the right people.
Stagnation of Ideas:
Stagnation happens just not in physical aspects. Stagnation of ideas is one of the major problems that plague today’s generation of entrepreneurs. There is no such rule that asks new businesses to stick to their original idea. Indeed the lack of evolution that allows space for ideas that are distinct from the originally thought ideas can only drag the business down. The market conditions around the time of the conception of the idea might have changed or better ideas might have conquered the scene. Then, the entrepreneur should be willing to let go of the obstinacy if any, for changing times and better ideas. Be receptive to new ideas and ways of working.
Market Research Trumps:
Investopedia defines market research as the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research is significant to any entrepreneur, for it identifies their position with respect to the conditions of the market. The very fundamental question of whether or not the product or service has demand in the market needs to be addressed by market research. A good business will have to persistently rely on these forms of research to align its services with that the needs of the customers. Therefore, even as the capital might seem dubious to finance full-fledged market research on your own, spend your time, effort and money to understand the standing of your product or service in the market through appropriate research.
Compliances & Legal:
Never think that you alone can manage the regulatory compliances and legalities regarding your business. No websites or online videos will be as skilled or as reliable as a trusted legal advisor. There have been more than enough instances where totally flourishing businesses have gone under the bus for lack of proper paperwork. So try not to be one of those. As much complicated as it seems, the work needs to be done. Its always good to be on the right side of the rule of law!
This does not make up a comprehensive list of mistakes that any entrepreneur could make owing to the very reason that such a list is impossible to be made. But these are some of the basic yet significant mistakes that you should be wary of while looking to enter into business. So, happy business!