MISTAKES AN ENTREPRENEUR MUST AVOID
Mistakes are proof that you are trying. They help you to learn and grow. Startup success is not a consequence of good genes rather than it is a process which is learned and can be taught also.
There are some basic mistakes which new entrepreneur tend to make.
1. Not spending the right amount of money: Entrepreneurs either spend too much money or not spend enough money. There are two types of attitude, either they spend money to make money or spend barely minimum money until he has a decent cash flow. Both of these attitudes can be harmful if taken to an extreme level. Spending and saving needs to be done simultaneously.
2. Not setting attainable goals: Setting realistic goals is what helps a startup to succeed. Entrepreneurs delighted by their ideas forget about the reality factor and tend to work without a solid plan. Setting both long-term and short-term goals is necessary. Being specific and reasonable about them helps to determine the steps needed to reach it.
3. Not taking marketing into consideration: Creating a new product or service which is different from others is not enough. Reaching out to people and marketing your product is important. Free PR and word of mouth are not enough. You will need to invest heavily in marketing which includes SEO, PR and paid advertising. Entrepreneurs tend to think that their product is so revolutionary that they can rely on word of mouth and free PR. They should ask themselves how can they compete and differentiate themselves from their competitors.
4. Being product-centric: Entrepreneurs while creating a product and determining the business model must keep in mind their customers. New entrepreneurs are concerned about making money that they forget the key to a sustainable business is having loyal, satisfied and long-term customers.
5. Not developing a support team: Developing a strong networking support team is a must. A business needs people to run. It is impossible for an individual to do it all alone. Having a good networking team helps startups to reach out in the market.
These are some common mistakes that new entrepreneur tends to commit. These mistakes should be avoided by them as much as possible. As we all know mistakes help us to grow but sometimes it can cause long-term damage also.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.